TOT Total Energy Services Inc

Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three and nine months ended September 30, 2024.

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

	Three months endedSeptember 30							Nine months endedSeptember 30
		2024		2023	Change				2024		2023	Change
Revenue	$	241,940	$	232,016	4	%		$	659,960	$	678,638	(3	%)
Operating income		27,308		23,691	15	%			63,950		61,112	5	%
EBITDA (1)		50,543		44,955	12	%			131,280		123,685	6	%
Cashflow		48,091		40,784	18	%			119,022		118,864	-
Net income		19,706		19,237	2	%			50,623		49,455	2	%
Attributable to shareholders		19,731		19,231	3	%			50,685		49,472	2	%
Per Share Data (Diluted)
EBITDA (1)	$	1.28	$	1.10	16	%		$	3.27	$	3.00	9	%
Cashflow	$	1.22	$	1.00	22	%		$	2.97	$	2.88	3	%
Attributable to shareholders:
Net income	$	0.50	$	0.47	6	%		$	1.26	$	1.20	5	%
Common shares (000’s)(4)
Basic		38,802		40,149	(3	%)			39,385		40,555	(3	%)
Diluted		39,489		40,961	(4	%)			40,086		41,291	(3	%)
									September 30		December 31
Financial Position at									2024		2023	Change
Total Assets								$	963,743	$	861,658	12	%
Long-Term Debt and Lease Liabilities (excluding current portion)									104,997		100,834	4	%
Working Capital (2)									97,274		123,439	(21	%)
Net Debt (3)									7,723		-	nm
Shareholders’ Equity									561,211		530,758	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 three months ended September 30, 2024 represent record quarterly financial results. Substantial share repurchases over the past year amplified the results on a fully diluted per share basis.   Underpinning these record results were stable industry conditions in Canada and Australia, the acquisition of Saxon Energy Services Australia Pty Ltd. (“Saxon”) on March 7, 2024 and continued strong North American demand for compression and process equipment that more than offset a year over year decline in drilling and completion activity in the United States.     

Contract Drilling Services (“CDS”)

		Three months endedSeptember 30								Nine months endedSeptember 30
		2024			2023		Change			2024			2023		Change
Revenue	$	86,634		$	75,815		14	%	$	235,734		$	212,633		11	%
EBITDA (1)	$	20,563		$	21,670		(5	%)	$	57,414		$	51,830		11	%
EBITDA (1) as a % of revenue		24	%		29	%	(17	%)		24	%		24	%	-
Operating days(2)		2,836			2,880		(2	%)		7,687			7,723		-
Canada		1,861			2,009		(7	%)		4,954			5,023		(1	%)
United States		328			535		(39	%)		1,033			1,696		(39	%)
Australia		647			336		93	%		1,700			1,004		69	%
Revenue per operating day(2), dollars	$	30,548		$	26,325		16	%	$	30,667		$	27,532		11	%
Canada		25,026			24,522		2	%		26,137			25,668		2	%
United States		27,829			28,540		(2	%)		28,566			28,326		1	%
Australia		47,808			33,577		42	%		45,144			35,522		27	%
Utilization		29	%		33	%	(12	%)		27	%		30	%	(10	%)
Canada		27	%		28	%	(4	%)		24	%		24	%	-
United States		30	%		48	%	(38	%)		31	%		53	%	(42	%)
Australia		41	%		73	%	(44	%)		46	%		74	%	(38	%)
Rigs, average for period		105			94		12	%		103			94		10	%
Canada		76			77		(1	%)		77			77		-
United States		12			12		-			12			12		-
Australia		17			5		240	%		14			5		180	%

(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.

