Good day, ladies and gentlemen, welcome to Parkland's Fourth Quarter 2022 Results Conference Call. Currently, all participants are in a listen-only mode. We will conduct a question-and-answer session later, and instructions will follow at that time. If anyone should require operator assistance, please press star, then zero on your touch-tone telephone. As a reminder, this call may be recorded. I would like to introduce your host for today's conference, Valerie Roberts, Director of Investor Relations. You may begin. Thank you, operator. With me today on the call are Bob Espey, President and CEO, and Marcel Teunissen, Chief Financial Officer. This call is webcast. I encourage listeners to follow along with the supporting slides. We will go through our prepared remarks and then open it up for questions from the investment community. Please limit yourself to one question and a follow-up as necessary. If you have other questions, re-enter the queue. We would ask analysts to follow up directly with the investor relations team afterwards for any detailed modeling questions. During our call today, we may make forward-looking statements related to expected future performance. These statements are based on current views and assumptions and are subject to uncertainties which are difficult to predict. These uncertainties include, but are not limited to, expected operating results and industry conditions, among other factors. Risk factors applicable to our business are set in our revised Annual Information Form and Management's Discussion and Analysis. We will also be discussing non-GAAP and other financial measures which do not have any standardized meanings prescribed by IFRS. These measures are identified and defined in Parkland's continuous disclosure documents, which are available on our website or on SEDAR. Please refer to these documents as they identify factors which may cause actual results to differ materially from any forward-looking statements. Dollar amounts discussed in today's call are expressed in Canadian dollars unless otherwise noted. I will now turn the call over to Bob. Thank you, Val. Good morning, everyone. We appreciate you joining us today. On the cover slide, you will see one of 162 recently rebranded retail sites in Puerto Rico. Under the previous four-core banner, we were obliged to purchase fuel from a third party. We now supply ourselves and benefit from our integrated supply margin. I would like to thank the Parkland team for effectively and efficiently doing this rebrand during the fourth quarter. Parkland's unique integrated business model provides a competitive advantage. We buy, move, and store refined product and supply our retail and commercial networks, which allows to capture incremental margin. Puerto Rico is a great example of how we leverage our supply advantage at Parkland. Across Canada, we calculate that our supply advantage delivers an incremental CAD 0.01- CAD 0.015 per liter over and above the sales margin. Our Burnaby Refinery benefits from being fully integrated with our BC retail and commercial network. You will have read in our news release that after careful consideration and analysis, we have decided not to proceed with the plans to build a standalone renewable diesel complex at our Burnaby Refinery. Following the announcement of the renewable diesel project last year, several factors have impacted its competitiveness. This includes rising project costs, lack of market certainty around emerging fuels, and the U.S. Inflation Reduction Act. We continue to exercise strict capital discipline and focus on returns, there's currently too much risk and uncertainty with this project to proceed. Burnaby Refinery remains a key strategic and integrated asset for Parkland. We remain committed to extending our low carbon fuel leadership by more than doubling our co-processing volumes to 5,500 bpd. Let's move to slide three. 2022 was an excellent year. We had several records that demonstrate the strength of our diversified business model and the Parkland team's commitment to operational excellence. These include our best safety performance to date, record fourth quarter and record full-year Adjusted EBITDA, and record distributable cash flow per share and cash generated from operating activities. Throughout the year, we continued to execute our strategy and grow organically. This includes expanding our ON the RUN convenience stores to more than 650 locations across Canada, the United States, and our international business, increasing co-processing volumes at the Burnaby Refinery, and utilizing new terminals and tanks to further strengthen our supply advantage. We completed all previously announced acquisitions. These included M&M Food Market, Crevier, Husky, Bopac Storage Terminals in Canada, and a retail and commercial business in Jamaica. We also consolidated our ownership of Sol and have benefited from its 100% contribution in the fourth quarter. During the year, we delivered on the commitments that we made to our shareholders, including growing Adjusted EBITDA by almost 30% and meeting our increased guidance, enhancing shareholder returns with CAD 40 million of shares repurchased, increasing co-processing volumes at our Burnaby Refinery by approximately 30%, and delivering over CAD 60 million of