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, 2023.

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

	Three months endedSeptember 30							Nine months endedSeptember 30
	2023		2022		Change			2023		2022		Change
Revenue	$	232,016	$	207,678	12	%		$	678,638	$	548,334	24	%
Operating income		23,691		21,622	10	%			61,112		33,738	81	%
EBITDA(1)		44,955		42,335	6	%			123,685		95,448	30	%
Cashflow		40,784		41,078	(1	%)			118,864		92,205	29	%
Net income		19,237		17,163	12	%			49,455		25,735	92	%
Attributable to shareholders		19,231		17,179	12	%			49,472		25,764	92	%
Per Share Data (Diluted)
EBITDA(1)	$	1.10	$	0.98	12	%		$	3.00	$	2.21	36	%
Cashflow	$	1.00	$	0.95	5	%		$	2.88	$	2.14	35	%
Attributable to shareholders:
Net income	$	0.47	$	0.40	18	%		$	1.20	$	0.60	100	%
Common shares (000’s)(4)
Basic		40,149		42,339	(5	%)			40,555		42,367	(4	%)
Diluted		40,961		43,090	(5	%)			41,291		43,142	(4	%)
									September 30		December 31
Financial Position at									2023		2022	Change
Total Assets								$	894,325	$	878,615	2	%
Long-Term Debt and Lease Liabilities (excluding current portion)									111,159		127,628	(13	%)
Working Capital(2)									127,566		112,154	14	%
Net Debt(3)									-		15,474	(100	%)
Shareholders’ Equity									542,528		522,023	4	%

Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.

Total Energy’s results for the third quarter and first nine months of 2023 reflect relatively stable industry conditions. Despite lower year over year North American third quarter industry activity levels, market share gains resulting from equipment upgrades contributed to modestly higher third quarter results in 2023 as compared to 2022. Third quarter Australian activity levels were lower compared to the prior year as one drilling rig and one service rig were out of service during the third quarter of 2023 for recertification and upgrades.

Contract Drilling Services (“CDS”)

	Three months ended September 30								Nine months ended September 30
	2023			2022			Change		2023				2022		Change
Revenue	$	75,815		$	73,976		2	%	$	212,633		$	183,478		16	%
EBITDA(1)	$	21,670		$	21,777		-		$	51,830		$	42,026		23	%
EBITDA(1)as a % of revenue		29	%		29	%	-			24	%		23	%	4	%
Operating days(2)		2,880			3,097		(7	%)		7,723			7,885		(2	%)
Canada		2,009			2,041		(2	%)		5,023			4,675		7	%
United States		535			648		(17	%)		1,696			2,045		(17	%)
Australia		336			408		(18	%)		1,004			1,165		(14	%)
Revenue per operating day(2), dollars	$	26,325		$	23,886		10	%	$	27,532		$	23,269		18	%
Canada		24,522			22,655		8	%		25,668			21,560		19	%
United States		28,540			26,370		8	%		28,326			24,067		18	%
Australia		33,577			26,100		29	%		35,522			28,729		24	%
Utilization		33	%		35	%	(6	%)		30	%		30	%	-
Canada		28	%		29	%	(3	%)		24	%		22	%	9	%
United States		48	%		54	%	(11	%)		53	%		58	%	(9	%)
Australia		73	%		89	%	(18	%)		74	%		85	%	(13	%)
Rigs, average for period		94			95		(1	%)		94			95		(1	%)
Canada		77			77		-			77			77		-
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 stand-by days.

CDS segment revenue during the third quarter of 2023 was higher compared with the previous year quarter as lower operating days were more than offset by increased pricing. The deployment of upgraded equipment contributed to the year-over-year increase in third quarter revenue per operating day. 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. Lower Australian utilization due to the removal of a drilling rig from service for recertification and upgrade was partially offset by higher revenue per operating day as compared to the third quarter of 2022 due to rate increases arising from previous rig upgrades and fewer standby days due to wet weather in 2023 compared to 2022.

