Parkland Income Fund Reports Fourth Quarter and Year End

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• Quarterly fuel sales volume of 728 million litres, up 10% from 664 million litres the prior year
• Q4 EBITDA of $13.7 million, down 45% from 2008, 2009 EBITDA of $90.8 million, up 12% or
$9.6 million from 2008
• Distribution payout ratio 102% for the quarter and 76% for all of 2009
• Strong contribution from retail fuel sales
• Successful issuance of $97.75 million of convertible debentures at 6.5% coupon and 30%
conversion premium
• Announcement of agreement to purchase Bluewave Energy (“Bluewave”) with January 31,
2010 closing
• Intention to convert from a Trust to a Corporation by January 2011 with plans to become a
high-yield growth Company with an expected dividend between 75% and 110% of the current
level of the Fund’s annual distribution ($1.26 per unit)

Red Deer, March 2, 2010 – Parkland Income Fund (TSX:PKI.UN) today announced its business
performance for the fourth quarter of 2009 and the year ended December 31, 2009. Parkland
recorded fuel volume sales of 728 million litres in the fourth quarter of 2009, an increase of 10%
relative to the fourth quarter of 2008. Earnings before interest, taxes, depreciation and amortization
(EBITDA) were down in the fourth quarter of 2009 compared to 2008, primarily due to cyclical
declines in refiners’ margins and as previously disclosed in the fourth quarter of 2008, the Fund
received a non-recurring contract cancellation fee of $5.0 million, and there was no such fee in the
fourth quarter of 2009. However, EBITDA for the year ended December 31, 2009 increased by $9.6
million or 12% to $90.8 million from $81.2 million in 2008. The increase in EBITDA is attributed to
strong retail sales and margin growth, which together offset the challenges in commercial business
and second half 2009 refiners’ margin declines.

President and CEO Mike Chorlton said, “We are pleased to report growth in earnings in 2009 relative
to 2008, despite facing some particularly challenging circumstances. We credit much of this
accomplishment to our ability to remain focused on the execution of our strategy as well as the skill,
hard work and dedication of Parkland employees across the country. As we work through this
extended period of economic uncertainty, we remain focused on maintaining monthly distributions,
which we believe are sustainable with the current outlook, while driving operational efficiency and
continuing to prudently grow our business as opportunities arise.”

Trust to Corporation Conversion Plan

On October 31, 2006, the Canadian Minister of Finance announced the Specified Investment Flow
Through Trust (SIFT) income and distribution tax, which is effective January 1, 2011. Parkland
intends to seek unitholder approval to convert back to a corporation by way of a trust unit for
corporate share tax-deferred exchange no later than January 2011. After conversion, provided there
are no material adverse changes in our outlook for business conditions, Parkland plans to become a
high-yield growth Company with an expected dividend between 75% and 110% of the current level of
the Fund’s annual distribution ($1.26 per unit).

Mr. Chorlton said, “Our 2011 dividend outlook is supported by our expectation that Bluewave Energy
earnings will be sufficient to cover additional interest cost and maintenance capital expenditures
related to the Bluewave purchase and 100% of Parkland’s tax as a corporation – leaving Parkland
with the continued ability to maintain strong annual dividends.

“After conversion, we intend to continue the growth of Parkland by making accretive acquisitions
financed by a combination of cash generated from the business, available room on our bank credit
facility and new equity capital as appropriate. Even after the Bluewave purchase, Parkland continues
to maintain a strong balance sheet and could expand borrowings if required for future growth.”
“We may consider conversion to a corporation before 2011 if significant events or growth
opportunities arise that would require an earlier conversion,” added Mr. Chorlton.

Parkland continues to maintain a strong and conservative balance sheet. As of December 31, 2009,
the Fund’s Debt to EBITDA ratio was well under our 2.0 target. To finance the Bluewave purchase,
Parkland increased its syndicated credit facility to $400 million from $265 million, in addition to raising $97.75 million from a Convertible Debenture issue in December 2009. After completing the Bluewave purchase, Parkland has over $200 million of available combined bank credit and safe harbor equity room (approximately $62 million) to finance operations and continued growth. Parkland continues to be under-leveraged and has financing capacity in reserve to accommodate changes in business conditions and to execute accretive growth transactions.