renewable EBITDA. I'm very proud of the Parkland team, and I'd like to congratulate and thank them for delivering these excellent results while safely supplying our customers with their energy, food, and convenience needs. Turning to slide four. This slide shows Parkland's results by business line, which is a simple way to view and value the company. It highlights our diverse business, which when coupled with our geographic footprint, adds to our overall resilience. The pie chart on the left shows the 2022 Adjusted EBITDA contribution of our three business lines, retail, commercial, and refining, each of which includes the benefits of our supply advantage. As you can see, retail makes up almost half our Adjusted EBITDA, with the remaining half split almost equally between our commercial and refining businesses. Refinery delivered a record year and built on its track record of safe and reliable operating performance. We expect growth in our retail and commercial lines of business will outpace growth from the refinery, meaning the refining's relative contribution to Parkland will continue to decline. Our retail business provides fuel, food, and convenience. Looking to the middle chart, we've grown the retail adjusted fuel gross margin by 30% year-over-year. This was driven by strategic acquisitions and organic growth initiatives, including expansion of the ON the RUN throughout Canada and into the U.S. Selecting our strategy to grow food and convenience, this part of the business has increased by 53% year-over-year and now encompasses 25% of total adjusted gross margin. This is comparable to peers in the retail industry. Our commercial business grew nearly 30% year-over-year by successfully integrating strategic acquisitions, including leveraging our supply advantage into Jamaica and winning national accounts. Our commercial customers span a variety of industries, including aviation, agriculture, construction, utilities, trucking, and natural resources. We supply them with gasoline, diesel, jet fuel, and propane. We continue to grow our renewables business by providing our customers with low carbon fuels and carbon offsets to help them meet their environmental goals. With that, I will hand it over to Marcel to discuss our segmented results in more detail on slide five. Thanks, Bob. Good morning, everyone. As Bob already mentioned, we delivered record results in quarter four and for the full year. This demonstrates the success of our strategy, strength of our growth platform, and consistent operational execution. Our Canada segment delivered CAD 197 million of Adjusted EBITDA in the fourth quarter and CAD 702 million for the year. Both are up approximately 30% from last year. We delivered higher fuel unit margins during the quarter, driven by our supply advantage. In food and convenience, we achieved same-store sales growth of 6% in the quarter, excluding cigarettes. Our merchandising capabilities continue to grow our center-of-store offer. During the quarter, sales of salty snacks increased 14%, while candy and packaged beverages grew by 12%. M&M also had a great year and contributed to driving our food and convenience gross margin to more than 36% in the quarter. Our loyalty program is also driving growth as JOURNIE members buy more fuel and more convenience items. For context, in the fourth quarter, they spent 16% more on fuel and 20% more in the C-store purchases compared to non-members. International delivered CAD 110 million of Adjusted EBITDA in the fourth quarter, and CAD 383 million for the year. This represents an increase of 40% and 30% respectively. Performance was driven by the consolidation of Sol, volume growth from increased tourism and economic activity, and our Jamaica acquisition. During the fourth quarter, weather-related challenges caused supplier delays in the U.S. Gulf Coast and offloading delays in the Caribbean, and these resulted in higher operating costs. Going forward, we expect the international segment will benefit from strength in the natural resources and tourism sectors, and continued growth in the larger economies of Puerto Rico, Dominican Republic, and Jamaica. USA delivered CAD 46 million of Adjusted EBITDA in the fourth quarter, and CAD 126 million for the year. Our decision in Q3 to limit spot wholesale activities lowered our Q4 volumes. Acquisitions and growth in our base business contributed to a 15% increase in Adjusted EBITDA in Q4. We completed 27 ON the RUN integrations during the year and remain focused on fully capturing synergies from the businesses we have acquired. Refining delivered CAD 128 million of Adjusted EBITDA in the fourth quarter and CAD 560 million for the year. This is an annual record. Our refinery benefited from strong margins and reliable operations with composite utilization of 98%. The fourth quarter last year was primarily impacted by the flooding in BC, which resulted in a temporary closure of the Trans Mountain pipeline and our refinery. The capture rate of the indicative 5-3-1-1 crack in the fourth quarter was consistent with quarter three. The refinery continues to capture a high net refining margin and generates substantial cash flow. Higher costs associated with biofeedstocks and BC's low carbon fuel standard continue to drive cracks higher, results in a