Total Energy Services Inc. Announces Q2 2023 Results

Total Energy Services Inc.

CALGARY, Alberta, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three and six months ended June 30, 2023.

Financial Highlights
($000’s except per share data)

	Three months ended June 30							Six months ended June 30
		2023		2022	Change				2023		2022	Change
Revenue	$	208,845	$	179,204	17	%		$	446,622	$	340,656	31	%
Operating income		9,401		8,426	12	%			37,421		12,116	209	%
EBITDA (1)		30,255		28,799	5	%			78,730		53,113	48	%
Cashflow		29,408		28,576	3	%			78,080		51,127	53	%
Net income		6,180		6,105	1	%			30,218		8,572	253	%
Attributable to shareholders		6,201		6,113	1	%			30,241		8,585	252	%
Per Share Data (Diluted)
EBITDA (1)	$	0.74	$	0.67	10	%		$	1.89	$	1.23	54	%
Cashflow	$	0.72	$	0.66	9	%		$	1.88	$	1.18	59	%
Attributable to shareholders:
Net income	$	0.15	$	0.14	7	%		$	0.73	$	0.20	265	%
Common shares (000’s)(4)
Basic		40,325		42,307	(5	%)			40,821		42,509	(4	%)
Diluted		41,048		43,203	(5	%)			41,568		43,319	(4	%)
									June 30		December 31
Financial Position at									2023		2022	Change
Total Assets								$	888,117	$	878,615	1	%
Long-Term Debt and Lease Liabilities (excluding current portion)									111,244		127,628	(13	%)
Working Capital (2)									108,577		112,154	(3	%)
Net Debt (3)									2,667		15,474	(83	%)
Shareholders’ Equity									529,954		522,023	2	%

Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.

Total Energy’s results for the second quarter ended June 30, 2023 represent record second quarter financial results that were underpinned by stable industry conditions and the deployment of equipment upgraded pursuant to the Company’s 2022 capital expenditure program.

Contract Drilling Services (“CDS”)

		Three months ended June 30								Six months ended June 30
		2023			2022		Change			2023			2022		Change
Revenue	$	54,282		$	49,440		10	%	$	136,818		$	109,502		25	%
EBITDA (1)	$	9,891		$	8,808		12	%	$	30,160		$	20,249		49	%
EBITDA (1) as a % of revenue		18	%		18	%	-			22	%		18	%	22	%
Operating days(2)		1,974			2,105		(6	%)		4,843			4,788		1	%
Canada		1,094			1,009		8	%		3,014			2,634		14	%
United States		571			696		(18	%)		1,161			1,397		(17	%)
Australia		309			400		(23	%)		668			757		(12	%)
Revenue per operating day(2), dollars	$	27,498		$	23,487		17	%	$	28,251		$	22,870		24	%
Canada		25,396			21,304		19	%		26,431			20,711		28	%
United States		27,319			24,165		13	%		28,227			22,998		23	%
Australia		35,275			27,813		27	%		36,500			30,145		21	%
Utilization		23	%		24	%	(4	%)		29	%		28	%	4	%
Canada		16	%		14	%	14	%		22	%		19	%	16	%
United States		52	%		59	%	(12	%)		51	%		59	%	(14	%)
Australia		68	%		88	%	(23	%)		74	%		84	%	(12	%)
Rigs, average for period		94			95		(1	%)		94			95		(1	%)
Canada		77			77		-			76			77		(1	%)
United States		12			13		(8	%)		13			13		-
Australia		5			5		-			5			5		-

⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
⁽²⁾ Operating days includes drilling and paid stand-by days.

CDS segment revenue during the second quarter of 2023 was higher compared with the previous year quarter as lower consolidated operating days were more than offset by increased pricing. The deployment of upgraded equipment in response to improving customer demand contributed to increased year over year second quarter revenue per operating day and utilization in Canada. Negatively impacting utilization in the United States (the “United States” or the “U.S.”) was the transfer of a drilling rig to Canada during the second quarter of 2023 and a general slowdown in industry activity, which was offset by higher pricing. The removal of a drilling rig from service during the second quarter of 2023 for recertification and upgrades resulted in lower year over year utilization in Australia. Lower Australian utilization was partially offset by higher revenue per operating day as compared to the second quarter of 2022 due to rate increases arising from previous rig upgrades and fewer standby days due to wet weather in 2023 compared to 2022.

