CALGARY, Alberta, May 08, 2025 (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, 2025.

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

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 financial results for the first quarter of 2025 reflect relatively stable industry conditions in Canada and Australia and continued weakness in the United States. Improved Compression and Process Services segment performance and contributions from the acquisition of Saxon Energy Services Australia Pty. Ltd. (“Saxon”) as well as several upgraded Australian drilling and service rigs that were reactivated during the second half of 2024 more than offset the decline in United States drilling and completion activity.

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 standby days.

First quarter CDS segment activity was modestly lower in 2025 compared to 2024 due to a substantial decline in U.S. activity, an early spring shutdown in Canada and the loss of market share in more competitive areas of the Canadian market. The decline in North American operating days was offset by a significant increase in Australian activity following the acquisition of Saxon in March of 2024 and the deployment of several upgraded drilling rigs during the second half of 2024. The year over year increase in first quarter Australian revenue per operating day reflects the addition of Saxon’s deeper drilling rig fleet which receives higher day rates as well as increased rates received for upgraded drilling 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.

RTS segment revenue and revenue per utilized piece of equipment both increased for the first quarter of 2025 compared to 2024 due to the mix of equipment operating and the deployment of new and upgraded equipment. First quarter segment EBITDA decreased in 2025 compared to the prior year due to the change in the mix of equipment operating and expenses incurred to deploy new and upgraded equipment.

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.

2025 first quarter CPS segment revenue was higher compared to 2024 due primarily to increased fabrication and parts and service activity in both Canada and the U.S. Efficiencies arising from higher production levels contributed to the year over year increase in first quarter segment EBITDA. Sequentially, the quarter end fabrication sales backlog increased by $76.4 million, or 40%, compared to the $189.0 million backlog at December 31, 2024.

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.

First quarter WS segment revenue increased in 2025 as compared to 2024 due to increased activity in Australia following the reactivation of several upgraded service rigs that offset a substantial decline in U.S. activity. Segment EBITDA for the first quarter of 2025 was higher compared to the prior year due to increased Australian activity and higher pricing received for upgraded Australian service rigs.

Corporate

During the first quarter of 2025, Total Energy remained focused on the safe and efficient operation of its business and execution of its 2025 capital expenditure program. $34.5 million of capital expenditures were made during the first quarter, including $16.6 million of capital commitments from 2024 that related primarily to the upgrade of several Australian drilling and service rigs.

Total Energy exited the first quarter of 2025 with $83.6 million of positive working capital, including $65.1 million of cash, and $105.0 million of available credit under its $175 million of revolving bank credit facilities. The weighted average interest rate on the Company’s outstanding bank debt at March 31, 2025 was 4.09%.

Outlook

Subsequent to March 31, 2025, oil prices have weakened following the announcement of substantial tariffs by the U.S. government on global trading partners and threats of retaliatory tariffs combined with the potential increase of OPEC oil supply despite near term global economic growth concerns. This political and economic uncertainty has impaired near term visibility for the energy services industry. Despite this uncertainty, industry conditions remain relatively stable in North America and Australia. Contributing to this stability is continuing investment in the expansion of North American energy infrastructure, as evidenced by the substantial increase in the CPS segment’s fabrication sales backlog during the first quarter of 2025.

Total Energy continues to identify opportunities to upgrade and reactivate equipment as well as targeted opportunities to build new equipment. In that regard, the Company has increased its 2025 capital expenditure budget to $73.9 million. This $12.0 million increase is directed towards growth opportunities and includes the upgrade and reactivation of an idle Australian drilling rig acquired as part of the Saxon acquisition that is scheduled to commence operations in the fourth quarter of 2025 under a long term contract, the upgrade of a Canadian drilling rig that recently commenced operations and $3.9 million of new rental equipment for the RTS segment that is expected to be deployed by the fourth quarter of 2025. The Company expects to fund the remaining $56.0 million of 2025 capital expenditure commitments with cash on hand and cashflow.

On April 29, 2025, Total Energy repaid $40.4 million of mortgage debt that matured. Such repayment was funded by available cash on hand and the Company’s existing credit facility.

Conference Call

At 9:00 a.m. (Mountain Time) on May 9, 2025 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 (833) 752-3851 or (647) 846-8915. 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 9, 2025 by dialing (855) 669-9658 (passcode 1220531).

Selected Financial Information

Selected financial information relating to the three months ended March 31, 2025 and 2024 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 2024 Annual Report.

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

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

Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
(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 labor 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 labor 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 March 31, 2025 (unaudited, in thousands of Canadian dollars)

As at and for the three months ended March 31, 2024 (unaudited, in thousands of Canadian dollars)

(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 6 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 http://www.sedarplus.ca/) for a discussion of such risks and uncertainties.

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