CALGARY, Alberta, Aug. 08, 2024 (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, 2024.

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

	Three months ended June 30							Six months ended June 30
		2024			2023	Change			2024			2023	Change
Revenue	$	213,334		$	208,845	2%		$	418,020		$	446,622	(6%)
Operating income		14,612			9,401	55%			36,642			37,421	(2%)
EBITDA (1)		37,447			30,255	24%			80,737			78,730	3%
Cashflow		38,094			29,408	30%			70,931			78,080	(9%)
Net income		15,454			6,180	150%			30,917			30,218	2%
Attributable to shareholders		15,472			6,201	150%			30,954			30,241	2%
Per Share Data (Diluted)
EBITDA (1)	$	0.93		$	0.74	26%		$	2.00		$	1.89	6%
Cashflow	$	0.95		$	0.72	32%		$	1.75		$	1.88	(7%)
Attributable to shareholders:
Net income	$	0.39		$	0.15	160%		$	0.77		$	0.73	5%
Common shares (000’s)(4)
Basic		39,329			40,325	(2%)			39,740			40,821	(3%)
Diluted		40,060			41,048	(2%)			40,453			41,568	(3%)
									June 30			December 31
Financial Position at									2024			2023	Change
Total Assets								$	936,356		$	861,658	9%
Long-Term Debt and Lease Liabilities (excluding current portion)									100,983			100,834	-
Working Capital (2)									71,816			123,439	(42%)
Net Debt (3)									29,167			-	nm
Shareholders’ Equity									549,999			530,758	4%

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, 2024 represent record second quarter financial results. Relatively 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 more than offset a year over year decline in drilling and completion activity in the United States.  

Contract Drilling Services (“CDS”)

		Three months ended June 30							Six months ended June 30
		2024			2023	Change			2024			2023	Change
Revenue	$	67,889		$	54,282	25%		$	149,100		$	136,818	9%
EBITDA (1)	$	14,505		$	9,891	47%		$	36,851		$	30,160	22%
EBITDA (1) as a % of revenue		21%			18%	17%			25%			22%	14%
Operating days(2)		2,075			1,974	5%			4,851			4,843	-
Canada		1,082			1,094	(1%)			3,093			3,014	3%
United States		346			571	(39%)			705			1,161	(39%)
Australia		647			309	109%			1,053			668	58%
Revenue per operating day(2), dollars	$	32,718		$	27,498	19%		$	30,736		$	28,251	9%
Canada		25,563			25,396	1%			26,805			26,431	1%
United States		28,905			27,319	6%			28,909			28,227	2%
Australia		46,722			35,275	32%			43,506			36,500	19%
Utilization		22%			23%	(4%)			26%			29%	(10%)
Canada		15%			16%	(6%)			22%			22%	-
United States		32%			52%	(38%)			32%			51%	(37%)
Australia		44%			68%	(35%)			48%			74%	(35%)
Rigs, average for period		105			94	12%			101			94	7%
Canada		77			76	1%			77			76	1%
United States		12			12	-			12			13	(8%)
Australia		16			5	220%			12			5	140%

⁽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 second quarter of 2024 was consistent with 2023. The decline in United States drilling activity that began in the third quarter of 2023 continued into the second quarter of 2024. In Australia, Saxon contributed $19.2 million of revenue during the second quarter of 2024. The substantial year over year increase in second 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 ended June 30							Six months ended June 30
		2024			2023	Change			2024			2023	Change
Revenue	$	17,798		$	19,812	(10%)		$	40,177		$	44,225	(9%)
EBITDA (1)	$	6,064		$	7,064	(14%)		$	15,779		$	16,714	(6%)
EBITDA (1) as a % of revenue		34%			36%	(6%)			39%			38%	3%
Revenue per utilized piece of equipment, dollars	$	16,257		$	15,428	5%		$	28,543		$	22,291	28%
Pieces of rental equipment		7,940			7,667	4%			7,940			7,667	4%
Canada		7,030			6,779	4%			7,030			6,779	4%
United States		910			888	2%			910			888	2%
Rental equipment utilization		14%			15%	(7%)			18%			21%	(14%)
Canada		12%			14%	(14%)			15%			18%	(17%)
United States		32%			34%	(6%)			35%			40%	(13%)
Heavy trucks		66			69	(4%)			66			69	(4%)
Canada		45			48	(6%)			45			48	(6%)
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.

