May 30, 2006 08:00 ET

Eveready Income Fund Acquires Furnace Tube Decoking and Pigging Business

EDMONTON, ALBERTA--(CCNMatthews - May 30, 2006) - Eveready Income Fund ("Eveready") (TSX:EIS.UN) is pleased to announce that it has completed its previously announced acquisition of the business and assets of the Pinnacle Pigging Systems group of companies ("Pinnacle"). This acquisition was originally announced on March 1, 2006. Pinnacle specializes in providing furnace tube decoking and related industrial services to oil and gas refineries in Canada and the United States. These services are provided using wholly owned, patented technology and equipment supported by experienced personnel.

The purchase price for all of the business and assets of Pinnacle, including all equipment, patents, and other intangible assets, was approximately $7.0 million, paid in cash. The equipment acquired includes five specialized double pumper decoking service units plus a number of support units and miscellaneous equipment.

"This acquisition builds on our previous acquisition of the business and assets of the ICE Joint Venture in April 2005," comments Rod Marlin, Eveready's President and Chief Executive Officer. "This acquisition also allows us to eliminate a significant market competitor and achieve a leading share of the furnace tube decoking market in North America."

Eveready estimates this acquisition could generate EBITDA of approximately $2.0 million on an annual basis.

Eveready is a growth oriented income fund that provides industrial and oilfield services; health, safety, and environmental services; and oilfield equipment rental services to the energy, resource, and manufacturing sectors. The Units of Eveready trade on the Toronto Stock Exchange under the trading symbol "EIS.UN".

EBITDA is a supplemental earnings measure that does not have any standardized meaning prescribed by Canadian GAAP and may not be comparable to EBITDA calculated by other funds or entities. EBITDA is a useful supplemental measure as it provides an indication of the financial results generated by Eveready's principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before non-cash amortization expense. EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Eveready to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Eveready, industry competition and Eveready's ability to attract and retain both customers and key personnel.

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Eveready Income Fund
    John M. Stevens
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com