Total Energy Services Inc. Announces Q2 2022 Results

CALGARY, Alberta, Aug. 08, 2022 (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, 2022.

Financial Highlights
($000’s except per share data)
Three months ended June 30 Six months ended June 30
2022 2021 Change 2022 2021 Change
Revenue $ 179,204 $ 84,876 111% $ 340,656 $ 178,066 91%
Operating income (loss) 8,426 (4,089) nm 12,116 (9,508) nm
EBITDA(1) 28,799 19,716 46% 53,113 36,433 46%
Cashflow 28,576 16,462 74% 51,127 31,794 61%
Net income (loss) 6,105 (2,136) nm 8,572 (5,743) nm
Attributable to shareholders 6,113 (2,108) nm 8,585 (5,687) nm
Per Share Data (Diluted)
EBITDA(1) $ 0.67 $ 0.44 52% $ 1.23 $ 0.81 52%
Cashflow $ 0.66 $ 0.37 78% $ 1.18 $ 0.70 69%
Attributable to shareholders:
Net income (loss) $ 0.14 $ (0.05) nm $ 0.20 $ (0.13) nm
Common shares (000’s)(4)
Basic 42,307 44,830 (6%) 42,509 44,950 (5%)
Diluted 43,203 45,066 (4%) 43,319 45,158 (4%)
June 30 December 31
Financial Position at 2022 2021 Change
Total Assets $ 860,983 $ 813,522 6%
Long-Term Debt and Lease Liabilities (excluding current portion) 165,767 196,007 (15%)
Working Capital(2) 122,043 137,304 (11%)
Net Debt(3) 43,724 58,703 (26%)
Shareholders’ Equity 494,299 493,437
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 June 30, 2022 reflect the continued recovery of the global energy industry, particularly in North America. Prolonged wet weather conditions in Australia during the second quarter of 2022 restricted field activity and resulted in a substantial year over year increase in drilling and service rig paid standby days. The Company did not receive any COVID-19 relief funds during the quarter as compared to $8.1 million received in the second quarter of 2021.

Contract Drilling Services (“CDS”)
Three months ended June 30 Six months ended June 30
2022
2021 Change 2022
2021 Change
Revenue $ 49,440 $ 25,740 92% $ 109,502 $ 54,311 102%
EBITDA(1) $ 8,808 $ 4,708 87% $ 20,249 $ 10,976 84%
EBITDA(1)as a % of revenue 18% 18% 18% 20% (10%)
Operating days(2) 2,105 1,235 70% 4,788 2,773 73%
Canada 1,009 563 79% 2,634 1,647 60%
United States 696 467 49% 1,397 768 82%
Australia 400 205 95% 757 358 111%
Revenue per operating day(2), dollars $ 23,487 $ 20,842 13% $ 22,870 $ 19,586 17%
Canada 21,304 15,625 36% 20,711 16,175 28%
United States 24,165 19,340 25% 22,998 19,046 21%
Australia 27,813 38,590 (28%) 30,145 36,433 (17%)
Utilization 24% 14% 71% 28% 16% 75%
Canada 14% 8% 75% 19% 11% 73%
United States 59% 39% 51% 59% 33% 79%
Australia 88% 45% 96% 84% 40% 110%
Rigs, average for period 95 97 (2%) 95 98 (3%)
Canada 77 79 (3%) 77 80 (4%)
United States 13 13 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.

Second quarter 2022 drilling activity in North America continued to increase with relatively strong oil and natural gas prices. Continued recovery of Canadian industry activity levels from the historic lows of 2020 and market share gains in the United States drove a significant year over year increase in North American operating days and increased revenue per operating day.   In Australia, activity levels improved in the second quarter of 2022 compared to 2021 as two drilling rigs returned to service following the completion of recertifications and upgrades although a substantial year over year increase in lower rate paid stand-by days due to wet weather contributed to lower revenue per operating day but also lower operating costs. The second quarter EBITDA margin was consistent on a year over year basis with increased pricing offsetting the absence of COVID-19 relief funds and operating cost inflation.

