Aveda Transporation & Energy Services Announces Signing of Definitive Agreement to Acquire Precision Drilling's U.S. Rig Movi...
June 16 2014 - 6:30AM
Marketwired
Aveda Transporation and Energy Services Announces Signing of
Definitive Agreement to Acquire Precision Drilling's U.S. Rig
Moving Assets
CALGARY, ALBERTA--(Marketwired - Jun 16, 2014) - Aveda
Transportation and Energy Services Inc. ("Aveda" or the "Company")
(TSX-VENTURE:AVE), a leading provider of oilfield hauling services
and equipment rentals to the energy industry, today announced that,
through its operating subsidiary in the U.S., it has signed an
asset purchase agreement to acquire Precision Drilling
Corporation's ("Precision") U.S. rig moving assets (the
"Acquisition"). Aveda expects to acquire rig moving equipment,
including bed/tandem trucks, tractors, trailers, loaders and
cranes, for total consideration of US$24.0 million.
Selected assets being acquired include:
Equipment Type |
# of Pieces from the Acquisition |
Number Currently in Aveda's U.S. Fleet |
Total Number in Aveda's U.S. Fleet Post Acquisition |
Percentage Increase in Aveda's U.S. Fleet |
Bed/Tandem Trucks |
13 |
34 |
47 |
38% |
Winch/Conventional Tractors |
59 |
93 |
152 |
63% |
Trailers |
69 |
211 |
280 |
33% |
Cranes |
12 |
6 |
18 |
200% |
"This is a very exciting time for Aveda. Through this
transaction we are acquiring a modern and well maintained fleet
that shares the same specifications and equipment configuration as
our current U.S. assets," said Kevin Roycraft, President and CEO of
Aveda. "This will support a smooth integration into our operations
and drive utilization. It also strengthens our relationship with
Precision and we look forward to working with Precision on internal
and customer rig moves in the future. Strategically, this will
further reduce Aveda's reliance on third-party equipment suppliers,
helping to improve margins, and allow us to allocate equipment to
both current and new operating areas to take advantage of high
activity levels and further growth opportunities in certain
regions."
Subject to customary documentation and approvals, the Company
expects to close the Acquisition on July 1, 2014. Aveda expects
these assets to be deployed sometime in the third quarter of 2014.
A significant portion of Aveda's 2014 capital expenditure budget is
being allocated to the acquisition. Management intends to increase
planned capital expenditures for 2014 with an eye to funding
additional growth initiatives and reducing the Company's third
party costs.
About Aveda Transportation and Energy Services
Aveda provides specialized transportation services and equipment
required for the exploration, development and production of
petroleum resources in the Western Canadian Sedimentary Basin and
in the United States of America principally in and around the
states of Texas, Pennsylvania and North Dakota. Transportation
services include both the equipment necessary to move the load as
well as a trained, professional driver capable of securing, moving
and manipulating the load at its origin and destination. Aveda's
rental operations include the rental of tanks, mats, pickers, light
towers and other equipment necessary for oilfield operations.
Aveda was incorporated in 1994 as a private company to serve the
oil and gas industry. In the spring of 2006 the Company went public
on the TSX Venture Exchange. Aveda has major operations in Calgary,
AB, Slave Lake, AB, Leduc, AB, Sylvan Lake, AB, Edson, AB, Mineral
Wells, TX, Pleasanton, TX, Midland, TX, Williamsport, PA,
Williston, ND, and Buckhannon, WV. Aveda is publicly traded on the
TSX Venture Exchange under the symbol AVE. For more information on
Aveda please visit www.avedaenergy.com.
This News Release contains certain forward-looking statements
and forward-looking information (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
Canadian securities laws. All statements other than statements of
present or historical fact are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "anticipate", "achieve", "could",
"believe", "plan", "intend", "objective", "continuous", "ongoing",
"estimate", "outlook", "expect", "may", "will", "project", "should"
or similar words, including negatives thereof, suggesting future
outcomes. In particular, this News Release contains forward-looking
statements relating to: demand for the Company's services and
general industry activity level; the Company's growth
opportunities; and expectation to maintain revenue and equipment
utilization. Aveda believes the expectations reflected in such
forward-looking statements are reasonable as of the date hereof but
no assurance can be given that these expectations will prove to be
correct and such forward-looking statements should not be unduly
relied upon.
Various material factors and assumptions are typically applied
in drawing conclusions or making the forecasts or projections set
out in forward-looking statements. Those material factors and
assumptions are based on information currently available to Aveda,
including information obtained from third party industry analysts
and other third party sources. In some instances, material
assumptions and material factors are presented elsewhere in this
News Release in connection with the forward-looking statements.
Readers are cautioned that the following list of material factors
and assumptions is not exhaustive. Specific material factors and
assumptions include, but are not limited to:
- the completion of the Acquisition;
- the performance of Aveda's businesses, including the
Acquisition assets, current business and economic trends;
- oil and natural gas commodity prices and production
levels;
- capital expenditure programs and other expenditures by Aveda
and its customers;
- the ability of Aveda to retain and hire qualified
personnel;
- the ability of Aveda to obtain parts, consumables, equipment,
technology, and supplies in a timely manner to carry out its
activities;
- the ability of Aveda to maintain good working relationships
with key suppliers;
- the ability of Aveda to market its services successfully to
existing and new customers;
- the ability of Aveda to obtain timely financing on acceptable
terms;
- currency exchange and interest rates;
- risks associated with foreign operations;
- changes under governmental regulatory regimes and tax,
environmental and other laws in Canada and the United States;
and
- a stable competitive environment.
Forward-looking statements are not a guarantee of future
performance and involve a number of risks and uncertainties, some
of which are described herein. Such forward-looking statements
necessarily involve known and unknown risks and uncertainties,
which may cause Aveda's actual performance and financial results in
future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, but are not
limited to, the risks identified in Aveda's annual information form
and management discussion and analysis for the year ended December
31, 2013 (the "MD&A"). Any forward-looking statements are made
as of the date hereof and, except as required by law, Aveda assumes
no obligation to publicly update or revise such statements to
reflect new information, subsequent or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Aveda Transportation and Energy Services Inc.Bharat Mahajan,
CAVice President, Finance and Chief Financial Officer(403)
264-5769bharat.mahajan@avedaenergy.comwww.avedaenergy.com
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