CALGARY, Alberta, May 09, 2024 (GLOBE NEWSWIRE) — Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended March 31, 2024.
Financial Highlights
($000’s except per share data)
| Three months ended March 31 |
||||||||
| 2024 | 2023 | Change | ||||||
| Revenue | $ | 204,686 | $ | 237,777 | (14 | %) | ||
| Operating income | 22,030 | 28,020 | (21 | %) | ||||
| EBITDA (1) | 43,290 | 48,475 | (11 | %) | ||||
| Cashflow | 32,837 | 48,672 | (33 | %) | ||||
| Net income | 15,463 | 24,038 | (36 | %) | ||||
| Attributable to shareholders | 15,482 | 24,040 | (36 | %) | ||||
| Per Share Data (Diluted) | ||||||||
| EBITDA (1) | $ | 1.06 | $ | 1.15 | (8 | %) | ||
| Cashflow | $ | 0.80 | $ | 1.16 | (31 | %) | ||
| Attributable to shareholders: | ||||||||
| Net income | $ | 0.38 | $ | 0.57 | (33 | %) | ||
| Common shares (000’s)(4) | ||||||||
| Basic | 39,971 | 41,322 | (3 | %) | ||||
| Diluted | 40,796 | 42,048 | (3 | %) | ||||
| March 31 | December 31 | |||||||
| Financial Position at | 2024 | 2023 | Change | |||||
| Total Assets | $ | 941,690 | $ | 861,658 | 9 | % | ||
| Long-Term Debt and Lease Liabilities (excluding current portion) | 149,847 | 100,834 | 49 | % | ||||
| Working Capital (2) | 124,398 | 123,439 | 1 | % | ||||
| Net Debt (3) | 25,449 | – | nm | |||||
| Shareholders’ Equity | 543,967 | 530,758 | 2 | % | ||||
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 first quarter of 2024 reflect relatively stable industry conditions in Canada and Australia and lower drilling activity levels in the United States. Extended wet weather conditions in Australia negatively impacted field activity levels. Included in results for the first quarter of 2024 is the contribution from Saxon Energy Services Australia Pty Ltd. (“Saxon”) from March 7, 2024 when the acquisition of Saxon was completed. Cashflow for the first quarter of 2024 was negatively impacted by the payment of $9.1 million of income taxes following the reassessment of certain Canadian income tax filings related to the Company’s conversion from an income trust in 2009. An additional $10.6 million of interest and penalties related to such reassessment was also paid during the first quarter of 2024.
Contract Drilling Services (“CDS”)
| Three months ended March 31 |
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| 2024 | 2023 | Change | ||||||
| Revenue | $ | 81,211 | $ | 82,536 | (2 | %) | ||
| EBITDA (1) | $ | 22,346 | $ | 20,269 | 10 | % | ||
| EBITDA (1) as a % of revenue | 28 | % | 25 | % | 12 | % | ||
| Operating days(2) | 2,776 | 2,869 | (3 | %) | ||||
| Canada | 2,011 | 1,920 | 5 | % | ||||
| United States | 359 | 590 | (39 | %) | ||||
| Australia | 406 | 359 | 13 | % | ||||
| Revenue per operating day(2), dollars | $ | 29,255 | $ | 28,768 | 2 | % | ||
| Canada | 27,473 | 27,021 | 2 | % | ||||
| United States | 28,914 | 29,107 | (1 | %) | ||||
| Australia | 38,382 | 37,554 | 2 | % | ||||
| Utilization | 31 | % | 34 | % | (9 | %) | ||
| Canada | 29 | % | 28 | % | 4 | % | ||
| United States | 33 | % | 50 | % | (34 | %) | ||
| Australia | 56 | % | 80 | % | (30 | %) | ||
| Rigs, average for period | 97 | 94 | 3 | % | ||||
| Canada | 77 | 76 | 1 | % | ||||
| United States | 12 | 13 | (8 | %) | ||||
| Australia | 8 | 5 | 60 | % | ||||
(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.
The moderation of North American industry drilling activity that began in the third quarter of 2023 continued into the first quarter of 2024, particularly in the United States. Market share gains resulting from rig upgrades mitigated the decline in Canada. United States activity was also negatively impacted by the relocation of one triple rig to Canada in the second quarter of 2023. Saxon contributed $4.9 million of revenue and $0.1 million of operating income to the Australian contract drilling services segment in the first quarter of 2024. Offsetting the Saxon contribution were reduced field activity levels due to extended wet weather conditions and the depreciation of the Australian dollar relative to the Canadian dollar during first quarter of 2024 as compared to the first quarter of 2023.
