Mullen Group Ltd. Announces 2015 Business Plan and Declaration of Monthly Dividend

OKOTOKS, ALBERTA--(Marketwired - Dec. 17, 2014) - (TSX:MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") announced today the business plan for 2015 has been approved by the Board of Directors (the "Board") . The annual process encompassed an extensive review of a wide range of issues including: expectations for economic activity in North America, the negative impact associated with the declines in commodity prices on the oil and natural gas sector, including drilling activity in western Canada and capital investment plans, the balance sheet of Mullen Group, the impact of previously announced acquisitions and expected cash outflows. Taking all of these issues into consideration, the Board approved a capital budget for 2015 of $80.0 million, with $40.0 million allocated as replacement capital for the Corporation's Operating Entities, the majority focused towards acquiring trucks, trailers and specialized equipment to support operations. In addition, $35.0 million will be allocated to acquire real property in Saskatchewan, facilities currently leased by Jay's Transportation Group Ltd., and to complete the rail transload facility in Edmonton, Alberta; assets that are considered strategic to the long-term success of Mullen Group. Further, a total of $5.0 million will be allocated for contingencies.

"The recent declines in crude oil pricing will undoubtedly negatively impact the oil and natural gas industry worldwide. Our Oilfield Services segment will suffer along with our customers who will be forced to adjust to the reality of lower cash flows. As a result I expect 2015 will be a very challenging year for the oil and gas industry in western Canada, and for our organization, particularly in terms of drilling and oil sands coring activity. However, it is important to remember that the oil and gas sector will still generate significant cash flow even at current pricing levels and will most likely continue to invest to maximize production from existing producing wells. In addition, commodity prices are extremely volatile and unpredictable, as such it is prudent to take a longer term view, remain flexible and be diversified. Our business plan for 2015 reflects these fundamentals along with the fact that we maintain a well-structured balance sheet. We will invest capital, albeit at reduced levels to prior years, to ensure our Operating Entities remain best in class and competitive. We will also invest in operating facilities ensuring that we can continue to reduce expenses and be positioned for the future", said Mr. Murray K. Mullen, Chairman of the Board and Chief Executive Officer.