Canadian drilling activity during the third quarter of 2024 was relatively consistent with 2023 while United States activity continued to lag the prior year. Canadian operating days were negatively impacted when an AC double drilling rig was damaged in July during transit. The rig returned to service in mid-October following completion of repairs. In Australia, Saxon contributed $20.2 million of revenue during the third quarter of 2024. Included in 2023 third quarter segment EBITDA was a $4.1 million realized foreign exchange gain on settlement of intercompany notes. Excluding the effect of this foreign exchange gain, third quarter segment EBITDA increased 17% as compared to 2023 and the segment EBITDA margin increased from 23% to 24%. The substantial year over year increase in third quarter Australian revenue per operating day reflects the addition of Saxon’s deeper drilling rig fleet which receives higher day rates.   

Rentals and Transportation Services (“RTS”)

		Three months endedSeptember 30								Nine months endedSeptember 30
		2024			2023		Change			2024			2023		Change
Revenue	$	19,437		$	21,137		(8	%)	$	59,614		$	65,362		(9	%)
EBITDA (1)	$	8,179		$	7,263		13	%	$	23,958		$	23,977		-
EBITDA (1) as a % of revenue		42	%		34	%	24	%		40	%		37	%	8	%
Revenue per utilized piece of equipment, dollars	$	12,868		$	12,825		-		$	42,297		$	42,473		-
Pieces of rental equipment		7,960			7,659		4	%		7,960			7,659		4	%
Canada		7,040			6,767		4	%		7,040			6,767		4	%
United States		920			892		3	%		920			892		3	%
Rental equipment utilization		19	%		19	%	-			18	%		18	%	-
Canada		18	%		18	%	-			16	%		16	%	-
United States		29	%		27	%	7	%		33	%		36	%	(8	%)
Heavy trucks		67			69		(3	%)		67			69		(3	%)
Canada		46			48		(4	%)		46			48		(4	%)
United States		21			21		-			21			21		-

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

Third quarter revenue in the RTS segment decreased as compared to 2023 due to lower United States revenue. While United States equipment utilization increased slightly, lower pricing due to competitive market conditions and the mix of equipment operating contributed to a year over year decline in third quarter revenue. Despite the decline in segment revenue, effective cost management resulted in higher third quarter EBITDA and EBITDA margins as compared to 2023. Compression and Process Services (“CPS”)

		Three months endedSeptember 30								Nine months endedSeptember 30
		2024			2023		Change			2024			2023		Change
Revenue	$	110,567		$	110,959		-		$	297,547		$	322,207		(8	%)
EBITDA (1)	$	19,336		$	14,404		34	%	$	47,795		$	39,402		21	%
EBITDA (1) as a % of revenue		17	%		13	%	31	%		16	%		12	%	33	%
Horsepower of equipment on rent at period end		52,881			36,616		44	%		52,881			36,616		44	%
Canada		16,661			15,226		9	%		16,661			15,226		9	%
United States		36,220			21,390		69	%		36,220			21,390		69	%
Rental equipment utilization during the period (HP)(2)		77	%		69	%	12	%		77	%		75	%	3	%
Canada		72	%		73	%	(1	%)		70	%		77	%	(9	%)
United States		79	%		67	%	18	%		80	%		74	%	8	%
Sales backlog at period end, $ million	$	189.0		$	152.9		24	%	$	189.0		$	152.9		24	%

(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.

CPS segment revenue for the third quarter of 2024 was consistent with 2023 and decreased during the first nine months of 2024 as compared to the same period in 2023.   Improved fabrication efficiencies and a significant increase in compression horsepower on rent contributed to the year over year increase in segment EBITDA and EBITDA margin.   The quarter end fabrication sales backlog increased by $36.1 million compared to the $152.9 million backlog at September 30, 2023 and decreased sequentially by $15.6 million from the $204.6 million sales backlog at June 30, 2024.

