Total Energy Services Inc. Announces Q4 2022 Results

CALGARY, Alberta, March 09, 2023 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months and year ended December 31, 2022.

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

Three months ended
December 31
Year ended
December 31
2022 2021 Change 2022 2021 Change
Revenue $ 211,479 $ 134,629 57% $ 759,813 $ 431,576 76%
Operating income (loss) 15,605 1,680 829% 49,343 (1,413) nm
EBITDA (1) 35,872 22,567 59% 131,320 86,015 53%
Cashflow 38,590 22,144 74% 130,795 80,191 63%
Net income (loss) 12,264 1,036 1084% 37,999 (428) nm
Attributable to shareholders 12,244 1,049 1067% 38,008 (360) nm
Per Share Data (Diluted)
EBITDA (1) $ 0.84 $ 0.52 62% $ 3.06 $ 1.93 59%
Cashflow $ 0.91 $ 0.51 78% $ 3.04 $ 1.80 69%
Attributable to shareholders:
Net income (loss) $ 0.29 $ 0.02 1350% $ 0.88 $ (0.01) nm
Common shares (000’s)(4)
Basic 41,652 43,341 (4%) 42,216 44,384 (5%)
Diluted 42,524 43,818 (3%) 42,980 44,673 (4%)
 
  December 31 December 31
Financial Position at 2022 2021 Change
Total Assets $ 878,615 $ 813,522 8%
Long-Term Debt and Lease Liabilities (excluding current portion) 127,628 196,007 (35%)
Working Capital (2) 112,154 137,304 (18%)
Net Debt (3) 15,474 58,703 (74%)
Shareholders’ Equity 522,023 493,437 6%

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 fourth quarter and year ended December 31, 2022 reflect improved industry conditions compared to the prior year, particularly in North America as wet weather conditions in Australia continued to restrict field operations during the fourth quarter of 2022. Negatively impacting EBITDA and net income for the fourth quarter of 2022 was a $2.1 million unrealized foreign exchange loss arising from the translation of intercompany working capital balances. The Company did not receive any COVID-19 assistance during the quarter as compared to $1.4 million received in the fourth quarter of 2021.

Contract Drilling Services (“CDS”)

 

Three months ended
December 31
Year ended
December 31
2022 2021 Change 2022 2021 Change
Revenue $ 69,185 $ 48,766 42% $ 252,663 $ 146,411 73%
EBITDA (1) $ 17,976 $ 12,700 42% $ 60,002 $ 35,068 71%
EBITDA (1) as a % of revenue 26% 26% 24% 24%
Operating days(2) 2,600 2,340 11% 10,485 7,334 43%
Canada 1,588 1,342 18% 6,263 4,307 45%
United States 689 663 4% 2,734 2,041 34%
Australia 323 335 (4%) 1,488 986 51%
Revenue per operating day(2), dollars $ 26,610 $ 20,840 28% $ 24,098 $ 19,963 21%
Canada 24,751 18,632 33% 22,369 16,944 32%
United States 28,270 20,979 35% 25,126 19,740 27%
Australia 32,207 29,412 10% 29,484 33,613 (12%)
Utilization 30% 27% 11% 30% 21% 43%
Canada 22% 19% 16% 22% 15% 47%
United States 58% 55% 5% 58% 43% 35%
Australia 70% 73% (4%) 82% 54% 52%
Rigs, average for period 94 95 (1%) 94 97 (3%)
Canada 76 77 (1%) 76 79 (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.

North American drilling activity continued to recover during the fourth quarter of 2022 as compared to 2021. Increased activity and pricing drove a significant year over year improvement in Canadian fourth quarter financial performance. Increased day rates and modestly higher year over year fourth quarter utilization contributed to improved financial performance in the United States of America (the “United States” or the “U.S.”). In Australia, increased revenue was offset by reactivation costs incurred as rigs previously on standby due to wet weather conditions resumed field operations. The substantial year over year increase in the CDS segment’s fourth quarter EBITDA was driven by increased pricing that offset the absence of COVID-19 assistance and operating cost inflation.

