By Robb M. Stewart

Parkland's long-serving chief executive, Bob Espey, is stepping down in an effort to pacify the gas-station operator's biggest shareholder.

The Calgary, Alberta, company said Wednesday its board has formed a committee to oversee the search for a successor to Espey, who will stay on as president and CEO until either a new leader is named, the company's strategic review is completed or until the end of the year, whichever occurs first.

Espey, who was appointed CEO in 2011 and helped grow Parkland from a regional fuel retailer to one of the country's largest gas-station and convenience-store chains with operations in 26 countries, will provide continuity during the search process, Parkland said.

Espey's planned exit comes a day after shareholder Simpson Oil again called for an overhaul at Parkland, including a change of CEO and refreshed board. Simpson, which holds an almost-20% stake in Parkland, is seeking to push through changes with the nomination of nine director candidates at the upcoming shareholders' meeting May 6.

"Over the past few months, it became clear that stepping down and announcing my departure may help bring resolution to the situation with Simpson Oil Ltd. and benefit all shareholders," Espey said.

Parkland Chairman Michael Jennings, who joined the board last year and until 2023 was CEO of Dallas-based energy company HF Sinclair, has been named executive chair. Jennings will, in addition to leading the board, will remain focused on the review process launched early last month.

Tensions between Parkland and Cayman Islands-based Simpson Oil boiled up last August after Simpson began a court application seeking to end a longstanding standstill agreement and voting restrictions. A court in the province of Ontario in February ruled Simpson, which had called for Parkland to launch a strategic review, was no longer bound by the governance agreement.

Parkland last month agreed to a review of its current business strategy and to look at opportunities that could include a tie-up, divesting assets or a sale of the company.

Ahead of Parkland's shareholder meeting, Simpson Oil released a presentation again calling for the fuel retailer to begin a search for a new CEO, saying it had already identified several candidates. It has accused Parkland of financial underperformance under Espey and the current board.

Parkland on Wednesday said it expects to deliver underlying earnings before interest, taxes, depreciation and amortization of about 375 million Canadian dollars ($268.7 million), which would mark a rise from C$327 million recorded a year earlier. It said it now anticipates adjusted Ebitda for the full year will be toward the lower end of a previously guided C$1.8 billion-to-C$2.1 billion range.

The company is scheduled to release its quarterly results after the market closes May 5.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

April 16, 2025 07:08 ET (11:08 GMT)

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