CALGARY, March 9 /CNW/ - CCS Income Trust (TSX: CCR.UN) announced two
transactions today - Mobley Oilfield Services and Pride Oilfield Services -
demonstrating further success in growing its business in the U.S. market. The
Mobley Oilfield Services acquisition closed on March 7. CCS signed a Purchase
and Sale Agreement for the assets of Pride Oilfield Services on March 1 and
expects to close before the end of March.
Mobley Oilfield Services, headquartered in Kilgore, Texas, is an
integrated oilfield service company providing trucking, on-site storage and
disposal of waste produced in the drilling, completion and ongoing production
of oil and gas wells. Its service area includes Oklahoma, Arkansas, Louisiana
and Texas. The total purchase price was approximately $44.0 million(*), which
was paid in cash. CCS acquired all of the operating assets and properties of
Mobley, and assumed certain obligations and liabilities.
"Mobley is a perfect fit with a sterling reputation, dedicated employees,
strong operations and an even stronger asset base," said Dave Werklund, CCS'
President and Chief Executive Officer. "This acquisition provides us with an
opportunity to expand the CCS service model even further into the U.S. market.
It is an organization that believes in the core values of our company,
supports our strategic approach to growth and will play a role in achieving
our goal to become a global leader in the environmental and energy service
Established in 1997, Mobley Oilfield Services transports, manages and
disposes of a variety of liquids used or produced in upstream oilfield
operations. Its fleet of over 30 tractor/trailer units, 410 frac tanks and
additional vacuum and pump trucks are designed specifically for pumping and
transporting produced water, frac flowback fluids and oilfield drilling
fluids. Mobley offers extensive expertise in supplying fluid management
solutions specialized for the massive hydraulic fracturing programs in East
Texas. Mobley also owns and operates three salt water disposal wells. With its
integrated service model, Mobley provides solutions for producers throughout
the lifecycle of their oil and gas wells.
Pride Oilfield Services, headquartered in Benton, Louisiana, collects
produced water from various generators within the East Texas and Northern
Louisiana areas and hauls it to various locations for disposal. Approximately
50 percent of Pride's hauling is currently delivered to CCS facilities. The
purchase price for the operating assets of Pride is approximately
$5.8 million(*), which includes the assumption of approximately $1.2 million in
debt. Consideration consists of approximately $1.2 million in CCS Income Trust
units and cash. The transaction is expected to close by March 31, subject to
the completion of due diligence.
"Pride is another example of how CCS expands its service model to provide
superior customer service and outstanding financial performance," said
Werklund. "Pride was a family-owned business that fits well within our
culture, believes in our vision and brings value to our service offerings in
the U.S. market."
The Pride assets will be relocated to CCS' Shreveport plant and managed
by Mobley. Mobley's base of operations at Kilgore, TX is approximately
95 kilometres (60 miles) east of CCS' Shreveport plant. The corridor between
Kilgore and Shreveport is in the heart of the Carthage and Oak Hill gas
fields, the second and fourth largest gas fields in Texas. Mobley and Pride
generated a combined revenue of $25.2 million in 2006, based on an average
exchange rate of 1.13 for the year, with a weighted average operating margin
of approximately 47 percent.
CCS Income Trust owns an industrial waste water treatment plant in the
Port of Shreveport, Louisiana. CCS also owns and operates a network of
transfer stations and processing facilities providing waste treatment and
disposal services to the Gulf Coast market. CCS is also developing a salt
cavern disposal facility at Weeks Island, Louisiana. Canadian facilities
include a network of treatment, recovery and disposal (TRD) facilities and
engineered landfills across western Canada.
"Guided by our entrepreneurial spirit and disciplined approach to growth,
we continue to expand our core business by offering complementary services,"
said Werklund. "Mobley and Pride are both welcome additions to our U.S.
operations and CCS team."
(*) Purchase price has been converted to Canadian dollars using a fixed
FX rate of 1.1726.
CCS Income Trust (TSX: CCR.UN) is a recognized industry leader providing
integrated and environmentally responsible solutions along with other
complementary energy services. Headquartered in Calgary, Alberta, CCS provides
a diverse number of services across four divisions. CCS Energy Services
provides oilfield waste treatment, recovery and disposal. The second division,
HAZCO Environmental Services, provides integrated remediation, waste
management and decommissioning solutions. The third division, Concord Well
Servicing, manages well completions, workovers and abandonments utilizing a
fleet of 140 rigs. The CCS Energy Marketing division provides crude oil and
condensate marketing services to CCS Energy Services and third parties.
This press release contains certain statements that are not historical in
nature and are forward-looking statements. These forward-looking statements
include statements relating to the Trust's plans, strategies, objectives,
expectations, intentions and resources which are not guarantees as to the
Trust's future results since there are inherent difficulties in predicting
future results. When used throughout this press release, the words
"anticipate," "expect," "project," "believe," "estimate," "forecast,"
"intends," and similar expressions identify forward-looking statements, which
include statements relating to pending and proposed projects and business
activities. Such statements are subject to certain risks, uncertainties and
assumptions pertaining to operating performance, regulatory parameters,
weather and economic conditions and, in the case of pending and proposed
projects, risks relating to design and construction, regulatory processes,
obtaining financing and performance of other parties, including partners,
contractors and suppliers. Accordingly, actual results could differ materially
from those expressed or implied in forward-looking statements.
For further information:
For further information: David P. Werklund, Chairman of the Board,
President, and Chief Executive Officer, Phone: (403) 233-7565, Fax: (403)
261-5612, E-mail: email@example.com; Marshall L. McRae, Chief
Financial Officer, Phone: (403) 231-1103, Fax: (403) 261-5612, E-mail:
firstname.lastname@example.org; Shauna Lowry, Corporate Communications Manager,
Phone: (403) 231-1127, Fax: (403) 261-5612, E-mail: email@example.com