OKOTOKS, AB, Jan. 13 /PRNewswire-FirstCall/ - (TSX-MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") announced today that it has approved a $40.0 million capital expenditure budget for 2010. This amount will be allocated to those business units that need new capital to grow or sustaining capital to meet their ongoing customer needs. The capital required for acquisitions, land purchases and other special projects is not included in this amount and will be authorized and allocated as the need arises.
"Based upon our current outlook we believe Mullen Group, through its existing business units, is positioned to generate moderate top-line and bottom-line growth in 2010. Several of our business units, most notably in the areas of infrastructure investment, oil sands development and production services, continue to experience growth and these are areas where we will concentrate our capital expenditures in 2010. In addition, we expect a year over year improvement in drilling activity in western Canada. As a result, we will be deploying new capital to support and capitalize on the increase in multi-frac wells that is occurring in the western Canadian basin," stated Stephen H. Lockwood, President & Co-Chief Executive Officer.
"We enter 2010 with a renewed emphasis on growth, including through acquisition. During 2009 our efforts were focused on dealing with the economic downturn and right sizing our business units. With this task substantially completed we will once again concentrate on creating shareholder value through growth. To accomplish this strategic objective we will rely on our strong financial position, including our $200 million of cash and our undrawn bank facility," stated Murray K. Mullen, Chairman and Chief Executive Officer.
This press 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 press 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 operated businesses. 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.
SOURCE Mullen Group Ltd.