Impax Energy Services Income Trust
TSX : MPX.UN

Impax Energy Services Income Trust

September 17, 2007 17:00 ET

Impax Energy Services Income Trust Announces September Cash Distribution and Distribution Reinvestment Plan for Exchangeable Partnership Units

TORONTO, ONTARIO--(Marketwire - Sept. 17, 2007) - Impax Energy Services Income Trust (the "Trust") (TSX:MPX.UN) is pleased to announce a cash distribution of $0.10625 per unit for the period from September 1, 2007 to September 30, 2007. The distribution will be payable to unitholders of record at the close of business on September 28, 2007 and will be paid on October 15, 2007.

In addition, the Trust is pleased to announce that Impax Energy Services Master Limited Partnership (the "Partnership"), the holder of the Trust's operating assets, has established a distribution reinvestment plan (the "Plan"). The Plan gives holders of both Class A and Class B exchangeable limited partnership units the opportunity to reinvest cash distributions from these units in additional exchangeable limited partnership units and enables the Trust to preserve cash for operations, growth and distributions to Trust unitholders.

"We are very pleased that key management stakeholders holding exchangeable Class A units are prepared to participate in the Plan. We believe that this additional personal investment demonstrates that key management stakeholders remain both committed to the long term strategy and confident in the viability of our underlying businesses," said Scott Delaney, President and CEO of the Trust.

Key management stakeholders holding exchangeable Class A limited partnership units, representing approximately 33.5% of the Trust units on a fully diluted basis, are prepared to reinvest their cash distributions under the Plan beginning with the distribution to be paid on October 15, 2007. Cash distributions on exchangeable Class A limited partnership units will be reinvested in exchangeable Class A units at market price, without discount, as determined under the Plan. The Plan is subject to necessary regulatory approval.

Holders of exchangeable Class B subordinated limited partnership units, representing approximately 8.2% of the Trust units on a fully diluted basis, will not receive any form of distribution commencing with the distribution in respect of the month of September until circumstances change.

The combined effect of these measures is a decrease of approximately 42% in the aggregate amount of cash historically paid as distributions by the Trust and its subsidiaries. The Board of trustees of the Trust will review distributions and the impact of the Plan on a monthly basis with a view to ensuring that the Plan continues to result in the best value for unitholders.

Impax Energy Services Income Trust is an open-ended trust, providing oilfield services in western Canada. The Trust indirectly owns a 55.5% interest in Impax Energy Services Master Limited Partnership, which indirectly acquired and now operates through its subsidiaries the businesses of McClelland Oilfield Rentals Limited Partnership, EGOC Enviro Group Limited Partnership, Denray Rathole Drilling Limited Partnership and Dwayne Hommy Trucking Limited Partnership. These businesses provide services in the areas of oilfield rental, specialized equipment rental, access mat rental, waste management services, rat hole drilling and specialty fluid hauling.

This news release may contain forward-looking statements relating to expected future events and financial and operating results of the Trust that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in the Trust's March 27, 2007 Annual Information Form filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information

  • Impax Energy Services Income Trust
    Scott D. Delaney
    President and Chief Executive Officer
    (416) 304-6867
    or
    Impax Energy Services Income Trust
    John R. Anderson
    Chief Financial Officer
    (416) 913-3684
    Website: www.impaxenergy.com