mathematically lower capture rate. Assuming these market conditions persist, we expect a capture rate of approximately 55%-65% going forward. The Burnaby Refinery is currently undergoing its planned turnaround, which is on track. We expect to return to normal operations in April. Moving now to slide six. Our balanced capital allocation framework prioritizes deleveraging, followed by increasing shareholder distributions and growing the business organically. Parkland is in a strong financial position. This underpins our eleventh consecutive annual dividend increase. In addition, we purchased CAD 40 million of Parkland shares during the fourth quarter, and this resulted in the cancellation of approximately 1.5 million common shares. We'll continue to repurchase shares if this represents a good allocation of capital, but will not compromise our leverage commitments or liquidity position. We had liquidity of one and a CAD 500,000 at December 31st. Approximately 75% of our debt is fixed at an average interest rates of 4.8%. Our next bond maturity is in 2026, with most of our bonds maturing near the end of the decade. We finished the year with leverage of three. Four turns and see a clear path to less than three turns by the end of 2023. We are now halfway through the four-year strategy outline at our 2021 Investor Day. Having purposefully accelerated acquisitions, we are focused on integration, synergy capture, and organic growth. We continually review our portfolio to ensure assets fit strategically and can generate attractive returns. You will have noticed on our balance sheet that we have assets held for sale. This primarily represents high-value real estate, retail sites, and non-core infrastructure assets that we are currently marketing. We expect proceeds will fund a portion of our growth capital. Now, turning to slide seven. Following our record 2022 results, we have the momentum and capability to grow Adjusted EBITDA to CAD 1.7 billion-CAD 1.8 billion this year, and then to CAD 2 billion by 2025 without the need for further acquisitions. At the same time, we expect to reduce our leverage to the low end of our target range of 2x to 3 x by 2025 as we continue to exert capital discipline. We expect the growth in our Adjusted EBITDA to come from incremental contributions from acquisitions completed last year, organic initiatives in each of our lines of business, as well as through integration, synergy capture, and supply optimization. I will now pass it back to Bob to talk about these initiatives in more detail. Thanks, Marcel. Turning to slide eight. Develop, diversify, and decarbonize are the pillars of our long-term growth strategy outlined in our 2021 Investor Day. Let me highlight some of the initiatives in each pillar that provide the runway to our CAD 2 billion Adjusted EBITDA ambition. Under our Develop pillar, we remain focused on integration activities and capturing synergies. This includes continuous operational enhancements, progressing process and system efficiencies, and realizing the full value of our supply advantage. Under our Diversify pillar, we will continue to expand our ON the RUN convenience store network and are well on our way to our target of 1,000 stores. We look forward to growing our quality food offering with exciting new M&M Food Market concepts. The JOURNIE Rewards program continues to accelerate our digital connection to customers and has now surpassed 4 million members. Under our Decarbonize pillar, we have a track record of innovation and leadership. To support continued growth in co-processing volumes, we are debottlenecking at the Burnaby Refinery, and we expect that our renewables marketing and carbon offset business will continue to grow quickly. I have confidence in the Parkland team's ability to execute our strategy to deliver on our CAD 2 billion ambition. With that, we will turn it over to the operator for questions. Thank you. We'll now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch tone phone. You will hear a three-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. First question comes from Neil Mehta of Goldman Sachs. Please go ahead. Hi. Good morning. This is Nicolette Loeser on for Neil Mehta. Thanks for taking our question. First, just wanted to ask about the CAD 1.7 billion-CAD 1.8 billion EBITDA target for this year. Can you just talk a little bit about the upper and lower end of the range, and then what we may need to see to materialize this year to approach closer to that CAD 1.8 billion? Thank you. Yeah. you know, we're confident about our range this year and, you know, in terms of upper, lower end, really driven by the margin in the refinery at this point. Great. Thank you. Understand Parkland will not be going forward with the renewable diesel at the Burnaby Refinery. Can you just provide a bit more color on the project decision to not go forward? If any capital had been allocated towards the future RD planning, where that may be shifted over time? Yeah. Why don't I lead off on that, on why we've decided not to proceed with that. You know, I would say the biggest change in our business in the renewable space has been the IRA. What we've seen is there'll be a lot of investment in new capacity, and we're just not sure where the market's gonna shake out here in the