When would Petro Stopping Center recognize obligations related to refineries?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, decommissioning provisions associated with refineries are generally not recognized because the potential obligations cannot be measured due to indeterminate settlement dates. However, obligations may arise if refineries cease manufacturing operations. In such cases, Petro Stopping Center would recognize these obligations in the period when sufficient information becomes available to determine potential settlement dates.

This means that as a Petro Stopping Center franchisee, you would generally not need to account for decommissioning costs for refineries in your financial planning unless the refinery stops its manufacturing operations. The timing of these potential obligations is uncertain and depends on when the refineries might cease operations.

Petro Stopping Center reviews its refineries periodically for changes in circumstances, including those related to the energy transition, that might require recognizing a decommissioning provision. However, the cessation of manufacturing at Petro Stopping Center's operating refineries is not expected within a determinate time period, as existing property, plant, and equipment are expected to be renewed or replaced. Therefore, decommissioning provisions relating to refineries at December 31, 2024, are not material.