Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Total Energy Services Inc T.TOT

Alternate Symbol(s):  TOTZF

Total Energy Services Inc. is a Canada-based energy services company. The Company provides a variety of products and services to the energy and other resource industries primarily in Canada, the United States and Australia. The Company operates through five segments: contract drilling services (CDS), rental and transportation services (RTS), compression and process services (CPS), well servicing, and corporate. The CDS segment is engaged in the operation of approximately 94 drilling rigs. The rig fleet is supported by a fleet of owned top drives, walking systems, pumps and other ancillary equipment. The RTS segment operates in approximately 13 locations in western Canada and three locations in the United States. The CPS segment fabricates a full range of natural gas compression equipment as well as oil, natural gas and other process equipment. The Well Servicing segment operates approximately 79 well servicing rigs across western Canada, northwest United States and Australia.


TSX:TOT - Post by User

Post by TimeBuilderon Aug 11, 2020 8:37pm
171 Views
Post# 31395654

Q 2 Results NR = Copy

Q 2 Results NR = Copy

:>(   Any good points in this INFO ?

Total Energy Services Inc. Announces Q2 2020 Results

GlobeNewswire - Tue Aug 11, 4:00PM CDT
 

Total Energy Services Inc. ("Total Energy" or the "Company") (TSX:TOT.TO) announces its consolidated financial results for the three and six months ended June 30, 2020.

Financial Highlights

($000's except per share data)

 Three Months Ended June 30 Six Months Ended June 30 2020 2019 Change 2020 2019 Change Revenue $ 70,770 $ 212,695 (67%) $ 205,038 $ 434,685 (53%) Operating income (loss) (37,161 ) (1,091 ) nm (26,632 ) 7,346 nm EBITDA 12,886 17,546 (27%) 43,789 46,961 (7%) Cashflow 13,793 22,419 (38%) 35,704 50,872 (30%) Net income (loss) (28,845 ) 2,853 nm (24,121 ) 7,612 nm Attributable to Shareholders (28,765 ) 3,403 nm (24,093 ) 8,163 nm Per Share Data (Diluted) EBITDA $ 0.29 $ 0.38 (24%) $ 0.97 $ 1.03 (6%) Cashflow $ 0.31 $ 0.49 (37%) $ 0.79 $ 1.11 (29%) Net income (loss) Attributable to Shareholders $ (0.64 ) $ 0.07 nm $ (0.53 ) $ 0.18 nm Financial Position June 30, December 31, Change 2020 2019 Total Assets $ 898,940 $ 997,161 (10%) Long-Term Debt and Lease Liabilities (excluding current portion) 255,538 248,448 3% Working Capital 130,968 103,234 27% Net Debt 124,570 145,214 (14%) Shareholders' Equity 523,979 543,142 (4%) Common Shares (000's) Basic and Diluted 45,081 45,746 (1%) 45,084 45,755 (1%)

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 three months ended June 30, 2020 reflect extremely challenging industry conditions in North America and relatively stable industry conditions in Australia. Included in the financial results for the three months ended June 30, 2020 was $30.5 million of incremental depreciation expense resulting from a change in depreciation estimates in the Contract Drilling Services ("CDS") segment effective April 1, 2020, of which $26.3 million is non-recurring as it relates to now fully depreciated assets. Also included in the Company's 2020 second quarter results was $0.5 million of unrealized foreign exchange losses on the translation of intercompany working capital balances of foreign subsidiaries and $4.5 million of grants received under the Canada Emergency Wage Subsidy program.

Total Energy's CDS segment achieved 5% utilization during the second quarter of 2020, recording 440 operating days (spud to rig release) with a fleet of 98 drilling rigs, compared to 1,330 operating days, or 13% utilization, during the second quarter of 2019 with a fleet of 111 drilling rigs. Revenue per operating day was $32,205 in the second quarter of 2020, a 27% increase from the second quarter of 2019. This increase was due to the significant year over year increase in the relative contribution of Australia to consolidated CDS segment revenue. During the second quarter of 2020, the CDS segment had 72 operating days in Canada with a fleet of 80 rigs (1% utilization), 41 days in the United States with a fleet of 13 rigs (3% utilization) and 327 days (including paid standby days) in Australia with a fleet of 5 rigs (72% utilization). Nine drilling rigs were decommissioned during the second quarter of 2020, including seven mechanical double rigs located in the United States and two conventional single rigs located in Canada.