Rentals and Transportation Services (“RTS”)

		Three months ended June 30								Six months ended June 30
		2023			2022		Change			2023			2022		Change
Revenue	$	19,812		$	13,441		47	%	$	44,225		$	28,841		53	%
EBITDA (1)	$	7,064		$	3,500		102	%	$	16,714		$	9,093		84	%
EBITDA (1) as a % of revenue		36	%		26	%	38	%		38	%		32	%	19	%
Revenue per utilized piece of equipment, dollars	$	15,105		$	10,219		48	%	$	25,154		$	20,444		23	%
Pieces of rental equipment		7,667			9,390		(18	%)		7,667			9,390		(18	%)
Canada		6,779			8,510		(20	%)		6,779			8,510		(20	%)
United States		888			880		1	%		888			880		1	%
Rental equipment utilization		15	%		14	%	7	%		21	%		15	%	40	%
Canada		14	%		13	%	8	%		18	%		14	%	29	%
United States		34	%		25	%	36	%		40	%		28	%	43	%
Heavy trucks		69			71		(3	%)		69			71		(3	%)
Canada		48			48		-			48			48		-
United States		21			23		(9	%)		21			23		(9	%)

⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.

Second quarter revenue in the RTS segment increased as compared to the same period in 2022 due to higher equipment utilization and improved pricing. Increased equipment utilization, improved pricing and this segment’s significant leverage to higher equipment utilization given its relatively high fixed cost structure contributed to a year over year increase in second quarter segment EBITDA and EBITDA margin. A significant number of underutilized rental pieces were disposed of in Canada during the second quarter of 2023.

Compression and Process Services (“CPS”)

		Three months ended June 30								Six months ended June 30
		2023			2022		Change			2023			2022		Change
Revenue	$	113,130		$	92,782		22	%	$	211,248		$	151,347		40	%
EBITDA (1)	$	12,399		$	14,948		(17	%)	$	24,998		$	18,206		37	%
EBITDA (1) as a % of revenue		11	%		16	%	(31	%)		12	%		12	%	-
Horsepower of equipment on rent at period end		41,842			30,970		35	%		41,842			30,970		35	%
Canada		19,202			13,975		37	%		19,202			13,975		37	%
United States		22,640			16,995		33	%		22,640			16,995		33	%
Rental equipment utilization during the period (HP)(2)		78	%		54	%	44	%		78	%		53	%	47	%
Canada		84	%		39	%	115	%		78	%		38	%	105	%
United States		73	%		75	%	(3	%)		77	%		74	%	4	%
Sales backlog at period end, $ million	$	185.6		$	181.7		2	%	$	185.6		$	181.7		2	%

⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
⁽²⁾ Rental equipment utilization is measured on a horsepower basis.

The year over year increase in the CPS segment’s second quarter revenue was due primarily to higher U.S. fabrication sales, increased equipment overhaul activity and increased utilization of the compression rental fleet. Excluding $7.4 million of contract cancellation revenue included in the second quarter of 2022, improved pricing on fabrication sales, increased overhead absorption due to higher production levels and higher rental fleet utilization all contributed to a year-over-year improvement in second quarter segment adjusted EBITDA and EBITDA margin, with second quarter adjusted EBITDA and EBITDA margin increasing 64% and 22%, respectively, for 2023 as compared to 2022.   The fabrication sales backlog increased to $185.6 million, compared to the $181.7 million backlog at June 30, 2022.   Sequentially, the quarter end backlog decreased $41.8 million as the conversion of quoting activity to sales moderated somewhat during the second quarter with no corresponding decrease in production activity.