Rentals and Transportation Services (“RTS”)
| Three months ended March 31 |
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| 2024 | 2023 | Change | ||||||
| Revenue | $ | 22,379 | $ | 24,413 | (8 | %) | ||
| EBITDA (1) | $ | 9,715 | $ | 9,650 | 1 | % | ||
| EBITDA (1) as a % of revenue | 43 | % | 40 | % | 8 | % | ||
| Revenue per utilized piece of equipment, dollars | $ | 13,840 | $ | 13,600 | 2 | % | ||
| Pieces of rental equipment | 7,700 | 9,455 | (19 | %) | ||||
| Canada | 6,790 | 8,555 | (21 | %) | ||||
| United States | 910 | 900 | 1 | % | ||||
| Rental equipment utilization | 21 | % | 19 | % | 11 | % | ||
| Canada | 18 | % | 16 | % | 13 | % | ||
| United States | 38 | % | 46 | % | (17 | %) | ||
| Heavy trucks | 67 | 70 | (4 | %) | ||||
| Canada | 46 | 48 | (4 | %) | ||||
| United States | 21 | 22 | (5 | %) | ||||
(1) See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.
First quarter revenue in the RTS segment decreased as compared to the same period in 2023 due to lower industry activity, particularly in the United States. The higher year over year first quarter EBITDA and EBITDA margin was due to lower equipment mobilization costs in Canada, modestly higher revenue per utilized piece of equipment and the mix of equipment operating.
Compression and Process Services (“CPS”)
| Three months ended March 31 |
||||||||
| 2024 | 2023 | Change | ||||||
| Revenue | $ | 77,526 | $ | 98,118 | (21 | %) | ||
| EBITDA (1) | $ | 10,900 | $ | 12,599 | (13 | %) | ||
| EBITDA (1) as a % of revenue | 14 | % | 13 | % | 8 | % | ||
| Horsepower of equipment on rent at period end | 48,376 | 44,719 | 8 | % | ||||
| Canada | 13,856 | 19,209 | (28 | %) | ||||
| United States | 34,520 | 25,510 | 35 | % | ||||
| Rental equipment utilization during the period (HP)(2) | 73 | % | 78 | % | (6 | %) | ||
| Canada | 69 | % | 74 | % | (7 | %) | ||
| United States | 76 | % | 81 | % | (6 | %) | ||
| Sales backlog at period end, $ million | $ | 185.7 | $ | 227.4 | (18 | %) | ||
(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 first quarter revenue was due to lower fabrication sales and the negative impact of low natural gas prices on parts and service activity. The decrease in fabrication sales was primarily due to a significant portion of fabrication activity being directed towards the construction of new compression rental units in response to customer demand. First quarter rental fleet utilization was lower on a year over year basis due to the deployment of several newly constructed rental units late in the first quarter of 2024, which in turn resulted in a 35% increase in horsepower on rent in the United States at March 31, 2024 as compared to December 31, 2023. The fabrication sales backlog decreased to $185.7 million compared to the $227.4 million backlog at March 31, 2023. Sequentially the quarter-end backlog continued to strengthen during the first quarter of 2024, increasing by $22.9 million from December 31, 2023.
Well Servicing (“WS”)
| Three months ended March 31 |
||||||||
| 2024 | 2023 | Change | ||||||
| Revenue | $ | 23,570 | $ | 32,710 | (28 | %) | ||
| EBITDA (1) | $ | 4,314 | $ | 8,279 | (48 | %) | ||
| EBITDA (1) as a % of revenue | 18 | % | 25 | % | (28 | %) | ||
| Service hours(2) | 24,564 | 33,246 | (26 | %) | ||||
| Canada | 15,407 | 17,491 | (12 | %) | ||||
| United States | 3,515 | 6,644 | (47 | %) | ||||
| Australia | 5,642 | 9,111 | (38 | %) | ||||
| Revenue per service hour(2), dollars | $ | 960 | $ | 984 | (2 | %) | ||
| Canada | 974 | 984 | (1 | %) | ||||
| United States | 851 | 1,003 | (15 | %) | ||||
| Australia | 989 | 970 | 2 | % | ||||
| Utilization(3) | 29 | % | 39 | % | (26 | %) | ||
| Canada | 30 | % | 34 | % | (12 | %) | ||
| United States | 35 | % | 67 | % | (48 | %) | ||
| Australia | 22 | % | 35 | % | (37 | %) | ||
| Rigs, average for period | 79 | 79 | – | |||||
| Canada | 56 | 56 | – | |||||
| United States | 11 | 11 | – | |||||
| Australia | 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.
