Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Total Energy Services Inc. Announces Q4 2018 Results

CALGARY, Alberta, March 07, 2019 (GLOBE NEWSWIRE) -- Total Energy Services Inc. (“Total Energy” or the “Company”) (TSX:TOT) announces its consolidated financial results for the three months and the year ended December 31, 2018.

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

 Three Months Ended December 31 Year Ended December 31
    
  2018 2017Change  2018 2017 Change
Revenue$  219,846$  180,23022% $  851,809$  604,662 41%
Operating Income  10,748  9,68011%  36,558  3,205 1,041%
EBITDA (1)  29,153  29,729(2%)  114,666  71,604 60%
Cashflow  23,070  27,803(17%)  101,490  76,571 33%
Net Income (Loss)  8,570  6,55431%  24,215  (3,703) nm
Attributable to shareholders  8,555  6,19538%   24,458  (1,916) nm
             
Per Share Data (Diluted)             
EBITDA (1)d$ 0.63$  0.64(2%) $  2.49$  1.71 46%
Cashflow   0.50 0.60(17%)  2.20 1.82 21%
Net Income (Loss) attributable to shareholders 0.19 0.1346%  0.53 (0.05) nm
        
     December 31,
2018
December 31,
2017
 
Change
Financial Position       
Total Assets    $  1,078,124$  1,066,781 1%
Long-Term Debt and Obligations Under Finance Leases (excluding current portion)  286,319 257,845  11%
Working Capital (2)     124,967 54,892 128%
Net Debt (3)     161,352 202,953 (20%)
Shareholders’ Equity     560,756  546,574 3%
Common Shares (000’s)(4)          
Basic and Diluted 45,933 46,238(1%)   46,122 41,963 10%

“nm” – calculation not meaningful
Notes 1 through 4 please refer to the Notes to the Financial Highlights set forth at the end of this release.


Total Energy’s financial results for the three months ended December 31, 2018 reflect a significant decline in drilling and completion activity in Canada offset by continued strength in the Compression and Process Services (“CPS”) segment and relatively stable industry activity levels in the United States and Australia.  Underlying the decline in Canadian activity was a substantial decrease in the oil price realized by Canadian producers relative to global benchmark prices during the fourth quarter of 2018 due to a lack of export pipeline capacity.  Included in 2018 fourth quarter selling, general and administration expenses was $0.5 million of legal expenses related to two claims made against Savanna following the takeover of Savanna by the Company.   

Total Energy’s Contract Drilling Services segment (“CDS”) achieved 21% utilization during the fourth quarter of 2018, recording 2,152 operating days (spud to rig release) with a fleet of 114 drilling rigs, compared to 2,476 operating days, or 23% utilization, during the fourth quarter of 2017 with a fleet of 119 drilling rigs.  Revenue per operating day for the fourth quarter of 2018 was $21,958, a 6% increase from the prior year comparable period.  Excluding Canadian subsistence revenue on which no margin is earned, quarterly revenue per spud to release day was $21,005, a 1% year over year increase.  During the fourth quarter of 2018, the CDS segment had 1,208 operating days in Canada with a fleet of 85 rigs (15% utilization), 640 days in the United States with a fleet of 24 rigs (29% utilization) and 304 days in Australia with a fleet of 5 rigs (66% utilization).  Negatively impacting United States results for the fourth quarter of 2018 was significant unpaid downtime and $0.8 million of non-recurring expenses primarily related to a drilling rig that was damaged during rig move operations.  This rig returned to service in early 2019.  Australian operations were impacted by a relatively high proportion of lower margin standby hours in December as several customers implemented extended holiday shutdowns.

The Rental and Transportation Services segment (“RTS”) achieved a utilization rate on major rental equipment of 27% during the fourth quarter of 2018 compared to 24% utilization during the fourth quarter of 2017.  Segment revenue per utilized rental piece increased 1% during the fourth quarter of 2018 compared to the same period in 2017 due to a change in mix of equipment operating and improved pricing in the United States.  This segment exited 2018 with approximately 10,600 pieces of major rental equipment (excluding access matting) and 90 heavy trucks as compared to 11,000 rental pieces and 112 heavy trucks at December 31, 2017.  During 2018 the RTS segment relocated 150 pieces of major rental equipment from Canada to the United States and disposed of 400 pieces of rental equipment and 22 heavy trucks.