Well Servicing (“WS”)

		Three months ended June 30								Six months ended June 30
		2023			2022		Change			2023			2022		Change
Revenue	$	21,621		$	23,541		(8	%)	$	54,331		$	50,966		7	%
EBITDA (1)	$	2,854		$	3,729		(23	%)	$	11,133		$	10,277		8	%
EBITDA (1) as a % of revenue		13	%		16	%	(19	%)		20	%		20	%	-
Service hours(2)		22,630			26,007		(13	%)		55,876			56,846		(2	%)
Canada		9,357			10,707		(13	%)		26,848			27,157		(1	%)
United States		5,767			4,556		27	%		12,411			8,710		42	%
Australia		7,506			10,744		(30	%)		16,617			20,979		(21	%)
Revenue per service hour(2), dollars	$	955		$	905		6	%	$	972		$	897		8	%
Canada		941			925		2	%		969			866		12	%
United States		993			892		11	%		998			856		17	%
Australia		945			891		6	%		959			953		1	%
Utilization(3)		25	%		27	%	(7	%)		32	%		31	%	3	%
Canada		18	%		21	%	(14	%)		26	%		26	%	-
United States		58	%		46	%	26	%		62	%		44	%	41	%
Australia		29	%		41	%	(29	%)		32	%		40	%	(20	%)
Rigs, average for period		79			80		(1	%)		79			80		(1	%)
Canada		56			57		(2	%)		56			57		(2	%)
United States		11			11		-			11			11		-
Australia		12			12		-			12			12		-

⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
⁽²⁾ Service hours is defined as well servicing hours of service provided to customers and includes paid rig move and standby.
⁽³⁾ The Company reports its service rig utilization for its operational service rigs in North America based on service hours of 3,650 per rig per year to reflect standard 10 hour operations per day. Utilization for the Company’s service rigs in Australia is calculated based on service hours of 8,760 per rig per year to reflect standard 24 hour operations.

Second quarter activity in the Canadian WS segment was negatively impacted by reduced well abandonment activity following the conclusion of government incentive programs. Negatively impacting second quarter activity in Australia was the removal of a service rig from operation for recertification and upgrades.   Partially offsetting lower activity in Canada and Australia was higher year over year activity in the U.S. Year over year increases in second quarter revenue per service hour in all jurisdictions also partially offset lower consolidated activity levels.

Corporate

During the second quarter of 2023, Total Energy remained focused on the safe and efficient operation of its business and the execution of its 2023 capital expenditure program. After funding working capital requirements, $12.7 million of capital expenditures and $3.6 million of required debt, lease and interest payments, Total Energy generated $18.1 million of free cash flow during the quarter that was directed towards $10.0 million of additional debt reduction, $3.3 million of share repurchases and $3.2 million of dividends.

Total Energy exited the second quarter of 2023 with $108.6 million of positive working capital, including $29.9 million of cash, and $115 million of available credit under its $175 million of revolving bank credit facilities.   The weighted average interest rate on the Company’s outstanding debt at June 30, 2023 was 5.09%.

Outlook

Despite a decline in commodity prices during the second quarter of 2023, industry conditions remained relatively stable. While oil prices have increased thus far during the third quarter of 2023, producers continue to be disciplined in their capital investment programs.   In this environment, Total Energy remains focused on the safe and efficient operation of its business, the disciplined deployment of capital and opportunities to enhance shareholder value.

In Australia, the drilling rig removed from service during the second quarter of 2023 for recertification and upgrades returned to service in July 2023. The Australian service rig removed from service in the second quarter is currently undergoing recertification and upgrades and is expected to return to service later this year. In Canada, the triple drilling rig moved from the United States to Canada during the second quarter commenced drilling in early July following recertification and retrofitting.

Total Energy’s Board of Directors has approved a $6.0 million increase to the Company’s 2023 capital expenditure budget to $72.1 million, of which $42.5 million has been expended to June 30, 2023. This increase is directed towards continued equipment upgrades and recertifications in the CDS, RTS and WS segments in direct response to customer demand. Total Energy intends to fund the remaining $29.6 million of its remaining 2023 capital expenditure program with cash on hand, cash flow and proceeds from the disposition of underutilized equipment.

Conference Call

At 9:00 a.m. (Mountain Time) on August 11, 2023 Total Energy will conduct a conference call and webcast to discuss its second quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”. Persons wishing to participate in the conference call may do so by calling (800) 319-4610 or (416) 915-3239. Those who are unable to listen to the call live may listen to a recording of it on Total Energy’s website. A recording of the conference call will also be available until September 11, 2023 by dialing (855) 669-9658 (passcode 0318).

