CALGARY, Alberta, Nov. 10, 2026 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months ended September 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 September 30, 2026 reflect continued strength in the Compression and Process Service segment, stable Australian activity and improving North American drilling and completion industry conditions.  Cash provided by operating activities during the quarter was a record $112.6 million.  Negatively impacting 2026 third quarter financial results was $15.9 million of share-based compensation expense arising from the substantial year to date increase in the market value of the Company’s shares. 

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.

CDS segment activity during the third quarter of 2026 was higher than the prior year in all jurisdictions.  Increased equipment utilization and higher day rates received for upgraded equipment resulted in a substantial year over year increase in third quarter segment revenue and EBITDA. 

Rentals and Transportation Services (“RTS”)

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

Third quarter RTS segment revenue increased compared to 2025 due primarily to increased activity in Canada.  The year over year increase in third quarter segment EBITDA was driven by increased equipment utilization as price increases implemented to the end of the third quarter of 2026 were not sufficient to fully offset significant cost inflation over the past year.

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.

Third 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 third quarter segment EBITDA was driven by increased fabrication and parts and service activity and improved fabrication margins.  The year over year decline in higher margin rental revenues resulted in a modestly lower segment EBITDA margin for the first nine months of 2026 as compared to 2025.  The quarter end fabrication sales backlog increased to $733.8 million compared to the $380.8 million backlog at September 30, 2025. Sequentially, the quarter-end fabrication sales backlog increased by $179.3 million, or 32%, compared to the $554.5 million backlog at June 30, 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

Third quarter Well Servicing segment revenue increased 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 third quarter of 2026 was higher compared to 2025 due primarily to an improvement in Australian financial performance and the cessation of operating losses in the United States.

Corporate  

During the third quarter of 2026, Total Energy continued to execute on its $120.1 million 2026 capital expenditure program with $31.7 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, expansion of CPS segment fabrication capacity in the United States and additions to the RTS segment’s North American rental fleet.  Capital expenditures for the first nine months of 2026 totaled $97.5 million, which includes approximately $19.9 million of the $24.5 million of capital commitments carried forward from 2025.     

Total Energy exited the third quarter of 2026 with $48.6 million of positive working capital, including $93.4 million of cash.  At September 30, 2026 there was $170.0 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 4.12%.

$18.8 million was returned to shareholders during the third quarter of 2026 by way of dividends and share repurchases.  Bank debt was reduced by $20.0 million during the quarter.  Cash on hand exceeded bank debt by $88.4 million at September 30, 2026.

Further to the news release issued on September 14, 2026, Total Energy is pleased to welcome Elizabeth (Liz) Dammann to its Board of Directors.  Ms. Dammann is a professional engineer with over 25 years of experience in the oil and gas industry and currently serves as Vice President, Production and Capital Operations for Tundra Oil and Gas Ltd.

Outlook

Despite continued political and economic uncertainty and capital discipline on the part of oil and gas producers, elevated oil prices began to translate into higher Canadian drilling activity in the second quarter, with U.S. drilling activity following in the third quarter.  The current outlook for the upcoming winter drilling season in Canada is positive, with all the Company’s high capacity singles, AC doubles and triples committed.  Conversion of a second idle Canadian mechanical double to a state of the art AC triple is on time and on budget and such rig has been contracted and is expected to commence drilling by January 2027.  The previously announced upgrade of three Canadian service rigs and one Australian drilling rig are also expected to be completed and the rigs operating by January 2027.  A new service rig being constructed for Australia is expected to be completed and commence operations during the second quarter of 2027.

North American demand for compression and process equipment remains very strong.  The CPS segment’s record $733.8 million fabrication sales backlog at September 30, 2026 provides visibility for the CPS segment’s fabrication business into 2028 and quoting activity remains vibrant.  The U.S. facility expansion is on time and on budget, with completion scheduled for the first quarter of 2027.  Following facility completion, U.S. production is expected to ramp up over the next several quarters as personnel and major components are procured.

Relatively strong natural gas prices realized by Australian producers continued to support stable industry conditions in the third quarter of 2026.  However, recent intervention by the Australian federal government in the natural gas market intended to lower domestic prices threatens such stability and has adversely impacted industry sentiment.  The introduction of legislation to the Australian Parliament in October 2026 relating to the Domestic Gas Reservation Scheme has caused uncertainty around future investment in developing Australia’s natural gas resource.  While there are indications the federal government may modify the scheme in response to state and industry concerns, failure to do so could negatively impact industry activity levels. 

Subsequent to September 30, 2026, Total Energy repaid the remaining $5.0 million drawn on its revolving credit facilities and the Company currently has no bank debt.  This strong financial position allows Total Energy to fund its remaining $47.1 million of capital expenditure commitments while at the same time continuing to pursue attractive investment opportunities and providing shareholders with industry leading returns through dividends and share buybacks.

Conference Call

At 9:00 a.m. Alberta Time (10:00 a.m. EST) on November 12, 2026 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) 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 December 12, 2026 by dialing (800) 770-2030 (passcode 1002576).

Selected Financial Information

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

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

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

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

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

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, 2026 (unaudited, in thousands of Canadian dollars)

As at and for the three months ended September 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 nine months ended September 30, 2026 (unaudited, in thousands of Canadian dollars)

As at and for the nine months ended September 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:  investorrelations@totalenergy.ca 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.