medium term. The other thing is we've seen costs increase, and at this point, decided not to proceed with it because of those unknowns in the marketplace. Great. Thanks for the comment. Yeah, sure. Let me just maybe comment just on the capital question that was in there as well. As you may recall, a whole significant portion of that project would have been funded by the government, by the BC government, who have been very supportive for this project throughout. You know, in the aggregate, the capital call on the Parkland balance sheet was perhaps limited and a bit further out. In that sense, and since we hadn't committed to the project, there's no real shift of capital anywhere else. It's just no longer part of our forward plans. Thank you. Thank you. The next question comes from Ben Isaacson of Scotiabank. Please go ahead. Thank you very much. Good morning, everyone. Two questions. First question, just to follow up on the decision not to pursue the renewable diesel complex. Does that alter the CAD 2 billion ambition? If not, how do you refill that gap of lost margin by not pursuing the complex? Yeah, it does not impact the 2 billion ambition because that plant would have come on stream towards 2026, 2027. It's not factored into that. You know, in terms of our forward plans, you know, we see many opportunities to continue to grow our business across its many different product lines, and we don't see that that's going to impact the long-term cash projections of the business. Great. Thank you. My second question is, I just noticed the operating costs and the MG&A 2022 over 2021, some pretty big increases. You know, in Canada, MG&A was up 50% year-over-year, similar in the U.S. Can you parse out how much of that is due to inflation? How much of that is due to acquisitions? Is there a plan to kind of get those numbers down a little bit? Or how do you think about your OpEx and the MG&A? Thank you. Yeah, look, you know, I think you highlighted the two primary reasons for an increase in those, inflation and M&A. You know, inflation, we would see a typical 5%-10%, depending on the region. On the M&A, you know, the balance would be due to M&A. We do have plans to continue to integrate. It's part of our path to CAD 2 billion. You know, that'll impact both of those numbers. Typically, follow what we've committed to in the past is between our supply, our operating improvements, our back-office improvements, and some growth capital, we get 30%-50% lift in the assets that we purchase. Right. Thank you very much. Appreciate it. Thank you. The next question comes from Derek Dley of Canaccord Genuity. Please go ahead. Yeah, just a quick one on both guidances for this year and for 2025. Does that include the impact from the refinery turnaround? I just want to be clear, is there another turnaround plan for 2025? The guidance that we have out there would include turnarounds. You know, one of the beauties of our growth that is that it is muting the impact of turnarounds. You know, certainly if you look at last year versus this year and see that we do have a turnaround plan, we're currently in it, we've been able to grow the business based on growing our marketing businesses. Again, while we will continue to see periodically the impact of turnarounds, it'll be muted because of the relative size with respect to the marketing business. Okay. Yeah, no turnaround next year. None next year, but in 2025, is there one? There is, yeah. Yeah. The turnaround for this year, I think you just mentioned, should be completed by April. Beginning of April, like late April, should we expect there to be some turnaround still in the Q2 numbers? Yeah, we're anticipating that the turnaround will be complete here by the end of the quarter. You know, we'll update the market once the plant's back in operation. So far, everything's on track. That's good. Okay. Sorry, just switching gears. I think you've got 25, 26 locations today with the EV chargers in, and I get it is early days, but can you just comment on what you're seeing at those sites? You know, are you seeing a greater flow through of customers into your C stores? Are their purchasing behaviors different, or are they as what you had anticipated? You know, the quick answer is yes. We are seeing our investment thesis prove out in terms of people spending longer at site, spending more time in the stores. Our utilization currently is tracking above plan. And, you know, as you've said, we're early days in. I think we're about 10 weeks into this. We'll update investors here once we get better data and can provide the stats that we're seeing within the network. But again, utilization remains strong and, you know, we're seeing good uptake. Okay, great. Thank you very much. Thank you. The next question comes from John Royall, JPMorgan. Please go ahead. Hey guys, good morning. Thanks for taking my question. Just thinking about stepping back from the RD project and not to kind of beat this RD decision to death, but interesting commentary on the IRA and how that advantages U.S. players. I guess the natural question that comes out of that is, are there any opportunities to get involved in RD in the U.S., and would that be interesting to you? I realize you aren't a refiner in the U.S., but perhaps, you know, partnering on a project