Parkland says chief executive Bob Espey to step down amid shareholder battle

A boat travels past the Parkland Burnaby Refinery on Burrard Inlet at sunset in Burnaby, B.C., on Saturday, April 17, 2021. THE CANADIAN PRESS/Darryl Dyck

Parkland Corp. says its chief executive is planning to step down as activist shareholders push for sweeping changes at the fuel refiner and retailer.

Serving as CEO has been the “opportunity of a lifetime,” Bob Espey said in a news release Wednesday.

“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.

“I remain deeply committed to Parkland and will support a smooth transition to new leadership.”

Cayman Islands-based Simpson Oil Ltd., which owns almost 20 per cent of Parkland’s shares, has named nine nominees it wants to see voted in as directors at the meeting set for May 6. It says Parkland’s current leadership has failed and that new board members are needed to hold management accountable.

Parkland has called Simpson’s board proposal an attempt to seize control of the company without paying a premium.

Simpson and another activist investor, Engine Capital, had urged Parkland to weigh strategic alternatives to boost shareholder returns, which could include selling the whole company. Parkland resisted until early last month when it said a committee would look into possible deals.

Calgary-based Parkland said Espey will remain in the role until the appointment of a new CEO, the completion of the company’s strategic review or Dec. 31 — whichever occurs first.

Board chair Michael Jennings has been appointed executive chair, while director James Neate will serve as lead independent director.

Simpson Oil released a presentation Tuesday outlining what it says is Parkland’s “track record of governance failures and financial underperformance” and reiterating its call for a board overhaul and management change.

“Board tinkering and refreshment have not addressed the root problems,” Simpson said. “At this point, the question is no longer whether change is necessary, it’s who shareholders can trust to deliver it.”

Neither Simpson nor New York-based Engine Capital immediately provided statements Wednesday about Espey’s planned departure.

Also Wednesday, Parkland provided a glimpse of its first-quarter results which are to be released on May 5. It said it expects to deliver adjusted earnings before interest, taxes, depreciation and amortization of $375 million, up from $327 million in the same period a year earlier.

It said it expects its adjusted EBITDA for 2025 to come in at the low end of its guidance range of $1.8 billion to $2.1 billion.

“Parkland has a diversified and resilient business. Its base business is well positioned and retains significant operational flexibility to navigate macroeconomic uncertainty on the horizon, which is impacting fuel demand and unit margins,” the company said.

“Recent regulatory developments in Canada and the United States have created volatility and intensified market disruptions. These are curtailing the profitability and movement of refined products into the United States and creating structural shifts in climate and carbon compliance programs.”

Lauren Krugel, The Canadian Press

This report by The Canadian Press was first published April 16, 2025.