Rentals and Transportation Services (“RTS”)
Three months ended June 30 Six months ended June 30
2022 2021 Change 2022 2021 Change
Revenue $ 13,441 $ 6,053 122% $ 28,841 $ 13,788 109%
EBITDA(1) $ 3,500 $ 3,324 5% $ 9,093 $ 5,290 72%
EBITDA(1)as a % of revenue 26% 55% (53%) 32% 38% (16%)
Revenue per utilized piece of equipment, dollars $ 10,219 $ 7,111 44% $ 20,444 $ 16,199 26%
Pieces of rental equipment 9,390 10,630 (12%) 9,390 10,630 (12%)
Canada 8,510 9,670 (12%) 8,510 9,670 (12%)
United States 880 960 (8%) 880 960 (8%)
Rental equipment utilization 14% 8% 75% 15% 8% 88%
Canada 13% 7% 86% 14% 8% 75%
United States 25% 12% 108% 28% 12% 133%
Heavy trucks 71 80 (11%) 71 80 (11%)
Canada 48 56 (14%) 48 56 (14%)
United States 23 24 (4%) 23 24 (4%)
(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 2021 due to higher equipment utilization and modestly improved pricing. Increased equipment utilization as well as higher revenue per utilized piece of equipment contributed to the year over year increase in second quarter EBITDA. Second quarter EBITDA margin was lower compared to the same period in 2021 due to the absence of COVID-19 relief assistance combined with significant operating cost inflation that was not fully recovered through price increases.

Compression and Process Services (“CPS”)
Three months ended June 30
Six months ended June 30
2022 2021 Change 2022 2021 Change
Revenue $ 92,782 $ 33,657 176% $ 151,347 $ 67,813 123%
EBITDA(1) $ 14,948 $ 7,682 95% $ 18,206 $ 11,257 62%
EBITDA(1)as a % of revenue 16% 23% (30%) 12% 17% (29%)
Horsepower of equipment on rent at period end 30,970 27,420 13% 30,970 27,420 13%
Canada 13,975 11,840 18% 13,975 11,840 18%
United States 16,995 15,580 9% 16,995 15,580 9%
Rental equipment utilization during the period (HP)(2) 54% 47% 15% 53% 45% 18%
Canada 39% 31% 26% 38% 31% 23%
United States 75% 74% 1% 74% 67% 10%
Sales backlog at period end, $ million $ 181.7 $ 57.5 216% $ 181.7 $ 57.5 216%
(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, increased equipment overhaul activity and $7.4 million of contract cancellation revenue. Compression rental fleet utilization continued to recover during the second quarter of 2022. The absence of COVID-19 relief assistance and general operating cost inflation contributed to a lower second quarter EBITDA margin in 2022 as compared to 2021. Improved pricing following the completion during the first quarter of 2022 of lower margin fabrication orders received in 2021 contributed to a substantial sequential quarterly improvement in segment margins.   The fabrication sales backlog continued to grow during the second quarter of 2022, increasing by $34.2 million, or 23%, compared to the $147.5 million backlog at December 31, 2021 and $1.0 million from the $180.7 million backlog at March 31, 2022 after deducting the cancelled contracts.

Well Servicing (“WS”)
Three months ended June 30 Six months ended June 30
2022 2021 Change 2022 2021 Change
Revenue $ 23,541 $ 19,426 21% $ 50,966 $ 42,154 21%
EBITDA(1) $ 3,729 $ 4,667 (20%) $ 10,277 $ 9,819 5%
EBITDA(1)as a % of revenue 16% 24% (33%) 20% 23% (13%)
Service hours(2) 26,007 22,201 17% 56,846 51,134 11%
Canada 10,707 8,303 29% 27,157 25,425 7%
United States 4,556 3,449 32% 8,710 6,060 44%
Australia 10,744 10,449 3% 20,979 19,649 7%
Revenue per service hour(2), dollars $ 905 $ 875 3% $ 897 $ 824 9%
Canada 925 686 35% 866 659 31%
United States 892 664 34% 856 674 27%
Australia 891 1,095 (19%) 953 1,084 (12%)
Utilization(3) 27% 21% 29% 31% 27% 15%
Canada 21% 16% 31% 26% 25% 4%
United States 46% 27% 70% 44% 24% 83%
Australia 41% 40% 3% 40% 38% 5%
Rigs, average for period 80 83 (4%) 80 83 (4%)
Canada 57 57 57 57
United States 11 14 (21%) 11 14 (21%)
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 WS segment revenue increased in 2022 as compared to 2021 due primarily to improved North American activity, higher pricing and the mix of equipment operating. EBITDA for the second quarter of 2022 was lower compared to the same period last year primarily due to Australia where field activity was limited due to prolonged wet weather conditions that resulted in a substantial year over year increase in lower rate paid stand-by. Also impacting the WS segment’s EBITDA and EBITDA margin for the second quarter of 2022 compared to 2021 was the absence of COVID-19 relief funds and significant operating cost inflation.

