CALGARY, Alberta, Oct. 05, 2021 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy”) (TSX:TOT) will conduct a conference call and webcast following the release of its financial results for the three months ended September 30, 2021. The financial results will be released prior to the conference call. Daniel Halyk, President and CEO will host the call.

A live webcast of the conference call will be accessible on Total Energy’s website at www.totalenergy.ca by selecting “Webcasts”.

Shortly after the live webcast, an archived version will be available on Total Energy’s website. A recording of the conference call will also be available until December 9, 2021, by dialling (855) 669-9658, passcode 7881.

Headquartered in Calgary, Alberta, 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 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.

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

CALGARY, Alberta, Aug. 13, 2021 (GLOBE NEWSWIRE) — Total Energy Services Inc. (TSX:TOT) (“Total Energy”) announced today that it has received approval from the Toronto Stock Exchange (the “TSX”) to amend its previously approved Normal Course Issuer Bid (“NCIB”) to increase the maximum number of common shares Total Energy may repurchase for cancellation under the NCIB from 1,500,000 to 2,254,000 common shares.

Under Total Energy’s current NCIB, between October 9, 2020 and August 12, 2021, Total Energy repurchased a total of 660,300 common shares at a weighted average price of $4.27 per common share. The new, amended NCIB with the higher limit will commence on August 17, 2021 and terminate no later than October 8, 2021.

Other than the increase to the maximum number of common shares which may be acquired pursuant to the NCIB, no further amendments have been made to the NCIB. For further details regarding the NCIB, please refer to Total Energy’s prior news release dated October 7, 2020.

From time to time, purchases of Shares may be undertaken at prices that represent an attractive investment opportunity for Total Energy. Total Energy expects that the purchase of Shares will benefit the remaining shareholders of Total Energy by increasing their proportionate equity investment in Total Energy.

Headquartered in Calgary, Alberta, 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 Cam Danyluk, V.P. Legal and General Counsel at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca.

CALGARY, Alberta, Aug. 11, 2021 (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, 2021.

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

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 three months ended June 30, 2021 reflect challenging but improving industry conditions in North America and lower Australian activity levels as compared to the second quarter of 2020. Included in the financial results for the three months ended June 30, 2021 was $0.6 million of non-recurring equipment reactivation costs. $8.1 million was recorded during the second quarter of 2021 under various COVID-19 relief programs, including the forgiveness of $2.5 million of loans received in 2020 under the United States Paycheck Protection Program.

Contract Drilling Services (“CDS”)

⁽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.

Drilling activity in North America for the second quarter of 2021 was higher compared to the same period in 2020. Second quarter Canadian industry activity levels improved from the historic lows experienced in 2020 and market share gains in the United States drove a significant year over year increase in operating days despite a more muted increase in United States industry activity relative to Canada. Australian industry activity was lower on a year over year basis due to reduced drilling programs and prolonged wet weather conditions that restricted field activity. The first of two Australian drilling rigs removed from service in the third quarter of 2020 for recertification and upgrades was completed during the second quarter and commenced operations in late April 2021. Second quarter CDS segment revenue increased by 82% in 2021 compared to 2020 despite a decrease in revenue per operating day arising from changes in the geographic revenue mix and the mix of equipment operating.   Despite incurring $0.6 million of non-recurring equipment reactivation costs during the second quarter of 2021 as several idle drilling rigs were put back into service in the United States and one rig was returned to service in Australia, ongoing cost management, efficiencies of scale and the receipt of COVID-19 relief funds contributed to the significant year over year second quarter improvement in segment EBITDA. Three mechanical double drilling rigs were decommissioned in Canada during the second quarter of 2021, bringing the current Canadian drilling rig fleet to 77 rigs.

Rentals and Transportation Services (“RTS”)

⁽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 2020 due to higher Canadian industry activity levels and the commencement of several major Canadian projects that were delayed in the first quarter of 2021 due to COVID-19 and other health and safety concerns unrelated to the Company’s operations or personnel. During the quarter the RTS segment realized a $1.6 million gain on the sale of access matting, underutilized rental equipment and older heavy trucks.   While second quarter revenue increased 27% on a year over year basis, excluding the gain on sale of equipment, segment EBITDA increased 102% as a result of ongoing efforts to right-size this segment’s Canadian operating infrastructure and the receipt of COVID-19 funds.