The Rentals and Transportation Services ("RTS") segment achieved a utilization rate on major rental equipment of 5% during the second quarter of 2020 compared to 13% utilization during the second quarter of 2019. Segment revenue per utilized rental piece in the second quarter of 2020 was 20% lower than the second quarter of 2019 due to the mix of equipment operating and lower pricing. This segment exited the second quarter of 2020 with 10,640 pieces of major rental equipment (excluding access matting) and 87 heavy trucks as compared to 10,650 rental pieces and 86 heavy trucks at June 30, 2019. A substantial portion of the heavy truck fleet was taken out of service during the second quarter to reduce operating costs and equipment wear and tear until such time as North American industry conditions warrant placing such units back into service.

Revenue in the Compression and Process Services ("CPS") segment decreased 77% to $30.2 million for the three months ended June 30, 2020 compared to $132.9 million for the same period in 2019. This decrease was primarily due to lower fabrication sales activity. This segment exited the second quarter of 2020 with a $43.8 million backlog of fabrication sales orders as compared to $77.2 million at June 30, 2019 and $44.5 million at March 31, 2020. At June 30, 2020, there was 52,500 horsepower in the compression rental fleet, of which approximately 33,200 horsepower was on rent as compared to 31,800 horsepower on rent at June 30, 2019. The gas compression rental fleet operated at an average utilization rate of 65% during the second quarter of 2020 as compared to 68% in the second quarter of 2019.

The Company's Well Servicing ("WS") segment generated $21.6 million of revenue during the second quarter of 2020 on 21,497 service hours, or $1,005 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 $30.5 million of revenue during the second quarter of 2019 on 31,109 service hours, or $980 per service hour. Service rig utilization for the three months ended June 30, 2020 was 6% in Canada, 11% in the United States and 64% in Australia.

Following the outbreak of the COVID-19 pandemic in March 2020, in order to protect its financial strength and liquidity Total Energy took immediate and decisive action. This included significant operating and administrative cost cuts, suspension of the dividend and a 57% reduction to the 2020 capital expenditure budget from $23 million to $10 million. Excluding $3.7 million of 2019 capital expenditures carried into 2020, for the first half of 2020 capital expenditures totaled $6.5 million. Proceeds from the sale of capital assets to June 30, 2020 were $3.3 million and resulted in a gain on sale of $1.5 million, an approximate 46% premium to the net book value of the disposed assets.

During the second quarter of 2020, the Company reduced long term debt by $32.9 million, or approximately 12%. $40.2 million of term debt that matured in April 2020 was refinanced with a five-year $50 million term loan bearing interest at a fixed annual rate of 3.10%. Total Energy exited the second quarter of 2020 with $131.0 million of positive working capital (including $21.1 million of cash) and $110 million available on the Company's $295 million of revolving bank credit facilities. The weighted average interest rate on the Company's outstanding debt at June 30, 2020 was 2.96%.

Outlook

Total Energy's foremost concern remains the health and safety of its employees and other stakeholders as well as the public at large as we navigate through these uncertain and challenging times. Protocols have been implemented throughout the Company's global operations to mitigate the spread of the COVID-19 virus and have been effective thus far.

Despite oil prices having recovered somewhat from the lows experienced during the second quarter, North American oil and natural gas drilling and completion activity levels remain at historically low levels. The Company currently has five drilling rigs working in Canada and three in the United States and visibility for the remainder of 2020 is limited.

While industry drilling activity levels began to moderate in Australia during the second quarter, this did not have a substantial impact on the Company's operations. Two of the Company's five drilling rigs operating in Australia have recently been taken out of service to complete necessary recertifications and customer-specific upgrades that are expected to be completed by the second quarter of 2021.

The CPS segment exited the second quarter of 2020 with a flat fabrication sales backlog compared to the first quarter. While quoting activity continues to be reasonably active, customers remain hesitant to commit to new orders. Relatively strong and stable western Canadian natural gas prices have supported demand for field compression maintenance activity.

Within the WS segment, North American production related activity has decreased significantly on a year over year basis. While substantial government funding has been announced to accelerate well abandonment activity in Western Canada, to date no significant incremental service rig activity has resulted from such announcements although it is expected that such activity will begin in the near future.

Total Energy's geographic and business diversification combined with an established track record of conducting its operations and spending its owners' capital in a focused and disciplined manner has positioned the Company well during these challenging times. Total Energy's ability to generate free cash flow from operations even during times of severe industry stress was demonstrated during the second quarter of 2020. While future visibility is limited, Total Energy expects that the global energy services industry will emerge from the current downturn with fewer and more disciplined participants which in turn will position the industry for a more sustainable and prosperous future.

