CALGARY, Alta. — Mullen Group Income Fund has announced it will invest $35 million in capital expenditures in 2007.
That amount does not include capital required for acquisitions. The company is eyeing opportunities in its general trucking services that may eat up some of the capital investments, according to a statement by Mullen.
“This year’s capital budget for our business units of $35 million reflects the cyclical nature of the oil and natural gas industry and the high level of capital expenditures incurred during 2006, explained Stephen Lockwood, president and co-CEO of Mullen Group. We are expecting a slowdown in drilling activity in 2007 and as such it is our opinion that our business units directly associated with drilling will need very little capital to sustain the expected activity levels. In those businesses associated with infrastructure development, oil sands expansion, production services and general trucking services we currently see some attractive opportunities and will be investing the majority of our capital in these business units. We believe that this capital budget balances the needs of our business units and provides the Mullen Group with the flexibility to maintain our current distribution to our unit holders for 2007. Obviously, we will be monitoring the factors that affect the general economy and drilling activity levels and will make prudent adjustments to the capital budget during the year as required.
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