Revenue in the Compression and Process Services segment (“CPS”) increased 58% to $115.6 million for the three months ended December 31, 2018 compared to $73.2 million for the same period in 2017.  This increase was primarily due to higher international activity levels, including increasing contribution from the Weirton, West Virginia compression fabrication facility.  This segment exited the fourth quarter of 2018 with a $222.9 million backlog of fabrication sales orders as compared to $167.9 million at December 31, 2017 and $236.7 million at September 30, 2018.  At December 31, 2018, there was 47,400 horsepower in the compression rental fleet, of which approximately 34,800 horsepower was on rent as compared to 22,800 horsepower on rent at December 31, 2017 and 31,500 horsepower at September 30, 2018.  The gas compression rental fleet operated at an average utilization rate of 70% during the fourth quarter of 2018 as compared to 54% during the fourth quarter of 2017.

Total Energy’s Well Servicing segment (“WS”) generated $37.1 million of revenue during the fourth quarter of 2018 on 42,382 service hours, or $874 per service hour, with a fleet of 83 service rigs that were located in Canada (57 rigs), the United States (14 rigs) and Australia (12 rigs).  This compares to $37.2 million of revenue during the fourth quarter of 2017 on 39,905 service hours, or $932 per service hour.  Service rig utilization for the three months ended December 31, 2018 was 37% in Canada, 28% in the United States and 73% in Australia. 

During the fourth quarter of 2018 Total Energy repurchased 148,600 common shares at an average price (including commissions) of $9.91 per share pursuant to its normal course issuer bid and declared a quarterly dividend of $0.06 per share to shareholders of record on December 31, 2018.  This dividend was paid on January 31, 2019.  For Canadian income tax purposes, all dividends paid by Total Energy on its common shares are designated as “eligible dividends” unless otherwise indicated.

Outlook

Global oil prices continue to be volatile, with the West Texas Intermediate (“WTI”) benchmark oil price declining approximately 40% during the fourth quarter of 2018.  While the WTI oil price has recently recovered much of the late 2018 decline and the imposition of a mandatory oil production curtailment by the Alberta government has assisted in reducing the near term Canadian oil price differential, market uncertainty and the Alberta production curtailment have negatively impacted current winter drilling and completion activity in Canada.  Industry activity in the United States remains relatively strong and has been the primary driver of growth, particularly in the CPS segment.  Activity levels in Australia returned to pre-holiday levels in early January.

Total Energy’s CPS segment took occupancy of a leased fabrication facility in Calgary during the fourth quarter of 2018.  This facility, which replaced another leased facility, increases the CPS segment’s Canadian fabrication capacity by approximately 30%.  Production from this facility is expected to ramp up over the next several quarters in response to continued strong demand, particularly from outside of Canada.

During 2018 Total Energy reduced long term debt by $41.9 million and the Company’s working capital position at December 31, 2018 was $125.0 million, including $31.2 million of cash and marketable securities.  At December 31, 2018 $227.0 million was drawn on the Company’s $295.0 million of revolving bank credit facilities.  Total Energy was in compliance with all debt covenants at December 31, 2018 and able to fully draw on the remaining amounts available under its credit facilities.  Total Energy’s primary credit facility provides the Company with the option to increase such facility by $75 million subject to certain terms and conditions including the agreement of the lenders to increase their commitments.

With ongoing energy market uncertainty and volatility, particularly in Canada, Total Energy remains focused on conducting operations in a prudent and sustainable manner, capital stewardship and preservation of balance sheet strength.  The Company’s previously announced $40.5 million preliminary capital budget for 2019 provides significant flexibility to respond to any material changes in industry conditions, positive or negative.  Total Energy’s strong liquidity position allows the Company to continue to pursue attractive investment opportunities despite very challenging equity markets for Canadian energy service companies.

Conference Call

At 9:00 a.m. (Mountain Time) on March 8, 2019 Total Energy will conduct a conference call and webcast to discuss its fourth 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 April 8, 2019 by dialing (855) 669-9658 (passcode 2953).

Selected Financial Information

Selected financial information relating to the three months and the year ended December 31, 2018 and 2017 is attached to this news release.  This information should be read in conjunction with the 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 reproduced in the Company’s 2018 annual report.