Conference Call

At 9:00 a.m. (Mountain Time) on August 12, 2020 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 12, 2020 by dialing (855) 669-9658 (passcode 4849).

Selected Financial Information

Selected financial information relating to the three and six months ended June 30, 2020 and 2019 is attached to 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 2019 Annual report.

Consolidated Statements of Financial Position

(in thousands of Canadian dollars)

 June 30 December 31 2020 2019 (unaudited) (audited) Assets Current assets: Cash and cash equivalents $ 21,097 $ 19,873 Accounts receivable 70,368 113,934 Inventory 106,344 105,672 Prepaid expenses and deposits 6,464 10,878 Income taxes receivable 1,501 4,403 Current portion of finance lease asset 461 664 206,235 255,424 Property, plant and equipment 681,578 730,435 Income taxes receivable 7,070 7,070 Lease asset 4 179 Goodwill 4,053 4,053 $ 898,940 $ 997,161 Liabilities & Shareholders' Equity Current liabilities: Accounts payable and accrued liabilities $ 53,700 $ 95,742 Deferred revenue 10,122 3,883 Dividends payable - 2,710 Current portion of lease liabilities 8,922 8,270 Current portion of long-term debt 2,523 41,585 75,267 152,190 Long-term debt 246,794 236,278 Lease liabilities 8,744 12,170 Deferred tax liability 44,156 53,381 Shareholders' equity: Share capital 284,077 284,510 Contributed surplus 8,073 7,528 Accumulated other comprehensive loss (11,881 ) (16,722 ) Non-controlling interest 606 (236 ) Retained earnings 243,104 268,062 523,979 543,142 $ 898,940 $ 997,161

Consolidated Statements of Comprehensive Income (Loss)

(in thousands of Canadian dollars except per share amounts)

(unaudited)

 Three months ended Six months ended June 30 June 30 2020 2019 2020 2019 Revenue $ 70,770 $ 212,695 $ 205,038 $ 434,685 Cost of services 52,483 180,861 153,166 360,839 Selling, general and administration 5,756 12,263 16,341 25,025 Other expense (income) 536 1,715 (7,392 ) 2,876 Share-based compensation 264 494 669 862 Depreciation 48,892 18,453 68,886 37,737 Operating income (loss) (37,161 ) (1,091 ) (26,632 ) 7,346 Gain on sale of property, plant and equipment 1,155 184 1,535 1,878 Finance costs (2,518 ) (3,362 ) (5,957 ) (6,607 ) Net income (loss) before income taxes (38,524 ) (4,269 ) (31,054 ) 2,617 Current income tax expense 957 257 2,293 957 Deferred income tax recovery (10,636 ) (7,379 ) (9,226 ) (5,952 ) Total income tax recovery (9,679 ) (7,122 ) (6,933 ) (4,995 ) Net income (loss) for the period $ (28,845 ) $ 2,853 $ (24,121 ) $ 7,612 Net income (loss) attributable to: Shareholders of the Company $ (28,765 ) $ 3,403 $ (24,093 ) $ 8,163 Non-controlling interest (80 ) (550 ) (28 ) (551 ) Income (loss) per share Basic and diluted $ (0.64 ) $ 0.07 $ (0.53 ) $ 0.18

Consolidated Statements of Comprehensive Loss

(unaudited)

 Three months ended Six months ended June 30 June 30 2020 2019 2020 2019 Net income (loss) for the period $ (28,845 ) $ 2,853 $ (24,121 ) $ 7,612 Foreign currency translation adjustment (5 ) (5,550 ) 4,842 (9,220 ) Deferred tax effect (305 ) (182 ) (1 ) (572 ) Total other comprehensive income (loss) for the period (310 ) (5,732 ) 4,841 (9,792 ) Total comprehensive loss $ (29,155 ) $ (2,879 ) $ (19,280 ) $ (2,180 ) Total comprehensive loss attributable to: Shareholders of the Company $ (29,075 ) $ (2,329 ) $ (19,252 ) $ (1,629 ) Non-controlling interest (80 ) (550 ) (28 ) (551 )

Consolidated Statements of Cash Flows

(in thousands of Canadian dollars)

(unaudited)