Corporate

During the second quarter of 2022, Total Energy remained focused on the safe and efficient operation of its business and improving the overall financial performance of the Company in a challenging cost environment. The $13.2 million of second quarter cash flow remaining after funding net capital expenditures and lease and interest payments was directed towards $10.7 million of debt reduction and $2.4 million of share repurchases under the Company’s normal course issuer bid.

For the six months ended June 30, 2022, after changes in non-cash working capital items and funding $21.1 million of net capital expenditures, $3.4 million of interest payments and $2.3 million of lease payments, Total Energy has generated $43.2 million of free cash flow. This free cash flow has been allocated as to $31.3 million of debt repayment, $5.9 million of share repurchases and payment of a $0.06 per share quarterly dividend to shareholders of record on June 30, 2022 that was paid on July 15, 2022.

Total Energy exited the second quarter of 2022 with $122.0 million of positive working capital, including $42.3 million of cash, and $115 million of available credit under its $225 million of revolving bank credit facilities.   The weighted average interest rate on the Company’s outstanding debt at June 30, 2022 was 3.39%.

Outlook

Total Energy’s consolidated financial results for the second quarter exceeded first quarter results, which is an exceptional occurrence given the seasonality of Canadian operations. Despite market and commodity price volatility, energy service industry fundamentals continue to improve. Total Energy’s active drilling rig count in Canada currently exceeds the peak rig count reached during the first quarter of 2022 and provides optimism for activity levels for the remainder of 2022. Industry equipment and personnel constraints have begun to appear, which has supported continued pricing recovery in all business segments.

In response to increasing activity levels and longer lead times for certain equipment, Total Energy has increased its 2022 capital expenditure budget to $56.2 million. Included in this $14.1 million increase is $10.0 million for new equipment and equipment upgrades in the CDS, RTS and WS segments and $4.1 million of light duty vehicles for use in all business segments. The Company intends to finance its 2022 capital expenditure budget with cash on hand and, in respect of the light duty vehicles, $4.1 million of capital leases.

After funding its capital expenditure commitments, Total Energy expects to generate significant free cash flow for the remainder of 2022. Given current market conditions, debt repayment and share buybacks remain attractive opportunities for deployment of such free cash flow. The Company also continues to evaluate consolidation opportunities within its existing business segments.

Conference Call

At 9:00 a.m. (Mountain Time) on August 9, 2022 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 9, 2022 by dialing (855) 669-9658 (passcode 9194).

Selected Financial Information

Selected financial information relating to the three and six months ended June 30, 2022 and 2021 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 2021 Annual report.

Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
June 30 December 31
2022 2021
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 42,345 $ 33,365
Accounts receivable 130,820 90,543
Inventory 93,513 89,921
Prepaid expenses and deposits 15,457 9,208
Income taxes receivable 2,570 2,208
Current portion of lease asset 511 487
285,216 225,732
Property, plant and equipment 564,540 575,913
Income taxes receivable 7,070 7,070
Deferred income tax asset 393
Lease asset 104 361
Goodwill 4,053 4,053
$ 860,983 $ 813,522
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities $ 96,923 $ 65,513
Deferred revenue 56,073 16,274
Dividends payable 2,532
Current portion of lease liabilities 5,004 4,030
Current portion of long-term debt 2,641 2,611
163,173 88,428
Long-term debt 156,572 187,906
Lease liabilities 9,195 8,101
Deferred tax liability 37,744 35,650
Shareholders’ equity:
Share capital 265,769 270,905
Contributed surplus 3,434 5,757
Accumulated other comprehensive loss (26,493) (26,704)
Non-controlling interest 548 561
Retained earnings 251,041 242,918
494,299 493,437
$ 860,983 $ 813,522