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

   December 31, December 31,
    2018   2017 
   (audited) (audited)
Assets     
Current assets:     
Cash and cash equivalents  $  30,640  $  21,154 
Accounts receivable   155,946   150,990 
Inventory   84,743   68,266 
Income taxes receivable   7,299   1,176 
Other assets   527   4,631 
Prepaid expenses and deposits   17,776   15,148 
    296,931   261,365 
      
Property, plant and equipment   768,613   793,464 
Income taxes receivable   7,070   7,070 
Deferred tax asset   1,457   829 
Goodwill   4,053   4,053 
   $  1,078,124  $1,066,781 
      
Liabilities & Shareholders' Equity     
Current liabilities:     
Accounts payable and accrued liabilities  $  126,608  $    108,421 
Deferred revenue   37,316   21,625 
Dividends payable   2,752   2,774 
Current portion of obligations under finance leases   2,376   1,595 
Current portion of long-term debt   2,912   72,058 
    171,964   206,473 
      
 Long-term debt   282,863   255,640 
      
Obligations under finance leases   3,456   2,205 
      
Onerous lease liability   1,574   2,734 
      
 Deferred tax liability   57,691   53,155 
      
Shareholders' equity:     
Share capital   288,902   291,317 
Contributed surplus   6,384   4,550 
Accumulated other comprehensive loss   (5,320)  (10,194)
Non-controlling interest   238   1,196 
Retained earnings   270,372   259,705 
    560,756   546,574 
      
   $  1,078,124  $1,066,781 



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

 Three months ended
December 31
Year ended
December 31
  2018  2017  2018   2017 
 (unaudited)(unaudited)(audited) (audited)
      
      
Revenue$  219,846 $   180,230 $  851,809  $  604,662 
      
Cost of services 175,965  137,793  681,054   484,389 
Selling, general and administration 14,758  13,332  56,301   48,500 
Share-based compensation 598  594  2,396   1,787 
Depreciation 17,777  18,831  75,500   66,781 
Operating income 10,748  9,680  36,558   3,205 
      
Gain on sale of property, plant and equipment 628  1,218  2,608   1,618 
Finance costs (3,485) (3,902) (13,778)  (14,198)
Net income (loss) before income taxes 7,891  6,996  25,388   (9,375)
      
Current income tax recovery (7,807) (350) (2,070)  (3,506)
Deferred income tax expense (recovery) 7,128  792  3,243   (2,166)
Total income tax (recovery) expense (679) 442  1,173   (5,672)
      
Net income (loss) $  8,570 $  6,554 $  24,215    $  (3,703 )
      
Net income (loss) attributable to:     
Shareholders of the Company$  8,555 $  6,195 $  24,458    $  (1,916)
Non-controlling interest$  15 $  359 $  (243  ) $  (1,787)
      
Income (loss) per share:     
Basic and diluted earnings per share$  0.19 $  0.13 $   0.53    $  (0.05)
      


 Three months ended
December 31
Year ended
December 31
  2018  2017  2018   2017 
      
Net income (loss) $  8,570 $  6,554 $  24,215  $ (3,703)
      
Other Comprehensive Income (Loss) (OCI):     
      
Changes in fair value of long-term investment -  -  -   665 
Realized gain on long-term investment -  -  -   (665)
Foreign currency translation adjustment 8,834  (413) 5,539   (11,233)
Deferred tax effect (940) (1,883) (665)  1,039 
Total other comprehensive income (loss) 7,894  (2,296) 4,874     (10,194)
      
Total comprehensive income (loss)$  16,464 $  4,258 $  29,089   $ (13,897)
      
Total comprehensive income (loss) attributable to:     
      
  Shareholders of the Company$  16,449 $  3,899 $  29,332   $ (12,110)
  Non-controlling interest$  15 $  359 $   (243  ) $ (1,787)



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

 Three months ended
December 31
Year ended
December 31
  2018  2017  2018   2017 
 (unaudited)(unaudited)(audited) (audited)
Cash provided by (used in):     
      
