Parkland USA Market Research Report

Background

Overview

Parkland USA, a subsidiary of Parkland Corporation, is a prominent independent supplier and marketer of fuel and petroleum products, operating across the United States, Canada, the Caribbean, and the Americas. The company manages a network of retail, commercial, and wholesale channels, serving a diverse customer base. In the United States, Parkland USA has operations in 13 western states, including Colorado, Minnesota, Montana, New Mexico, North Dakota, South Dakota, Utah, and Wyoming.

Mission and Vision

Parkland USA's mission is to provide essential fuels, convenience items, and quality foods to over one million customers daily, thereby energizing communities and powering journeys. The company's vision focuses on sustainable growth, customer satisfaction, and operational excellence, aiming to be a leading provider in the fuel and convenience store industry.

Primary Area of Focus

The company's primary focus is on the distribution and retail of fuel and petroleum products, complemented by a growing presence in the convenience store sector. Parkland USA operates under various brands, including On the Run, and has been expanding its convenience store footprint to enhance customer experience and drive growth.

Industry Significance

As one of North America's fastest-growing independent fuel marketers, Parkland USA plays a significant role in the fuel distribution and convenience store industry. Its extensive network and strategic acquisitions have bolstered its market position, enabling the company to serve a broad customer base across multiple regions.

Key Strategic Focus

Core Objectives

• Expansion of Retail Footprint: Parkland USA aims to increase its convenience store presence, targeting high-growth regions to enhance market share.

• Operational Efficiency: The company focuses on optimizing supply chains and distribution networks to improve profitability and service delivery.

• Sustainability Initiatives: Parkland USA is committed to integrating sustainable practices, including the adoption of low-carbon fuels and renewable energy sources.

Specific Areas of Specialization

• Fuel Distribution: Efficient supply and distribution of various fuel products, including gasoline, diesel, and propane.

• Convenience Retail: Operation of convenience stores offering a range of products and services to meet customer needs.

• Commercial Fuel Services: Provision of bulk fuel and lubricants to commercial clients across diverse industries.

Key Technologies Utilized

• Supply Chain Management Systems: Advanced software solutions for inventory management and logistics optimization.

• Point-of-Sale (POS) Systems: Integrated systems for transaction processing and customer data collection.

• Renewable Energy Technologies: Implementation of solar power and other renewable energy sources in operations.

Primary Markets Targeted

Parkland USA primarily targets the U.S. market, focusing on western states such as Colorado, Minnesota, Montana, New Mexico, North Dakota, South Dakota, Utah, and Wyoming. The company also has a significant presence in Florida, with plans for further expansion in the region.

Financials and Funding

Funding History

Parkland USA has financed its growth through a combination of internal cash flow and external financing, including credit facilities and equity issuance. The company has pursued strategic acquisitions to expand its footprint and capabilities.

Total Funds Raised

Specific figures regarding total funds raised are not publicly disclosed. However, the company's financial strategy includes leveraging existing credit facilities and issuing common shares to fund acquisitions and operational initiatives.

Recent Funding Rounds

• Acquisition of Urbieta Oil Co.: In November 2021, Parkland USA acquired Urbieta Oil Co., adding 94 retail locations in Florida.

• Acquisition of Lynch Oil: Also in November 2021, the company acquired Lynch Oil, including five Mr. Gas convenience stores and two travel centers.

Notable Investors

As a subsidiary of Parkland Corporation, Parkland USA's investors include institutional investors, private equity firms, and individual shareholders who have invested in Parkland Corporation's publicly traded shares.

Intended Utilization of Capital

The capital raised is primarily utilized for strategic acquisitions, expansion of retail and commercial operations, investment in technology and infrastructure, and sustainability initiatives.

Pipeline Development

Key Pipeline Candidates

• On the Run Convenience Stores: Parkland USA has been converting existing locations to the On the Run brand and plans to establish standalone On the Run convenience stores in high-traffic urban locations.

Stages of Development

• Conversion Projects: Ongoing conversion of existing stores to the On the Run brand.

• New Store Openings: Plans to open new standalone On the Run convenience stores in select urban areas.

Target Conditions

The company targets high-traffic urban locations for new On the Run stores, aiming to capture a significant share of the convenience store market in these areas.

Relevant Timelines

Specific timelines for new store openings and conversions are not publicly disclosed but are part of Parkland USA's strategic growth initiatives.

Technological Platform and Innovation

Proprietary Technologies

• On the Run Brand: A proprietary convenience store brand offering a range of products and services to enhance customer experience.

Significant Scientific Methods

• Co-Processing at Refineries: Parkland USA employs co-processing methods at its refineries to produce low-carbon fuels, contributing to its sustainability goals.

Leadership Team

Executive Profiles

• Doug Haugh: President of Parkland USA, leading the company's operations and strategic initiatives in the U.S. market.

• Bob Espey: President and CEO of Parkland Corporation, overseeing the overall direction and performance of the company.

• Donna Sanker: Appointed as President of Parkland USA in December 2022, succeeding Doug Haugh.

Market and Competitor Analysis

Industry Dynamics

The fuel distribution and convenience store industry is characterized by consolidation, with companies seeking to expand their market presence through acquisitions and strategic partnerships. The market is also witnessing a shift towards sustainability, with an increasing emphasis on low-carbon fuels and renewable energy sources.

Key Competitors

• Sunoco LP: Acquired Parkland Corporation in October 2025, becoming the largest independent fuel distributor in the Americas with over 11,000 retail locations.

• 7-Eleven Inc.: A leading convenience store operator with a vast network of locations across North America.

• Alimentation Couche-Tard Inc.: Operates convenience stores under various banners, including Circle K, with a significant presence in the U.S. market.

Strategic Collaborations and Partnerships

Parkland USA has engaged in several strategic acquisitions to enhance its market position, including the acquisition of Urbieta Oil Co. and Lynch Oil in 2021.

Operational Insights

Parkland USA's focus on consolidation within existing markets allows for efficient expansion without the need to enter new regions. The company's commitment to sustainability and customer experience positions it favorably in a competitive landscape.

Strategic Opportunities and Future Directions

Strategic Roadmap

• Expansion of On the Run Brand: Continued conversion of existing stores and establishment of new standalone locations in urban areas.

• Sustainability Initiatives: Further investment in low-carbon fuels and renewable energy sources to meet environmental goals.

• Operational Optimization: Enhancement of supply chain and distribution networks to improve efficiency and profitability.

Future Business Directions

Parkland USA plans to leverage its existing market presence to double its store count through strategic acquisitions and organic growth, focusing on high-growth regions and urban centers.

Opportunities for Expansion

The company identifies significant opportunities in the Florida market, aiming to build scale and density to support the On the Run brand and other convenience store operations.

Positioning for Future Objectives

Parkland USA's strategic focus on consolidation, sustainability, and customer experience positions it well to achieve its future objectives and maintain a competitive edge in the industry.