Welcome!

News Feed Item

Secure Energy Services Inc. Announces Strategic Acquisition of Predator Midstream Ltd.

CALGARY, ALBERTA -- (Marketwired) -- 08/12/14 -- SECURE Energy Services Inc. ("Secure" or the "Corporation") (TSX: SES) is pleased to announce that it has entered into an agreement to acquire all of the assets of Predator Midstream Ltd. ("Predator") for an aggregate purchase price of approximately $107 million, subject to certain customary closing conditions.

Summary of the Acquisition

Predator is a privately owned company headquartered in Calgary, Alberta. Predator owns and operates three existing transloading rail terminals located in Alberta at Mannville, Alliance and High Prairie. Predator transloads crude oil from truck to rail and has the ability to offer the customer access to its current fleet of 275 rail cars. Predator has well established relationships with both producers and refiners which have contributed to its successful growth as it provides Canadian oil producers access to high value markets.

Predator's management team has demonstrated the ability to execute on capital projects and has earned a reputation as a leader in moving crude by rail for Canadian oil producers. The Predator management team is led by CEO and founder, Joel MacLeod. Mr. MacLeod, along with his management and operational team will continue to operate the day-to-day business.

Acquisition Details

Total consideration for the Predator acquisition is $107 million, subject to certain closing adjustments. The purchase price is being paid with $65 million in cash and the balance of $42 million through the issuance of common shares of SECURE. Closing is expected to occur on or about August 15, 2014.

The expected range for Predator's contribution to consolidated EBITDA, adjusted for an August 15, 2014 closing date, for the remainder of 2014 is anticipated to be in the range of approximately $5 to $7 million. The expected 2015 annualized run rate EBITDA is anticipated to be in the range of approximately $17 to $20 million reflecting full year utilization of assets put into operations during 2014.

Strategic Rationale

The strategic acquisition of Predator further strengthens SECURE's midstream infrastructure by offering SECURE customer's enhanced market access at the field level and to downstream markets.Transporting crude oil by rail continues to become more prevalent with many crude oil producers due to pipeline constraints. The addition of Predator's three transloading terminals to SECURE's Full Service Rail ("FSR") offering provides an immediate rail facility network that complements SECURE's pipeline connected Full Service Terminals ("FST"). In addition to their existing transloading terminals, Predator has numerous midstream projects in various stages of development that are in alignment with SECURE's midstream growth strategy.

We are pleased to welcome Predator's experienced management and operational staff to Secure. "The acquisition of Predator is an exciting addition that complement's Secure's existing midstream infrastructure" states Rene Amirault, Chairman, President and Chief Executive Officer of Secure. "This acquisition further enhances our service offering allowing our customers to access an expanded network of facilities. With continued restrictions on available pipeline access, Predator and Secure are aligned that it is imperative we provide our customers with the most efficient, safe and cost effective solution to moving their crude oil to market."

"The entire Predator Team is excited to become an integral part of Secure where there will be both immediate and long term synergies for the combined entity. We plan to continue to aggressively develop and expand market access for producers and refiners through our rail network" states Joel Macleod, President and Chief Executive Officer of Predator.

About SECURE Energy Services Inc.

SECURE is a TSX publicly traded energy services company that focuses on providing specialized services to upstream oil and natural gas companies.

The Corporation operates three divisions:

Processing, Recovery and Disposal Division ("PRD"): The PRD division owns and operates midstream infrastructure that provides processing, storing, shipping and marketing of crude oil, oilfield waste disposal and recycling. Specifically these services are clean oil terminalling and rail transloading, custom treating of crude oil, crude oil marketing, produced and waste water disposal, oilfield waste processing, landfill disposal, and oil purchase/resale service. Secure currently operates a network of facilities throughout western Canada and in North Dakota, providing these services at its full service terminals, landfills and stand-alone water disposal facilities.