Rentals and Transportation Services (“RTS”)

	Three months ended September 30								Nine months ended September 30
	2023			2022			Change		2023			2022			Change
Revenue	$	21,137		$	18,070		17	%	$	65,362		$	46,911		39	%
EBITDA(1)	$	7,263		$	8,097		(10	%)	$	23,977		$	17,190		39	%
EBITDA(1)as a % of revenue		34	%		45	%	(24	%)		37	%		37	%	-
Revenue per utilized piece of equipment, dollars	$	12,825		$	11,283		14	%	$	42,473		$	31,075		37	%
Pieces of rental equipment		7,659			9,450		(19	%)		7,659			9,450		(19	%)
Canada		6,767			8,560		(21	%)		6,767			8,560		(21	%)
United States		892			890		-			892			890		-
Rental equipment utilization		19	%		17	%	12	%		18	%		16	%	13	%
Canada		18	%		16	%	13	%		16	%		15	%	7	%
United States		27	%		27	%	-			36	%		27	%	33	%
Heavy trucks		69			71		(3	%)		69			71		(3	%)
Canada		48			48		-			48			48		-
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.

Third quarter revenue in the RTS segment increased as compared to the same period in 2022 due to higher equipment utilization and modestly improved pricing. Lower year over year third quarter EBITDA and EBITDA margin was due primarily to equipment and personnel mobilization costs incurred in Canada in advance of the upcoming winter drilling season. A significant number of underutilized rental pieces were disposed of in Canada during the first nine months of 2023.

Compression and Process Services (“CPS”)

	Three months endedSeptember 30								Nine months endedSeptember 30
	2023			2022			Change		2023			2022			Change
Revenue	$	110,959		$	86,654		28	%	$	322,207		$	238,001		35	%
EBITDA(1)	$	14,404		$	7,956		81	%	$	39,402		$	26,162		51	%
EBITDA(1)as a % of revenue		13	%		9	%	44	%		12	%		11	%	9	%
Horsepower of equipment on rent at period end		36,616			37,563		(3	%)		36,616			37,563		(3	%)
Canada		15,226			15,018		1	%		15,226			15,018		1	%
United States		21,390			22,545		(5	%)		21,390			22,545		(5	%)
Rental equipment utilization during the period (HP)(2)		69	%		63	%	10	%		75	%		56	%	34	%
Canada		73	%		49	%	49	%		77	%		41	%	88	%
United States		67	%		81	%	(17	%)		74	%		77	%	(4	%)
Sales backlog at period end, $ million	$	152.9		$	197.8		(23	%)	$	152.9		$	197.8		(23	%)

(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 third quarter revenue was due primarily to higher United States fabrication sales, increased equipment overhaul activity and improved utilization of the compression rental fleet.   EBITDA and EBITDA margin increased substantially due to improved fabrication sales margins and a greater revenue contribution from the higher margin rental business. The fabrication sales backlog decreased to $152.9 million compared to the $197.8 million backlog at September 30, 2022.   Sequentially, the quarter end backlog decreased $32.7 million due to a moderation of quoting activity converting to sales during the third quarter of 2023 with no corresponding decrease in production activity as well as a shift in customer demand towards renting compression equipment.

Well Servicing (“WS”)

	Three months endedSeptember 30								Nine months endedSeptember 30
	2023			2022			Change		2023			2022			Change
Revenue	$	24,105		$	28,978		(17	%)	$	78,436		$	79,944		(2	%)
EBITDA(1)	$	5,044		$	6,896		(27	%)	$	16,177		$	17,173		(6	%)
EBITDA(1)as a % of revenue		21	%		24	%	(13	%)		21	%		21	%	-
Service hours(2)		26,044			30,894		(16	%)		81,920			87,740		(7	%)
Canada		12,140			15,506		(22	%)		38,988			42,663		(9	%)
United States		6,370			5,073		26	%		18,781			13,783		36	%
Australia		7,534			10,315		(27	%)		24,151			31,294		(23	%)
Revenue per service hour(2), dollars	$	926		$	938		(1	%)	$	957		$	911		5	%
Canada		923			969		(5	%)		955			903		6	%
United States		944			914		3	%		980			878		12	%
Australia		913			904		1	%		944			937		1	%
Utilization(3)		36	%		34	%	6	%		38	%		32	%	19	%
Canada		24	%		30	%	(20	%)		26	%		27	%	(4	%)
United States		63	%		50	%	26	%		63	%		46	%	37	%
Australia		28	%		39	%	(28	%)		31	%		40	%	(23	%)
Rigs, average for period		79			80		(1	%)		79			80		(1	%)
Canada		56			57		(2	%)		56			57		(2	%)
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.