Rentals and Transportation Services (“RTS”)

 

Three months ended
December 31
Year ended
December 31
2022 2021 Change 2022 2021 Change
Revenue $ 20,043 $ 10,873 84% $ 66,954 $ 36,974 81%
EBITDA (1) $ 6,171 $ 2,712 128% $ 23,361 $ 12,640 85%
EBITDA (1) as a % of revenue 31% 25% 24% 35% 34% 3%
Revenue per utilized piece of equipment, dollars $ 12,483 $ 8,249 51% $ 44,376 $ 33,500 32%
Pieces of rental equipment 9,440 9,420 9,440 9,420
Canada 8,540 8,540 8,540 8,540
United States 900 880 2% 900 880 2%
Rental equipment utilization 17% 14% 21% 16% 11% 45%
Canada 16% 12% 33% 15% 10% 50%
United States 33% 30% 10% 29% 19% 53%
Heavy trucks 71 79 (10%) 71 79 (10%)
Canada 48 56 (14%) 48 56 (14%)
United States 23 23 23 23

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

Fourth quarter revenue in the RTS segment increased as compared to the same period in 2021 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 substantial year over year increase in fourth quarter EBITDA and EBITDA margin despite the absence of COVID-19 assistance and operating cost inflation in 2022.

Compression and Process Services (“CPS”)

 

Three months ended
December 31
Year ended
December 31
2022   2021 Change 2022   2021 Change
Revenue $ 93,668 $ 49,314 90% $ 331,669 $ 155,315 114%
EBITDA (1) $ 10,771 $ 3,513 207% $ 36,933 $ 20,613 79%
EBITDA (1) as a % of revenue 11% 7% 57% 11% 13% (15%)
Horsepower of equipment on rent at period end 41,243 25,755 60% 41,243 25,755 60%
Canada 18,768 10,930 72% 18,768 10,930 72%
United States 22,475 14,825 52% 22,475 14,825 52%
Rental equipment utilization during the period (HP)(2) 75% 50% 50% 61% 48% 27%
Canada 66% 33% 100% 47% 33% 42%
United States 84% 75% 12% 79% 72% 10%
Sales backlog at period end, $ million $ 219.5 $ 147.5 49% $ 219.5 $ 147.5 49%

(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 fourth quarter revenue was due primarily to higher fabrication sales, increased equipment overhaul activity and the continued recovery in utilization of the compression rental fleet. Increased overhead absorption due to higher production levels combined with improved pricing on fabrication sales and higher rental fleet utilization contributed to a significant year over year improvement in fourth quarter EBITDA margin despite operating cost inflation and the absence of COVID-19 assistance in 2022. The fabrication sales backlog continued to grow during the fourth quarter of 2022, increasing by $72.0 million to $219.5 million compared to the $147.5 million backlog at December 31, 2021 and by $21.7 million, or 11%, from the $197.8 million backlog at September 30, 2022.

Well Servicing (“WS”)

 

Three months ended
December 31
Year ended
December 31
2022   2021 Change 2022   2021 Change
Revenue $ 28,583 $ 25,676 11% $ 108,527 $ 92,876 17%
EBITDA (1) $ 6,222 $ 6,651 (6%) $ 23,395 $ 22,964 2%
EBITDA (1) as a % of revenue 22% 26% (15%) 22% 25% (12%)
Service hours(2) 29,566 30,526 (3%) 117,306 111,585 5%
Canada 14,460 16,061 (10%) 57,123 56,562 1%
United States 5,374 3,559 51% 19,157 13,765 39%
Australia 9,732 10,906 (11%) 41,026 41,259 (1%)
Revenue per service hour(2), dollars $ 967 $ 841 15% $ 925 $ 832 11%
Canada 960 774 24% 918 708 30%
United States 955 709 35% 899 696 29%
Australia 983 983 948 1,049 (10%)
Utilization(3) 33% 33% 32% 29% 10%
Canada 28% 31% (10%) 27% 27%
United States 53% 32% 66% 48% 27% 78%
Australia 37% 41% (10%) 39% 39%
Rigs, average for period 79 83 (5%) 79 83 (5%)
Canada 56 57 (2%) 56 57 (2%)
United States 11 12 (8%) 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.