Well Servicing (“WS”)

		Three months endedSeptember 30								Nine months endedSeptember 30
		2024			2023		Change			2024			2023		Change
Revenue	$	25,302		$	24,105		5	%	$	67,065		$	78,436		(14	%)
EBITDA (1)	$	4,943		$	5,044		(2	%)	$	11,344		$	16,177		(30	%)
EBITDA (1) as a % of revenue		20	%		21	%	(5	%)		17	%		21	%	(19	%)
Service hours(2)		24,680			26,044		(5	%)		67,307			81,920		(18	%)
Canada		13,412			12,140		10	%		37,229			38,988		(5	%)
United States		2,613			6,370		(59	%)		9,243			18,781		(51	%)
Australia		8,655			7,534		15	%		20,835			24,151		(14	%)
Revenue per service hour(2), dollars	$	1,025		$	926		11	%	$	996		$	957		4	%
Canada		958			923		4	%		962			955		1	%
United States		861			944		(9	%)		883			980		(10	%)
Australia		1,179			913		29	%		1,109			944		17	%
Utilization(3)		27	%		30	%	(8	%)		25	%		32	%	(20	%)
Canada		27	%		24	%	13	%		24	%		26	%	(8	%)
United States		24	%		63	%	(62	%)		31	%		63	%	(51	%)
Australia		33	%		28	%	18	%		26	%		31	%	(16	%)
Rigs, average for period		79			79		-			79			79		-
Canada		55			56		(2	%)		56			56		-
United States		12			11		9	%		11			11		-
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.

Third quarter WS segment revenue increased in 2024 as compared to 2023 due to increased activity in Canada and Australia that offset a substantial decline in United States activity. Segment EBITDA was modestly lower as higher operating income in Canada and Australia was more than offset by the decline in United States operating income. Activity levels in the United States were significantly lower due in part to significant customer consolidation. Increased pricing and utilization in Australia was due to the deployment of upgraded rigs.

Corporate

During the third quarter of 2024, Total Energy remained focused on the safe and efficient operation of its business, execution of its 2024 capital expenditure program and the integration of the Saxon acquisition. Including the acquisition of Saxon, $112.4 million of capital expenditures have been funded to September 30, 2024.

Total Energy exited the third quarter of 2024 with $97.3 million of positive working capital, including $61.9 million of cash, and $80 million of available credit under its $175 million of revolving bank credit facilities. Included in current liabilities is a $41.5 million mortgage loan that matures in April of 2025. Total Energy expects to repay this debt at maturity when approximately $40.2 million of principal will be outstanding. The weighted average interest rate on the Company’s outstanding debt at September 30, 2024 was 5.26%.

Outlook

Despite continued global economic uncertainty and commodity price volatility, industry conditions remain relatively stable. Contributing to this stability is continued investment to increase North American LNG export capacity, a strong Asian LNG market and the recent completion of the Trans Mountain pipeline expansion in Canada. Total Energy’s efforts to grow its Australian business continued in the third quarter when two drilling rigs and a service rig commenced operations under long term contracts.

Total Energy continues to see opportunities to upgrade and reactivate equipment as well as targeted opportunities to build new equipment. In that regard, the Board of Directors has approved a $19.8 million increase to the Company’s 2024 capital expenditure budget to $86.1 million. $13.1 million of this increase is directed towards growth opportunities, including the upgrade of two Saxon drilling rigs and one service rig in Australia that will be deployed in the first quarter of 2025 under long term contracts. Also included in growth capital is $1.0 million of new rental equipment for the RTS segment that will be deployed during the fourth quarter of 2024. The remaining $6.7 million includes the purchase of new drill pipe and an operating facility currently leased by the RTS segment in the United States as well as drilling rig recertifications. Including this increase, $14.2 million of capital commitments carried forward from 2023 and the acquisition of Saxon, projected 2024 capital expenditures total $147.7 million, of which $112.4 million has been funded to September 30, 2024. The Company expects to fund the remaining $35.3 million of capital commitments with cash on hand and cashflow, with approximately $10.0 million expected to be funded in 2025.

Conference Call

At 9:00 a.m. (Mountain Time) on November 7, 2024 Total Energy will conduct a conference call and webcast to discuss its third 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 (844) 763-8274 or (647) 484-8814. 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 December 7, 2024 by dialing (855) 669-9658 (passcode 1362549).

Selected Financial Information

Selected financial information relating to the three and nine months ended September 30, 2024 and 2023 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 2023 Annual Report.

