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. (The purchase price has been converted to Canadian dollars using a fixed FX rate of 1.1726.) 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 sectors."
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 kilometers (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."
CCS Income Trust provides 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.
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