Weekly OFS Newsletter
News Items Ending February 19, 2018
Mergers and Acquisitions
- Mullen Group Ltd. (TSX:MTL) acquired DWS Logistics Inc., a third party logistic services provider with locations in Mississauga, ON and Delta, BC. DWS is expected to contribute more than $15 million in revenue to Mullen. DWS will be operated as an independent business unit within Mullen’s Trucking/Logistics segment.
- TransCanada Corp. (TSX:TRP) is proceeding with a $2.4 billion expansion of its NGTL natural gas system in Western Canada. The expansion will connect incremental supply and expand basin export capacity by one bcf/d at the interconnection with its Canadian Mainline. The expansion project includes approximately 375 kilometres of large diameter pipeline, compression facilities, meter stations and other associated facilities. The decision to expand follows TransCanada’s recently completed oversubscribed open season, where added capacity will be taken up by shippers beginning in November 2020 and April 2021.
- Enbridge Inc. (TSX:ENB) announced plans to accelerate its divestment program of selling assets valued at $8 billion in 2018, more than its initial sale target of $3 billion. Enbridge is trying to take advantage of favourable selling conditions to remove unwanted units and pay down its $61.4 billion long term debt. The objective is to sell non-core assets to speed up debt reduction, which will strengthen its balance sheet and provide Enbridge with the ability to raise its dividend.
- Source Energy Services Ltd. (TSX:SHLE) reported a number of weather related delays in frac sand rail shipments from its Wisconsin facilities throughout January and February. Despite the temporary rail service issues, Source set a monthly record for in-basin sand sales in January 2018. In Q1 2018, Source will be adding over 75,000 tonnes of frac sand storage in the Montney and Duvernay regions, resulting in an incremental annual throughput capacity of approximately 1.8 million tonnes.
- Trinidad Drilling Ltd. (TSX:TDG) initiated a strategic review process in an effort to enhance shareholder value. The comprehensive review aims to consider a broad range of alternatives, including but not limited to asset sales, merger, corporate sale, strategic partnership or capital re-deployment opportunities. There is no definite schedule for the review and there are no assurances by Trinidad that the process will result in a definite transaction.