Sunoco LP gave an update on its Parkland Corp. acquisition on its latest earnings call. | Shutterstock
Parkland Corp.’s U.S. business has struggled over the last few years, but its new owner, Sunoco LP, plans to change that.
Sunoco had its earnings call on Wednesday—five days after it closed on its $9.1 billion acquisition of Calgary, Alberta-based fuel distributor and convenience retailer Parkland Corp., which includes Parkland USA.
The deal, first announced in May, includes Parkland’s 650 retail outlets and 1,830 dealer sites. At the end of 2024, Dallas-based Sunoco had 76 company-owned and operated stores in the United States and Parkland USA had 196 U.S. stores.
“When you combine the two businesses together, our diversified portfolio spans across the U.S., Canada, the greater Caribbean and Europe,” Sunoco CEO Joseph Kim said on the call, according to an AlphaSense transcript. “We will deliver over 15 billion gallons of refined products. Scale is vital in our business, and we are now the largest fuel distributor in the Americas. Specifically, within our midstream and fuel distribution portfolio, the Parkland addition greatly enhances our position in the Atlantic basin.”
- Parkland USA is No. 42 on CSP’s 2025 Top 202 ranking of U.S. convenience-store chains by store count. Sunoco LP is No. 96.
Kim said Sunoco’s immediate priorities are integrating Parkland and getting its balance sheet back to four times leverage, where the company’s total debt is four times its annual EBITDA (earnings before interest, taxes, depreciation and amortization).
“We expect more than $250 million in synergies. We’re digging deep into every part of the acquired business. We will provide more precision and timing when we complete the process,” he said.
In a response to an investor’s question on Wednesday’s call, Kim said it has been well-documented that Parkland’s U.S. business had struggled over the last few years.
“The exact reason, the detail, the insider view, we don’t have the exact details yet, but we will,” he said.
Parkland in October released its third-quarter earnings, reporting a significant dip in EBITDA in the U.S. at $28 million versus $52 million a year ago. The retailer blamed the decline on lower fuel margins and other macroeconomic pressures. Companywide, though, Parkland said its EBITDA rose to $540 million compared with $431 million a year ago.
Kim said Sunoco views Parkland’s U.S. fuel distribution business like a bolt-on acquisition, which the company has done several times before. It plans to manage it for income stability, do gross profit optimization and cut expenses, he said.
“So, in due time, pretty darn quickly, we expect the Parkland U.S. business that struggled to perform in line with what Sunoco has done year after year. So, we feel very positive about that,” Kim said.
For its third-quarter 2025 earnings, Sunoco reported a net income of $137 million compared to $2 million in the third quarter of 2024. Adjusted EBITDA for the third quarter of 2025 was $489 million compared to $456 million in the third quarter of 2024.
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