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

		September 30			December 31
		2024			2023
		(unaudited)			(audited)
Assets
Current assets:
Cash and cash equivalents	$	61,879		$	47,935
Accounts receivable		147,293			137,604
Inventory		116,359			98,179
Prepaid expenses and deposits		16,763			16,735
		342,294			300,453
Property, plant and equipment		617,129			557,152
Deferred income tax asset		267			-
Goodwill		4,053			4,053
	$	963,743		$	861,658
Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	132,910		$	116,794
Deferred revenue		53,477			39,321
Contingent consideration on business acquisition		2,700			-
Income taxes payable		4,489			9,771
Dividends payable		3,453			3,198
Current portion of lease liabilities		6,528			5,880
Current portion of long-term debt		41,463			2,050
		245,020			177,014
Long-term debt		95,000			90,947
Lease liabilities		9,997			9,887
Deferred income tax liability		52,515			53,052
Shareholders' equity:
Share capital		240,563			251,283
Contributed surplus		5,273			4,805
Accumulated other comprehensive loss		(18,235	)		(25,506	)
Non-controlling interest		259			521
Retained earnings		333,351			299,655
		561,211			530,758
	$	963,743		$	861,658

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

		Three months endedSeptember 30						Nine months endedSeptember 30
		2024			2023			2024			2023
Revenue	$	241,940		$	232,016		$	659,960		$	678,638
Cost of services		178,530			175,235			491,092			522,270
Selling, general and administration		13,337			12,027			37,512			33,586
Other expense (income)		(844	)		238			(720	)		(208	)
Share-based compensation		518			701			1,940			1,457
Depreciation		23,091			20,124			66,186			60,421
Operating income		27,308			23,691			63,950			61,112
Gain on sale of property, plant and equipment		144			1,140			1,144			2,152
Finance costs, net		(2,330	)		(1,691	)		(6,318	)		(5,190	)
Net income before income taxes		25,122			23,140			58,776			58,074
Current income tax (recovery) expense		2,072			(231	)		7,090			140
Deferred income tax expense		3,344			4,134			1,063			8,479
Total income tax expense		5,416			3,903			8,153			8,619
Net income	$	19,706		$	19,237		$	50,623		$	49,455
Net income (loss) attributable to:
Shareholders of the Company	$	19,731		$	19,231		$	50,685		$	49,472
Non-controlling interest		(25	)		6			(62	)		(17	)
Income per share
Basic	$	0.51		$	0.48		$	1.29		$	1.22
Diluted	$	0.50		$	0.47		$	1.26		$	1.20

Consolidated Statements of Comprehensive Income

		Three months endedSeptember 30						Nine months endedSeptember 30
		2024			2023			2024			2023
Net income	$	19,706		$	19,237		$	50,623		$	49,455
Foreign currency translation		(31	)		(1,734	)		7,271			(7,034	)
Total other comprehensive income (loss) for the period		(31	)		(1,734	)		7,271			(7,034	)
Total comprehensive income	$	19,675		$	17,503		$	57,894		$	42,421
Total comprehensive income (loss) attributable to:
Shareholders of the Company	$	19,700		$	17,497		$	57,956		$	42,438
Non-controlling interest		(25	)		6			(62	)		(17	)