that's already being built or something along those lines. Are there any types of opportunities like that? You know, first of all, we need to see how that market develops. You know, our view is that there'll be a lot of capacity coming on and the markets will likely go long. The best position to be in is being a buyer in that market. Again, we'll need to see how that evolves. You know, at this point, we don't have plans to invest in further renewable diesel capacity. You know, we'll leverage our ability to move product, especially by rail. We have a very good rail capability and can move product around North America quite easily. Great. Thanks, Bob. You continue to have this big difference in C-store comps, including and not including tobacco, which is, of course, is not Parkland specific. I assume the higher prices are a big driver there, which shouldn't be changing anytime soon. I guess my question is there anything that can be done there? Not in terms of enforcement, which is kind of political and not in your control, but anything with pricing or promotions? Just wondering how you tackle that issue in general. Yes, we have seen that trend get better over last year, and we continue to see that. You know, again, a couple things. You know, if you recall, during the pandemic, the illicit channel was shut down. You know, that then reopened, and we saw part of the volume migrate back into that. You know, we expect that that'll start to balance out. Then to your point, you know, we have been looking at pricing and pricing can promote cigarettes in various markets and trying to offset that. You know, I would say, though, it is our lowest margin category. It's far more important to us that we're growing our middle of store and our food, which is some of the areas of growth that you'll see in 2023. We're quite confident about being able to grow based on the new programs that we're rolling out into the market. Thank you. Thank you. The next question comes from Michael Van Aelst of TD Securities. Please go ahead. Yeah, thanks. I wanted to follow up on the Canadian same-store sales, because you did see some meaningful improvement sequentially throughout 2022, as you mentioned. I'm just wondering, like, is there other than the center store, couple of center store items you pointed out, was there any improvements in the fresh food or specific ON the RUN programs that might have helped out? Yeah. A number of things, right? We did, and we'll continue to see this translate through into 2023. We did a lot of OTR conversions last year, over 100, which were really in the back half of the year. We tend to get immediate lift when we do that. The second thing, as you point out, is programs. One that we invested in a lot last year was our food. We call it ON the RUN Bistro, and you'll see that in our sites, which is primarily focused around a new coffee offer. We'll see positive uptake on that throughout the year. The third thing is the rebranding of the Husky sites. We started that late Q4, early Q1 here. We'll continue to see that through the first couple of quarters. Again, in early days, we're seeing some significant lift in those sites, both on the fuel and the convenience side. 23 should bode well for same store at Parkland. The final relates to cigarettes. We're seeing that kind of level out here, and we won't see that pressure going forward. Okay, that's helpful. Thank you. In contrast to the strength you've seen in Canada, the U.S. side seems to have been a different story. It seems to have taken a pretty significant turn downwards in the quarter compared to what you had earlier in the year. You know, Murphy reported good same-store sales and some good numbers in the same period. I'm wondering, is there something that you could point to that's either company or region specific to explain the weakness in the U.S. store business, even if it is small? You know, look, we're... That business, we're currently integrating a lot of assets. We're also rebranding assets. There is some volatility in the sales data. As to specifically what categories are up or down, I don't know that. We can do a follow-up call to provide that. Again, you know, that business remains robust. It remains on track, and we expect to see some good comps here going into next year. All right. Thank you. Just one last follow-up on the Canadian part. The MG&A, you called out higher labor, travel, and marketing costs like, I guess, a normalization of that spend. Do you cycle that at the end of Q1, or is that cycled now? Well, we did close a number of transactions last year, which led to the escalation in MG&A and OpEx. you know, exact timing of those, I mean, they were really throughout the year, depending on which business unit. we'll start to see that level out here through the year and come down as we start to push on the synergy side of the businesses. All right. Thank you. Thank you. The next question comes from Matthew Weekes, iA Capital Markets. Please go ahead. Good morning. Thanks for taking my question. I think you've touched on a few of these kind of factors, but just thinking about the increase in kind of adjusted gross margins on the retail side of the business, particularly in Canada, and the increase of food and convenience, you know, proportionately, in that