Total Energy Services Inc. Announces Q2 2026 Results

CALGARY, Alberta, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended June 30, 2026.

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

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 three months ended June 30, 2026 represent record quarterly financial results, driven by continued strong North American demand for natural gas compression and process equipment and the deployment of upgraded drilling and service rigs in Australia and Canada. Positively impacting 2026 second quarter financial results was a $3.0 million year over year increase in gain on sale of property, plant and equipment following completion of the disposition of assets related to the Company’s United States well servicing business that was discontinued in January 2026. Partially offsetting this gain were $2.3 million of non-recurring expenses in the U.S. contract drilling business related to rig reactivations and the resolution of several legacy legal disputes.

Contract Drilling Services (“CDS”)

⁽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.

Second quarter CDS segment activity in 2026 was higher than the second quarter of 2025 in all jurisdictions. Reactivation of upgraded equipment at higher day rates in Australia and higher day rates received for upgraded Canadian equipment contributed to increased second quarter segment revenue and EBITDA. Negatively impacting 2026 second quarter segment EBITDA was $2.3 million of non-recurring expenses in the United States, including $1.3 million of rig reactivation costs for several rigs that had been idle for extended periods and $1.0 million related to the resolution of legal disputes from prior periods.

Rentals and Transportation Services (“RTS”)

⁽¹⁾ See Note 1 of the Notes to the Financial Highlights set forth at the end of this release.

Second quarter RTS segment revenue increased as compared to 2025 due to the acquisition of 280 pieces of major rental equipment in Oklahoma in June 2025 and increased drilling and production activity in Canada. Second quarter segment EBITDA decreased compared to 2025 given this segment’s relatively high fixed cost structure and competitive market conditions that did not allow for price increases sufficient to offset cost inflation.

Compression and Process Services (“CPS”)

⁽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.

2026 second quarter CPS segment revenue was higher compared to 2025 due to increased North American fabrication sales and parts and service activity that was partially offset by lower compression rental fleet revenue in the United States following the sale of several active compression rental units in 2025. The year over year increase in second quarter segment EBITDA was due to increased fabrication and parts and service activity and improved fabrication margins although the decline in higher margin rental revenues resulted in a lower segment EBITDA margin compared to 2025. The quarter end fabrication sales backlog increased by 82% to $554.5 million compared to the $303.9 million backlog at June 30, 2025. Sequentially the quarter-end fabrication sales backlog increased by $107.6 million, or 24%, from the $446.9 million backlog at March 31, 2026.

Well Servicing (“WS”)

⁽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.
“nm” – calculation not meaningful

Second quarter Well Servicing segment revenue increased in 2026 as compared to 2025 due to increased activity in Australia and Canada following the upgrade and reactivation of several service rigs over the past year. Increased revenue from Australian and Canadian operations was partially offset by lower WS segment revenue in the United States following the discontinuance of U.S. operations in January 2026. Segment EBITDA for the second quarter of 2026 was higher compared to 2025 due primarily to a substantial improvement in Australian financial performance and the cessation of operating losses in the United States.

Corporate

During the second quarter of 2026, Total Energy continued to execute on its $87.4 million 2026 capital expenditure program with $45.0 million of capital expenditures that were primarily directed towards the upgrade of drilling and service rigs in Australia and Canada, the construction of a new service rig for Australia and expansion of CPS segment fabrication capacity in the United States. Capital expenditures for the first half of 2026 totaled $65.8 million, which includes $17.2 million of the $24.5 million of capital commitments carried forward from 2025.

Total Energy exited the second quarter of 2026 with $81.9 million of positive working capital, including $50.5 million of cash. At June 30, 2026 there was $150.0 million of available credit under the Company’s $175.0 million of revolving bank credit facilities and the interest rate on the Company’s outstanding bank debt was 4.11%.

$16.0 million was returned to shareholders during the second quarter of 2026 by way of dividends and share repurchases. Bank debt was also reduced by $20.0 million during the quarter. Cash on hand exceeded bank debt by $25.5 million at June 30, 2026.

Outlook

While oil and gas producers continued to demonstrate capital discipline during the second quarter of 2026, upward pressure on global energy prices due to ongoing conflict in the Middle East translated into higher Canadian drilling activity throughout the quarter, with U.S. drilling activity beginning to increase late in the quarter. Relatively strong natural gas prices realized by Australian producers continued to support stable industry conditions in Australia.

North American demand for compression and process equipment remains very strong. The CPS segment’s record $554.5 million fabrication sales backlog at June 30, 2026 provides visibility for the CPS segment’s fabrication business into 2028 and current quoting activity remains vibrant. The U.S. facility expansion is on time and on budget, with completion scheduled by the first quarter of 2027.

In response to higher North American industry activity levels, Total Energy’s Board of Directors has approved an increase to the Company’s 2026 capital expenditure budget to $120.1 million. This $32.7 million increase includes $24.9 million of growth capital and $7.8 million of maintenance capital. Including $24.5 million of 2025 carryforward, 2026 capital expenditure commitments now total $144.6 million, of which $65.8 has been funded to June 30, 2026. The remaining $78.8 million will be funded by cash on hand and cash flow.

Included in growth capital is $15.5 million for the recertification and upgrade of three idle service rigs and one idle drilling rig in Canada and one idle drilling rig in Australia. The three Canadian service rigs and the Australian drilling rig are scheduled to be completed and commence operations by the end of 2026. The Canadian drilling rig was completed and commenced operations in late July. Also included in growth capital is $9.4 million for the acquisition of 42 new and refurbishment of two idle pieces of major rental equipment in the RTS segment for deployment throughout North America. Included in maintenance capital is the replacement of five heavy trucks and 32 pieces of major rental equipment in the RTS segment and additional equipment maintenance in Australia due to higher than budgeted activity levels.

Conference Call

At 9:00 a.m. (Mountain Time) on August 13, 2026 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) 715-9871 or (647) 932-3411. 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 12, 2026 by dialing (800) 770-2030 (passcode 1002576).

Selected Financial Information

Selected financial information relating to the three and six months ended June 30, 2026 and 2025 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 the Company’s 2025 Annual Report.

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 June 30, 2026(unaudited, in thousands of Canadian dollars)

As at and for the three months ended June 30, 2025 (unaudited, in thousands of Canadian dollars)

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

As at and for the six months ended June 30, 2026(unaudited, in thousands of Canadian dollars)

As at and for the six months ended June 30, 2025 (unaudited, in thousands of Canadian dollars)

⁽¹⁾  Corporate includes the Company’s corporate activities and obligations pursuant to long-term credit facilities.
⁽²⁾  Includes property, plant and equipment 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 centres 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

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 http://www.sedarplus.ca/) for a discussion of such risks and uncertainties.

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

Source: Total Energy Services Inc.

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