Weekly OFS Newsletter
News Items Ending July 16, 2018
Mergers & Aquisitions
Trinidad Drilling Ltd. (TSX:TDG) announced the USD $2 million acquisition of GMXSteering, a completion optimization software producer which serves as an addition to Trinidad’s existing technology platform. The software and associated licenses use surface measurements recorded while drilling to assess rock properties and position the well bore for optimal frac stimulation and production. The acquisition is expected to be funded through cash flow from operations and the proceeds from the sale of other assets.
Vertex Resource Group Ltd. (TSXV:VTX) announced the acquisition of Alida, SK based Three Star Trucking Ltd., an environmental service company providing fluid hauling service, pressure truck services, hot oilers and combo vac services throughout Western Canada. The acquisition adds over 270 pieces of equipment to Vertex’s fleet, increasing its operations serving Saskatchewan, the Montney and the Duvernay resource plays. The acquisition includes numerous high-pressure fluid hauling trailers that will enable Vertex to begin offering propane, butane and NGL fluid hauling services.
The Bank of Canada raised the overnight benchmark rate by a quarter point to 1.5%, representing the second hike in 2018 and the fourth hike over the past twelve months. The current rate is at its highest level since 2009.
Canadian National Railway (TSX:CNR) announced it will be investing $320 million in Alberta to expand its railway network throughout the province. This investment is part of its $3.4 billion capital program for 2018, which also includes investing $340 million in BC and $130 million in Manitoba. The investments come at the same time Canadian rail operators are trying to unclog bottlenecks that left commodities trapped in landlocked western provinces this past winter.