(Source: MARKETWIRE)
TexCom, Inc. (PINKSHEETS: TEXC) today announced that one of its
subsidiaries has secured a privately placed debt financing for up to
$9 million though Matador Capital Partners, LLC of Dallas, Texas to
be used for consolidation of ownership interests in M.B. Energy, LLC
("MBLLC") and M.B. Energy Services, Inc. ("MBI"), its Class II oil &
gas waste disposal subsidiary in Chambers County, Texas. The
transaction involved the creation of a new TexCom subsidiary, M.B.
Environmental Services, LLC ("MBES"), which secured the financing.
In the first step of the consolidation, the Membership Interests of
the minority Members of MBLLC, the operating entity, were redeemed by
the LLC and MBES assumed all assets and operations of MBLLC.
Subsequent consolidation is expected to involve buyout of minority
shareholders in MBI, the majority Member of MBLLC.
TexCom has controlled and operated MBLLC since October 2004 through a
55.5% ownership stake in MBI. During that time, MBI owned 66.3% of
MBLLC, giving TexCom an effective ownership in the operating company
of 36.8%. As a result of the acquisitions of minority Membership in
MBLLC and the subsequent buyout of minority shareholders in MBI,
TexCom expects to increase its ownership in the new operating company
to more than 90%. Additional information will be released subsequent
to final consolidation of the interests of MBI.
MBLLC's net income in 2008 increased to $4.11 million from $1.70
million in 2007. In spite of the steep decline in rig count in the
oil & gas industry, MBLLC has been able to maintain sales and
earnings levels through the first half of 2009 in a very depressed
market. Net income for the first half ended June 30 declined
slightly from $1.95 million in 2008 to $1.87 million in the same
period of 2009. According to Baker Hughes Inc., the combined onshore
and offshore drilling rig count in Texas fell from 923 rigs running
at the end of June 2008 to 329 drilling rigs running at the end of
June 2009.
Lou Ross, President of TexCom, commented, "MBLLC has done a
remarkable job this year in holding up revenues and profitability in
a very difficult market. This transaction increasing our ownership
in the operating company is a significant step toward meeting our
goal to increase value for our shareholders. As well, it exhibits
our commitment to increase our footprint in the disposal business.
Securing financing in a challenging environment is a milestone for
both our shareholders and our partners.