Fourth quarter WS segment revenue increased in 2022 as compared to 2021 due primarily to improved North American activity and pricing as well as the mix of equipment operating. Fourth quarter EBITDA was lower compared to 2021 due to lower Canadian activity as a result of extreme cold weather conditions and an extended holiday shutdown combined with weakness in 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. Improved year over year North American pricing was not sufficient to offset the absence of COVID-19 assistance, operating cost inflation and the negative impact of the year over year depreciation of the Australian dollar relative to the Canadian dollar on Australian results, which in turn resulted in lower segment EBITDA margins on a year over year basis.

Corporate

During the fourth quarter of 2022, Total Energy was focused on the safe and efficient operation of its business and the completion of its 2022 capital expenditure program. After funding capital expenditures, working capital requirements and lease and interest obligations, Total Energy generated $35.3 million of free cash flow during the quarter that was directed towards $28.6 million of debt reduction, $4.5 million of share repurchases under the Company’s normal course issuer bid and $2.5 million of dividends.

For the year ended December 31, 2022, after changes in non-cash working capital items and funding $56.7 million of capital expenditures, $7.4 million of interest payments and $5.0 million of lease payments, Total Energy generated $88.7 million of free cash flow that was directed towards $70.5 million of debt repayment, $12.6 million of share repurchases and $5.0 million of paid dividends.

Total Energy exited the fourth quarter of 2022 with $112.2 million of positive working capital, including $34.1 million of cash, and $150 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 December 31, 2022 was 4.94%.

Outlook

While global economic uncertainty and a relatively warm winter in the northern hemisphere have contributed to oil price volatility and lower natural gas prices, industry conditions remain positive and stable. Current indications are that industry activity levels will continue to modestly improve on a year over year basis, with the CPS segment’s significant year end fabrication backlog providing visibility into the second half of 2023. In this environment, Total Energy remains focused on the safe and efficient operation of its business and the disciplined deployment of capital.

Total Energy’s previously announced 2023 preliminary capital expenditure budget of $51.7 million includes $26.1 million for the recertification and maintenance of equipment and $25.6 million of expansion capital, including the substantial upgrade of idle equipment in the CDS and WS segments in direct response to customer demand. The Company intends to fund its 2023 capital expenditure program with cash on hand and cash flow.

Dividend Increase

When Total Energy completed the acquisition of Savanna Energy Services Inc. in June of 2017, it assumed $281.3 million of debt. Since that time, despite some very challenging industry conditions, to December 31, 2022 the Company has repaid $206.4 million, or 73%, of such debt. Subsequent to year end, an additional $5.0 million owing under the Company’s revolving credit facility was repaid such that $70.0 million is currently drawn on $225.0 million of available credit.

Given this significant reduction in debt and Total Energy’s commitment to providing its owners with industry leading returns, the Board of Directors has declared a dividend of $0.08 per common share for the quarter ended March 31, 2023, a 33% increase from the fourth quarter 2022 dividend. The dividend is payable on April 17, 2023 to shareholders of record at the close of business on March 31, 2023. The ex-dividend date is March 30, 2023. Unless otherwise indicated, all dividends declared by the Company are “eligible dividends” within the meaning of subsection 89(1) of the Income Tax Act (Canada).

Conference Call

At 9:00 a.m. (Mountain Time) on March 10, 2023 Total Energy will conduct a conference call and webcast to discuss its fourth 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 April 10, 2023 by dialing (855) 669-9658 (passcode 9878).