Distributable cash fell short of cash distributions in the fourth quarter by 2% but was comfortably
above cash distributions for the year ended December 31, 2009. The annual distribution payout ratio
for 2009 was 76% compared to 91% in 2008. Accordingly, we have maintained our monthly
distribution rate of $0.105 per unit.

At the May 3, 2010 Parkland Annual and Special Meeting, Parkland will request approval from
unitholders to complete the conversion of Parkland Income Fund into a new public corporation
effective no later than January 2011. Parkland will schedule a second Special Meeting of unitholders
to re-approve the conversion plan if there is a material change in business conditions before
conversion or if Parkland proposes conversion before 2011 because of acquisition or merger
opportunities that change the approved Parkland conversion proposal.


Two months into the first quarter of 2010, retail fuel sales volumes remain similar to the 2009 year
and retail margins remain strong in spite of the winter season when demand for gasoline is typically
weakest. Commercial fuel sales volumes remain soft in northern Alberta as upstream oil and gas
customers have not fully resumed prior drilling programs. Warmer weather in British Columbia
continues to cause softness in heating oil volume and profits. Our newly acquired Bluewave business
brings cross-Canada balance to Parkland’s fuel distribution and exposure to weather influences on
heating oil demand.

Current refiners’ margins have been running at the low end of seasonal norms compared to Q1 2009
when they were well above average for a first quarter. However, the profit contributions anticipated
from recent Parkland acquisitions should help minimize the impact of refiners’ margins inherent
volatility and uncertainty as it becomes a much smaller relative component of Parkland’s growing


On January 31, 2010, Parkland closed the acquisition of Bluewave, which had 2009 sales volumes of
645 million litres and normalized EBITDA of over $34 million. The Bluewave acquisition makes
Parkland the largest independent fuel marketer in Canada with a coast-to-coast network of retail,
commercial, cardlock, heating oil and propane distribution outlets. The Bluewave acquisition and
expected profits support Parkland’s post conversion intended dividend policy. Parkland also expects
to realize synergies from the combined Parkland/Bluewave business of at least $2 million in 2010 and
$5 million in 2011 in addition to other cost saving initiatives that are being undertaken to reduce
overhead costs in proportion to the size of the overall business.

While the 2010 Bluewave acquisition is positive and provides instant growth and accretion, we
recognize that Parkland operates in uncertain economic times. Demand for Parkland’s products
fluctuate with economic conditions and may deteriorate over time. Profit margins also vary from time
to time in response to changes in demand and economic conditions in general. These factors
represent a risk for Parkland’s profitability going forward.

Fuel Volumes

Gasoline, diesel and propane volumes were strong with total sales of 728 million litres in the quarter
ended December 31, 2009, an increase of 10% from 664 million litres for the same period in 2008.
The increase resulted from the acquisitions completed over the past year.

Gross Profit

In addition to the retail margins for gasoline and diesel, we participate in the refiners’ margins for a
significant portion of our supply volumes. In the fourth quarter of 2009 this participation dropped
approximately $18.9 million from the comparable period in 2008 when refiners’ margins were
unusually high for a fourth quarter. The contribution from refiners’ margins has been highly variable
over the past three years as it produced record results in 2007 then declined to minimal amounts in
the second half of 2009.

Our operating and direct costs were $28.9 million in the fourth quarter compared to $26.9 million for
the same period in 2008. This increase is driven by the 2009 acquisition of Columbia Fuels and
Anmart Fuels and the corresponding overhead cost increases.

Our marketing, general and administrative expenses were $13.9 million in the fourth quarter
compared to $13.4 million for the same period in 2008. Included in this expense category are the
operating costs related to our Enterprise Resource Planning system implementation, which is
expected to go live in Q1, 2010.