Selected Financial Information

Selected financial information relating to the three and six months ended June 30, 2023 and 2022 is included in this news release. This information should be read in conjunction with the condensed interim consolidated financial statements of Total Energy and the notes thereto as well as management’s discussion and analysis to be issued in due course and in the Company’s 2022 Annual report.

Consolidated Statements of Financial Position
(in thousands of Canadian dollars)

			June 30				December 31
				2023				2022
			(unaudited)				(audited)
Assets
Current assets:
Cash and cash equivalents			$	29,866			$	34,061
Accounts receivable				149,396				154,581
Inventory				111,658				91,614
Prepaid expenses and deposits				18,701				18,847
Income taxes receivable				169				496
Current portion of lease asset				220				378
				310,010				299,977
Property, plant and equipment				566,984				567,515
Income taxes receivable				7,070				7,070
Goodwill				4,053				4,053
			$	888,117			$	878,615
Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities			$	135,355			$	114,274
Deferred revenue				55,690				63,895
Dividends payable				3,212				2,490
Current portion of lease liabilities				5,157				5,173
Current portion of long-term debt				2,019				1,991
				201,433				187,823
Long-term debt				101,976				117,997
Lease liabilities				9,268				9,631
Deferred income tax liability				45,486				41,141
Shareholders' equity:
Share capital				252,611				261,109
Contributed surplus				3,492				3,590
Accumulated other comprehensive loss				(22,332	)			(17,032	)
Non-controlling interest				529				552
Retained earnings				295,654				273,804
				529,954				522,023
			$	888,117			$	878,615

Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)

		Three months ended June 30						Six months ended June 30
			2023			2022			2023			2022
Revenue		$	208,845		$	179,204		$	446,622		$	340,656
Cost of services			169,049			140,917			347,035			270,715
Selling, general and administration			10,126			10,108			21,559			18,894
Other income			(440	)		(485	)		(446	)		(675	)
Share-based compensation			367			259			756			479
Depreciation			20,342			19,979			40,297			39,127
Operating income			9,401			8,426			37,421			12,116
Gain on sale of property, plant and equipment			512			394			1,012			1,870
Finance costs, net			(1,796	)		(1,563	)		(3,499	)		(3,369	)
Net income before income taxes			8,117			7,257			34,934			10,617
Current income tax expense (recovery)			47			21			371			(442	)
Deferred income tax expense			1,890			1,131			4,345			2,487
Total income tax expense			1,937			1,152			4,716			2,045
Net income		$	6,180		$	6,105		$	30,218		$	8,572
Net income (loss) attributable to:
Shareholders of the Company		$	6,201		$	6,113		$	30,241		$	8,585
Non-controlling interest			(21	)		(8	)		(23	)		(13	)
Income per share
Basic		$	0.15		$	0.14		$	0.74		$	0.20
Diluted		$	0.15		$	0.14		$	0.73		$	0.20

Condensed Interim Consolidated Statements of Comprehensive Income

		Three months ended June 30						Six months ended June 30
			2023			2022			2023			2022
Net income		$	6,180		$	6,105		$	30,218		$	8,572
Unrealized foreign currency translation			(4,682	)		114			(5,300	)		211
Total other comprehensive income (loss) for the period			(4,682	)		114			(5,300	)		211
Total comprehensive income		$	1,498		$	6,219		$	24,918		$	8,783
Total comprehensive income (loss) attributable to:
Shareholders of the Company		$	1,519		$	6,227		$	24,941		$	8,796
Non-controlling interest			(21	)		(8	)		(23	)		(13	)

Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)

