CALGARY, Alberta, March 07, 2024 (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, 2023.

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

 Three months ended
December 31		 Year ended
December 31
  2023  2022Change   2023 2022Change 
Revenue$213,758 $211,4791% $892,396$759,81317%
Operating income 23,510  15,60551%  84,622 49,34371%
EBITDA(1) 45,276  35,87226%  168,961 131,32029%
Cashflow 44,457  38,59015%  163,321 130,79525%
Net income (loss) (7,861) 12,264nm  41,594 37,9999%
Attributable to shareholders (7,847) 12,244nm  41,625 38,00810%
            
Per Share Data (Diluted)           
EBITDA(1)$1.11 $0.8432% $4.11$3.0634%
Cashflow$1.09 $0.9120% $3.97$3.0431%
            
Attributable to shareholders:           
Net income (loss)$(0.19)$0.29nm $1.01$0.8815%
            
Common shares (000’s)(4)           
Basic 39,975  41,652(4%)  40,409 42,216(4%)
Diluted 40,623  42,524(4%)  41,147 42,980(4%)
            
        December 31 December 31 
Financial Position at       2023 2022Change
Total Assets      $861,658$878,615(2%)
Long-Term Debt and Lease Liabilities (excluding current portion)100,834 127,628(21%)
Working Capital(2)       123,439 112,15410%
Net Debt(3)       - 15,474(100%)
Shareholders’ Equity       530,758 522,0232%
            

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, 2023 reflect continued stable industry conditions. North American market share gains resulting from equipment upgrades and modestly improved pricing contributed to improved fourth quarter results in 2023 as compared to 2022. Fourth quarter Australian revenue was lower compared to the prior year due to lower service rig activity. $16.2 million of non-recurring income tax expense and $10.6 million of related interest and penalties were recorded in the fourth quarter of 2023 as a result of a Tax Court of Canada ruling upholding Canada Revenue Agency reassessments related to the Company’s 2009 income trust conversion. Despite the $26.8 million reduction in net income resulting from this reassessment, Total Energy achieved record consolidated financial results for 2023.

Contract Drilling Services (“CDS”)

  Three months ended
December 31		 Year ended
December 31
  2023  2022 Change  2023  2022 Change 
Revenue$74,700 $69,185 8%$287,333 $252,663 14%
EBITDA(1)$23,880 $17,976 33%$75,710 $60,002 26%
EBITDA(1) as a % of revenue 32% 26%23% 26% 24%8%
Operating days(2) 2,588  2,600 -  10,311  10,485 (2%)
Canada 1,890  1,588 19% 6,913  6,263 10%
United States 356  689 (48%) 2,052  2,734 (25%)
Australia 342  323 6% 1,346  1,488 (10%)
Revenue per operating day(2), dollars$28,864 $26,610 8%$27,867 $24,098 16%
Canada 27,162  24,751 10% 26,076  22,369 17%
United States 30,483  28,270 8% 28,700  25,126 14%
Australia 36,582  32,207 14% 35,791  29,484 21%
Utilization 30% 30%-  30% 30%- 
Canada 27% 22%23% 25% 22%14%
United States 32% 58%(45%) 47% 58%(19%)
Australia 74% 70%6% 74% 82%(10%)
Rigs, average for period 94  94 -  94  94 - 
Canada 77  76 1% 77  76 1%
United States 12  13 (8%) 12  13 (8%)
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 standby days.
  

CDS segment revenue during the fourth quarter of 2023 was higher compared with the previous year quarter due to increased revenue per operating day arising from the deployment of upgraded equipment. Negatively impacting utilization in the United States was the transfer of a triple drilling rig to Canada during the second quarter of 2023 and a general slowdown in industry activity, which was partially offset by higher pricing due in part to the mix of equipment operating. Higher utilization following the return to service of an upgraded drilling rig combined with higher revenue per operating day due to rate increases arising from rig upgrades and fewer standby days due to wet weather in 2023 compared to 2022 contributed to improved year over year fourth quarter results in Australia.