Second quarter revenue in the RTS segment decreased as compared to 2023 due to lower industry activity in the United States. The year-over-year decline in second-quarter EBITDA and EBITDA margin was a result of lower equipment utilization given this segment’s relatively high fixed cost structure. Partially offsetting the impact of lower equipment utilization on revenue and EBITDA was a modest increase in revenue per utilized piece of equipment.

Compression and Process Services (“CPS”)

		Three months ended June 30							Six months ended June 30
		2024			2023	Change			2024			2023	Change
Revenue	$	109,454		$	113,130	(3%)		$	186,980		$	211,248	(11%)
EBITDA (1)	$	17,559		$	12,399	42%		$	28,459		$	24,998	14%
EBITDA (1) as a % of revenue		16%			11%	45%			15%			12%	25%
Horsepower of equipment on rent at period end		54,476			41,842	30%			54,476			41,842	30%
Canada		16,156			19,202	(16%)			16,156			19,202	(16%)
United States		38,320			22,640	69%			38,320			22,640	69%
Rental equipment utilization during the period (HP)(2)		80%			78%	3%			77%			78%	(1%)
Canada		70%			84%	(17%)			69%			78%	(12%)
United States		84%			73%	15%			80%			77%	4%
Sales backlog at period end, $ million	$	204.6		$	185.6	10%		$	204.6		$	185.6	10%

⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
⁽²⁾ Rental equipment utilization is measured on a horsepower basis.

The year-over-year decrease in the CPS segment’s second quarter revenue was due primarily to lower fabrication sales resulting from a shift in customer preference towards renting compression units in the United States. The resulting increase in horsepower on rent contributed to improved second quarter EBITDA and EBITDA margins for 2024 as compared to 2023. The fabrication sales backlog strengthened during the second quarter of 2024, increasing by $18.9 million from the $185.7 million sales backlog at March 31, 2024.

Well Servicing (“WS”)

		Three months ended June 30							Six months ended June 30
		2024			2023	Change			2024			2023	Change
Revenue	$	18,193		$	21,621	(16%)		$	41,763		$	54,331	(23%)
EBITDA (1)	$	2,087		$	2,854	(27%)		$	6,401		$	11,133	(43%)
EBITDA (1) as a % of revenue		11%			13%	(15%)			15%			20%	(25%)
Service hours(2)		18,063			22,630	(20%)			42,627			55,876	(24%)
Canada		8,410			9,357	(10%)			23,817			26,848	(11%)
United States		3,115			5,767	(46%)			6,630			12,411	(47%)
Australia		6,538			7,506	(13%)			12,180			16,617	(27%)
Revenue per service hour(2), dollars	$	1,007		$	955	5%		$	980		$	972	1%
Canada		945			941	-			963			969	(1%)
United States		937			993	(6%)			891			998	(11%)
Australia		1,121			945	19%			1,060			959	11%
Utilization(3)		20%			25%	(20%)			25%			32%	(22%)
Canada		17%			18%	(6%)			24%			26%	(8%)
United States		29%			58%	(50%)			30%			62%	(52%)
Australia		25%			29%	(14%)			23%			32%	(28%)
Rigs, average for period		79			79	-			79			79	-
Canada		55			56	(2%)			55			56	(2%)
United States		12			11	9%			12			11	9%
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 and EBITDA decreased as compared to 2024 due to lower activity in all jurisdictions. Canadian activity was negatively impacted by lower well abandonment activity. Activity levels in the United States were significantly lower due to reduced industry activity levels, due in part to significant customer consolidation. Field activity in Australia was somewhat restricted during the second quarter of 2024 due to periods of wet weather although price increases following certain rig upgrades mitigated the impact of lower service hours on revenue.

Corporate

During the second 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. $20.7 million of capital expenditures were made during the second quarter of 2024.