 Three months ended Six months ended June 30 June 30 2020 2019 2020 2019 Cash provided by (used in): Operations: Net income (loss) for the period $ (28,845 ) $ 2,853 $ (24,121 ) $ 7,612 Add (deduct) items not affecting cash: Depreciation 48,892 18,453 68,886 37,737 Share-based compensation 264 494 669 862 Gain on sale of property, plant and equipment (1,155 ) (184 ) (1,535 ) (1,878 ) Finance costs 2,518 2,702 5,957 5,926 Unrealized loss (gain) on foreign currencies translation 748 1,175 (7,828 ) 1,574 Current income tax expense 957 257 2,293 957 Deferred income tax recovery (10,636 ) (7,379 ) (9,226 ) (5,952 ) Income taxes recovered 1,050 4,048 609 4,034 Cashflow 13,793 22,419 35,704 50,872 Changes in non-cash working capital items: Accounts receivable 37,486 18,923 43,099 26,363 Inventory 6,727 11,327 (672 ) 351 Prepaid expenses and deposits 2,825 4,586 6,327 8,950 Accounts payable and accrued liabilities (27,955 ) (30,020 ) (38,192 ) (17,293 ) Onerous leases - - - 1,297 Deferred revenue 3,286 (23,112 ) 6,239 (16,230 ) Cash provided by operating activities 36,162 4,123 52,505 54,310 Investing: Purchase of property, plant and equipment (7,944 ) (7,369 ) (10,190 ) (22,069 ) Proceeds on sale of other assets - 662 - 682 Proceeds on disposal of property, plant and equipment 1,638 3,230 3,343 5,900 Purchase of non-controlling interest - (128 ) - (128 ) Changes in non-cash working capital items (690 ) (1,316 ) (1,998 ) 913 Cash used in investing activities (6,996 ) (4,921 ) (8,845 ) (14,702 ) Financing: Advances on long-term debt 9,796 - 29,796 - Repayment of long-term debt (42,647 ) (5,683 ) (58,342 ) (16,534 ) Repayment of lease liabilities (2,205 ) (1,815 ) (4,264 ) (3,896 ) Dividends to shareholders - (2,746 ) (2,710 ) (5,498 ) Repurchase of common shares - (2,460 ) (427 ) (3,302 ) Partnership distributions (125 ) (500 ) (125 ) (500 ) Interest paid (2,834 ) (1,881 ) (6,364 ) (6,651 ) Cash used in financing activities (38,015 ) (15,085 ) (42,436 ) (36,381 ) Change in cash and cash equivalents (8,849 ) (15,883 ) 1,224 3,227 Cash and cash equivalents, beginning of period 29,946 49,750 19,873 30,640 Cash and cash equivalents, end of period $ 21,097 $ 33,867 $ 21,097 $ 33,867

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 June 30, 2020 (unaudited, in thousands of Canadian dollars)

 Contract Rentals and Compression Well Corporate Total Drilling Transportation and Process Servicing Services Services Services Revenue $ 14,170 $ 4,782 $ 30,212 $ 21,606 $ - $ 70,770 Cost of services 11,674 3,159 22,910 14,740 - 52,483 Selling, general and administration 1,297 1,141 1,413 1,121 784 5,756 Other expense - - - - 536 536 Share-based compensation - - - - 264 264 Depreciation 36,689 5,882 2,378 3,760 183 48,892 Operating income (loss) (35,490 ) (5,400 ) 3,511 1,985 (1,767 ) (37,161 ) Gain (loss) on sale of property, plant and equipment 665 383 (3 ) (6 ) 116 1,155 Finance costs (36 ) (19 ) (99 ) (9 ) (2,355 ) (2,518 ) Net income (loss) before income taxes (34,861 ) (5,036 ) 3,409 1,970 (4,006 ) (38,524 ) Goodwill - 2,514 1,539 - - 4,053 Total assets 334,273 215,558 227,113 107,687 14,309 898,940 Total liabilities 59,669 15,474 35,754 5,210 258,854 374,961 Capital expenditures 1,158 319 6,023 436 8 7,944
 Canada United States Australia Other Total Revenue $ 24,765 $ 14,542 $ 31,412 $ 51 $ 70,770 Non-current assets 448,723 170,282 66,630 - 685,635

As at and for the three months ended June 30, 2019 (unaudited, in thousands of Canadian dollars)