Rentals and Transportation Services (“RTS”)

  Three months ended
December 31		 Year ended
December 31
  2023   2022  Change   2023   2022  Change 
Revenue$19,544  $20,043  (2%) $84,906  $66,954  27%
EBITDA(1)$6,927  $6,171  12% $30,904  $23,361  32%
EBITDA(1) as a % of revenue 35%  31% 13%  36%  35% 3%
Revenue per utilized piece of equipment, dollars$14,139  $12,483  13% $55,041  $44,376  24%
Pieces of rental equipment 7,700   9,440  (18%)  7,700   9,440  (18%)
Canada 6,790   8,540  (20%)  6,790   8,540  (20%)
United States 910   900  1%  910   900  1%
Rental equipment utilization 18%  18% -   18%  16% 13%
Canada 16%  16% -   16%  15% 7%
United States 33%  33% -   35%  29% 21%
Heavy trucks 67   71  (6%)  67   71  (6%)
Canada 46   48  (4%)  46   48  (4%)
United States 21   23  (9%)  21   23  (9%)


(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 decreased marginally as compared to the same period in 2022 due to the deferral of certain projects in Canada that was partially offset by market share gains in the United States. Higher year over year fourth quarter EBITDA and EBITDA margin was due to improved revenue per utilized piece of equipment. A significant number of underutilized rental pieces were disposed of in Canada during 2023.

Compression and Process Services (“CPS”)

  Three months ended
December 31		 Year ended
December 31
  2023   2022  Change   2023   2022  Change 
Revenue$95,439  $93,668  2% $417,646  $331,669  26%
EBITDA(1)$14,074  $10,771  31% $53,817  $36,933  46%
EBITDA(1) as a % of revenue 15%  11% 36%  13%  11% 18%
Horsepower of equipment on rent at period end 39,496   41,243  (4%)  39,496   41,243  (4%)
Canada 13,856   18,768  (26%)  13,856   18,768  (26%)
United States 25,640   22,475  14%  25,640   22,475  14%
Rental equipment utilization during the period (HP)(2) 67%  75% (11%)  73%  61% 20%
Canada 76%  66% 15%  77%  47% 64%
United States 61%  84% (27%)  70%  79% (11%)
Sales backlog at period end, $ million$162.8  $219.5  (26%) $162.8  $219.5  (26%)


(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 United States fabrication sales, increased equipment overhaul activity and improved utilization of the Canadian compression rental fleet. EBITDA and EBITDA margin increased due to improved fabrication sales margins and a greater relative revenue contribution from the higher margin parts and service business. The fabrication sales backlog decreased to $162.8 million compared to the $219.5 million backlog at December 31, 2022. Sequentially, the quarter end backlog increased by $9.9 million from September 30, 2023.

Well Servicing (“WS”)

  Three months ended
December 31		 Year ended
December 31
  2023   2022  Change   2023   2022  Change 
Revenue$24,075   $28,583  (16%) $102,511   $108,527  (6%)
EBITDA (1)$3,997   $6,222  (36%) $19,833   $23,395  (15%)
EBITDA (1) as a % of revenue 17%  22% (23%)  19%  22% (14%)
Service hours(2) 24,631    29,566  (17%)  106,551    117,306  (9%)
Canada 13,293    14,460  (8%)  52,281    57,123  (8%)
United States 4,707    5,374  (12%)  23,488    19,157  23%
Australia 6,631    9,732  (32%)  30,782    41,026  (25%)
Revenue per service hour(2), dollars$977   $967  1% $962   $925  4%
Canada 931    960  (3%)  949    918  3%
United States 924    955  (3%)  969    899  8%
Australia 1,109    983  13%  980    948  3%
Utilization(3) 29%  33% (13%)  31%  32% (3%)
Canada 26%  28% (7%)  26%  27% (4%)
United States 47%  53% (11%)  59%  48% 23%
Australia 25%  37% (32%)  29%  39% (26%)
Rigs, average for period 79    79  -   79    79  - 
Canada 56    56  -   56    56  - 
United States 11    11  -   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.
  

Fourth quarter Canadian activity in the WS segment was negatively impacted by reduced well abandonment activity following the conclusion of government incentive programs. Segment EBITDA for the fourth quarter decreased as compared to 2022 due to lower activity in all jurisdictions and competitive North American pricing that was partially offset by increased pricing in Australia.