Operations:     
Net loss for the year$  8,570 $  6,554 $  24,215  $  (3,703)
Add (deduct) items not affecting cash:     
Depreciation 17,777  18,831  75,500   66,781 
Share-based compensation 598  594  2,396   1,787 
Gain on disposal of property, plant and equipment (628) (1,218) (2,608)  (1,618)
Finance costs 876  3,536  9,991   14,497 
Realized gain on long-term investment -  -  -   (665)
Unrealized (gain) loss on foreign currencies translation (2,426) (582) (5,124)  4,367 
Current income tax recovery (7,807) (350) (2,070)  (3,506)
Deferred income tax expense (recovery) 7,128  792  3,243   (2,166)
Income taxes (paid) recovered (1,018) (354) (4,053)  797 
Cashflow 23,070  27,803  101,490   76,571 
Changes in non-cash working capital items:     
Accounts receivable (8,699) 2,938  (5,893)  (13,040)
Inventory 8,851  (12,598) (16,477)  (8,075)
Prepaid expenses and deposits 1,279  1,569  2,060   (9,085)
Accounts payable and accrued liabilities 8,419  4,862  19,993   11,871 
Onerous leases 87  (233) (1,159)  (503)
Deferred revenue (2,349) 2,386  15,691   6,645 
  30,658  26,727  115,705   64,384 
Investments:     
Purchase of property, plant and equipment (12,128) (5,088) (40,630)  (27,394)
Acquisition of business -  -  -   (26,830)
Acquisition of non-controlling interest (1,250) -  (1,582)  - 
Cash acquired -  -  -   16,167 
Proceeds on sale of other assets 2,609  116  3,790   374 
Proceeds on disposal of property, plant and equipment 3,790  3,033  7,588   5,875 
Changes in non-cash working capital items 618  2,215  (1,057)  2,420 
  (6,361) 276  (31,891)  (29,388)
Financing:     
Advances under long-term debt -  5,464  50,000   215,487 
Repayment of long-term debt (9,843) (5,954) (91,923)  (216,030)
Repayment of obligations under finance leases (558) (547) (2,227)  (1,924)
Partnership distributions to non-controlling interests (250) (150) (725)  (150)
Payment of dividends (2,760) (2,775) (11,007)  (9,736)
Issuance of common shares -  -  -   2,289 
Repurchase of common shares (1,472) -  (4,191)  - 
Interest paid (3,188) (4,959) (14,255)  (19,694)
      
  (18,071) (8,921) (74,328)  (29,758)
      
Change in cash and cash equivalents 6,226  18,082  9,486   5,238 
      
Cash and cash equivalents, beginning of period 24,414  3,072  21,154   15,916 
      
Cash and cash equivalents, end of period$  30,640 $  21,154 $  30,640  $  21,154 
      


Segmented Information

The Company provides a variety of products and services in the oil and natural gas industry through five reporting segments, which operate substantially in three geographic segments.  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 drilling, completion and production operations, Compression and Process Services, which includes the fabrication, sale, rental and servicing of natural gas compression and oil and natural gas 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 December 31, 2018 (unaudited, in thousands of Canadian dollars)

 Contract
Drilling
Rentals and
Transportation
Compression
and Process
Well
Servicing
Corporate 
 ServicesServicesServices  Total
       
Revenue$  47,254  $  19,959  $  115,582  $  37,051  $  -   $  219,846  
       
Cost of services  38,291    11,020    99,820    26,834    -     175,965  
Selling, general and administration  1,976    3,556    3,331    1,084    4,811    14,758  
Share-based compensation  -     -     -     -     598    598  
Depreciation  8,107    4,957    579    4,115    19    17,777  
Results from operating activities  (1,120)  426    11,852    5,018    (5,428)  10,748  
       
Gain on sale of PP&E  8    248    133    114    125    628  
Finance costs  (43)  (22)  (16)  (9)  (3,395)  (3,485)
       
Net income (loss) before income taxes  (1,155)  652    11,969    5,123    (8,698)  7,891  
       
Goodwill  -     2,514    1,539     -     4,053  
Total assets  435,247    241,837    245,226    134,921    20,893    1,078,124  
Total liabilities  58,051    37,997    111,259    4,929    305,312    517,548  
Capital expenditures 3,647    3,170   4,182   1,129     12,128  


For the three months ended December 31, 2018CanadaUnited StatesAustraliaOtherTotal
      
Revenue$  105,957 $   57,240 $  56,660 $  (11)$  219,846
Non-current assets(1)   524,756    167,760    80,150    -      772,666

As at and for the three months ended December 31, 2017 (unaudited, in thousands of Canadian dollars)

 Contract
Drilling
Rentals and
Transportation
Compression
and Process
Well
Servicing
Corporate 
 ServicesServicesServices  Total
       
Revenue$  51,417 $  18,399 $  73,213 $  37,201$  -  $  180,230 
       
Cost of services  38,592   12,377   62,503   24,321  -    137,793 
Selling, general and administration  1,682   3,580   2,469   873  4,728   13,332 
Share-based compensation  -    -    -    -   594   594 
Depreciation  7,509   4,511   1,887   4,894  30   18,831 
Results from operating activities  3,634   (2,069)  6,354   7,113  (5,352)  9,680 
       
Gain on sale of PP&E  334   477   21   385  1   1,218 
Finance costs  (53)  (167)  (100)  1  (3,583)  (3,902)
       
Net income (loss) before income taxes  3,915   (1,759)  6,275   7,499  (8,934)  6,996 
       
