Parkland Fuel Corporation Extends Supply Capability with Definitive Agreement to Acquire Elbow River Marketing

Parkland Fuel Corporation Extends Supply Capability with Definitive Agreement 
to Acquire Elbow River Marketing 
- Enhanced Logistical, Storage and Marketing Capabilities Further 
Differentiates Parkland from Other Canadian Fuel Marketers - 
RED DEER, AB, Dec. 20, 2012 /CNW/ - Parkland Fuel Corporation ("Parkland" or 
the "Corporation") (TSX: PKI), Canada's largest independent distributor and 
marketer of petroleum products, today announced that it has entered into a 
definitive agreement to acquire the assets of Elbow River Marketing Limited 
Partnership ("Elbow River") from AvenEx Energy Corporation (TSX: AVF) (the 
"Acquisition"). The Acquisition is expected to close and be effective on or 
around February 15, 2013. All financial figures are stated in Canadian 
dollars. 
Acquisition Highlights: 
Grow 


    --  Subject to satisfaction of closing conditions, the assets of
        Elbow River will be purchased for total cash consideration of
        $80 million and the assumption of between $10 million and $15
        million in debt;
    --  Elbow River's EBITDA for the four quarters preceding September
        30, 2012 was approximately $20 million;
    --  Expected to be accretive to Parkland shareholders at
        $0.13/share in net earnings and $0.16/share in distributable
        cash flow on an annualized basis;
    --  Parkland's current financial position is sufficient to fund
        this transaction; and
    --  Elbow River's current annual sales volumes of approximately 2
        billion litres are in addition to Parkland's 2016 target of
        seven billion litres in fuel sales as outlined in Parkland
        Penny Plan.

Supply
    --  Stable and diversified source of additional supply earnings;
    --  Rail capability enables supply and throughput opportunities for
        the Bowden Terminal; and
    --  Additional supply options provide the platform for market
        expansion.

Operate
    --  Elbow River will operate as a separate stand-alone subsidiary;
        and
    --  Expected opportunities around rail logistics and product
        terminals.

Elbow River is a North American transporter, supplier and marketer of 
petroleum products including liquefied petroleum gases (butane, propane, and 
condensate), crude oil, heavy fuel oil, and a growing portfolio of refined 
fuel and bio-fuel products. Elbow River has differentiated themselves in 
this space through their rail car logistics capabilities, managing a fleet of 
1,200 rail cars. Their strategy of geographic arbitrage leverages their strong 
network of relationships to match purchase and sales contracts, employing a 
risk averse approach to marketing. Operating in the petroleum products 
marketing sector for 30 years has provided Elbow River with the expertise and 
logistical capabilities to rapidly respond to emerging opportunities, which 
has allowed them to establish a record of profitability.

"The acquisition of Elbow River Marketing extends Parkland's marketing 
capability within the petroleum marketing sector, diversifies our earnings and 
further differentiates Parkland from other Canadian fuel marketers," said Bob 
Espey, President and Chief Executive Officer of Parkland. "We see 
significant opportunity in joining the marketing, logistics, and risk 
mitigation expertise of Elbow River's highly respected marketing team with 
Parkland's knowledge and sales capacity within the downstream fuel marketing 
sector."

Elbow River fulfills an important part of the Parkland Penny Plan by enhancing 
Parkland's supply capabilities, allowing Parkland to further exploit North 
American supply and demand imbalances. The Acquisition is expected to extend 
the Corporation's relationships with refiners, fuel suppliers, and fuel 
customers. Elbow River's experience in propane and growing focus on fuel 
products represent two areas of opportunity.

The Acquisition is subject to the receipt of all necessary third party and 
regulatory approvals including approval under the Competition Act.

Conference Call Information
President and CEO Bob Espey and Senior Vice President and CFO Mike Lambert 
will host a webcast and conference call on Thursday, December 20, 2012 at 9:00 
a.m. MST (11:00 a.m. EST) to discuss the acquisition of Elbow River 
Marketing. Following their formal remarks they will then take questions from 
securities analysts, brokers and investors.

Please log into the webcast slide presentation 10 minutes before the start 
time at:

http://www.snwebcastcenter.com/custom_events/parkland-20121218/site/

To access the conference call by telephone from within Canada dial toll free 
1-888-241-0394. International callers or callers from the Toronto area 
should use (647) 427-3413. Please connect approximately 10 minutes prior to 
the beginning of the call and quote the conference ID: 8175 7869.

The webcast will be available for replay two hours after the conference call 
ends. It will remain available at the link above for 90 days.

Forward Looking Information
Certain information included herein is forward-looking. Forward-looking 
statements include, without limitation, statements regarding the successful 
completion of the Acquisition and the timing thereof, the anticipated 
benefits of the Acquisition, Parkland's future financial position, business 
and growth strategies, including the manner in which such strategies will be 
implemented, budgets, projected costs, sources of growth, capital 
expenditures, financial results, taxes, future acquisitions and the 
efficiencies to be derived therefrom, effectiveness of internal controls, 
sources of funding for growth capital expenditures, anticipated dividends and 
the amount thereof, if any, to be declared by Parkland Fuel Corporation, and 
plans and objectives of or involving Parkland. Many of these statements can be 
identified by looking for words such as "believe", "expects", "expected", 
"will", "intends", "projects", "projected", "anticipates", "estimates", 
"continues", or similar words and include, but are not limited to, statements 
regarding the accretive effects of acquisitions and the anticipated benefits 
of acquisitions. Parkland believes the expectations reflected in such 
forward-looking statements are reasonable but no assurance can be given that 
these expectations will prove to be correct and such forward-looking 
statements should not be unduly relied upon. Forward-looking statements are 
not guarantees of future performance and involve a number of risks and 
uncertainties some of which are described in Parkland's annual report, annual 
information form and other continuous disclosure documents. Such 
forward-looking statements necessarily involve known and unknown risks and 
uncertainties and other factors, which may cause Parkland's actual performance 
and financial results in future periods to differ materially from any 
projections of future performance or results expressed or implied by such 
forward-looking statements. Such factors include, but are not limited to: 
failure to obtain necessary regulatory or other third party consents and 
approvals; the failure to achieve the anticipated benefits of the Acquisition; 
general economic, market and business conditions; industry capacity; 
competitive action by other companies; refining and marketing margins; the 
ability of suppliers to meet commitments; actions by governmental authorities 
including increases in taxes; changes in environmental and other regulations; 
and other factors, many of which are beyond the control of Parkland. Any 
forward-looking statements are made as of the date hereof and Parkland does 
not undertake any obligation, except as required under applicable law, to 
publicly update or revise such statements to reflect new information, 
subsequent or otherwise.

About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer and 
distributor of petroleum products, managing a nationwide network of sales 
channels. We are Canada's local fuel company, delivering gasoline, diesel 
fuel, lubricants, heating oil and other products to businesses, consumers and 
wholesale customers through community based operators who care.

For investor and media inquiries please contact Tom McMillan, Director  of 
Corporate Communications attom.mcmillan@parkland.ca or 1-800-662-7177 ext 
2533. To sign up for Parkland's investor  information services, please go 
tohttp://bit.ly/PKI-Info or visitwww.parkland.ca.

SOURCE: Parkland Fuel Corporation

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CO: Parkland Fuel Corporation
ST: Alberta
NI: RET MNA 

-0- Dec/20/2012 14:45 GMT


 
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