Mullen Group Ltd. Announces 2014 Business Plan and Declaration of Dividend
OKOTOKS, AB, Jan. 20, 2014
OKOTOKS, AB, Jan. 20, 2014 /PRNewswire/ - (TSX:MTL) Mullen Group Ltd.
("Mullen Group" and/or the "Corporation") announced today its capital
expenditure plan for 2014 as approved by the Board of Directors (the
"Board"). The Board considered a wide range of economic issues, commodity
pricing predictions and forecasted drilling activity for the Western Canadian
Sedimentary Basin as well as recent developments in the anticipated build out
of Canada's infrastructure for LNG and crude oil. The capital budget for 2014
is set at $100.0 million, with $75.0million allocated to the Oilfield
Services segment and $25.0million allocated to the Trucking/Logistics
segment. These funds will be used to acquire new trucks, trailers and
specialized equipment to support the on-going operations of Mullen Group's
business units. As the need arises, the Board will consider additional
capital requests throughout the year for special projects, the purchase and
development of land, or for acquisitions.
"We expect 2014 to be another good year for the Mullen Group, although growth
will continue to be difficult to achieve given the current economic outlook as
well as the near term prospects for the oil and gas sector in western Canada.
However, looking to the future, growth opportunities are much brighter, which
is the reasoning behind the Board approving our request for a $100.0million
capital budget in 2014. Quite simply, we want to be prepared", said Murray
Mullen, Chairman and Chief Executive Officer.
"The discussions surrounding LNG exports through Canada's west coast, as well
as crude oil pipelines and infrastructure projects are progressing and appear
to be constructive, although there have been few definitive announcements to
date. One exception is crude by rail, with strong indications that take-away
capacity for crude oil from western Canada could rise to onemillion barrels
per day by year-end. Our view is that our customers will benefit from this
new capacity. In addition, it is worth noting that while two percent annual
GDP economic growth is not in itself significant, we believe that there is a
compounding affect to this growth that should ultimately benefit our
Trucking/Logistics segment. There is also another important reason to
continue investing in our 26 business units. Providing our employees with the
newest equipment ensures that they have access to best-in-class assets and a
quality work environment -- prerequisites to retaining, as well as attracting,
a productive work force in this market. Our investment of $100.0million in
2014 will ensure that our business units are well positioned for the future,
particularly those tied to the build out of crude oil take-away capacity and
the development of LNG", added Mr. Mullen.
Mullen Group also announced today its intention to continue its practice of
paying annual dividends of $1.20 per Common Share over the course of 2014,
such dividends to be paid on a monthly basis, subject to Board approval.
Mr. Mullen commented, "Rewarding our shareholders with consistent, predictable
dividends, as well as investing for future growth, are important elements of
Mullen Group's long term Strategic Plan. For 2014 the Board considered
various alternatives for the anticipated free cash flow and determined that
investing the incremental free cash into our 26 business units was the best
use of shareholders' capital at this time."
The Board announced today that it has declared a monthly dividend of $0.10 per
Common Share payable to the holders of record of Common Shares at the close of
business on January 31, 2014. The dividend will be paid on February 17,
2014. For Canadian resident shareholders, this dividend is designated as an
"eligible dividend" for purposes of the enhanced dividend tax credit rules
contained in the Income Tax Act (Canada) and any corresponding provincial and
territorial tax legislation.
This news release may contain forward-looking statements that are subject to
risk factors associated with the oil and natural gas business and the overall
economy. Mullen Group believes that the expectations reflected in this news
release are reasonable, but results may be affected by a variety of
variables. Mullen Group relies on litigation protection for "forward-looking"
statements. Mullen Group is a company that owns a network of independently
Today the Mullen Group is recognized as the largest provider of specialized
transportation and related services to the oil and natural gas industry in
western Canada and as one of the leading suppliers of trucking and logistics
services in Canada - two sectors of the economy in which Mullen Group has
strong business relationships and industry leadership. Mullen Group provides
management and financial expertise, technology and systems support to its
independent businesses. Mullen Group is a publicly traded corporation listed
on the Toronto Stock Exchange under the symbol "MTL".
Additional information is available on our website at www.mullen-group.com or
on SEDAR at www.sedar.com.
SOURCE Mullen Group Ltd.
Mr. Murray K. Mullen - Chairman of the Board and Chief Executive Officer
Mr. Stephen H. Lockwood - Co-Chief Executive Officer and President
Mr. P. Stephen Clark - Chief Financial Officer
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
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