Total Energy exited the second quarter of 2024 with $71.8 million of positive working capital, including $24.8 million of cash, and $85 million of available credit under its $175 million of revolving bank credit facilities. Included in working capital at June 30, 2024 is a $42.0 million mortgage loan that became current debt as it matures in April of 2025. Total Energy expects to repay this debt (which bears interest at a fixed rate of 3.10%) at maturity when approximately $40.2 million of principal will be outstanding. The weighted average interest rate on the Company’s outstanding debt at June 30, 2024 was 5.62%.

Outlook

Industry conditions remain stable. While North American natural gas spot market price weakness has negatively impacted North American gas drilling activity, particularly in the United States, relatively strong oil prices and the pending completion of several LNG export facilities have provided tailwinds for the North American energy services industry, particularly in Canada.

The significant investment in Total Energy’s Australian business, including the acquisition of Saxon in March, began to pay dividends in the second quarter of 2024. Synergies arising from the ongoing integration of Saxon with Savanna Australia and the completion of several capital projects during the third quarter of 2024 will see this momentum continue. In late July, a Saxon drilling rig was reactivated and in early August a service rig returned to service following its recertification and upgrade. Both rigs are operating under long term contracts. In addition, a newly constructed drilling rig is scheduled to commence operations by September under a long term contract.

Despite weak near term North American natural gas prices, demand for compression and processing equipment remains steady, driven by continued infrastructure investment to support expansion of North American LNG export capacity. The Company’s significant investment in growing the CPS segment’s compression rental fleet during the first half of 2024 was reflected in that segment’s second quarter results. This investment will continue to benefit the CPS segment going forward as it was supported by long term contracts.

Conference Call

At 9:00 a.m. (Mountain Time) on August 9, 2024 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 (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 September 9, 2024 by dialing (855) 669-9658 (passcode 7163493).

Selected Financial Information

Selected financial information relating to the three and six months ended June 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)

		June 30			December 31
			2024			2023
		(unaudited)			(audited)
Assets
Current assets:
Cash and cash equivalents		$	24,764		$	47,935
Accounts receivable			146,184			137,604
Inventory			119,886			98,179
Prepaid expenses and deposits			14,126			16,735
			304,960			300,453
Property, plant and equipment			624,058			557,152
Deferred income tax asset			3,285			-
Goodwill			4,053			4,053
		$	936,356		$	861,658
Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities		$	124,314		$	116,794
Deferred revenue			50,025			39,321
Contingent consideration on business acquisition			2,738			-
Income taxes payable			3,898			9,771
Dividends payable			3,496			3,198
Current portion of lease liabilities			6,697			5,880
Current portion of long-term debt			41,976			2,050
			233,144			177,014
Long-term debt			90,000			90,947
Lease liabilities			10,983			9,887
Deferred income tax liability			52,230			53,052
Shareholders' equity:
Share capital			244,223			251,283
Contributed surplus			4,755			4,805
Accumulated other comprehensive loss			(18,204)			(25,506)
Non-controlling interest			284			521
Retained earnings			318,941			299,655
			549,999			530,758
		$	936,356		$	861,658

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

			Three months ended June 30						Six months ended June 30
			2024			2023			2024			2023
Revenue		$	213,334		$	208,845		$	418,020		$	446,622
Cost of services			164,333			169,049			312,562			347,035
Selling, general and administration			11,441			10,126			24,175			21,559
Other (income) expense			(196)			(440)			124			(446)
Share-based compensation			713			367			1,422			756
Depreciation			22,431			20,342			43,095			40,297
Operating income			14,612			9,401			36,642			37,421
Gain on sale of property, plant and equipment			404			512			1,000			1,012
Finance costs, net			(2,156)			(1,796)			(3,988)			(3,499)
Net income before income taxes			12,860			8,117			33,654			34,934
Current income tax expense			1,046			47			5,018			371
Deferred income tax (recovery) expense			(3,640)			1,890			(2,281)			4,345
Total income tax (recovery) expense			(2,594)			1,937			2,737			4,716
Net income		$	15,454		$	6,180		$	30,917		$	30,218
Net income (loss) attributable to:
Shareholders of the Company		$	15,472		$	6,201		$	30,954		$	30,241
Non-controlling interest			(18)			(21)			(37)			(23)
Income per share
Basic		$	0.39		$	0.15		$	0.78		$	0.74
Diluted		$	0.39		$	0.15		$	0.77		$	0.73

