OKOTOKS, Alta. – Oilfield services company The Mullen Group Ltd. (TSX:MTL) has announced an increase of $25 million in its 2012 capital budget to $100 million.
“This decision reflects not only our confidence in the long-term prospects for the markets Mullen Group serves but also in our 27 independently operated business units,” chairman and CEO Murray Mullen said in a release.
“We want to ensure that our employees continue to have access to the best and most efficient equipment and have best in class facilities in which to work, as these are integral components of our quality initiatives.”
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The company expects that about $50 will be allocated to its oilfield services segment and $25 million to the trucking/logistics segment, mostly for the purchase of some 60 trucks and 200 trailers. And additional $25 million will go to further development of the group’s network of facilities.
The majority of the services segment’s capital expenditures will be for operations related to well servicing and fracking support services with specialized equipment such as super heaters, hot oilers and combo units in addition to further expanding its so-called pipeline on wheels through investment in fluid hauling equipment.
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Mullen Group will also deploy capital to enhance its fleet of trucks, trailers and support equipment in its drilling and drilling related operations and to enhance its fleet of trucks, specialized hydraulic trailers, pumps and specialized equipment.
Money is also to be earmarked for business units that service the oilsands and infrastructure development sector to enhance its fleet of trucks, specialized hydraulic trailers, pumps and specialized equipment, the company said.
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