		Three months ended June 30						Six months ended June 30
			2023			2022			2023			2022
Cash provided by (used in):
Operations:
Net income for the period		$	6,180		$	6,105		$	30,218		$	8,572
Add (deduct) items not affecting cash:
Depreciation			20,342			19,979			40,297			39,127
Share-based compensation			367			259			756			479
Gain on sale of property, plant and equipment			(512	)		(394	)		(1,012	)		(1,870	)
Finance costs, net			1,796			1,563			3,499			3,369
Unrealized gain on foreign currencies translation			(702	)		(485	)		(350	)		(675	)
Current income tax expense (recovery)			47			21			371			(442	)
Deferred income tax expense			1,890			1,131			4,345			2,487
Income taxes paid (recovered)			-			397			(44	)		80
Cashflow			29,408			28,576			78,080			51,127
Changes in non-cash working capital items:
Accounts receivable			22,124			(15,130	)		5,120			(39,978	)
Inventory			(9,241	)		2,937			(20,044	)		(3,590	)
Prepaid expenses and deposits			(491	)		(6,307	)		146			(6,249	)
Accounts payable and accrued liabilities			14,534			12,170			18,546			28,839
Deferred revenue			(12,432	)		2,747			(8,205	)		39,799
Cash provided by operating activities			43,902			24,993			73,643			69,948
Investing:
Purchase of property, plant and equipment			(12,665	)		(13,406	)		(42,454	)		(24,959	)
Proceeds on disposal of property, plant and equipment			741			838			1,504			3,877
Changes in non-cash working capital items			(10,229	)		1,608			2,504			2,951
Cash used in investing activities			(22,153	)		(10,960	)		(38,446	)		(18,131	)
Financing:
Repayment of long-term debt			(10,496	)		(10,651	)		(15,993	)		(31,304	)
Repayment of lease liabilities			(1,539	)		(1,219	)		(3,156	)		(2,281	)
Dividends to shareholders			(3,242	)		-			(5,732	)		-
Repurchase of common shares			(3,275	)		(2,371	)		(11,289	)		(5,899	)
Shares issued on exercise of share options			-			31			-			31
Interest paid			(1,559	)		(1,639	)		(3,222	)		(3,384	)
Cash used in financing activities			(20,111	)		(15,849	)		(39,392	)		(42,837	)
Change in cash and cash equivalents			1,638			(1,816	)		(4,195	)		8,980
Cash and cash equivalents, beginning of period			28,228			44,161			34,061			33,365
Cash and cash equivalents, end of period		$	29,866		$	42,345		$	29,866		$	42,345

Segmented Information

The Company provides a variety of products and services to the energy and other resource industries through five reporting segments, which operate substantially in three geographic regions. These reporting segments are Contract Drilling Services, which includes the contracting of drilling equipment and the provision of labour required to operate the equipment, Rentals and Transportation Services, which includes the rental and transportation of equipment used in energy and other industrial operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of gas compression and process equipment and Well Servicing, which includes the contracting of service rigs and the provision of labour required to operate the equipment. Corporate includes activities related to the Company’s corporate and public issuer affairs.

As at and for the three months ended June 30, 2023 (unaudited, in thousands of Canadian dollars)

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	Services			Services			Services
Revenue	$	54,282		$	19,812		$	113,130		$	21,621		$	-		$	208,845
Cost of services		42,783			10,994			97,513			17,759			-			169,049
Selling, general and administration		1,986			2,076			3,218			1,072			1,774			10,126
Other income (loss)		(288	)		(7	)		43			-			(188	)		(440	)
Share-based compensation		-			-			-			-			367			367
Depreciation		9,479			4,845			2,614			3,142			262			20,342
Operating income (loss)		322			1,904			9,742			(352	)		(2,215	)		9,401
Gain on sale of property, plant and equipment		90			315			43			64			-			512
Finance costs, net		(15	)		(17	)		(111	)		(17	)		(1,636	)		(1,796	)
Net income (loss) before income taxes		397			2,202			9,674			(305	)		(3,851	)		8,117
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		354,433			177,972			278,289			75,584			1,839			888,117
Total liabilities		65,250			27,464			132,616			6,196			126,637			358,163
Capital expenditures		7,614			2,596			542			1,913			-			12,665

	Canada		United States		Australia		Total
Revenue	$	83,257	$	98,820	$	26,768	$	208,845
Non-current assets (2)		395,421		128,222		47,394		571,037

As at and for the three months ended June 30, 2022 (unaudited, in thousands of Canadian dollars)

