Builders Energy Services Trust

Builders Energy Services Trust

September 15, 2005 08:38 ET

Builders Energy Services Trust Announces 8% Cash Distribution Increase and $12 Million Expansion of Capital Program for 2005

CALGARY, ALBERTA--(CCNMatthews - Sept. 15, 2005) - Builders Energy Services Trust (Builders) (TSX:BET.UN) announced today that the cash distribution for the period September 1, 2005 to September 30, 2005 has been increased by $0.01 per unit to $0.13 per Trust Unit ($1.56 per annum).

The $0.13 cash distribution will be paid on October 17, 2005 to unitholders of record on September 30, 2005.

The Board of Directors of Builders Energy Services Ltd. has approved an increase to the monthly distribution per trust unit of approximately 8%, or $0.01 per trust unit per month. This increase is a result of the strong financial results of Builders to date, continuing strength in industry fundamentals, as well as closing the accretive acquisitions of Tryton Tool Services and Endeavor E-line Services Inc. in June 2005 and July 2005, respectively.

After incorporating this increase in trust unit distributions, Builders expects that its annualized payout ratio will remain within its targeted payout ratio of 65% to 70%.

In addition, Builders has increased its capital spending program in 2005 by $12 million, and expects net capital spending for 2005 to be in the range of $27 million to $32 million.

Based in Calgary, Builders Energy Services Trust is an open-end unincorporated investment trust governed by the laws of the Province of Alberta and was established to acquire and operate entities that engage in oilfield services. The principal undertaking of the Trust, through its indirect wholly-owned subsidiary Builders Energy Services Ltd., is to provide a variety of services to oil and gas exploration and production companies in western Canada. Builders' Trust Units are listed on the Toronto Stock Exchange under the symbol "BET.UN".

Certain measures are not recognized under Canadian generally accepted accounting principles (GAAP) and are provided where Management believes they assist the reader in understanding the Trust's results. These measures include: earnings before interest, taxes, depreciation, amortization and non-cash charges (EBITDA); gross margin, which refers to revenues less operating expenses; cash flow or cash flow from operations, which refers to cash flow from operations before changes in non-cash working capital; and payout ratio, which refers to distributions as a percentage of cash flow from operations. These measures should not be used as an alternative to GAAP, because they may not be consistent with calculations of other companies or Trusts.

When used in this news release, the words "anticipate", "estimate" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the date that the statements are made, and the Trust undertakes no obligation to update forward-looking statements if conditions or opinions should change.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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