Consolidated Statements of Comprehensive Income (Loss)
Unaudited (in thousands of Canadian dollars except per share amounts)
Three months ended
June 30
Six months ended
June 30
2022 2021 2022 2021
Revenue $ 179,204 $ 84,876 $ 340,656 $ 178,066
Cost of services 140,917 63,092 270,715 134,180
Selling, general and administration 10,108 6,069 18,894 12,608
Other income (485) (1,114) (675) (2,180)
Share-based compensation 259 189 479 390
Depreciation 19,979 20,729 39,127 42,576
Operating income (loss) 8,426 (4,089) 12,116 (9,508)
Gain on sale of property, plant and equipment 394 3,076 1,870 3,365
Finance costs, net (1,563) (1,772) (3,369) (3,579)
Net income (loss) before income taxes 7,257 (2,785) 10,617 (9,722)
Current income tax expense (recovery) 21 16 (442) (455)
Deferred income tax expense (recovery) 1,131 (665) 2,487 (3,524)
Total income tax expense (recovery) 1,152 (649) 2,045 (3,979)
Net income (loss) $ 6,105 $ (2,136) $ 8,572 $ (5,743)
Net income (loss) attributable to:
Shareholders of the Company $ 6,113 $ (2,108) $ 8,585 $ (5,687)
Non-controlling interest (8) (28) (13) (56)
Income (loss) per share
Basic and diluted $ 0.14 $ (0.05) $ 0.20 $ (0.13)

Consolidated Statements of Comprehensive Income (Loss)
Three months ended
June 30
Six months ended
June 30
2022 2021 2022 2021
Net income (loss) for the period $ 6,105 $ (2,136) $ 8,572 $ (5,743)
Foreign currency translation 114 (5,820) 211 (11,122)
Total other comprehensive income (loss) for the period 114 (5,820) 211 (11,122)
Total comprehensive income (loss) $ 6,219 $ (7,956) $ 8,783 $ (16,865)
Total comprehensive income (loss) attributable to:
Shareholders of the Company $ 6,227 $ (7,928) $ 8,796 $ (16,809)
Non-controlling interest (8) (28) (13) (56)

Consolidated Statements of Cash Flows
Unaudited (in thousands of Canadian dollars)
Three months ended
June 30
Six months ended
June 30
2022 2021 2022 2021
Cash provided by (used in):
Operations:
Net income (loss) for the period $ 6,105 $ (2,136) $ 8,572 $ (5,743)
Add (deduct) items not affecting cash:
Depreciation 19,979 20,729 39,127 42,576
Share-based compensation 259 189 479 390
Gain on sale of property, plant and equipment (394) (3,076) (1,870) (3,365)
Finance costs, net 1,563 1,772 3,369 3,579
Unrealized gain on foreign currencies translation (485) (1,114) (675) (2,180)
Current income tax expense (recovery) 21 16 (442) (455)
Deferred income tax expense (recovery) 1,131 (665) 2,487 (3,524)
Income taxes paid 397 747 80 516
Cashflow 28,576 16,462 51,127 31,794
Changes in non-cash working capital items:
Accounts receivable (15,130) 3,738 (39,978) (159)
Inventory 2,937 972 (3,590) 2,129
Prepaid expenses and deposits (6,307) 1,068 (6,249) 2,041
Accounts payable and accrued liabilities 12,170 7,123 28,839 7,991
Deferred revenue 2,747 2,259 39,799 4,692
Cash provided by operating activities 24,993 31,622 69,948 48,488
Investing:
Purchase of property, plant and equipment (13,406) (8,079) (24,959) (13,153)
Proceeds on disposal of property, plant and equipment 838 8,005 3,877 8,445
Changes in non-cash working capital items 1,608 79 2,951 1,051
Cash (used in) provided by investing activities (10,960) 5 (18,131) (3,657)
Financing:
Repayment of long-term debt (10,651) (18,637) (31,304) (29,275)
Repayment of lease liabilities (1,219) (1,802) (2,281) (3,622)
Repurchase of common shares (2,371) (1,924) (5,899) (2,253)
Shares issued on exercise of share options 31 31
Interest paid (1,639) (738) (3,384) (3,446)
Cash used in financing activities (15,849) (23,101) (42,837) (38,596)
Change in cash and cash equivalents (1,816) 8,526 8,980 6,235
Cash and cash equivalents, beginning of period 44,161 20,705 33,365 22,996
Cash and cash equivalents, end of period $ 42,345 $ 29,231 $ 42,345 $ 29,231

