CALGARY, ALBERTA--(Marketwire - Jan. 21, 2013) - Total Energy Services Inc. (TOT.TO) ("Total") announces its preliminary 2013 capital expenditure budget of $32.7 million. Included in this budget is $14.0 million for the previously announced acquisition of a process equipment fabrication business that was completed effective January 1, 2013, $10.0 million for expansion of the natural gas compression rental fleet, $4.2 million of maintenance capital expenditures, $2.0 million related to the continued expansion of the natural gas compression parts and service business and $2.5 million of miscellaneous capital expenditures.
In addition, Total has $12.2 million of remaining 2012 capital expenditure commitments that will carry over into 2013, including $8.0 million for the construction and equipping of a new 41,000 square foot fabrication facility for its Gas Compression Services division. This facility is expected to be completed and put into service during the fourth quarter of 2013.
Total intends to finance the $44.9 million of capital expenditures detailed above with cash on hand and operating cash flow. Total's current financial position, including over $30 million of cash on hand after funding the $14 million acquisition noted above and a $35 million credit facility that remains undrawn, provides Total with considerable financial capacity to pursue additional investment opportunities as they may arise.
Total is a growth oriented energy services corporation involved in contract drilling services, rentals and transportation services and the fabrication, sale, rental and servicing of natural gas compression and process equipment. The common shares of Total are listed and trade on the TSX under the symbol "TOT".
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VP Finance and CFO