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

		Three months endedSeptember 30						Nine months endedSeptember 30
		2024			2023			2024			2023
Cash provided by (used in):
Operations:
Net income for the period	$	19,706		$	19,237		$	50,623		$	49,455
Add (deduct) items not affecting cash:
Depreciation		23,091			20,124			66,186			60,421
Share-based compensation		518			701			1,940			1,457
Gain on sale of property, plant and equipment		(144	)		(1,140	)		(1,144	)		(2,152	)
Finance costs, net		2,330			1,691			6,318			5,190
Foreign currency translation		(999	)		(3,934	)		(336	)		(4,284	)
Current income tax (recovery) expense		2,072			(231	)		7,090			140
Deferred income tax expense		3,344			4,134			1,063			8,479
Income taxes paid		(1,827	)		202			(12,718	)		158
Cashflow		48,091			40,784			119,022			118,864
Changes in non-cash working capital items:
Accounts receivable		(1,109	)		(13,516	)		(9,689	)		(8,396	)
Inventory		3,527			10,194			(18,180	)		(9,850	)
Prepaid expenses and deposits		(2,637	)		(5,353	)		(28	)		(5,207	)
Accounts payable and accrued liabilities		9,029			(8,066	)		21,896			10,480
Deferred revenue		3,452			(2,104	)		14,156			(10,309	)
Cash provided by operating activities		60,353			21,939			127,177			95,582
Investing:
Purchase of property, plant and equipment		(14,700	)		(17,177	)		(65,038	)		(59,631	)
Cash paid on acquisition		-			-			(47,350	)		-
Proceeds on disposal of property, plant and equipment		156			4,906			1,705			6,410
Changes in non-cash working capital items		(441	)		(12	)		3,260			2,492
Cash used in investing activities		(14,985	)		(12,283	)		(107,423	)		(50,729	)
Financing:
Advances of long-term debt		5,000			-			65,000			-
Repayment of long-term debt		(513	)		(498	)		(21,534	)		(16,491	)
Repayment of lease liabilities		(1,742	)		(1,558	)		(5,134	)		(4,714	)
Dividends to shareholders		(3,496	)		(3,212	)		(10,290	)		(8,944	)
Repurchase of common shares		(5,183	)		(2,298	)		(17,853	)		(13,587	)
Shares issued on exercise of stock options		-			42			64			42
Partnership distributions		-			-			(200	)		-
Interest paid		(2,319	)		(2,113	)		(15,863	)		(5,335	)
Cash used in financing activities		(8,253	)		(9,637	)		(5,810	)		(49,029	)
Change in cash and cash equivalents		37,115			19			13,944			(4,176	)
Cash and cash equivalents, beginning of period		24,764			29,866			47,935			34,061
Cash and cash equivalents, end of period	$	61,879		$	29,885		$	61,879		$	29,885

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 September 30, 2024 (unaudited, in thousands of Canadian dollars)

		Contract			Rentals and			Compression			Well			Corporate			Total
		Drilling			Transportation			and Process			Servicing			(1)
		Services			Services			Services
Revenue	$	86,634		$	19,437		$	110,567		$	25,302		$	-		$	241,940
Cost of services		63,727			9,165			86,723			18,915			-			178,530
Selling, general and administration		2,358			2,144			4,587			1,444			2,804			13,337
Other income		-			-			-			-			(844	)		(844	)
Share-based compensation		-			-			-			-			518			518
Depreciation		12,287			5,145			2,788			2,446			425			23,091
Operating income (loss)		8,262			2,983			16,469			2,497			(2,903	)		27,308
Gain (loss) on sale of property, plant and equipment		14			51			79			-			-			144
Finance costs, net		(17	)		(43	)		(109	)		(19	)		(2,142	)		(2,330	)
Net income (loss) before income taxes		8,259			2,991			16,439			2,478			(5,045	)		25,122
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		434,030			163,853			284,919			76,899			4,042			963,743
Total liabilities		84,042			26,558			111,634			6,473			173,825			402,532
Capital expenditures		9,184			2,269			1,076			2,171			-			14,700

		Canada		United States		Australia		International		Total
Revenue	$	117,704	$	82,514	$	41,722	$	-	$	241,940
Non-current assets (2)		364,318		131,534		125,330		-		621,182

As at and for the three months ended September 30, 2023 (unaudited, in thousands of Canadian dollars)

