Deals expand Mullen oilfield unit

ALDERSYDE, Alta. (Oct. 3, 2002) — Mullen Transportation said it has made three acquisitions that will significantly expand its oilfield services business, with a fourth on the way.

Mullen said it has bought Lloydminster Heavy Crude Services, Temor Oil Services (1974), and Dominion Rathole Drilling in separate deals. Combined with another acquisition that is pending, the acquisitions are expected to increase Mullen’s consolidated revenues by approximately $80 million and operating earnings (EBITDA) by approximately $12 million, on an annualized basis, the company said.

The largest of the three is Temor, the largest transporter of crude oil and provider of fluid hauling services to the heavy oil industry in the Lloydminster, Alta., area. It has a fleet of 165 bulk crude oil trailers which are used to transport crude oil and other oilfield related fluids. In addition, Temor has agreements with 150 owner-operators.

“The crude oil hauling business continues to grow as oil companies invest in the heavy oil industry. More importantly, by acquiring both LHCS and Temor we can take maximum advantage of the synergies that accompany such transactions. In addition, we view these acquisitions as a strategic fit with our E-Can Oilfield Services business unit, elevating Mullen to the largest service company in the area”, said Murray Mullen, chairman, president, and chief executive officer of Mullen Transportation.