CERF Incorporated
TSX VENTURE : CFL

CERF Incorporated

January 27, 2015 06:30 ET

CERF Incorporated Announces 2015 Capital Budget

CALGARY, ALBERTA--(Marketwired - Jan. 27, 2015) - CERF Incorporated. (TSX VENTURE:CFL) ("CERF" or the "Company" is pleased to announce its Board of Directors has approved an initial 2015 capital budget of $7.3 million, a 65% reduction from 2014 after normalizing the recently acquired Winalta Inc., operations for a full year. CERF intends to finance its 2015 capital expenditure budget from operating cash flows.

"In this low oil price environment and the resulting oilfield slowdown, we have set a conservative capital budget for 2015," said Wayne Wadley, President and Chief Executive Officer. "CERF's two divisions, Industrials and Energy Services, provide diversified revenue sources from different industries and sectors. As 2015 progresses, we will monitor both industries' activity and may adjust the capital program as market conditions improve."

CERF's 2015 capital budget represents a small portion of its free cash flow, with approximately $3 million of the $7.3 million capital budget being allocated to growth activities, allowing the company to protect its balance sheet while maintaining service levels for its customers.

About CERF Incorporated

CERF is a Canadian public corporation with two primary divisions: industrials and energy services. The industrials division is engaged in the rental of industrial and construction equipment and waste management. The energy services division is engaged in the rental of surface rentals, downhole equipment and accommodations to the Western Canadian Oil and Gas Industry. CERF has paid consecutive quarterly dividends since 2005 and trades on the TSX Venture Exchange under the symbol "CFL". CERF currently has 36,252,502 common shares issued and outstanding.

Cautionary Note Regarding Forward-Looking Information

This press release contains estimates of capital expenditures for the 2015 financial year. To the extent such estimates constitute "future-oriented financial information" or a "financial outlook" within the meaning of applicable securities laws, such future-oriented financial information or financial outlook is included herein to provide readers with an understanding of the Company's anticipated capital expenditures for those years. Readers are cautioned that reliance on such information may not be appropriate for other purposes.

These statements reflect the current views of CERF with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by CERF, are inherently subject to significant business, economic, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause the resulting entity's actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release, and CERF has made assumptions based on or related to many of these factors. Such factors include, without limitation: 2014 capital spending expectations; the 2015 capital budget; current year capital spending and future capital spending; possible future adjustments to the budget; activity in the oil and gas industry; level and cost of maintenance required in 2014 and 2015; the continuation of planned commercial, residential and infrastructure construction projects in Edmonton and surrounding area; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for well servicing and ancillary oilfield services; capital market liquidity available to fund customer programs; uncertainties associated with partner plans and approvals; the effects of seasonal and weather conditions on operations and facilities; the existence of competitive operating risks inherent in well servicing and ancillary oilfield services. Forward-looking information and statements are also based upon the assumption that none of the identified risk factors that could cause actual results to differ materially from the forward-looking information and statements will occur. Additional information regarding some of these risks, expectations or assumptions and other factors may be found under in the Annual Information Form for the year ended December 31, 2013 issued on April 24, 2014.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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