Consolidated Statements of Comprehensive Income

			Three months ended June 30						Six months ended June 30
			2024			2023			2024			2023
Net income		$	15,454		$	6,180		$	30,917		$	30,218
Foreign currency translation			5,667			(4,682)			7,302			(5,300)
Total other comprehensive income (loss) for the period			5,667			(4,682)			7,302			(5,300)
Total comprehensive income		$	21,121		$	1,498		$	38,219		$	24,918
Total comprehensive income (loss) attributable to:
Shareholders of the Company		$	21,139		$	1,519		$	38,256		$	24,941
Non-controlling interest			(18)			(21)			(37)			(23)

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

		Three months ended June 30						Six months ended June 30
		2024			2023			2024			2023
Cash provided by (used in):
Operations:
Net income for the period		$	15,454		$	6,180		$	30,917		$	30,218
Add (deduct) items not affecting cash:
Depreciation			22,431			20,342			43,095			40,297
Share-based compensation			713			367			1,422			756
Gain on sale of property, plant and equipment			(404)			(512)			(1,000)			(1,012)
Finance costs, net			2,156			1,796			3,988			3,499
Foreign currency translation			933			(702)			663			(350)
Current income tax expense			1,046			47			5,018			371
Deferred income tax (recovery) expense			(3,640)			1,890			(2,281)			4,345
Income taxes paid			(595)			-			(10,891)			(44)
Cashflow			38,094			29,408			70,931			78,080
Changes in non-cash working capital items:
Accounts receivable			(18)			22,124			(8,580)			5,120
Inventory			(6,960)			(9,241)			(21,707)			(20,044)
Prepaid expenses and deposits			(1,103)			(491)			2,609			146
Accounts payable and accrued liabilities			(4,465)			14,534			12,867			18,546
Deferred revenue			3,639			(12,432)			10,704			(8,205)
Cash provided by operating activities			29,187			43,902			66,824			73,643
Investing:
Purchase of property, plant and equipment			(20,703)			(12,665)			(50,338)			(42,454)
Cash paid on acquisition			-			-			(47,350)			-
Proceeds on disposal of property, plant and equipment			922			741			1,549			1,504
Changes in non-cash working capital items			(305)			(10,229)			3,701			2,504
Cash used in investing activities			(20,086)			(22,153)			(92,438)			(38,446)
Financing:
Advancements of long-term debt			-			-			60,000			-
Repayment of long-term debt			(10,513)			(10,496)			(21,021)			(15,993)
Repayment of lease liabilities			(1,763)			(1,539)			(3,392)			(3,156)
Dividends to shareholders			(3,596)			(3,242)			(6,794)			(5,732)
Repurchase of common shares			(11,946)			(3,275)			(12,670)			(11,289)
Shares issued on exercise of stock options			64			-			64			-
Partnership distributions			-			-			(200)			-
Interest paid			(1,622)			(1,559)			(13,544)			(3,222)
Cash (used in) from financing activities			(29,376)			(20,111)			2,443			(39,392)
Change in cash and cash equivalents			(20,275)			1,638			(23,171)			(4,195)
Cash and cash equivalents, beginning of period			45,039			28,228			47,935			34,061
Cash and cash equivalents, end of period		$	24,764		$	29,866		$	24,764		$	29,866

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 June 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	$	67,889		$	17,798		$	109,454		$	18,193		$	-		$	213,334
Cost of services		51,392			9,853			88,179			14,909			-			164,333
Selling, general and administration		2,060			2,162			3,795			1,173			2,251			11,441
Other income		-			-			-			-			(196)			(196)
Share-based compensation		-			-			-			-			713			713
Depreciation		12,039			5,019			2,622			2,424			327			22,431
Operating income (loss)		2,398			764			14,858			(313)			(3,095)			14,612
Gain (loss) on sale of property, plant and equipment		68			281			79			(24)			-			404
Finance costs, net		(16)			(46)			(110)			(22)			(1,962)			(2,156)
Net income (loss) before income taxes		2,450			999			14,827			(359)			(5,057)			12,860
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		424,342			163,914			276,447			70,130			1,523			936,356
Total liabilities		78,649			29,854			106,665			6,063			165,126			386,357
Capital expenditures		8,777			2,388			3,732			5,806			-			20,703