Third quarter activity in the Canadian WS segment was negatively impacted by reduced well abandonment activity following the conclusion of government incentive programs. Negatively impacting third quarter activity in Australia was the removal of a service rig from operation for recertification and upgrades.   Segment EBITDA for the third quarter decreased as compared to 2022 due to lower activity and competitive pricing in Canada and Australia.

Corporate

During the third 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 winter drilling season in North America. $59.6 million of capital expenditures have been made to September 30, 2023.        Total Energy exited the third quarter of 2023 with $127.6 million of positive working capital, including $29.9 million of cash, and $115 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 September 30, 2023 was 5.35%.

Outlook

Industry conditions remain relatively stable and constructive despite continued global economic uncertainty and volatile commodity prices. Oil and natural gas producers continue to be measured in their drilling and completion programs as they pursue acquisition opportunities and execute on shareholder return strategies.   Total Energy remains focused on the safe and efficient operation of its business, the disciplined deployment of capital and opportunities to enhance shareholder value.

In Australia, the drilling rig removed from service in the second quarter for recertification and upgrades returned to service in mid-October where it is currently deployed on a hydrogen drilling project.

Total Energy’s Board of Directors has approved a $20.0 million increase to the Company’s 2023 capital expenditure budget, which increase is being directed towards growth of the CPS segment’s compression rental fleet in direct response to customer demand. Total Energy intends to finance the remaining $32.5 million of its $92.1 million 2023 capital expenditure budget with cash on hand and cashflow.

Conference Call

At 9:00 a.m. (Mountain Time) on November 10, 2023 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 (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 December 10, 2023 by dialing (855) 669-9658 (passcode 0461).

Selected Financial Information

Selected financial information relating to the three and nine months ended September 30, 2023 and 2022 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 2022 Annual report.

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

	September 30				December 31
	2023				2022
	(unaudited)				(audited)
Assets
Current assets:
Cash and cash equivalents	$	29,885			$	34,061
Accounts receivable		162,977				154,581
Inventory		101,464				91,614
Prepaid expenses and deposits		24,054				18,847
Income taxes receivable		198				496
Current portion of lease asset		6				378
		318,584				299,977
Property, plant and equipment		564,618				567,515
Income taxes receivable		7,070				7,070
Goodwill		4,053				4,053
	$	894,325			$	878,615
Liabilities & Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities	$	126,861			$	114,274
Deferred revenue		53,586				63,895
Dividends payable		3,198				2,490
Current portion of lease liabilities		5,339				5,173
Current portion of long-term debt		2,034				1,991
		191,018				187,823
Long-term debt		101,463				117,997
Lease liabilities		9,696				9,631
Deferred income tax liability		49,620				41,141
Shareholders' equity:
Share capital		251,283				261,109
Contributed surplus		4,076				3,590
Accumulated other comprehensive loss		(24,066	)			(17,032	)
Non-controlling interest		535				552
Retained earnings		310,700				273,804
		542,528				522,023
	$	894,325			$	878,615

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

	Three months endedSeptember 30						Nine months endedSeptember 30
	2023			2022			2023			2022
Revenue	$	232,016		$	207,678		$	678,638		$	548,334
Cost of services		175,235			156,803			522,270			427,518
Selling, general and administration		12,027			9,695			33,586			28,589
Other expense (income)		238			(405	)		(208	)		(1,080	)
Share-based compensation		701			312			1,457			791
Depreciation		20,124			19,651			60,421			58,778
Operating income		23,691			21,622			61,112			33,738
Gain on sale of property, plant and equipment		1,140			1,062			2,152			2,932
Finance costs, net		(1,691	)		(1,911	)		(5,190	)		(5,280	)
Net income before income taxes		23,140			20,773			58,074			31,390
Current income tax expense (recovery)		(231	)		403			140			(39	)
Deferred income tax expense		4,134			3,207			8,479			5,694
Total income tax expense		3,903			3,610			8,619			5,655
Net income	$	19,237		$	17,163		$	49,455		$	25,735
Net income (loss) attributable to:
Shareholders of the Company	$	19,231		$	17,179		$	49,472		$	25,764
Non-controlling interest		6			(16	)		(17	)		(29	)
Income per share
Basic	$	0.48		$	0.41		$	1.22		$	0.61
Diluted	$	0.47		$	0.40		$	1.20		$	0.60

