PENN: Chicago Market Casino Tour: Investments Turning to Cash Flows; PT to $24

Research evidence excerpt

PENN: Chicago Market Casino Tour: Investments Turning to Cash Flows; PT to $24

'26 Setup / Balance Sheet: Mgmt framed 2026 as the first year in some time without a

2027E 324.5 E 306.3 E 249.4 E 271.4 E 1.15B E

major competitive supply shock and have a clean runway following six+ yrs of capex. All

four projects are open, w/ the Chicagoland assets better positioned near highways and Prior 318.8 E 294.9 E 245.8 E 267.8 E 1.13B E

supported by the broader $2.4b+ mkt. Corp. overhead is more predictable and lease- EBITDASource: Company(MM): EBITDAData, beforeWells Fargorent Securities estimates, and Factset.

adjusted levg. should move toward the high-4x range, while trad. net debt should fall from NA = Not Available, NC = No Change, NE = No Estimate

~2x to1.8-1.9x range. Digital at inflection even before Alberta.

Trey Bowers, CFA

Equity Analyst | Wells Fargo Securities, LLC

M Resort / Columbus: Hollywood Columbus opened June 12 and has been one of PENN's Trey.Bowers@wellsfargo.com | 617-210-3724

top-performing assets, repositioning the property from a daily-visit casino into a regional Zachary Silverberg

destination with ~200 hotel rooms. At M Resort, the new hotel tower expanded the Equity Analyst | Wells Fargo Securities, LLC

property from 390 to 765 rooms, driving strong group demand and occupancy to ~90%+. Zachary.Silverberg@wellsfargo.com | 212-214-1152

Mgmt noted meaningful operating leverage, with no need to add more casino space, and Nicholas Weichel

an Emeril Lagasse F&B concept expected to open mid-July. Associate Equity Analyst | Wells Fargo Securities, LLC

Nicholas.Weichel@wellsfargo.com | 646-717-0343

Council Bluffs. PENN plans to relocate its '96 riverboat casino to a land-based facility,

making it the last remaining PENN riverboat to move land side.