			Canada			United States			Australia			Total
Revenue		$	76,906		$	98,471		$	37,957		$	213,334
Non-current assets (2)			368,701			137,395			122,015			628,111

As at and for the three months ended June 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	$	54,282		$	19,812		$	113,130		$	21,621		$	-		$	208,845
Cost of services		42,783			10,994			97,513			17,759			-			169,049
Selling, general and administration		1,986			2,076			3,218			1,072			1,774			10,126
Other (income) expense		(288)			(7)			43			-			(188)			(440)
Share-based compensation		-			-			-			-			367			367
Depreciation		9,479			4,845			2,614			3,142			262			20,342
Operating income (loss)		322			1,904			9,742			(352)			(2,215)			9,401
Gain on sale of property, plant and equipment		90			315			43			64			-			512
Finance costs, net		(15)			(17)			(111)			(17)			(1,636)			(1,796)
Net income (loss) before income taxes		397			2,202			9,674			(305)			(3,851)			8,117
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		354,433			177,972			278,289			75,584			1,839			888,117
Total liabilities		65,250			27,464			132,616			6,196			126,637			358,163
Capital expenditures		7,614			2,596			542			1,913			-			12,665

		Canada			United States			Australia			Total
Revenue	$	83,257		$	98,820		$	26,768		$	208,845
Non-current assets (2)		395,421			128,222			47,394			571,037

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

		Contract			Rentals and			Compression			Well		Corporate				Total
		Drilling			Transportation			and Process			Servicing			(1)
		Services			Services			Services
Revenue	$	149,100		$	40,177		$	186,980		$	41,763		$	-		$	418,020
Cost of services		107,284			20,768			151,730			32,780			-			312,562
Selling, general and administration		5,066			4,423			6,921			2,558			5,207			24,175
Other expense		-			-			-			-			124			124
Share-based compensation		-			-			-			-			1,422			1,422
Depreciation		22,382			10,083			5,211			4,823			596			43,095
Operating income (loss)		14,368			4,903			23,118			1,602			(7,349)			36,642
Gain (loss) on sale of property, plant and equipment		101			793			130			(24)			-			1,000
Finance costs, net		(38)			(87)			(212)			(45)			(3,606)			(3,988)
Net income (loss) before income taxes		14,431			5,609			23,036			1,533			(10,955)			33,654
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		424,342			163,914			276,447			70,130			1,523			936,356
Total liabilities		78,649			29,854			106,665			6,063			165,126			386,357
Capital expenditures		21,578			5,173			14,187			9,400			-			50,338

			Canada			United States			Australia			Total
Revenue		$	179,970		$	177,588		$	60,462		$	418,020
Non-current assets (2)			368,701			137,395			122,015			628,111

As at and for the six months ended June 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	$	136,818		$	44,225		$	211,248		$	54,331		$	-		$	446,622
Cost of services		102,201			23,897			179,485			41,452			-			347,035
Selling, general and administration		4,971			4,134			6,795			1,916			3,743			21,559
Other (income) expense		(288)			(7)			43			-			(194)			(446)
Share-based compensation		-			-			-			-			756			756
Depreciation		18,527			9,717			5,237			6,289			527			40,297
Operating income (loss)		11,407			6,484			19,688			4,674			(4,832)			37,421
Gain on sale of property, plant and equipment		226			513			73			170			30			1,012
Finance costs, net		(30)			(35)			(232)			(33)			(3,169)			(3,499)
Net income (loss) before income taxes		11,603			6,962			19,529			4,811			(7,971)			34,934
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		354,433			177,972			278,289			75,584			1,839			888,117
Total liabilities		65,250			27,464			132,616			6,196			126,637			358,163
Capital expenditures		31,434			4,134			2,515			4,371			-			42,454

			Canada			United States			Australia			Total
Revenue		$	191,384		$	203,827		$	51,411		$	446,622
Non-current assets (2)			395,421			128,222			47,394			571,037

(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.

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