First quarter WS segment revenue and EBITDA decreased as compared to 2023 due to lower activity in all jurisdictions. Canadian activity was negatively impacted by lower well abandonment activity and reduced customer activity arising from industry consolidation. Activity levels in the United States were significantly lower due to reduced industry activity levels. Extended wet weather conditions in Australia restricted field activity and resulted in a significant year over year decline in service hours.
Corporate
During the first 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 completion and integration of the Saxon acquisition. $29.6 million of capital expenditures were made during the first three months of 2024.
Total Energy exited the first quarter of 2024 with $124.4 million of positive working capital, including $45.0 million of cash, and $75 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 March 31, 2024 was 5.70%.
Outlook
Industry conditions remain relatively stable. While North American natural gas spot market price weakness has negatively impacted near term 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. With the acquisition of Saxon on March 7, 2024 and improved weather conditions, the outlook for Australian activity levels is positive.
The Board of Directors of Total Energy has approved an increase to the Company’s 2024 capital expenditure budget to $66.3 million. This $19.8 million increase includes $8.3 million of growth capital and $11.5 million of maintenance capital. Included in growth capital is $6.4 million of new rental equipment for the RTS segment and the upgrade of a Canadian drilling rig. The $11.5 million of maintenance capital includes new drill pipe for the Canadian CDS segment and Saxon’s 2024 capital maintenance requirements. Total Energy intends to finance its 2024 capital expenditure budget with cash on hand and cashflow.
Conference Call
At 9:00 a.m. (Mountain Time) on May 10, 2024 Total Energy will conduct a conference call and webcast to discuss its first 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) 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 June 10, 2024 by dialing (855) 669-9658 (passcode 0834).
Selected Financial Information
Selected financial information relating to the three months ended March 31, 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)
| March 31 |
December 31 | |||||
| 2024 | 2023 | |||||
| (unaudited) | (audited) | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 45,039 | $ | 47,935 | ||
| Accounts receivable | 146,166 | 137,604 | ||||
| Inventory | 112,926 | 98,179 | ||||
| Prepaid expenses and deposits | 13,023 | 16,735 | ||||
| 317,154 | 300,453 | |||||
| Property, plant and equipment | 618,009 | 557,152 | ||||
| Deferred income tax asset | 2,474 | – | ||||
| Goodwill | 4,053 | 4,053 | ||||
| $ | 941,690 | $ | 861,658 | |||
| Liabilities & Shareholders’ Equity | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued liabilities | $ | 128,126 | $ | 116,794 | ||
| Deferred revenue | 46,382 | 39,321 | ||||
| Contingent consideration on business acquisition | 2,710 | – | ||||
| Income taxes payable | 3,447 | 9,771 | ||||
| Dividends payable | 3,596 | 3,198 | ||||
| Current portion of lease liabilities | 6,425 | 5,880 | ||||
| Current portion of long-term debt | 2,070 | 2,050 | ||||
| 192,756 | 177,014 | |||||
| Long-term debt | 140,419 | 90,947 | ||||
| Lease liabilities | 9,428 | 9,887 | ||||
| Deferred income tax liability | 55,120 | 53,052 | ||||
| Shareholders’ equity: | ||||||
| Share capital | 251,199 | 251,283 | ||||
| Contributed surplus | 4,771 | 4,805 | ||||
| Accumulated other comprehensive loss | (23,871 | ) | (25,506 | ) | ||
| Non-controlling interest | 302 | 521 | ||||
