Mullen explores strategic alternatives, ramps up spending (January 10, 2005)

ALDERSYDE, Alta. — Mullen Transportation is exploring strategic alternatives that could impact the future direction of the company.

Mullen’s Board of Directors has requested that management identify, examine and consider alternatives including: maintaining the status quo or re-organizing into a business trust.

Currently, Mullen Transportation is an oilfield service and trucking company. The company wishes to retain the appropriate accounting, financial, legal and tax advisors to assist in identifying and assessing possible alternatives and understanding the complex issues that may arise, according to a recent news release.

In other news, Mullen announced its Board of Directors has approved management’s recommended capital budget of $30 million for 2005. About $21 million of that is earmarked for sustainable capital expenditures with the balance being used for special projects and to generate internal growth within the company.

“Our capital budget of $30 million for 2005 is approximately $15 million higher than 2004’s anticipated net capital expenditures and by far the largest in the history of the company,” says Murray Mullen, chairman and chief executive officer of Mullen Transportation. “These funds will allow us to sustain our current operations and capitalize on the opportunities for internal growth that have been identified by our business units.”