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	Services			Services			Services
Revenue	$	49,440		$	13,441		$	92,782		$	23,541		$	-		$	179,204
Cost of services		39,171			8,213			74,989			18,544			-			140,917
Selling, general and administration		1,754			1,702			2,930			1,310			2,412			10,108
Other income		-			-			-			-			(485	)		(485	)
Share-based compensation		-			-			-			-			259			259
Depreciation		8,882			4,886			2,779			3,218			214			19,979
Operating income (loss)		(367	)		(1,360	)		12,084			469			(2,400	)		8,426
Gain on sale of property, plant and equipment		293			(26	)		85			42			-			394
Finance costs, net		(4	)		(23	)		(102	)		(4	)		(1,430	)		(1,563	)
Net income (loss) before income taxes		(78	)		(1,409	)		12,067			507			(3,830	)		7,257
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		339,585			181,049			247,172			87,703			5,474			860,983
Total liabilities		71,626			13,936			103,052			6,756			171,314			366,684
Capital expenditures		7,282			2,524			1,691			1,909			-			13,406

	Canada		United States		Australia		Total
Revenue	$	96,074	$	45,714	$	37,416	$	179,204
Non-current assets (2)		374,963		140,254		53,480		568,697

(1) Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
(2) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.

As at and for the six months ended June 30, 2023 (unaudited, in thousands of Canadian dollars)

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	Services			Services			Services
Revenue	$	136,818		$	44,225		$	211,248		$	54,331		$	-		$	446,622
Cost of services		102,201			23,897			179,485			41,452			-			347,035
Selling, general and administration		4,971			4,134			6,795			1,916			3,743			21,559
Other income		(288	)		(7	)		43			-			(194	)		(446	)
Share-based compensation		-			-			-			-			756			756
Depreciation		18,527			9,717			5,237			6,289			527			40,297
Operating income (loss)		11,407			6,484			19,688			4,674			(4,832	)		37,421
Gain on sale of property, plant and equipment		226			513			73			170			30			1,012
Finance costs, net		(30	)		(35	)		(232	)		(33	)		(3,169	)		(3,499	)
Net income (loss) before income taxes		11,603			6,962			19,529			4,811			(7,971	)		34,934
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		354,433			177,972			278,289			75,584			1,839			888,117
Total liabilities		65,250			27,464			132,616			6,196			126,637			358,163
Capital expenditures		31,434			4,134			2,515			4,371			-			42,454

	Canada		United States		Australia		Total
Revenue	$	191,384	$	203,827	$	51,411	$	446,622
Non-current assets (2)		395,421		128,222		47,394		571,037

As at and for the six months ended June 30, 2022 (unaudited, in thousands of Canadian dollars)

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	Services			Services			Services
Revenue	$	109,502		$	28,841		$	151,347		$	50,966		$	-		$	340,656
Cost of services		86,165			17,060			129,322			38,168			-			270,715
Selling, general and administration		3,356			3,328			4,724			2,578			4,908			18,894
Other income		-			-			-			-			(675	)		(675	)
Share-based compensation		-			-			-			-			479			479
Depreciation		17,759			9,795			4,692			6,420			461			39,127
Operating income (loss)		2,222			(1,342	)		12,609			3,800			(5,173	)		12,116
Gain (loss) on sale of property, plant and equipment		268			640			905			57			-			1,870
Finance costs, net		(6	)		(39	)		(174	)		(9	)		(3,141	)		(3,369	)
Net income (loss) before income taxes		2,484			(741	)		13,340			3,848			(8,314	)		10,617
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		339,585			181,049			247,172			87,703			5,474			860,983
Total liabilities		71,626			13,936			103,052			6,756			171,314			366,684
Capital expenditures		17,464			2,758			2,761			1,965			11			24,959

	Canada		United States		Australia		Total
Revenue	$	184,267	$	89,358	$	67,031	$	340,656
Non-current assets (2)		374,963		140,254		53,480		568,697

(1) Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
(2) Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.

Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.

For further information, please contact Daniel Halyk, President & Chief Executive Officer at (403) 216-3921 or Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca

Notes to the Financial Highlights

(1) EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various jurisdictions as well as the cash generated by the Company’s primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy’s performance. Total Energy’s method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.

(2) Working capital equals current assets minus current liabilities.

(3) Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company’s liquidity.

(4) Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 5 to the Company’s Condensed Interim Consolidated Financial Statements.

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "believe", "will" and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.

In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy’s future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy’s ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy’s most recently filed Annual Information Form and other public disclosures (available at www.sedar.com) for a discussion of such risks and uncertainties.

The TSX has neither approved nor disapproved of the information contained herein.