SOURCE: TexCom, Inc.

TexCom, Inc.

September 16, 2009 13:18 ET

TexCom Increases Ownership Stake in Class II E & P Disposal Business

HOUSTON, TX--(Marketwire - September 16, 2009) - 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. We look forward to a long and rewarding relationship with Matador Capital Partners."

ABOUT TEXCOM

TexCom, Inc., headquartered in Houston, Texas, is a growth-oriented company with its primary focus on the production of biodiesel and the disposal of nonhazardous wastes. Domestically, TexCom disposes of nonhazardous materials generated by oil and gas exploration and production and is expanding its interests in disposal of nonhazardous industrial wastewater, serving the refining and petrochemical industries.

ABOUT MBES

MBES is a Class II nonhazardous oilfield waste (NOW) disposal company providing disposal service for the oil and gas exploration industry in East Texas and the Gulf of Mexico since 1997.

ABOUT MATADOR CAPITAL PARTNERS, LLC

Matador Capital Partners, LLC is a private investment company and merchant bank headquartered in Dallas, Texas. Matador is focused in energy and energy services, as well as other investment areas.

Forward-Looking Statements

Statements contained herein and the information incorporated by reference herein may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Forward-looking statements can be identified by the use of forward-looking terminology such as, but not limited to, "may," "will," "expect," "anticipate," "estimate," "would be," "believe," or "continue" or the negative or other variations of comparable terminology. We intend such forward-looking statements to be covered by the safe harbor provisions applicable to forward-looking statements contained in Section 21E of the Exchange Act. Such statements (none of which is intended as a guarantee of performance) are subject to certain assumptions, risks and uncertainties, which could cause our actual future results, achievements or transactions to differ materially from those projected or anticipated.

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, which are other than statements of historical facts.

These statements are subject to uncertainties and risks including, but not limited to, product and service demands and acceptance, changes in technology, economic conditions, the impact of competition and pricing, and government regulation and approvals. TexCom cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those TexCom expects include changes in soybean, canola and crude oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business.

Our expectations, beliefs and projections are expressed in good faith and are believed to have a reasonable basis, including without limitation, our examination of historical operating trends, data contained in our records and other data available from third parties. There can be no assurance, however, that our expectations, beliefs or projections will result, be achieved, or be accomplished. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no duty to update these forward-looking statements.

Contact Information


  • Contacts:

    TexCom, Inc.
    Management contact
    Britt Brooks
    EVP
    713-914-9193
    Email Contact