Compression and Process Services (“CPS”)

⁽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 fabrication sales and increased equipment overhaul activity. Quarterly rental fleet utilization began to recover following the return of 6,500 horsepower of rental compression in late 2020 due to the bankruptcy of a United States customer, with a 20% increase in horsepower on rent at June 30, 2021 compared to March 31, 2021.   Ongoing cost management, increased overhead absorption as a result of higher fabrication activity and the receipt of COVID-19 relief funds contributed to a significant year over year improvement in second quarter EBITDA margin.   The fabrication sales backlog continued to recover during the second quarter of 2021, with a $9.8 million, or 21% increase from March 31, 2021 and a 55% increase from the low of $37.0 million recorded at September 30, 2020.

Well Servicing (“WS”)

⁽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.

WS segment revenue decreased in the second quarter of 2021 as compared to 2020 as a result of lower activity levels in Australia that was due in part to prolonged wet weather conditions that restricted field activity.   The increase in North American activity from the severely depressed levels experienced during the second quarter of 2020 was driven by the substantial improvement in oil prices over the past year and increased well abandonment activity in Canada.

Corporate

Total Energy continued to focus on the safe and efficient operation of its business and the preservation of its balance sheet strength and financial liquidity during the second quarter of 2021. Bank debt was reduced by $18.6 million, or 8%, during the quarter. The Company also resumed share buybacks under its normal course issuer bid with the purchase of 529,100 shares at an average price of $4.26 (including commissions). There were 44,600,000 common shares outstanding at June 30, 2021.

The Company exited the second quarter of 2021 with $127.2 million of positive working capital (including $29.2 million of cash) and $113 million of available credit under its $255 million of revolving bank credit facilities.   The weighted average interest rate on the Company’s outstanding debt at June 30, 2021 was 2.75%.

Outlook

While oil and natural gas prices remained relatively strong during the second quarter of 2021 and North American activity levels began to improve from the historic lows experienced following the COVID-19 outbreak and collapse in oil prices, producers generally remained disciplined with their capital expenditure budgets. Wet weather and the removal of two drilling rigs in Australia from service for recertification and upgrades negatively impacted second quarter Australian activity compared to 2020.

North American activity levels continue to modestly improve and in late-July the second Australian drilling rig returned to service. The CDS segment currently has 16 rigs operating in Canada, eight in the United States and four in Australia. Drilling activity is usually a leading indicator for industry activity levels and current activity levels in Total Energy’s other business segments have improved in concert with increased drilling activity. Current indications are that North American industry activity levels will continue to improve during the remainder of 2021 provided oil and natural gas prices remain relatively stable.

In response to increasing activity levels and longer lead times for certain equipment due to global supply chain issues, the Board of Directors of Total Energy has approved an increase to the Company’s 2021 capital expenditure budget to $26.7 million. Included in this $13.1 million increase is $8.0 million for upgrades to several drilling rigs and new drill pipe and $5.1 million of light duty vehicles for use in all business segments. The rig upgrades are in response to specific customer requests and include pressure upgrades and the addition of walking systems and bi-fuel capacity as Total Energy continues to collaborate with its customers to minimize the environmental impact of drilling operations and increase the capabilities of the Company’s drilling rig fleet. The light duty vehicle capital expenditure relates to 2022 fleet requirements for all business segments but a significant increase in production lead times dictates that such requirements be addressed at this time. Total Energy intends to finance its 2021 capital expenditure budget with cash on hand, proceeds from the disposal of older and underutilized equipment and, in respect of the light duty vehicles, $5.1 million of capital leases.

