OKOTOKS, AB, Jan. 13 /CNW/ - (TSX - MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") announced today its intention to pay annual dividends of One Dollar per Common Share over the course of 2011. Consistent with past practice, the Board will determine on a quarterly basis the amount of and record date for the quarterly dividends.
"The return of confidence in the financial system accompanied by the economic recovery and higher crude oil prices are all good news and provide the opportunity for growth as we enter 2011. We have a strong balance sheet, cash available to fund future growth initiatives and a business that generates cash in excess of our operating and financing requirements. As such, we believe that the time is right to reward our shareholders with an increase in our dividend. Our current target is to increase the annual dividend to $1.00 per share starting in 2011. As in the recent past, our dividends will occur on a quarterly basis and in amounts approved at the time by our Board", stated Murray K. Mullen, Chairman and Chief Executive Officer.
Mullen Group also announced today that it has approved a $50.0 million capital expenditure budget for 2011. This amount does not include any capital that may be required in 2011 for acquisitions, land purchases and other special projects.
"Our current economic outlook leads us to believe that Mullen Group, through its existing business units, is well positioned to grow in 2011. A number of our business units, specifically those involved in the areas of infrastructure investments, production services and oil sands operations, will continue to experience higher growth rates and this is where we intend to concentrate our capital expenditures in 2011. In addition, as drilling activity in western Canada grows we will continue to deploy new capital to capitalize on the increase in multi frac wells that is occurring", stated Stephen H. Lockwood, President and Co-Chief Executive Officer.
This press release may contain forward-looking statements that are subject to risk factors associated with the oil and natural gas business and the overall economy. Mullen Group believes that the expectations reflected in this press release are reasonable, but results may be affected by a variety of variables. Mullen Group relies on litigation protection for "forward-looking" statements.
Mullen Group is a company that owns a network of independently operated businesses. Today the Mullen Group is recognized as the largest provider of specialized transportation and related services to the oil and natural gas industry in western Canada and as one of the leading suppliers of trucking and logistics services in Canada - two sectors of the economy in which Mullen Group has strong business relationships and industry leadership. Mullen Group provides management and financial expertise, technology and systems support to its independent businesses. Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com.