CALGARY, Alberta, Aug.  10, 2023  (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, 2023.

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

Three months ended
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June 30 2023 2022Change  2023 2022ChangeRevenue$208,845$179,20417% $446,622$340,65631%Operating income 9,401 8,42612%  37,421 12,116209%EBITDA (1)  30,255 28,7995%  78,730 53,11348%Cashflow 29,408 28,5763%  78,080 51,12753%Net income 6,180 6,1051%  30,218 8,572253%Attributable to shareholders 6,201 6,1131%  30,241 8,585252% Per Share Data (Diluted) EBITDA (1)$0.74$0.6710% $1.89$1.2354%Cashflow$0.72$0.669% $1.88$1.1859% Attributable to shareholders: Net income$0.15$0.147% $0.73$0.20265% Common shares (000’s)(4) Basic 40,325 42,307(5%)  40,821 42,509(4%)Diluted 41,048 43,203(5%)  41,568 43,319(4%)  June 30 December 31 Financial Position at       2023 2022ChangeTotal Assets      $888,117$878,6151%Long-Term Debt and Lease Liabilities (excluding current portion)        111,244 127,628(13%)Working Capital (2)       108,577 112,154(3%)Net Debt (3)       2,667 15,474(83%)Shareholders’ Equity       529,954 522,0232%

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 second quarter ended June 30, 2023 represent record second quarter financial results that were underpinned by stable industry conditions and the deployment of equipment upgraded pursuant to the Company’s 2022 capital expenditure program.

Contract Drilling Services (“CDS”)

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June 30 2023  2022 Change 2023  2022 ChangeRevenue$54,282 $49,440 10%$136,818 $109,502 25%EBITDA (1)$9,891 $8,808 12%$30,160 $20,249 49%EBITDA (1) as a % of revenue 18% 18%-  22% 18%22%Operating days(2) 1,974  2,105 (6%) 4,843  4,788 1%Canada 1,094  1,009 8% 3,014  2,634 14%United States 571  696 (18%) 1,161  1,397 (17%)Australia 309  400 (23%) 668  757 (12%)Revenue per operating day(2), dollars$27,498 $23,487 17%$28,251 $22,870 24%Canada 25,396  21,304 19% 26,431  20,711 28%United States 27,319  24,165 13% 28,227  22,998 23%Australia 35,275  27,813 27% 36,500  30,145 21%Utilization 23% 24%(4%) 29% 28%4%Canada 16% 14%14% 22% 19%16%United States 52% 59%(12%) 51% 59%(14%)Australia 68% 88%(23%) 74% 84%(12%)Rigs, average for period 94  95 (1%) 94  95 (1%)Canada 77  77 -  76  77 (1%)United States 12  13 (8%) 13  13 - 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 second quarter of 2023 was higher compared with the previous year quarter as lower consolidated operating days were more than offset by increased pricing. The deployment of upgraded equipment in response to improving customer demand contributed to increased year over year second quarter revenue per operating day and utilization in Canada. Negatively impacting utilization in the United States (the “United States” or the “U.S.”) was the transfer of a drilling rig to Canada during the second quarter of 2023 and a general slowdown in industry activity, which was offset by higher pricing. The removal of a drilling rig from service during the second quarter of 2023 for recertification and upgrades resulted in lower year over year utilization in Australia. Lower Australian utilization was partially offset by higher revenue per operating day as compared to the second 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”)

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June 30 2023  2022 Change 2023  2022 ChangeRevenue$19,812 $13,441 47%$44,225 $28,841 53%EBITDA (1)$7,064 $3,500 102%$16,714 $9,093 84%EBITDA (1) as a % of revenue 36% 26%38% 38% 32%19%Revenue per utilized piece of equipment, dollars$15,105 $10,219 48%$25,154 $20,444 23%Pieces of rental equipment 7,667  9,390 (18%) 7,667  9,390 (18%)Canada 6,779  8,510 (20%) 6,779  8,510 (20%)United States 888  880 1% 888  880 1%Rental equipment utilization 15% 14%7% 21% 15%40%Canada 14% 13%8% 18% 14%29%United States 34% 25%36% 40% 28%43%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.

Second quarter revenue in the RTS segment increased as compared to the same period in 2022 due to higher equipment utilization and improved pricing. Increased equipment utilization, improved pricing and this segment’s significant leverage to higher equipment utilization given its relatively high fixed cost structure contributed to a year over year increase in second quarter segment EBITDA and EBITDA margin. A significant number of underutilized rental pieces were disposed of in Canada during the second quarter of 2023.