Condensed Interim Consolidated Statements of Comprehensive Income

	Three months ended September 30						Nine months ended September 30
	2023			2022			2023			2022
Net income	$	19,237		$	17,163		$	49,455		$	25,735
Foreign currency translation		(1,734	)		8,496			(7,034	)		8,707
Total other comprehensive income (loss) for the period		(1,734	)		8,496			(7,034	)		8,707
Total comprehensive income	$	17,503		$	25,659		$	42,421		$	34,442
Total comprehensive income (loss) attributable to:
Shareholders of the Company	$	17,497		$	25,675		$	42,438		$	34,471
Non-controlling interest		6			(16	)		(17	)		(29	)

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

	Three months endedSeptember 30						Nine months endedSeptember 30
	2023			2022			2023			2022
Cash provided by (used in):
Operations:
Net income for the period	$	19,237		$	17,163		$	49,455		$	25,735
Add (deduct) items not affecting cash:
Depreciation		20,124			19,651			60,421			58,778
Share-based compensation		701			312			1,457			791
Gain on sale of property, plant and equipment		(1,140	)		(1,062	)		(2,152	)		(2,932	)
Finance costs, net		1,691			1,911			5,190			5,280
Foreign currency translation		(3,934	)		(405	)		(4,284	)		(1,080	)
Current income tax expense (recovery)		(231	)		403			140			(39	)
Deferred income tax expense		4,134			3,207			8,479			5,694
Income taxes recovered (paid)		202			(102	)		158			(22	)
Cashflow		40,784			41,078			118,864			92,205
Changes in non-cash working capital items:
Accounts receivable		(13,516	)		(33,689	)		(8,396	)		(73,667	)
Inventory		10,194			123			(9,850	)		(3,467	)
Prepaid expenses and deposits		(5,353	)		(3,856	)		(5,207	)		(10,105	)
Accounts payable and accrued liabilities		(8,066	)		16,121			10,480			44,960
Deferred revenue		(2,104	)		(933	)		(10,309	)		38,866
Cash provided by operating activities		21,939			18,844			95,582			88,792
Investing:
Purchase of property, plant and equipment		(17,177	)		(17,063	)		(59,631	)		(42,022	)
Proceeds on disposal of property, plant and equipment		4,906			2,083			6,410			5,960
Changes in non-cash working capital items		(12	)		6,603			2,492			9,554
Cash used in investing activities		(12,283	)		(8,377	)		(50,729	)		(26,508	)
Financing:
Repayment of long-term debt		(498	)		(10,651	)		(16,491	)		(41,955	)
Repayment of lease liabilities		(1,558	)		(1,326	)		(4,714	)		(3,607	)
Dividends to shareholders		(3,212	)		(2,482	)		(8,944	)		(2,482	)
Repurchase of common shares		(2,298	)		(2,248	)		(13,587	)		(8,147	)
Shares issued on exercise of share options		42			85			42			116
Interest paid		(2,113	)		(1,887	)		(5,335	)		(5,271	)
Cash used in financing activities		(9,637	)		(18,509	)		(49,029	)		(61,346	)
Change in cash and cash equivalents		19			(8,042	)		(4,176	)		938
Cash and cash equivalents, beginning of period		29,866			42,345			34,061			33,365
Cash and cash equivalents, end of period	$	29,885		$	34,303		$	29,885		$	34,303

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, 2023 (unaudited, in thousands of Canadian dollars)

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	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) loss		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		Total
Revenue	$	111,945	$	99,790	$	20,281	$	232,016
Non-current assets(2)		393,168		129,263		46,240		568,671

As at and for the three months ended September 30, 2022 (unaudited, in thousands of Canadian dollars)

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	Services			Services			Services
Revenue	$	73,976		$	18,070		$	86,654		$	28,978		$	-		$	207,678
Cost of services		50,189			8,501			77,234			20,879			-			156,803
Selling, general and administration		2,011			1,662			2,139			1,399			2,484			9,695
Other income		-			-			-			-			(405	)		(405	)
Share-based compensation		-			-			-			-			312			312
Depreciation		8,888			4,855			2,415			3,247			246			19,651
Operating income (loss)		12,888			3,052			4,866			3,453			(2,637	)		21,622
Gain on sale of property, plant and equipment		1			190			675			196			-			1,062
Finance costs, net		(8	)		(20	)		(114	)		(8	)		(1,761	)		(1,911	)
Net income (loss) before income taxes		12,881			3,222			5,427			3,641			(4,398	)		20,773
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		358,510			186,260			258,328			87,568			6,418			897,084
Total liabilities		79,604			18,246			110,036			7,121			166,537			381,544
Capital expenditures		10,506			2,260			2,801			1,427			69			17,063