Corporate

During the fourth quarter of 2023, Total Energy remained focused on the safe and efficient operation of its business and the execution of its 2023 capital expenditure program in preparation for the upcoming North American winter drilling season. $75.2 million of capital expenditures were made to December 31, 2023, with $14.2 million of 2023 capital expenditure commitments carried forward into 2024.

Total Energy exited the fourth quarter of 2023 with $123.4 million of positive working capital, including $47.9 million of cash, and $125 million of available credit under its $175 million of revolving bank credit facilities. The weighted average interest rate on the Company’s outstanding debt at December 31, 2023 was 5.25%.

Outlook

Industry conditions remain relatively stable. Oil and natural gas producers continue to be measured in their drilling and completion programs as they pursue acquisition opportunities and execute shareholder return strategies. While recent North American natural gas spot market price weakness may adversely impact near term natural gas drilling activity, the pending completion of several LNG export facilities is expected to provide relief to the North American natural gas market.

Total Energy’s previously announced 2024 preliminary capital expenditure budget of $46.5 million includes $22.4 million of growth capital. Included in 2024 growth capital is the recertification and upgrade of three Australian service rigs that are being reactivated under long term contracts. The first rig was completed and commenced operations in late February and the remaining two rigs are expected to be completed and commence operations during the second and third quarters of 2024, respectively. Included in 2023 capital expenditure commitments carried into 2024 is the completion of an Australian drilling rig that is expected to commence operations in July 2024 under a long term contract as well as several natural gas compression rental units being constructed for deployment in the United States under long term contracts.

Total Energy’s wholly owned subsidiary, Savanna Energy Services Australia Pty Ltd. (“Savanna Australia”) today completed the acquisition of Saxon Energy Services Australia Pty Ltd. (“Saxon”). US $34.8 million cash was paid at closing, with an additional US $2.0 million less any applicable post-closing deductions to be paid on the first anniversary of closing. Concurrent with the acquisition of Saxon, Muhammad Yasir Nisar was appointed Assistant Vice President, Drilling Services of Total Energy.

Dividend Increase

The Board of Directors of Total Energy has declared a dividend of $0.09 per common share for the quarter ended March 31, 2024, a 13% increase from the fourth quarter 2023 dividend. The dividend is payable on April 15, 2024 to shareholders of record at the close of business on March 29, 2024. The ex-dividend date is March 28, 2024. 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 8, 2024 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 8, 2024 by dialing (855) 669-9658 (passcode 0705).

Selected Financial Information

Selected financial information relating to the three months and year ended December 31, 2023 and 2022 is included in this news release. This information should be read in conjunction with the 2023 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)
(audited)

  December 31 December 31
   2023   2022 
     
Assets    
Current assets:    
Cash and cash equivalents $47,935  $34,061 
Accounts receivable  137,604   154,581 
Inventory  98,179   91,614 
Prepaid expenses and deposits  16,735   18,847 
Income taxes receivable  -   496 
Current portion of lease asset  -   378 
   300,453   299,977 
     
Property, plant and equipment  557,152   567,515 
Income taxes receivable  -   7,070 
Goodwill  4,053   4,053 
  $861,658  $878,615 
     
Liabilities & Shareholders' Equity    
Current liabilities:    
Accounts payable and accrued liabilities $116,794  $114,274 
Deferred revenue  39,321   63,895 
Income taxes payable  9,771   - 
Dividends payable  3,198   2,490 
Current portion of lease liabilities  5,880   5,173 
Current portion of long-term debt  2,050   1,991 
   177,014   187,823 
     
Long-term debt  90,947   117,997 
     
Lease liabilities  9,887   9,631 
     
Deferred income tax liability  53,052   41,141 
     
Shareholders' equity:    
Share capital  251,283   261,109 
Contributed surplus  4,805   3,590 
Accumulated other comprehensive loss  (25,506)  (17,032)
Non-controlling interest  521   552 
Retained earnings  299,655   273,804 
   530,758   522,023 
     
  $861,658  $878,615 


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

  Three months ended
December 31		Year ended
December 31
   2023
  2022
  2023  2022 
  (unaudited)(unaudited)(audited)(audited)
      