Compression and Process Services (“CPS”)

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June 30 2023  2022 Change 2023  2022 ChangeRevenue$113,130 $92,782 22%$211,248 $151,347 40%EBITDA (1)$12,399 $14,948 (17%)$24,998 $18,206 37%EBITDA (1) as a % of revenue 11% 16%(31%) 12% 12%- Horsepower of equipment on rent at period end 41,842  30,970 35% 41,842  30,970 35%Canada 19,202  13,975 37% 19,202  13,975 37%United States 22,640  16,995 33% 22,640  16,995 33%Rental equipment utilization during the period (HP)(2) 78% 54%44% 78% 53%47%Canada 84% 39%115% 78% 38%105%United States 73% 75%(3%) 77% 74%4%Sales backlog at period end, $ million$185.6 $181.7 2%$185.6 $181.7 2%

(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 second quarter revenue was due primarily to higher U.S. fabrication sales, increased equipment overhaul activity and increased utilization of the compression rental fleet. Excluding $7.4 million of contract cancellation revenue included in the second quarter of 2022, improved pricing on fabrication sales, increased overhead absorption due to higher production levels and higher rental fleet utilization all contributed to a year-over-year improvement in second quarter segment adjusted EBITDA and EBITDA margin, with second quarter adjusted EBITDA and EBITDA margin increasing 64% and 22%, respectively, for 2023 as compared to 2022.   The fabrication sales backlog increased to $185.6 million, compared to the $181.7 million backlog at June 30, 2022.   Sequentially, the quarter end backlog decreased $41.8 million as the conversion of quoting activity to sales moderated somewhat during the second quarter with no corresponding decrease in production activity.

Well Servicing (“WS”)

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June 30 2023  2022 Change 2023  2022 ChangeRevenue$21,621 $23,541 (8%)$54,331 $50,966 7%EBITDA (1)$2,854 $3,729 (23%)$11,133 $10,277 8%EBITDA (1) as a % of revenue 13% 16%(19%) 20% 20%- Service hours(2) 22,630  26,007 (13%) 55,876  56,846 (2%)Canada 9,357  10,707 (13%) 26,848  27,157 (1%)United States 5,767  4,556 27% 12,411  8,710 42%Australia 7,506  10,744 (30%) 16,617  20,979 (21%)Revenue per service hour(2), dollars$955 $905 6%$972 $897 8%Canada 941  925 2% 969  866 12%United States 993  892 11% 998  856 17%Australia 945  891 6% 959  953 1%Utilization(3) 25% 27%(7%) 32% 31%3%Canada 18% 21%(14%) 26% 26%- United States 58% 46%26% 62% 44%41%Australia 29% 41%(29%) 32% 40%(20%)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.

Second quarter activity in the Canadian WS segment was negatively impacted by reduced well abandonment activity following the conclusion of government incentive programs. Negatively impacting second quarter activity in Australia was the removal of a service rig from operation for recertification and upgrades.   Partially offsetting lower activity in Canada and Australia was higher year over year activity in the U.S. Year over year increases in second quarter revenue per service hour in all jurisdictions also partially offset lower consolidated activity levels.

Corporate

During the second 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. After funding working capital requirements, $12.7 million of capital expenditures and $3.6 million of required debt, lease and interest payments, Total Energy generated $18.1 million of free cash flow during the quarter that was directed towards $10.0 million of additional debt reduction, $3.3 million of share repurchases and $3.2 million of dividends.

Total Energy exited the second quarter of 2023 with $108.6 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 June 30, 2023 was 5.09%.

Outlook

Despite a decline in commodity prices during the second quarter of 2023, industry conditions remained relatively stable. While oil prices have increased thus far during the third quarter of 2023, producers continue to be disciplined in their capital investment programs.   In this environment, 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 during the second quarter of 2023 for recertification and upgrades returned to service in July 2023. The Australian service rig removed from service in the second quarter is currently undergoing recertification and upgrades and is expected to return to service later this year. In Canada, the triple drilling rig moved from the United States to Canada during the second quarter commenced drilling in early July following recertification and retrofitting.