Goodwill  -    2,514   1,539  -  -    4,053 
Total assets  460,712   239,876   201,392   142,574  22,227   1,066,781 
Total liabilities  59,570   44,934   77,588   3,305 334,810   520,207 
Capital expenditures   1,546    1,011    2,483     48    5,088 


For the three months ended December 31, 2017CanadaUnited StatesAustraliaOtherTotal
      
Revenue$  81,223$  62,437$  36,570$    - $  180,230
Non-current assets(1)   550,143 147,289 100,085   -    797,517

As at and for the year ended December 31, 2018 (audited, in thousands of Canadian dollars)

 ContractRentals andCompressionWellCorporateTotal
 DrillingTransportationand ProcessServicing  
 ServicesServicesServices   
       
Revenue$  204,184  $  76,615  $  420,664  $  150,346  $  -   $  851,809  
       
Cost of services  164,571    47,514    361,217    107,752    -     681,054  
Selling, general and administration  8,261    14,135    12,876    4,441    16,588    56,301  
Share-based compensation  -     -     -     -     2,396    2,396  
Depreciation  32,241    17,969    6,044    19,166    80    75,500  
Operating income (loss)  (889)  (3,003)  40,527    18,987    (19,064)  36,558  
       
Gain on sale of property, plant and equipment  433    466    564    1,020    125    2,608  
Finance costs  (87)  (96)  (46)  (113)  (13,436)  (13,778)
       
Net income (loss) before income taxes  (543)  (2,633)  41,045    19,894    (32,375)  25,388  
       
Goodwill  -     2,514    1,539    -     -     4,053  
Total assets  435,247    241,837    245,226    134,921    20,893    1,078,124  
Total liabilities  58,051    37,997    111,259    4,929    305,312    517,548  
Capital expenditures  14,221    11,234   11,445   3,723   7   40,630  


Year ended December 31, 2018CanadaUnited StatesAustraliaOtherTotal
      
Revenue$  423,796 $  255,825 $  172,105 $     83 $  851,809
Non-current assets (1) 524,756  167,760    80,150    -   772,666

As at and for the year ended December 31, 2017 (audited, in thousands of Canadian dollars)

 ContractRentals andCompressionWellCorporateTotal
 DrillingTransportationand ProcessServicing  
 ServicesServicesServices   
       
Revenue$  158,051 $  68,867 $  266,376 $  111,368$  -  $  604,662 
       
Cost of services  132,959   42,790   229,717   78,923  -    484,389 
Selling, general and administration  8,106   12,676   8,614   4,117  14,987   48,500 
Share-based compensation  -    -    -    -   1,787   1,787 
Depreciation  25,844   18,059   7,384   15,378  116   66,781 
Operating income (loss)  (8,858)  (4,658)  20,661   12,950  (16,890)  3,205 
       
Gain on sale of property, plant and equipment  339   756   107   371  45   1,618 
Finance costs  (358)  (697)  (381)  -   (12,762)  (14,198)
       
Net income (loss) before income taxes  (8,877)  (4,599)  20,387   13,321  (29,607)  (9,375)
       
Goodwill  -    2,514   1,539   -   -    4,053 
Total assets  460,712   239,876   201,392   142,574  22,227   1,066,781 
Total liabilities  59,570   44,934   77,588   3,305 334,810   520,207 
Capital expenditures 9,881  9,606    6,792    1,076   39  27,394 


Year ended December 31, 2017CanadaUnited StatesAustraliaOtherTotal
      
Revenue$  332,644$    164,895$  107,079$  44$  604,662
Non-current assets (1) 550,143 147,289 100,085   - 797,517

(1)      Includes property, plant and equipment and goodwill.


Total Energy Services Inc. is a growth oriented energy services corporation involved in contract drilling services, rentals and transportation services, the fabrication, sale, rental and servicing of natural gas compression and oil and natural gas process equipment and well servicing.  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 before income taxes plus finance costs plus depreciation.  EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income, 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 obligations under finance leases plus current liabilities minus current assets.
     
  4. Basic and diluted shares outstanding reflect the weighted average number of common shares outstanding for the periods. See note 17 to the Company’s 2018 audited 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, expectations regarding Total Energy's market share and future compression and process production activity, Total Energy's expectations of future interest rates and its corresponding ability to realize substantial interest expense savings, expectations as to the Company’s ability to realize cost efficiencies and synergies arising from the acquisition of Savanna as well as other expected benefits of the acquisition.  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, performances 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.

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).