For Petro Stopping Center, are equity-accounted entities generally included in the impairment reviews of goodwill?

According to the 2025 FDD, Petro Stopping Center generally does not include equity-accounted entities in its impairment reviews of goodwill. The FDD states that midstream and supply and trading activities and equity-accounted entities are typically excluded because they are not part of the cash-generating unit groupings to which the goodwill balances relate. These groupings are used to monitor goodwill balances for internal management purposes. However, if these activities are part of wider cash-generating units to which goodwill relates, they will be included in the test.

This means that when Petro Stopping Center assesses whether the value of its assets has declined, it primarily focuses on the cash flows expected from its core operations like gas and low carbon energy, and oil production. The exclusion of equity-accounted entities suggests that their performance is evaluated separately or that their contribution to the overall goodwill is not considered significant enough to warrant inclusion in the regular impairment reviews.

For a prospective franchisee, this information is relevant because it provides insight into how Petro Stopping Center manages and assesses the value of its assets. Understanding which entities are included in impairment reviews can help franchisees gauge the financial health and strategic priorities of the company. If equity-accounted entities are excluded, it may indicate that their performance does not directly impact the perceived value of the core business operations, or that they are managed under different performance metrics.