Total Energy’s Board of Directors has approved a $6.0 million increase to the Company’s 2023 capital expenditure budget to $72.1 million, of which $42.5 million has been expended to June 30, 2023. This increase is directed towards continued equipment upgrades and recertifications in the CDS, RTS and WS segments in direct response to customer demand. Total Energy intends to fund the remaining $29.6 million of its remaining 2023 capital expenditure program with cash on hand, cash flow and proceeds from the disposition of underutilized equipment.

Conference Call

At 9:00 a.m. (Mountain Time) on August 11, 2023 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 (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 September 11, 2023 by dialing (855) 669-9658 (passcode 0318).

Selected Financial Information

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

June 30 December 31 2023   2022  (unaudited) (audited)Assets Current assets: Cash and cash equivalents  $29,866  $34,061 Accounts receivable   149,396   154,581 Inventory   111,658   91,614 Prepaid expenses and deposits   18,701   18,847 Income taxes receivable   169   496 Current portion of lease asset   220   378  310,010   299,977  Property, plant and equipment   566,984   567,515 Income taxes receivable   7,070   7,070 Goodwill   4,053   4,053  $888,117  $878,615  Liabilities & Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities  $135,355  $114,274 Deferred revenue   55,690   63,895 Dividends payable   3,212   2,490 Current portion of lease liabilities   5,157   5,173 Current portion of long-term debt   2,019   1,991  201,433   187,823  Long-term debt   101,976   117,997  Lease liabilities   9,268   9,631  Deferred income tax liability   45,486   41,141  Shareholders' equity: Share capital   252,611   261,109 Contributed surplus   3,492   3,590 Accumulated other comprehensive loss   (22,332)  (17,032)Non-controlling interest   529   552 Retained earnings   295,654   273,804  529,954   522,023   $888,117  $878,615

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

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June 30 2023  2022  2023  2022  Revenue $208,845 $179,204 $446,622 $340,656  Cost of services  169,049  140,917  347,035  270,715 Selling, general and administration  10,126  10,108  21,559  18,894 Other income  (440) (485) (446) (675)Share-based compensation  367  259  756  479 Depreciation  20,342  19,979  40,297  39,127 Operating income  9,401  8,426  37,421  12,116  Gain on sale of property, plant and equipment  512  394  1,012  1,870 Finance costs, net  (1,796) (1,563) (3,499) (3,369)Net income before income taxes  8,117  7,257  34,934  10,617  Current income tax expense (recovery)  47  21  371  (442)Deferred income tax expense  1,890  1,131  4,345  2,487 Total income tax expense  1,937  1,152  4,716  2,045  Net income  $6,180 $6,105 $30,218 $8,572  Net income (loss) attributable to: Shareholders of the Company $6,201 $6,113 $30,241 $8,585 Non-controlling interest  (21) (8) (23) (13) Income per share Basic $0.15 $0.14 $0.74 $0.20 Diluted $0.15 $0.14 $0.73 $0.20

Condensed Interim Consolidated Statements of Comprehensive Income

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June 30 2023  2022  2023  2022  Net income $6,180 $6,105 $30,218 $8,572 Unrealized foreign currency translation  (4,682) 114  (5,300) 211 Total other comprehensive income (loss) for the period  (4,682) 114  (5,300) 211 Total comprehensive income  $1,498 $6,219 $24,918 $8,783 Total comprehensive income (loss) attributable to: Shareholders of the Company $1,519 $6,227 $24,941 $8,796 Non-controlling interest  (21) (8) (23) (13)

