CALGARY, ALBERTA--(Marketwired - Nov. 25, 2013) - Total Energy Services Inc. ("Total") (TOT.TO) announces that it has increased its 2013 capital expenditure budget by $18.5 million to $114.3 million. This increase is directed towards continued expansion of Total's natural gas compression rental fleet, with $38.5 million now budgeted for expansion of the compression rental fleet in 2013.
A significant portion of the increased demand for compression rental equipment has arisen from recent compression sales orders being converted to long term rentals. Specifically, $20.4 million of fabrication sales (for compression packages totaling 20,160 horsepower) that were received prior to September 30, 2013 and included in the September 30, 2013 compression fabrication sales backlog of $46.2 million have been converted to 48 month rentals. It is expected that all such rental units will be delivered by the end of the first quarter of 2014.
The addition of 20,160 horsepower of rental compression represents a 56% increase to the 35,700 horsepower of compression on rent at September 30, 2013.
With approximately $10.0 million of compression sales orders received subsequent to September 30, 2013, after excluding the $20.4 million of compression sales converted to rentals, Total's compression sales backlog currently stands at approximately $35.5 million.
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 equipment. The common shares of Total are listed and trade on the TSX under the symbol "TOT".
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.