Selected Financial Information

Selected financial information relating to the three months and year ended December 31, 2022 and 2021 is included in this news release. This information should be read in conjunction with the 2022 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)
(audited)

 

  December 31 December 31
2022 2021
 
Assets
Current assets:
Cash and cash equivalents $ 34,061 $ 33,365
Accounts receivable 154,581 90,543
Inventory 91,614 89,921
Prepaid expenses and deposits 18,847 9,208
Income taxes receivable 496 2,208
Current portion of finance lease asset 378 487
299,977 225,732
Property, plant and equipment 567,515 575,913
Income taxes receivable 7,070 7,070
Deferred income tax asset 393
Lease asset 361
Goodwill 4,053 4,053
  $ 878,615 $ 813,522
Liabilities & Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities $ 114,274 $ 65,513
Deferred revenue 63,895 16,274
Dividends payable 2,490
Current portion of lease liabilities 5,173 4,030
Current portion of long-term debt 1,991 2,611
187,823 88,428
Long-term debt 117,997 187,906
Lease liabilities 9,631 8,101
Deferred income tax liability 41,141 35,650
Shareholders’ equity:
Share capital 261,109 270,905
Contributed surplus 3,590 5,757
Accumulated other comprehensive loss (17,032 ) (26,704 )
Non-controlling interest 552 561
Retained earnings 273,804 242,918
522,023 493,437
$ 878,615 $ 813,522

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

 

  Three months ended
December 31
Year ended
December 31
2022 2021 2022 2021
(unaudited) (unaudited) (audited) (audited)
Revenue $ 211,479 $ 134,629 $ 759,813 $ 431,576
Cost of services 162,291 103,657 589,809 323,092
Selling, general and administration 11,082 8,372 39,671 28,234
Other expense (income) 2,115 448 1,035 (2,206)
Share-based compensation 351 228 1,142 804
Depreciation 20,035 20,244 78,813 83,065
Operating income (loss) 15,605 1,680 49,343 (1,413)
Gain on sale of property, plant and equipment 232 643 3,164 4,363
Finance costs, net (2,094) (1,583) (7,374) (6,837)
Net income (loss) before income taxes 13,743 740 45,133 (3,887)
Current income tax expense (recovery) 1,289 (285) 1,250 (862)
Deferred income tax expense (recovery) 190 (11) 5,884 (2,597)
Total income tax expense (recovery) 1,479 (296) 7,134 (3,459)
Net income (loss) for the period $ 12,264 $ 1,036 $ 37,999 $ (428)
Net income (loss) attributable to:
Shareholders of the Company $ 12,244 $ 1,049 $ 38,008 $ (360)
Non-controlling interest $ 20 $ (13) $ (9 ) $ (68)
Earnings (loss) per share:
Basic earnings per share $ 0.29 $ 0.02 $ 0.90 $ (0.01)
Diluted earnings per share $ 0.29 $ 0.02 $ 0.88 $ (0.01)

Consolidated Statements of Comprehensive Income (Loss)

 

  Three months ended
December 31
Year ended
December 31
2022 2021 2022 2021
(unaudited) (unaudited) (audited) (audited)
Net income (loss) for the period $ 12,264 $ 1,036 $ 37,999 $ (428)
Unrealized foreign currency translation 965 33 9,672 (7,968)
Total other comprehensive income (loss) for the period 965 33 9,672 (7,968)
Total comprehensive income (loss) $ 13,229 $ 1,069 $ 47,671 $ (8,396)
Total comprehensive income (loss) attributable to:
Shareholders of the Company $ 13,209 $ 1,082 $ 47,680 $ (8,328)
Non-controlling interest 20 (13) (9) (68)

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

 