		Contract			Rentals and			Compression			Well			Corporate			Total
		Drilling			Transportation			and Process			Servicing			(1)
		Services			Services			Services
Revenue	$	75,815		$	21,137		$	110,959		$	24,105		$	-		$	232,016
Cost of services		51,265			11,828			94,122			18,020			-			175,235
Selling, general and administration		2,581			2,240			3,327			1,208			2,671			12,027
Other (income) expense		308			7			(131	)		-			54			238
Share-based compensation		-			-			-			-			701			701
Depreciation		9,580			4,903			2,585			2,802			254			20,124
Operating income (loss)		12,081			2,159			11,056			2,075			(3,680	)		23,691
Gain on sale of property, plant and equipment		9			201			763			167			-			1,140
Finance costs, net		(14	)		(28	)		(121	)		(18	)		(1,510	)		(1,691	)
Net income (loss) before income taxes		12,076			2,332			11,698			2,224			(5,190	)		23,140
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		367,553			176,330			275,886			74,376			180			894,325
Total liabilities		72,824			28,851			110,391			6,980			132,751			351,797
Capital expenditures		9,094			1,643			4,268			1,937			235			17,177

		Canada		United States		Australia		International		Total
Revenue	$	111,945	$	99,790	$	20,281	$	-	$	232,016
Non-current assets (2)		393,168		129,263		46,240		-		568,671

(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 nine months ended September 30, 2024 (unaudited, in thousands of Canadian dollars)

As at and for the nine months ended		Contract			Rentals and			Compression			Well			Corporate			Total
September 30, 2024		Drilling			Transportation			and Process			Servicing			(1)
		Services			Services			Services
Revenue	$	235,734		$	59,614		$	297,547		$	67,065		$	-		$	659,960
Cost of services		171,011			29,933			238,453			51,695			-			491,092
Selling, general and administration		7,424			6,567			11,508			4,002			8,011			37,512
Other expense		-			-			-			-			(720	)		(720	)
Share-based compensation		-			-			-			-			1,940			1,940
Depreciation		34,669			15,228			7,999			7,269			1,021			66,186
Operating income (loss)		22,630			7,886			39,587			4,099			(10,252	)		63,950
Gain (loss) on sale of property, plant and equipment		115			844			209			(24	)		-			1,144
Finance costs, net		(55	)		(130	)		(321	)		(64	)		(5,748	)		(6,318	)
Net income (loss) before income taxes		22,690			8,600			39,475			4,011			(16,000	)		58,776
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		434,030			163,853			284,919			76,899			4,042			963,743
Total liabilities		84,042			26,558			111,634			6,473			173,825			402,532
Capital expenditures		30,762			7,442			15,263			11,571			-			65,038

		Canada		United States		Australia		International		Total
Revenue	$	294,720	$	260,102	$	102,184	$	2,954	$	659,960
Non-current assets (2)		364,318		131,534		125,330		-		621,182

As at and for the nine months ended September 30, 2023 (unaudited, in thousands of Canadian dollars)

As at and for the nine months ended		Contract			Rentals and			Compression			Well			Corporate			Total
September 30, 2023		Drilling			Transportation			and Process			Servicing			(1)
		Services			Services			Services
Revenue	$	212,633		$	65,362		$	322,207		$	78,436		$	-		$	678,638
Cost of services		153,466			35,725			273,607			59,472			-			522,270
Selling, general and administration		7,552			6,374			10,122			3,124			6,414			33,586
Other (income) expense		20			-			(88	)		-			(140	)		(208	)
Share-based compensation		-			-			-			-			1,457			1,457
Depreciation		28,107			14,620			7,822			9,091			781			60,421
Operating income (loss)		23,488			8,643			30,744			6,749			(8,512	)		61,112
Gain on sale of property, plant and equipment		235			714			836			337			30			2,152
Finance costs, net		(44	)		(63	)		(353	)		(51	)		(4,679	)		(5,190	)
Net income (loss) before income taxes		23,679			9,294			31,227			7,035			(13,161	)		58,074
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		367,553			176,330			275,886			74,376			180			894,325
Total liabilities		72,824			28,851			110,391			6,980			132,751			351,797
Capital expenditures		40,528			5,777			6,783			6,308			235			59,631

		Canada		United States		Australia		International		Total
Revenue	$	303,329	$	303,617	$	71,692	$	-	$	678,638
Non-current assets (2)		393,168		129,263		46,240		-		568,671

(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.