Revenue $213,758  $211,479  $892,396  $759,813 
      
Cost of services  155,976   162,291   678,246   589,809 
Selling, general and administration  13,242   11,082   46,828   39,671 
Other expense (income)  (92)  2,115   (300)  1,035 
Share-based compensation  729   351   2,186   1,142 
Depreciation  20,393   20,035   80,814   78,813 
Operating income  23,510   15,605   84,622   49,343 
      
Gain on sale of property, plant and equipment  1,373   232   3,525   3,164 
Finance costs, net  (12,235)  (2,094)  (17,425)  (7,374)
Net income before income taxes  12,648   13,743   70,722   45,133 
      
Current income tax expense  17,077   1,289   17,217   1,250 
Deferred income tax expense  3,432   190   11,911   5,884 
Total income tax expense  20,509   1,479   29,128   7,134 
      
Net income (loss) $(7,861) $12,264  $41,594  $37,999 
      
Net income (loss) attributable to:     
Shareholders of the Company $(7,847) $12,244  $41,625  $30,008 
Non-controlling interest  (14)  20   (31)  (9)
      
Income (loss) per share     
Basic $(0.20) $0.29  $1.03  $0.90 
Diluted $(0.19) $0.29  $1.01  $0.88 
      


Consolidated Statements of Comprehensive Income (Loss)

  Three months ended
December 31		Year ended
December 31
   2023  2022  2023  2022 
  (unaudited)(unaudited)(audited)(audited)
      
Net income (loss) $(7,861) $12,264  $41,594  $37,999 
      
Foreign currency translation  (1,440)  965   (8,474)  9,672 
      
Total other comprehensive income (loss) for the period  (1,440)  965   (8,474)  9,672 
      
Total comprehensive income (loss) $(9,301) $13,229  $33,120  $47,671 
      
Total comprehensive income (loss) attributable to:     
      
Shareholders of the Company $(9,287) $13,209  $33,151  $47,680 
Non-controlling interest  (14)  20   (31)  (9)


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

  Three months ended
December 31		Year ended
December 31
   2023
  2022
  2023
  2022 
  (unaudited)(unaudited)(audited)(audited)
Cash provided by (used in):     
      
Operations:     
Net income (loss) for the period $(7,861) $12,264  $41,594  $37,999 
Add (deduct) items not affecting cash:     
Depreciation  20,393   20,035   80,814   78,813 
Share-based compensation  729   351   2,186   1,142 
Gain on sale of property, plant and equipment  (1,373)  (232)  (3,525)  (3,164)
Finance costs, net  12,235   2,094   17,425   7,374 
Foreign currency translation  (136)  2,115   (4,420)  1,035 
Current income tax expense  17,077   1,289   17,217   1,250 
Deferred income tax expense  3,432   190   11,911   5,884 
Income taxes recovered (paid)  (39)  484   119   462 
Cashflow  44,457   38,590   163,321   130,795 
Changes in non-cash working capital items:     
Accounts receivable  25,373   9,564   16,977   (64,103)
Inventory  3,285   1,777   (6,565)  (1,690)
Prepaid expenses and deposits  7,319   466   2,112   (9,639)
Accounts payable and accrued liabilities  (15,805)  (4,543)  (5,325)  40,417 
Deferred revenue  (14,265)  8,755   (24,574)  47,621 
Cash provided by operating activities  50,364   54,609   145,946   143,401 
Investing:     
Purchase of property, plant and equipment  (15,611)  (14,713)  (75,242)  (56,735)
Proceeds on disposal of property, plant and equipment  5,106   332   11,516   6,292 
Changes in non-cash working capital items  (5,599)  (1,373)  (3,107)  8,181 
Cash used in investing activities  (16,104)  (15,754)  (66,833)  (42,262)
Financing:     
Repayment of long-term debt  (10,500)  (28,574)  (26,991)  (70,529)
Repayment of lease liabilities  (1,198)  (1,359)  (5,912)  (4,966)
Dividends to shareholders  (3,198)  (2,517)  (12,142)  (4,999)
Repurchase of common shares  -   (4,491)  (13,587)  (12,638)
Shares issued on exercise of share options  -   42   42   158 
Interest paid  (1,314)  (2,198)  (6,649)  (7,469)
      
Cash used in financing activities  (16,210)  (39,097)  (65,239)  (100,443)
      