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

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June 30Six months ended
June 30 2023  2022  2023  2022  Cash provided by (used in): Operations:  Net income for the period $6,180 $6,105 $30,218 $8,572 Add (deduct) items not affecting cash: Depreciation  20,342  19,979  40,297  39,127 Share-based compensation  367  259  756  479 Gain on sale of property, plant and equipment  (512) (394) (1,012) (1,870)Finance costs, net  1,796  1,563  3,499  3,369 Unrealized gain on foreign currencies translation  (702) (485) (350) (675)Current income tax expense (recovery)  47  21  371  (442)Deferred income tax expense  1,890  1,131  4,345  2,487 Income taxes paid (recovered)  -  397  (44) 80 Cashflow  29,408  28,576  78,080  51,127  Changes in non-cash working capital items: Accounts receivable  22,124  (15,130) 5,120  (39,978)Inventory  (9,241) 2,937  (20,044) (3,590)Prepaid expenses and deposits  (491) (6,307) 146  (6,249)Accounts payable and accrued liabilities  14,534  12,170  18,546  28,839 Deferred revenue  (12,432) 2,747  (8,205) 39,799  Cash provided by operating activities  43,902  24,993  73,643  69,948 Investing: Purchase of property, plant and equipment  (12,665) (13,406) (42,454) (24,959)Proceeds on disposal of property, plant and equipment  741  838  1,504  3,877 Changes in non-cash working capital items  (10,229) 1,608  2,504  2,951  Cash used in investing activities  (22,153) (10,960) (38,446) (18,131) Financing: Repayment of long-term debt  (10,496) (10,651) (15,993) (31,304)Repayment of lease liabilities  (1,539) (1,219) (3,156) (2,281)Dividends to shareholders  (3,242) -  (5,732) - Repurchase of common shares  (3,275) (2,371) (11,289) (5,899)Shares issued on exercise of share options  -  31  -  31 Interest paid  (1,559) (1,639) (3,222) (3,384) Cash used in financing activities  (20,111) (15,849) (39,392) (42,837)Change in cash and cash equivalents  1,638  (1,816) (4,195) 8,980 Cash and cash equivalents, beginning of period  28,228  44,161  34,061  33,365 Cash and cash equivalents, end of period $29,866 $42,345 $29,866 $42,345

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

ContractRentals andCompressionWellCorporate(1)Total DrillingTransportationand ProcessServicing  ServicesServicesServices  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 (loss) (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

CanadaUnited StatesAustraliaTotal Revenue$83,257$98,820$26,768$208,845Non-current assets (2) 395,421 128,222 47,394 571,037

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

ContractRentals andCompressionWellCorporate(1)Total DrillingTransportationand ProcessServicing  ServicesServicesServices  Revenue$49,440 $13,441 $92,782 $23,541 $- $179,204  Cost of services 39,171  8,213  74,989  18,544  -  140,917 Selling, general and administration 1,754  1,702  2,930  1,310  2,412  10,108 Other income -  -  -  -  (485) (485)Share-based compensation -  -  -  -  259  259 Depreciation 8,882  4,886  2,779  3,218  214  19,979 Operating income (loss) (367) (1,360) 12,084  469  (2,400) 8,426  Gain on sale of property, plant and equipment 293  (26) 85  42  -  394 Finance costs, net (4) (23) (102) (4) (1,430) (1,563) Net income (loss) before income taxes (78) (1,409) 12,067  507  (3,830) 7,257  Goodwill -  2,514  1,539  -  -  4,053 Total assets 339,585  181,049  247,172  87,703  5,474  860,983 Total liabilities 71,626  13,936  103,052  6,756  171,314  366,684 Capital expenditures 7,282  2,524  1,691  1,909  -  13,406

CanadaUnited StatesAustraliaTotal Revenue$96,074$45,714$37,416$179,204Non-current assets (2) 374,963 140,254 53,480 568,697

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

ContractRentals andCompressionWellCorporate(1)Total DrillingTransportationand ProcessServicing  ServicesServicesServices  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  (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

CanadaUnited StatesAustraliaTotal Revenue$ 191,384 $ 203,827 $ 51,411 $ 446,622 Non-current assets (2)  395,421   128,222   47,394   571,037

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

ContractRentals andCompressionWellCorporate(1)Total DrillingTransportationand ProcessServicing  ServicesServicesServices  Revenue$109,502 $28,841 $151,347 $50,966 $- $340,656  Cost of services 86,165  17,060  129,322  38,168  -  270,715 Selling, general and administration 3,356  3,328  4,724  2,578  4,908  18,894 Other income -  -  -  -  (675) (675)Share-based compensation -  -  -  -  479  479 Depreciation 17,759  9,795  4,692  6,420  461  39,127 Operating income (loss) 2,222  (1,342) 12,609  3,800  (5,173) 12,116 Gain (loss) on sale of property, plant and equipment 268  640  905  57  -  1,870 Finance costs, net (6) (39) (174) (9) (3,141) (3,369)Net income (loss) before income taxes 2,484  (741) 13,340  3,848  (8,314) 10,617  Goodwill -  2,514  1,539  -  -  4,053 Total assets 339,585  181,049  247,172  87,703  5,474  860,983 Total liabilities 71,626  13,936  103,052  6,756  171,314  366,684 Capital expenditures 17,464  2,758  2,761  1,965  11  24,959

CanadaUnited StatesAustraliaTotal Revenue$184,267$89,358$67,031$340,656Non-current assets (2) 374,963 140,254 53,480 568,697

(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: [email protected] 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.