mix. I'm just wondering if you could comment on sort of some of the key factors beyond the initial acquisition of the M&M chain that's been driving at that and, you know, factors that you expect to continue to drive that evolution in the mix going forward. Thanks. Yeah. Thank you, Matt, for your, for your question. Bob already highlighted a bit earlier that, you know, the C-store as part of our strategy and our overall destination kind of strategy for the retail sites, that that is a, you know, that is a primary focus area. The food strategy is being critical. M&M, of course, being one of those. In 2023, we'll, you know, we'll demonstrate how we can actually integrate and benefit from owning M&M as well as our ON the RUN network. We're quite excited about it. Bob already mentioned the, you know, the Bistro concept with coffee, which we have repositioned, and that's driving some of that within the food category as well, and we continue to see that. The conversions of the Husky sites, which we are kind of just starting with those, and putting ON the RUNs in the major ones which have that potential. That will lead to good comps as well. And again, food is a part of that convenience yield. That's why, you know, kind of having bought all of the stuff over the last two years, and especially some of that over the last quarters, you know, we're now kind of in a mode where we can capture that, we can grow that top line, we can go after that, you know, after the cost elements, et cetera, you know, to drive better returns out of those acquisitions. Okay. Thank you. I'll turn it back. Thanks. Okay. Hello? Can you hear us? Oh, hi. Hi, Peter. Go ahead. I don't know, I don't know if it was me or you, but everything just went dead there for a second. It must have been you then, Peter. Yeah. Sorry about that. Okay. Can you elaborate... On the refinery, can you elaborate somewhat on the compliance costs, exactly, you know, what these regulations are, how it works, and how you satisfy those regulations? I take it you blend in your own biodiesel or you purchase biodiesel from others or you buy credits. The fact that you've, you know, canceled this renewable complex, like how does that impact your ability to satisfy these compliance costs, you know, five years out? I take it that the regulations are only gonna become more and more stringent. Yeah. I will take that. Sure, why don't you lead off? Yeah. Good comment. You might recall, Peter, that we actually shared some of those stacks, you know, kind of during the year last year as well. Maybe overall the BC Low Carbon Fuel Regulation is basically tightened over time on the carbon intensity of what we sell. The sellers to customers have that obligation to meet that. The most economic way or to start meeting, and everybody does this, to blend ethanol. We blend, you know, biodiesel or FAME into diesel, but all those have restrictions. The only way to really comply with is to actually sell or blend renewable diesel. For renewable diesel, the two pathways, you gotta either import it from primarily the U.S. where that gets produced or we can make it. Our current, you know, our current activities around co-processing and by co-processing, you know, biofeed at the refinery, in the current regulation, we comply with that. It's our, it's our pathway. I think the way that we described it last year, where co-processing is probably about the cost of 2 x diesel. Actually importing renewable diesel is about 3 x the cost of diesel. There's an advantage of doing it ourselves. As Bob as well said, although we've decided not to proceed with the standalone RD plant, we'll continue to expand our co-process volumes. Over last year, we did just over 2,000 bpd. We've already said we kind of debottleneck the refinery to get to 5,500 bpd, and then we'll look what we can do beyond. Within that pathway of co-processing, we can comply for quite a period with our own obligation. The question perhaps is the renewable diesel manufacturing capacity in the U.S., which is rapidly expanding, does that continue to provide a cost advantage or not? Is actually an option to import renewable diesel at that point economic or equivalent to actually doing it yourself, but then without the capital costs? That's kind of the way to think about it. We believe that at least for the foreseeable future, there will be lots of renewable diesel available in the market as, you know, as the U.S. subsidies start kicking in and everybody starts throwing money at this. I think it's then at that point in time when we get a bit further in the future where we can decide what's the most economic pathway for us with the most certainty. Maybe that provides a bit of context on how we think of complying through time. Right. Then just one follow-up. Like, what proportion of your, you know, requirements are, you know, currently satisfied through your own co-processing abilities? Yeah. Currently, we can fully meet our obligation, and we actually can earn extra credits through our co-processing. Yeah. Okay. Okay. Thank you. Thank you. There are no further questions at this time. I will turn the call over to Bob Espey for closing remarks. Great. Thanks for joining us. We look forward to chatting, in a couple of months. Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.