Change in cash and cash equivalents  18,050   (242)  13,874   696 
      
Cash and cash equivalents, beginning of period  29,885   34,303   34,061   33,365 
      
Cash and cash equivalents, end of period $47,935  $34,061  $47,935  $34,061 
      


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 December 31, 2023(unaudited, in thousands of Canadian dollars)

 ContractRentals andCompressionWellCorporate(1)Total
 DrillingTransportationand ProcessServicing  
 ServicesServicesServices   
       
Revenue$74,700  $19,544  $95,439  $24,075  $-  $213,758 
       
Cost of services 47,897   10,485   78,813   18,781   -   155,976 
Selling, general and administration 3,436   2,260   3,294   1,324   2,928   13,242 
Other (income) loss (85)  (35)  113   -   (85)  (92)
Share-based compensation -   -   -   -   729   729 
Depreciation 9,668   5,111   2,528   2,853   233   20,393 
Operating income (loss) 13,784   1,723   10,691   1,117   (3,805)  23,510 
       
Gain on sale of property, plant and equipment 428   93   855   27   (30)  1,373 
Finance costs, net (21)  (50)  (110)  (23)  (12,031)  (12,235)
       
Net income (loss) before income taxes 14,191   1,766   11,436   1,121   (15,866)  12,648 
       
Goodwill -   2,514   1,539   -   -   4,053 
Total assets 364,968   169,847   255,055   69,398   2,390   861,658 
Total liabilities 64,810   29,502   93,980   6,383   136,225   330,900 
Capital expenditures 6,282   1,446   7,669   208   6   15,611 


 CanadaUnited StatesAustraliaTotal
     
Revenue$116,289$77,779$19,690$213,758
Non-current assets(2) 384,448 129,817 46,940 561,205


As at and for the three months ended December 31, 2022 (unaudited, in thousands of Canadian dollars)

 ContractRentals andCompressionWellCorporate(1)Total
 DrillingTransportationand ProcessServicing  
 ServicesServicesServices   
       
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 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 


 CanadaUnited StatesAustraliaTotal
     
Revenue$89,191$97,228$25,060$211,479
Non-current assets(2) 373,637 146,886 51,045 571,568


(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, 2023(audited, in thousands of Canadian dollars)

 ContractRentals andCompressionWellCorporate(1)Total
 DrillingTransportationand ProcessServicing  
 ServicesServicesServices   
       
Revenue$287,333  $84,906  $417,646  $102,511  $-  $892,396 
       
Cost of services 201,363   46,210   352,079   78,594   -   678,246 
Selling, general and administration 10,988   8,634   13,416   4,448   9,342   46,828 
Other income (65)  (35)  25   -   (225)  (300)
Share-based compensation -   -   -   -   2,186   2,186 
Depreciation 37,775   19,731   10,350   11,944   1,014   80,814 
Operating income (loss) 37,272   10,366   41,776   7,525   (12,317)  84,622 
       
Gain on sale of property, plant and equipment 663   807   1,691   364   -   3,525 
Finance costs, net (65)  (113)  (463)  (74)  (16,710)  (17,425)
       
Net income (loss) before income taxes 37,870   11,060   43,004   7,815   (29,027)  70,722 
       
Goodwill -   2,514   1,539   -   -   4,053 
Total assets 364,968   169,847   255,055   69,398   2,390   861,658 
Total liabilities 64,810   29,502   93,980   6,383   136,225   330,900 
Capital expenditures 46,810   7,223   14,452   6,516   241   75,242 


 CanadaUnited StatesAustraliaTotal
     
Revenue$419,618$381,396$91,382$892,396
Non-current assets(2) 384,448 129,817 46,940 561,205


As at and for the year ended December 31, 2022 (audited, in thousands of Canadian dollars)

 ContractRentals andCompressionWellCorporateTotal
 DrillingTransportationand ProcessServicing (1)   
 ServicesServicesServices   
       
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 expense -   -   -   -   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 


 CanadaUnited StatesAustraliaTotal
     
Revenue$371,478$263,751$124,584$759,813
Non-current assets(2) 373,637 146,886 51,045 571,568


(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 15 to the Company’s 2023 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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Source: Total Energy Services Inc.

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