Three months ended
December 31
Year ended
December 31
2022 2021 2022 2021
(unaudited) (unaudited) (audited) (audited)
Cash provided by (used in):
Operations:
Net income (loss) for the period $ 12,264 $ 1,036 $ 37,999 $ (428)
Add (deduct) items not affecting cash:
Depreciation 20,035 20,244 78,813 83,065
Share-based compensation 351 228 1,142 804
Gain on sale of property, plant and equipment (232) (643) (3,164) (4,363)
Finance costs, net 2,094 1,583 7,374 6,837
Unrealized loss (gain) on foreign currencies translation 2,115 448 1,035 (2,206)
Current income tax expense (recovery) 1,289 (285) 1,250 (862)
Deferred income tax expense (recovery) 190 (11) 5,884 (2,597)
Income taxes (paid) recovered 484 (456) 462 (59)
Cashflow 38,590 22,144 130,795 80,191
Changes in non-cash working capital items:
Accounts receivable 9,564 (346) (64,103) (17,637)
Inventory 1,777 9,409 (1,690) 5,107
Prepaid expenses and deposits 466 (462) (9,639) (2,332)
Accounts payable and accrued liabilities (4,543) (1,638) 40,417 14,337
Deferred revenue 8,755 (1,314) 47,621 9,909
Cash provided by operating activities 54,609 27,793 143,401 89,575
Investing:
Purchase of property, plant and equipment (14,713) (11,753) (56,735) (28,983)
Proceeds on disposal of property, plant and equipment 332 1,351 6,292 10,507
Changes in non-cash working capital items (1,373) 3,881 8,181 4,223
Cash used in investing activities (15,754) (6,521) (42,262) (14,253)
Financing:
Repayment of long-term debt (28,574) (5,641) (70,529) (42,552)
Repayment of lease liabilities (1,359) (1,093) (4,966) (5,803)
Dividends to shareholders (2,517) (4,999)
Repurchase of common shares (4,491) (5,258) (12,638) (10,000)
Shares issued on exercise of share options 42 42 158 42
Interest paid (2,198) (1,526) (7,469) (6,640)
Cash used in financing activities (39,097) (13,476) (100,443) (64,953)
Change in cash and cash equivalents (242) 7,796 696 10,369
Cash and cash equivalents, beginning of period 34,303 25,569 33,365 22,996
Cash and cash equivalents, end of period $ 34,061 $ 33,365 $ 34,061 $ 33,365

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 December 31, 2022 (unaudited, in thousands of Canadian dollars)

 

Contract Rentals and Compression Well Corporate (1) Total
Drilling Transportation and Process Servicing
Services Services Services
Revenue $ 69,185 $ 20,043 $ 93,668 $ 28,583 $ $ 211,479
Cost of services 49,225 12,152 79,703 21,211 162,291
Selling, general and administration 2,007 1,912 3,208 1,153 2,802 11,082
Other income 2,115 2,115
Share-based compensation 351 351
Depreciation 9,138 4,868 2,618 3,165 246 20,035
Operating income (loss) 8,815 1,111 8,139 3,054 (5,514) 15,605
Gain (loss) on sale of property, plant and equipment 23 192 14 3 232
Finance costs, net (9) (16) (124) (9) (1,936) (2,094)
Net income (loss) before income taxes 8,829 1,287 8,029 3,048 (7,450) 13,743
Goodwill 2,514 1,539 4,053
Total assets 346,870 182,095 260,019 83,628 6,003 878,615
Total liabilities 62,545 20,292 122,320 6,003 145,432 356,592
Capital expenditures 6,865 3,490 3,928 400 30 14,713

 

Canada United States Australia Other Total
Revenue $ 89,191 $ 97,228 $ 25,060 $ $ 211,479
Non-current assets (2) 373,637 146,886 51,045 571,568


As at and for the three months ended December 31, 2021 (unaudited, in thousands of Canadian dollars)

 