Director Appointment

Total Energy is pleased to announce the appointment of Jessica Kirstine to the Company’s Board of Directors. Ms. Kirstine currently serves as Vice-President of System Operations and Engineering, Liquid Pipelines for TC Energy. Based in Calgary, Ms. Kirstine is responsible for Liquid Pipelines Operation Control Centre, Pipe and Facility Integrity and overall engineering support of TC Energy’s liquid pipelines operating assets across North America. Prior to joining TC Energy in 2019, Ms. Kirstine spent 17 years in the Canadian upstream oil and gas industry in operations, engineering and exploration roles, serving in both technical and management capacities.

Ms. Kirstine has her Professional Engineering designation from the Association of Professional Engineers and Geoscientists of Alberta (APEGA) and earned her Chemical Engineering degree from the University of Saskatchewan in 2002.

Conference Call

At 9:00 a.m. (Mountain Time) on August 12, 2021 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 12, 2021 by dialing (855) 669-9658 (passcode 7340).

Selected Financial Information

Selected financial information relating to the three and six months ended June 30, 2021 and 2020 is enclosed to 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 the Company’s 2020 Annual report.

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

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

Consolidated Statements of Comprehensive Loss
(unaudited)

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

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, 2021 (unaudited, in thousands of Canadian dollars)

As at and for the three months ended June 30, 2020 (unaudited, in thousands of Canadian dollars)

As at and for the six months ended June 30, 2021 (unaudited, in thousands of Canadian dollars)

As at and for the six months ended June 30, 2020 (unaudited, in thousands of Canadian dollars)

⁽¹⁾  Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
⁽²⁾  Effective April 1, 2020 the Company changed certain estimates relating to the useful life and residual value of equipment in the Contract Drilling Services segment. See note 10 to the 2020 Financial Statements for further details.
⁽³⁾  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 before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income, 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.

(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.

CALGARY, Alberta, May 12, 2021 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended March 31, 2021.

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

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

“nm” – calculation not meaningful

Total Energy’s results for the three months ended March 31, 2021 reflect continued challenging industry conditions in North America and lower Australian activity levels. Included in the financial results for the three months ended March 31, 2021 was $2.9 million of incremental depreciation expense resulting from a change in depreciation estimates in the Contract Drilling Services segment effective April 1, 2020, $0.4 million of non-recurring equipment relocation costs and a $0.2 million increase to the Company’s allowance for doubtful accounts. $5.9 million was received during the first quarter of 2021 under various COVID-19 relief programs.

Contract Drilling Services (“CDS”)

⁽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.

Drilling activity for the first quarter of 2021 was lower compared to 2020 in all geographic areas. Australian activity levels were significantly lower on a year over year basis due to reduced drilling programs and prolonged wet weather conditions that restricted field activity for much of the quarter. Two Australian drilling rigs remained out of service during the first quarter of 2021 for recertifications and upgrades.    First quarter revenue per operating day for 2021 was lower than 2020 due primarily to the geographic revenue mix and the mix of equipment operating.   $0.4 million of non-recurring equipment relocation costs were incurred during the first quarter of 2021 to complete the consolidation of United States drilling operations in West Texas.   Despite the year over year decline in revenue and EBITDA, the quarterly segment EBITDA margin increased in 2021 as a result of cost management efforts and the receipt of COVID-19 funds.

Rentals and Transportation Services (“RTS”)

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

First quarter revenue in the RTS segment was lower in 2021 as compared to 2020 due to lower North American drilling and completion activity. The RTS segment’s Canadian financial performance was also negatively impacted by several major project delays due to COVID-19 and other health and safety concerns unrelated to the Company’s operations or personnel. These delays were unanticipated and implemented after the RTS segment had begun significant mobilization efforts. Despite a substantial decline in revenue, first quarter segment EBITDA margin increased in 2021 as a result of efforts to right-size this segment’s operating infrastructure in response to prolonged reduced industry activity levels in Canada and the receipt of COVID-19 funds. In addition, a substantial portion of the heavy truck fleet continued to be out of service during 2021 to reduce operating costs and equipment wear and tear until such time as North American industry conditions warrant placing such units back into service.