| Retained earnings | 311,566 | 299,655 | ||||
| 543,967 | 530,758 | |||||
| $ | 941,690 | $ | 861,658 | |||
Consolidated Statements of Income
(in thousands of Canadian dollars except per share amounts)
(unaudited)
| Three months ended March 31 |
||||||
| 2024 | 2023 | |||||
| Revenue | $ | 204,686 | $ | 237,777 | ||
| Cost of services | 148,229 | 177,986 | ||||
| Selling, general and administration | 12,734 | 11,433 | ||||
| Other expense (income) | 320 | (6 | ) | |||
| Share-based compensation | 709 | 389 | ||||
| Depreciation | 20,664 | 19,955 | ||||
| Operating income | 22,030 | 28,020 | ||||
| Gain on sale of property, plant and equipment | 596 | 500 | ||||
| Finance costs, net | (1,832 | ) | (1,703 | ) | ||
| Net income before income taxes | 20,794 | 26,817 | ||||
| Current income tax expense | 3,972 | 324 | ||||
| Deferred income tax expense | 1,359 | 2,455 | ||||
| Total income tax expense | 5,331 | 2,779 | ||||
| Net income | $ | 15,463 | $ | 24,038 | ||
| Net income (loss) attributable to: | ||||||
| Shareholders of the Company | $ | 15,482 | $ | 24,040 | ||
| Non-controlling interest | (19 | ) | (2 | ) | ||
| Income per share | ||||||
| Basic | $ | 0.39 | $ | 0.58 | ||
| Diluted | $ | 0.38 | $ | 0.57 | ||
Consolidated Statements of Comprehensive Income
| Three months ended March 31 |
||||||
| 2024 | 2023 | |||||
| Net income | $ | 15,463 | $ | 24,038 | ||
| Foreign currency translation | 1,635 | (618 | ) | |||
| Total other comprehensive income (loss) for the period | 1,635 | (618 | ) | |||
| Total comprehensive income | $ | 17,098 | $ | 23,420 | ||
| Total comprehensive income (loss) attributable to: | ||||||
| Shareholders of the Company | $ | 17,117 | $ | 23,422 | ||
| Non-controlling interest | (19 | ) | (2 | ) | ||
Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
(unaudited)
| Three months ended March 31 |
||||||
| 2024 | 2023 | |||||
| Cash provided by (used in): | ||||||
| Operations: | ||||||
| Net income for the period | $ | 15,463 | $ | 24,038 | ||
| Add (deduct) items not affecting cash: | ||||||
| Depreciation | 20,664 | 19,955 | ||||
| Share-based compensation | 709 | 389 | ||||
| Gain on sale of property, plant and equipment | (596 | ) | (500 | ) | ||
| Finance costs, net | 1,832 | 1,703 | ||||
| Foreign currency translation | (270 | ) | 352 | |||
| Current income tax expense | 3,972 | 324 | ||||
| Deferred income tax expense | 1,359 | 2,455 | ||||
| Income taxes paid | (10,296 | ) | (44 | ) | ||
| Cashflow | 32,837 | 48,672 | ||||
| Changes in non-cash working capital items: | ||||||
| Accounts receivable | (8,562 | ) | (17,004 | ) | ||
| Inventory | (14,747 | ) | (10,803 | ) | ||
| Prepaid expenses and deposits | 3,712 | 637 | ||||
| Accounts payable and accrued liabilities | 17,332 | 4,012 | ||||
| Deferred revenue | 7,065 | 4,227 | ||||
| Cash provided by operating activities | 37,637 | 29,741 | ||||
| Investing: | ||||||
| Purchase of property, plant and equipment | (29,635 | ) | (30,329 | ) | ||
| Cash paid on acquisition | (47,350 | ) | – | |||
| Proceeds on disposal of property, plant and equipment | 627 | 1,303 | ||||
| Changes in non-cash working capital items | 4,006 | 12,733 | ||||
| Cash used in investing activities | (72,352 | ) | (16,293 | ) | ||
| Financing: | ||||||
| Advancements of long-term debt | 60,000 | – | ||||
| Repayment of long-term debt | (10,508 | ) | (5,497 | ) | ||
| Repayment of lease liabilities | (1,629 | ) | (1,617 | ) | ||
| Dividends to shareholders | (3,198 | ) | (2,490 | ) | ||
| Repurchase of common shares | (724 | ) | (8,014 | ) | ||
| Partnership distributions | (200 | ) | – | |||
| Interest paid | (11,922 | ) | (1,663 | ) | ||
| Cash from (used in) financing activities | 31,819 | (19,281 | ) | |||
| Change in cash and cash equivalents | (2,896 | ) | (5,833 | ) | ||
