The Mullen Group Income Fund announced Thursday, June 5, the entering into of an agreement with Essential Energy Services Trust to acquire all of the assets and business of Essential’s transport division, which includes its fluid hauling and oilfield transport business units, for $135.0 million Canadian.
The fluid hauling business units operate as Cascade Services in northern Alberta and northeastern British Columbia, and as Jacar Energy Services in southern Alberta. The oilfield transport business units operate as Circle D Transport & Rentals in southern Alberta; as Prime Oilfield Hauling in the Grande Prairie, Alberta region; as Polege Oilfield Hauling in northern Alberta and northeastern British Columbia; and as Leachman Oilfield Trucking in central/southern Alberta and Saskatchewan.
“Acquiring businesses leveraged to fluid hauling has been a strategic focus of Mullen for several years,” says Stephen H. Lockwood, president and co-chief executive officer of Calgary-based Mullen. “In particular, we believe there are tremendous opportunities associated with the hauling and management of fluid in connection with resource plays in areas such as British Columbia and Saskatchewan. The acquisition of Essential’s fluid hauling business units greatly expands our fluid hauling capabilities in these important regions and will be a strategic fit with several of our existing business units. The addition of Essential’s oilfield transportation business units expands our rig hauling capability into southern Alberta, a region in which we do not currently have a presence.”
Cascade Services operates out of Fort Nelson, Fort St. John and Dawson Creek, British Columbia; and Grande Prairie, Spirit River, Slave Lake, Swan Hills and Wabasca, Alberta, with a fleet of more than 106 units. Jacar operates out of Taber, Cayley, Pincher Creek, Medicine Hat and Brooks, Alberta; and Richmound, Saskatchewan, with a fleet of about 91 units. Circle D Transport & Rentals operates out of Brooks, Medicine Hat, Taber and Strathmore, Alberta; and Swift Current, Saskatchewan, with a fleet of more than 80 power units, 185 trailers and a rental fleet. Prime Oilfield Hauling operates from its head office in Grande Prairie, Alberta, with a fleet of about 20 power units, 33 trailers and an inventory of rental equipment. Polege Oilfield Hauling operates from its facility located in Edmonton, Alberta, with a fleet of about 22 tractors and 50 trailers. Leachman Oilfield Trucking operates from its facility in Provost, Alberta, utilizing a fleet of about 21 tractors and 51 trailers.
Mullen also announced that Ken Wagner, chief operating officer of Essential, has accepted a position with Mullen as president of the Cascade Services and Jacar Energy Services business units.