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, 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 (loss) 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

Three months ended June 30, 2022 Canada United States Australia Other Total
Revenue $ 96,074 $ 45,714 $ 37,416 $ $ 179,204
Non-current assets(2) 374,963 140,254 53,480 568,697

As at and for the three months ended June 30, 2021 (unaudited, in thousands of Canadian dollars)
Contract Rentals and Compression Well Corporate Total
Drilling Transportation and Process Servicing (1)
Services Services Services
Revenue $ 25,740 $ 6,053 $ 33,657 $ 19,426 $ $ 84,876
Cost of services 20,355 3,029 25,932 13,776 63,092
Selling, general and administration 949 1,276 1,180 1,061 1,603 6,069
Other income (1,114) (1,114)
Share-based compensation 189 189
Depreciation 9,461 5,042 2,265 3,749 212 20,729
Operating income (loss) (5,025) (3,294) 4,280 840 (890) (4,089)
Gain on sale of property, plant and equipment 272 1,576 1,137 78 13 3,076
Finance costs, net (8) (30) (74) (5) (1,655) (1,772)
Net income (loss) before income taxes (4,761) (1,748) 5,343 913 (2,532) (2,785)
Goodwill 2,514 1,539 4,053
Total assets 313,553 186,423 212,647 95,469 3,523 811,615
Total liabilities 55,394 8,253 38,462 4,887 212,360 319,356
Capital expenditures 5,482 61 2,413 123 8,079

Three months ended June 30, 2021 Canada United States Australia Other Total
Revenue $ 42,548 $ 22,894 $ 19,434 $ $ 84,876
Non-current assets(2) 395,471 142,563 64,416 602,450
(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, 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 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

Six months ended June 30, 2022 Canada United States Australia Other Total
Revenue $ 184,267 $ 89,358 $ 67,031 $ $ 340,656
Non-current assets(2) 374,963 140,254 53,480 568,697

As at and for the six months ended June 30, 2021 (unaudited, in thousands of Canadian dollars)
Contract Rentals and Compression Well Corporate Total
Drilling Transportation and Process Servicing  (1)
Services Services Services
Revenue $ 54,311 $ 13,788 $ 67,813 $ 42,154 $ $ 178,066
Cost of services 41,270 7,701 55,156 30,053 134,180
Selling, general and administration 2,345 2,528 2,624 2,329 2,782 12,608
Other income (2,180) (2,180)
Share-based compensation 390 390
Depreciation 19,326 10,560 4,672 7,601 417 42,576
Operating income (loss) (8,630) (7,001) 5,361 2,171 (1,409) (9,508)
Gain on sale of property, plant and equipment 280 1,731 1,224 47 83 3,365
Finance costs, net (9) (46) (152) (11) (3,361) (3,579)
Net income (loss) before income taxes (8,359) (5,316) 6,433 2,207 (4,687) (9,722)
Goodwill 2,514 1,539 4,053
Total assets 313,553 186,423 212,647 95,469 3,523 811,615
Total liabilities 55,394 8,253 38,462 4,887 212,360 319,356
Capital expenditures 9,739 280 2,581 553 13,153

Six months ended June 30, 2021 Canada United States Australia Other Total
Revenue $ 102,293 $ 41,203 $ 34,568 $ 2 $ 178,066
Non-current assets(2) 395,471 142,563 64,416 602,450
(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.

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Date Dec 31, 1969