Parkland expects $6B in cumulative available cash flow from 2024 to 2028

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CALGARY - Parkland Corp. says it expects $6 billion in cumulative available cash flow from 2024 to 2028 that it plans to use to fund dividends, share buybacks, growth and debt reduction.

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Hey there, time traveller!
This article was published 14/11/2023 (1030 days ago), so information in it may no longer be current.

CALGARY – Parkland Corp. says it expects $6 billion in cumulative available cash flow from 2024 to 2028 that it plans to use to fund dividends, share buybacks, growth and debt reduction.

The company says it plans to use 25 per cent of the expected cash on dividends and share buybacks and 25 per cent to pay for organic growth initiatives.

Parkland says the priority for the remaining $3 billion or 50 per cent will be reducing its leverage ratio to the low end of its two to three times target range by the end of 2025.

Parkland Corp. says it expects $6 billion in cumulative available cash flow from 2024 to 2028 that it plans to use to fund dividends, share buybacks, growth and debt reduction. Gas prices are displayed as a motorist prepares to pump gas at a station in North Vancouver, B.C., Tuesday, May 10, 2011. THE CANADIAN PRESS/Jonathan Hayward
Parkland Corp. says it expects $6 billion in cumulative available cash flow from 2024 to 2028 that it plans to use to fund dividends, share buybacks, growth and debt reduction. Gas prices are displayed as a motorist prepares to pump gas at a station in North Vancouver, B.C., Tuesday, May 10, 2011. THE CANADIAN PRESS/Jonathan Hayward

Beyond that and looking forward through 2028, it says it expects capital will be allocated toward opportunities that generate the greatest shareholder returns.

For 2024, Parkland says it expects adjusted earnings before interest, taxes, depreciation and amortization of about $2 billion and capital expenditures between $475 million and $525 million.

Parkland has made a number of changes to its business since last March, when U.S.-based activist investor Engine Capital LP publicly urged the company to get rid of what it called “non-core assets” and become a pure play fuel and convenience retailer. Engine called on Parkland to sell or spin off its Burnaby, B.C. refinery, a recommendation the company rejected following a strategic review.

This report by The Canadian Press was first published Nov. 14, 2023.

Companies in this story: (TSX:PKI)

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