Contract Rentals and Compression Well Corporate (1) Total
Drilling Transportation and Process Servicing
Services Services Services
Revenue $ 48,766 $ 10,873 $ 49,314 $ 25,676 $ $ 134,629
Cost of services 34,748 6,790 44,054 18,065 103,657
Selling, general and administration 1,528 1,491 1,797 1,231 2,325 8,372
Other expense 448 448
Share-based compensation 228 228
Depreciation 9,143 5,070 2,200 3,585 246 20,244
Operating income (loss) 3,347 (2,478) 1,263 2,795 (3,247) 1,680
Gain (loss) on sale of property, plant and equipment 210 120 50 271 (8) 643
Finance costs, net (2) (12) (65) (4) (1,500) (1,583)
Net income (loss) before income taxes 3,555 (2,370) 1,248 3,062 (4,755) 740
Goodwill 2,514 1,539 4,053
Total assets 325,143 180,188 206,278 93,274 8,639 813,522
Total liabilities 60,691 10,316 45,721 4,058 199,299 320,085
Capital expenditures 7,934 883 2,714 213 9 11,753

 

Canada United States Australia Other Total
Revenue $ 69,488 $ 37,610 $ 27,531 $ $ 134,629
Non-current assets (2) 378,519 141,552 60,256 580,327

(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 year ended December 31, 2022 (audited, in thousands of Canadian dollars)

 

Contract Rentals and Compression Well Corporate Total
Drilling Transportation and Process Servicing (1)
Services Services Services
Revenue $ 252,663 $ 66,954 $ 331,669 $ 108,527 $ $ 759,813
Cost of services 185,579 37,713 286,259 80,258 589,809
Selling, general and administration 7,374 6,902 10,071 5,130 10,194 39,671
Other income 1,035 1,035
Share-based compensation 1,142 1,142
Depreciation 35,785 19,518 9,725 12,832 953 78,813
Operating income (loss) 23,925 2,821 25,614 10,307 (13,324) 49,343
Gain on sale of property, plant and equipment 292 1,022 1,594 256 3,164
Finance costs, net (23) (75) (412) (26) (6,838) (7,374)
Net income (loss) before income taxes 24,194 3,768 26,796 10,537 (20,162) 45,133
Goodwill 2,514 1,539 4,053
Total assets 346,870 182,095 260,019 83,628 6,003 878,615
Total liabilities 62,545 20,292 122,320 6,003 145,432 356,592
Capital expenditures 34,835 8,508 9,490 3,792 110 56,735

 

Canada United States Australia Other Total
Revenue $ 371,478 $ 263,751 $ 124,584 $ $ 759,813
Non-current assets (2) 373,637 146,886 51,045 571,568


As at and for the year ended December 31, 2021 (audited, in thousands of Canadian dollars)

 

Contract Rentals and Compression Well Corporate (1) Total
Drilling Transportation and Process Servicing
Services Services Services
Revenue $ 146,411 $ 36,974 $ 155,315 $ 92,876 $ $ 431,576
Cost of services 107,107 20,779 129,685 65,521 323,092
Selling, general and administration 4,729 5,506 6,550 4,701 6,748 28,234
Other income (2,206) (2,206)
Share-based compensation 804 804
Depreciation 37,507 20,547 9,225 14,844 942 83,065
Operating income (loss) (2,932) (9,858) 9,855 7,810 (6,288) (1,413)
Gain on sale of property, plant and equipment 493 1,951 1,533 310 76 4,363
Finance costs (12) (71) (286) (20) (6,448) (6,837)
Net income (loss) before income taxes (2,451) (7,978) 11,102 8,100 (12,660) (3,887)
Goodwill 2,514 1,539 4,053
Total assets 325,143 180,188 206,278 93,274 8,639 813,522
Total liabilities 60,691 10,316 45,721 4,058 199,299 320,085
Capital expenditures 20,491 1,224 6,205 1,054 9 28,983

 

Canada United States Australia Other Total
Revenue $ 242,613 $ 105,305 $ 83,656 $ 2 $ 431,576
Non-current assets (2) 378,519 141,552 60,256 580,327

(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 16 to the Company’s 2022 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.

Current Stock Quotes
/
Day Range -
52 Week Range -
Market Cap
Shares Issued
Daily Volume