May 5th, 2026

The call highlighted strong operational and financial momentum driven by acquisitions (Parkland, Tankwood), significant volume growth in fuel distribution, robust adjusted EBITDA ($867M) and distributable cash flow ($535M), and a meaningful distribution increase with a healthy coverage ratio and liquidity position. Offsetting items include a sizable one-time inventory gain (~$102M) that materially aided the quarter, commodity-driven margin compression and temporary refinery throughput reduction from a planned turnaround, and modest sequential softness in pipeline EBITDA. Management emphasized confidence in delivering full-year guidance even excluding the one-time inventory benefit and noted on-track synergy capture and accretive M&A, supporting a constructive outlook.

Company Guidance

The company reiterated confidence in delivering its full‑year 2026 EBITDA guidance (noting it expects to do so even without the one‑time inventory benefit), while reporting Q1 adjusted EBITDA of $867 million (excluding ~ $9 million of transaction expenses) that included a ~$102 million inventory sale benefit (roughly $92 million in fuel distribution and ~$10 million in refining); Q1 distributable cash flow as adjusted was $535 million; growth CapEx was $106 million and maintenance CapEx $93 million; declared a $0.9899 per common unit distribution (a 6.25% increase composed of a 5% one‑time step‑up plus a 1.25% quarterly raise, >10% higher vs Q1 2025) with a trailing 12‑month coverage ratio of 1.9x and a target multiyear distribution growth rate of at least 5%; leverage was ~4x with $2.2 billion revolver availability; M&A and integration targets remain intact (Tankwood closed Jan 16 and is immediately accretive to DCF/unit, Parkland on track for 10%+ accretion pre‑year 3 with $125 million in‑year synergies and a $250M+ run‑rate target, and the company is on track for >$500 million of bolt‑on acquisitions in 2026 with ~ $200 million already closed/signed); operational metrics included 3.8 billion gallons distributed (up 15% vs last quarter, up 82% YoY) at $0.17/gal reported margin, pipeline throughput ~1.3 million bpd (adj. EBITDA $179M), terminals throughput ~1.0 million bpd (adj. EBITDA $107M), and refinery throughput 22,000 bpd (adj. EBITDA $43M) following a planned 50‑day turnaround.