Drilling Services Division ("DS"): The DS division provides equipment and chemicals for building, maintaining, processing and recycling of drilling and completion fluids. The drilling fluids service line comprises the majority of the revenue for the division which includes the design and implementation of drilling fluid systems for producers drilling for oil, bitumen and natural gas. The DS division focuses on providing products and systems that are designed for more complex wells, such as medium to deep wells, horizontal wells and horizontal wells drilled into the oil sands.

OnSite Division ("OS"): The operations of the OS division include environmental services which provide pre-drilling assessment planning, drilling waste management, remediation and reclamation assessment services, laboratory services, and "CleanSite" waste container services; integrated fluid solutions which include water management, recycling, pumping and storage solutions; and projects which include pipeline integrity (inspection, excavation, repair, replacement and rehabilitation); demolition and decommissioning and reclamation and remediation of former wellsites, facilities, commercial and industrial properties.

Forward Looking Statements

Certain statements contained in this document constitute "forward-looking statements" and/or "forward-looking information" and/or "financial outlooks" within the meaning of applicable securities laws (collectively referred to as forward-looking statements). When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, as they relate to Secure, or its management, are intended to identify forward - looking statements. Such statements reflect the current views of Secure with respect to future events and operating performance and speak only as of the date of this document. Forward-looking statements included or implied in this news release may include, but are not limited to: the acquisition of the assets of Predator by SECURE; the anticipated closing date; EBITDA of Predator; EBITDA contribution of the Predator assets to SECURE; general market conditions; the oil and natural gas industry; activity levels in the oil and gas sector, including market fundamentals and drilling levels; demand for the Corporation's services; expansion strategy; completion of facilities; the impact of new facilities on the Corporation's financial and operational performance; and acquisition strategy.

Forward-looking statements concerning expected operating and economic conditions are based upon estimated results as well as the assumption that increases in market activity and growth will be consistent with industry activity in Canada, and the United States, and growth levels in similar phases of previous economic cycles.

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including but not limited to those factors referred to and under the heading "Business Risks" in SECURE's Management's Discussion and Analysis for the three months ended March 31, 2014 and under the heading "Risk Factors" in the Corporation's annual information form ("AIF") for the year ended December 31, 2013 and also includes the risks associated with the possible failure to realized the anticipated synergies in integrating the operations of Predator with the operations of SECURE. Any "financial outlook" in this press release, as defined by applicable securities legislation, has been approved by management of SECURE and is included for the purpose of illustrating the materiality of the acquisition of the assets of Predator, and for no other purpose. Although forward-looking statements contained in this document are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements in this document are expressly qualified by this cautionary statement. Unless otherwise required by law, Secure does not intend, or assume any obligation, to update these forward-looking statements.

Non GAAP Measures

The Corporation uses accounting principles that are generally accepted in Canada (the issuer's "GAAP"), which includes, International Financial Reporting Standards ("IFRS"). In addition, this press release refers to the Non-GAAP financial measure EBITDA in respect of Predator. EBITDA is not a recognized measure under IFRS and does not have any standardized meaning prescribed by IFRS. EBITDA as used by the Corporation may not be comparable to similar measures presented by other reporting issuers. See the management's discussion and analysis available at www.sedar.com for a reconciliation of historical EBITDA of the Corporation to the equivalent IFRS measure, which is illustrative of the determination of EBITDA in respect to Predator. Management believes that in addition to net earnings, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the principal business activities of Predator prior to consideration of how those activities are financed or how the results are taxed. EBITDA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Website: www.SECURE-energy.ca

Contacts:
SECURE Energy Services Inc.
Rene Amirault
Chairman, President and Chief Executive Officer
(403) 984-6100
(403) 984-6101 (FAX)

SECURE Energy Services Inc.
Allen Gransch
Chief Financial Officer
(403) 984-6100
(403) 984-6101 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Back in February of 2017, Andrew Clay Schafer of Pivotal tweeted the following: “seriously tho, the whole software industry is stuck on deployment when we desperately need architecture and telemetry.” Intrigue in a 140 characters. For me, I hear Andrew saying, “we’re jumping to step 5 before we’ve successfully completed steps 1-4.”
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...