| Cash and cash equivalents, beginning of period | 47,935 | 34,061 | ||||
| Cash and cash equivalents, end of period | $ | 45,039 | $ | 28,228 | ||
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 March 31, 2024 (unaudited, in thousands of Canadian dollars)
| Contract |
Rentals and |
Compression |
Well |
Corporate |
Total |
|||||||||||||
| Drilling |
Transportation |
and Process |
Servicing |
(1) | ||||||||||||||
| Services |
Services |
Services |
||||||||||||||||
| Revenue | $ | 81,211 | $ | 22,379 | $ | 77,526 | $ | 23,570 | $ | – | $ | 204,686 | ||||||
| Cost of services | 55,892 | 10,915 | 63,551 | 17,871 | – | 148,229 | ||||||||||||
| Selling, general and administration | 3,006 | 2,261 | 3,126 | 1,385 | 2,956 | 12,734 | ||||||||||||
| Other expense | – | – | – | – | 320 | 320 | ||||||||||||
| Share-based compensation | – | – | – | – | 709 | 709 | ||||||||||||
| Depreciation | 10,343 | 5,064 | 2,589 | 2,399 | 269 | 20,664 | ||||||||||||
| Operating income (loss) | 11,970 | 4,139 | 8,260 | 1,915 | (4,254 | ) | 22,030 | |||||||||||
| Gain on sale of property, plant and equipment | 33 | 512 | 51 | – | – | 596 | ||||||||||||
| Finance costs, net | (22 | ) | (41 | ) | (102 | ) | (23 | ) | (1,644 | ) | (1,832 | ) | ||||||
| Net income (loss) before income taxes | 11,981 | 4,610 | 8,209 | 1,892 | (5,898 | ) | 20,794 | |||||||||||
| Goodwill | – | 2,514 | 1,539 | – | – | 4,053 | ||||||||||||
| Total assets | 452,036 | 162,178 | 259,241 | 62,321 | 5,914 | 941,690 | ||||||||||||
| Total liabilities | 87,200 | 32,233 | 100,016 | 6,867 | 171,407 | 397,723 | ||||||||||||
| Capital expenditures | 12,801 | 2,785 | 10,455 | 3,594 | – | 29,635 | ||||||||||||
| Canada | United States | Australia | Total | |||||||||
| Revenue | $ | 103,064 | $ | 79,117 | $ | 22,505 | $ | 204,686 | ||||
| Non-current assets (2) | 389,623 | 137,198 | 95,241 | 622,062 |
As at and for the three months ended March 31, 2023 (unaudited, in thousands of Canadian dollars)
| Contract | Rentals and | Compression | Well | Corporate | Total | |||||||||||||
| Drilling | Transportation | and Process | Servicing | (1) | ||||||||||||||
| Services | Services | Services | ||||||||||||||||
| Revenue | $ | 82,536 | $ | 24,413 | $ | 98,118 | $ | 32,710 | $ | – | $ | 237,777 | ||||||
| Cost of services | 59,418 | 12,903 | 81,972 | 23,693 | – | 177,986 | ||||||||||||
| Selling, general and administration | 2,985 | 2,058 | 3,577 | 844 | 1,969 | 11,433 | ||||||||||||
| Other income | – | – | – | – | (6 | ) | (6 | ) | ||||||||||
| Share-based compensation | – | – | – | – | 389 | 389 | ||||||||||||
| Depreciation | 9,048 | 4,872 | 2,623 | 3,147 | 265 | 19,955 | ||||||||||||
| Operating income (loss) | 11,085 | 4,580 | 9,946 | 5,026 | (2,617 | ) | 28,020 | |||||||||||
| Gain on sale of property, plant and equipment | 136 | 198 | 30 | 106 | 30 | 500 | ||||||||||||
| Finance costs, net | (15 | ) | (18 | ) | (121 | ) | (16 | ) | (1,533 | ) | (1,703 | ) | ||||||
| Net income (loss) before income taxes | 11,206 | 4,760 | 9,855 | 5,116 | (4,120 | ) | 26,817 | |||||||||||
| Goodwill | – | 2,514 | 1,539 | – | – | 4,053 | ||||||||||||
| Total assets | 370,833 | 184,392 | 272,071 | 83,330 | (218 | ) | 910,408 | |||||||||||
| Total liabilities | 79,568 | 23,838 | 124,109 | 7,632 | 140,685 | 375,832 | ||||||||||||
| Capital expenditures | 23,824 | 1,538 | 2,509 | 2,458 | – | 30,329 | ||||||||||||
| Canada | United States | Australia | Total | |||||||||
| Revenue | $ | 108,126 | $ | 105,007 | $ | 24,644 | $ | 237,777 | ||||
| Non-current assets (2) | 386,242 | 146,475 | 49,787 | 582,504 |
(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 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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