Compression and Process Services (“CPS”)

⁽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 decrease in the CPS segment’s first quarter revenue was due primarily to lower fabrication sales and rental fleet utilization. Rental fleet utilization was negatively impacted with the return of 6,500 horsepower of rental compression in late 2020 following the bankruptcy of a United States customer. Competitive market conditions as well as lower production levels and rental fleet utilization contributed to the year over year decline in the quarterly EBITDA margin.   The fabrication sales backlog continued to recover during the first quarter of 2021 from the $37.0 million low reached at September 30, 2020, with a further $3.8 million, or 9% increase from December 31, 2020.

Well Servicing (“WS”)

⁽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.

WS segment revenue decreased in the first quarter of 2021 as compared to 2020 as a result of lower activity levels in United States and Australia. Increased well abandonment activity in Canada was the primary driver of a modest year over year increase in first quarter activity. Prolonged wet weather conditions during the first quarter of 2021 exacerbated the decline in Australian service rig activity that began to moderate in the third quarter of 2020.

Corporate

Total Energy remained focused on the safe and efficient operation of its business and the preservation of its balance sheet strength and financial liquidity during the first quarter of 2021. Bank debt was reduced by $10.6 million during the first three months of 2021 and the Company resumed share buybacks under its normal course issuer bid with the purchase and cancellation of 81,300 shares at an average price of $4.03 (including commissions).

Total Energy’s financial condition and liquidity remains strong. The Company exited the first quarter of 2021 with $135.3 million of positive working capital (including $20.7 million of cash) and $95 million of available credit under its $255 million of revolving bank credit facilities. The weighted average interest rate on the Company’s outstanding debt at March 31, 2021 was 2.73%.

Outlook

Despite a recovery in oil and natural gas prices over the past year, producers remained cautious and disciplined with their capital expenditure budgets during the first quarter as evidenced by the significant year over year decrease in North American industry activity levels. While the first quarter is typically the rainy season in Australia, 2021 saw prolonged periods of rain that materially impacted field activity levels.

Continued strength in oil and natural gas prices and a substantial increase in industry cash flow is beginning to contribute to higher activity levels. Current drilling rig activity in North America is now higher than at the same time a year ago. Total Energy currently has 13 drilling rigs operating in North America as compared to one rig drilling a year ago. In Australia, field conditions have improved over the past few weeks which has contributed to more steady activity levels. One of the two drilling rigs removed from service in the third quarter of 2020 for recertification and upgrades was completed and commenced drilling in late April such that three drilling rigs are currently active. The second rig is scheduled to be completed and commence drilling operations in July.

During the first quarter of 2021, the RTS segment incurred significant costs to mobilize equipment and personnel for several Canadian projects that it had been awarded work on. While project delays had a negative impact on first quarter financial performance in the RTS segment, such projects are expected to begin when ground conditions permit and COVID-19 restrictions are lifted.

The CPS segment’s fabrication sales backlog continued to slowly recover during the first quarter of 2021 and while the March 31, 2021 sales backlog remains relatively low by historical comparison, for the first time since the fourth quarter of 2018 the quarter end sales backlog was higher on a year over year basis.

The Well Servicing segment is experiencing a recovery in demand, particularly in Canada as funding under the federal government’s well abandonment program has begun to accelerate.

While current indications are that activity levels will continue to modestly improve, industry sentiment remains volatile and uncertain. As such, Total Energy will remain focused on the efficient operation of its existing businesses and the disciplined use of its free cash flow. Debt repayment will remain a priority.

Conference Call

At 9:00 a.m. (Mountain Time) on May 13, 2021 Total Energy will conduct a conference call and webcast to discuss its first 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 June 12, 2021 by dialing (855) 669-9658 (passcode 6598).

Annual Meeting of Shareholders

Shareholders are reminded that Total Energy’s annual meeting of Shareholders will take place on Tuesday, May 18, 2021 at 10:00 a.m. (Mountain Time). Due to public health measures implemented in response to the COVID-19 pandemic, attendance at such meeting will be strictly limited as detailed in the Company’s news release issued on May 7, 2021. The Meeting will be broadcast live via audio-only webcast and can be accessed through Total Energy’s website at www.totalenergy.ca/webcasts.

Selected Financial Information

Selected financial information relating to the three months ended March 31, 2021 and 2020 is attached to 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 the Company’s 2020 Annual report.

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