An anonymous director reports

TOTAL ENERGY SERVICES INC. ANNOUNCES Q3 2023 RESULTS

Total Energy Services Inc. has released its consolidated financial results for the three and nine months ended Sept. 30, 2023.

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 with 2022. Third quarter Australian activity levels were lower compared with 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.

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 coming winter drilling season in North America. It has made $59.6-million in capital expenditures to Sept. 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 Sept. 30, 2023, was 5.35 per cent.

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 toward 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 cash flow.

Conference call

At 9 a.m. Mountain Time on Nov. 10, 2023, Total Energy will conduct a conference call and webcast to discuss its third quarter financial results. Daniel Halyk, president and chief executive officer, will host the conference call. A live webcast of the conference call will be available on Total Energy's website 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 Dec. 10, 2023, by dialling 855-669-9658 (passcode 0461).

Selected financial information

Selected financial information relating to the three and nine months ended Sept. 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.

We seek Safe Harbor.