	Canada		United States		Australia		Total
Revenue	$	98,020	$	77,165	$	32,493	$	207,678
Non-current assets(2)		374,894		149,528		51,074		575,496

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

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	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) loss		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		Total
Revenue	$	303,329	$	303,617	$	71,692	$	678,638
Non-current assets(2)		393,168		129,263		46,240		568,671

As at and for the nine months ended September 30, 2022 (unaudited, in thousands of Canadian dollars)

	Contract			Rentals and			Compression			Well			Corporate(1)			Total
	Drilling			Transportation			and Process			Servicing
	Services			Services			Services
Revenue	$	183,478		$	46,911		$	238,001		$	79,944		$	-		$	548,334
Cost of services		136,354			25,561			206,556			59,047			-			427,518
Selling, general and administration		5,367			4,990			6,863			3,977			7,392			28,589
Other income		-			-			-			-			(1,080	)		(1,080	)
Share-based compensation		-			-			-			-			791			791
Depreciation		26,647			14,650			7,107			9,667			707			58,778
Operating income (loss)		15,110			1,710			17,475			7,253			(7,810	)		33,738
Gain on sale of property, plant and equipment		269			830			1,580			253			-			2,932
Finance costs, net		(14	)		(59	)		(288	)		(17	)		(4,902	)		(5,280	)
Net income (loss) before income taxes		15,365			2,481			18,767			7,489			(12,712	)		31,390
Goodwill		-			2,514			1,539			-			-			4,053
Total assets		358,510			186,260			258,328			87,568			6,418			897,084
Total liabilities		79,604			18,246			110,036			7,121			166,537			381,544
Capital expenditures		27,970			5,018			5,562			3,392			80			42,022

	Canada		United States		Australia		Total
Revenue	$	282,287	$	166,523	$	99,524	$	548,334
Non-current assets(2)		374,894		149,528		51,074		575,496

(1)  Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.(2)  Includes property, plant and equipment, lease asset (excluding current portion) and goodwill.

Total Energy provides contract drilling services, equipment rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centers in North America and Australia. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.

For further information, please contact Daniel Halyk, President & Chief Executive Officer at (403) 216-3921 or Yuliya Gorbach, Vice-President Finance and Chief Financial Officer at (403) 216-3920 or by e-mail at: investorrelations@totalenergy.ca or visit our website at www.totalenergy.ca

Notes to the Financial Highlights

(1) EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income (loss) before income taxes plus finance costs plus depreciation. EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company’s primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various jurisdictions as well as the cash generated by the Company’s primary business activities without consideration of the timing of the monetization of non-cash working capital items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of Total Energy’s performance. Total Energy’s method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.

(2) Working capital equals current assets minus current liabilities.

(3) Net Debt equals long-term debt plus lease liabilities plus current liabilities minus current assets. Management believes this measure provides a useful indication of the Company’s liquidity.

(4) Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 5 to the Company’s Condensed Interim Consolidated Financial Statements.

Certain statements contained in this press release, including statements which may contain words such as "could", "should", "expect", "believe", "will" and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Forward-looking statements are based upon the opinions and expectations of management of Total Energy as at the effective date of such statements and, in some cases, information supplied by third parties. Although Total Energy believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from third parties is reliable, it can give no assurance that those expectations will prove to have been correct.

In particular, this press release contains forward-looking statements concerning industry activity levels, including expectations regarding Total Energy’s future activity levels, market share and compression and process production activity. Such forward-looking statements are based on a number of assumptions and factors including fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, central bank interest rate policy, the demand for products and services provided by Total Energy, Total Energy’s ability to attract and retain key personnel and other factors. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Total Energy to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Reference should be made to Total Energy’s most recently filed Annual Information Form and other public disclosures (available at www.sedar.com) for a discussion of such risks and uncertainties.

The TSX has neither approved nor disapproved of the information contained herein.