 Contract Rentals and Compression Well Corporate Total Drilling Transportation and Process Servicing Services Services Services Revenue $ 33,621 $ 15,656 $ 132,927 $ 30,491 $ - $ 212,695 Cost of services 28,698 10,019 119,485 22,659 - 180,861 Selling, general and administration 1,954 3,874 2,954 1,601 1,880 12,263 Other expense - - - - 1,715 1,715 Share-based compensation - - - - 494 494 Depreciation 7,504 4,738 1,926 4,100 185 18,453 Operating income (loss) (4,535 ) (2,975 ) 8,562 2,131 (4,274 ) (1,091 ) Gain (loss) on sale of property, plant and equipment (961 ) 852 58 112 123 184 Finance costs (91 ) (34 ) (108 ) (6 ) (3,123 ) (3,362 ) Net income (loss) before income taxes (5,587 ) (2,157 ) 8,512 2,237 (7,274 ) (4,269 ) Goodwill - 2,514 1,539 - - 4,053 Total assets 403,267 244,586 229,541 125,031 24,139 1,026,564 Total liabilities 69,185 29,152 95,646 5,793 276,937 476,713 Capital expenditures 2,799 1,805 1,080 1,536 149 7,369
 Canada United States Australia Other Total Revenue $ 69,184 $ 108,314 $ 33,920 $ 1,277 $ 212,695 Non-current assets 515,439 167,900 75,300 - 758,639

As at and for the six months ended June 30, 2020 (unaudited, in thousands of Canadian dollars)

 Contract Rentals and Compression Well Corporate Total Drilling Transportation and Process Servicing Services Services Services Revenue $ 57,195 $ 21,615 $ 70,956 $ 55,272 $ - $ 205,038 Cost of services 44,131 13,776 56,321 38,938 - 153,166 Selling, general and administration 3,738 3,644 3,629 2,848 2,482 16,341 Other income - - - - (7,392 ) (7,392 ) Share-based compensation - - - - 669 669 Depreciation 44,525 12,033 4,671 7,290 367 68,886 Operating income (loss) (35,199 ) (7,838 ) 6,335 6,196 3,874 (26,632 ) Gain on sale of property, plant and equipment 756 536 110 4 129 1,535 Finance costs (78 ) (42 ) (197 ) (18 ) (5,622 ) (5,957 ) Net income (loss) before income taxes (34,521 ) (7,344 ) 6,248 6,182 (1,619 ) (31,054 ) Goodwill - 2,514 1,539 - - 4,053 Total assets 334,273 215,558 227,113 107,687 14,309 898,940 Total liabilities 59,669 15,474 35,754 5,210 258,854 374,961 Capital expenditures 2,019 842 6,079 1,238 12 10,190
 Canada United States Australia Other Total Revenue $ 96,205 $ 47,161 $ 61,619 $ 53 $ 205,038 Non-current assets 448,723 170,282 66,630 - 685,635

As at and for the six months ended June 30, 2019 (unaudited, in thousands of Canadian dollars)

 Contract Rentals and Compression Well Corporate Total Drilling Transportation and Process Servicing Services Services Services Revenue $ 79,325 $ 34,063 $ 254,002 $ 67,295 $ - $ 434,685 Cost of services 66,619 21,877 222,805 49,538 - 360,839 Selling, general and administration 4,153 7,534 6,602 3,361 3,375 25,025 Other expense - - - - 2,876 2,876 Share-based compensation - - - - 862 862 Depreciation 15,698 9,259 4,260 8,301 219 37,737 Operating income (loss) (7,145 ) (4,607 ) 20,335 6,095 (7,332 ) 7,346 Gain (loss) on sale of property, plant and equipment (887 ) 981 1,462 112 210 1,878 Finance costs (193 ) (56 ) (213 ) (12 ) (6,133 ) (6,607 ) Net income (loss) before income taxes (8,225 ) (3,682 ) 21,584 6,195 (13,255 ) 2,617 Goodwill - 2,514 1,539 - - 4,053 Total assets 403,267 244,586 229,541 125,031 24,139 1,026,564 Total liabilities 69,185 29,152 95,646 5,793 276,937 476,713 Capital expenditures 5,594 9,372 3,485 3,218 400 22,069
 Canada United States Australia Other Total Revenue $ 164,639 $ 182,862 $ 85,859 $ 1,325 $ 434,685 Non-current assets 515,439 167,900 75,300 - 758,639
 Corporate includes the Company's corporate activities and obligations pursuant to long-term credit facilities. Effective July 1, 2019 the Company changed certain estimates relating to the useful life and residual value of equipment in the Rentals and Transportation Services segment. See note 9 to the Annual Consolidated Financial Statements as at and for the year ended December 31, 2019 for further details. Effective April 1, 2020 the Company changed certain estimates relating to the useful life and residual value of equipment in the Contract Drilling Services segment (see note 2 to the Condensed Interim Consolidated Financial Statements as at and for the three and six months ended June 30, 2020). Includes property, plant and equipment, leased assets 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 lease liabilities 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 6 to the Company's Condensed Interim Consolidated Financial Statements for the three and six months ended June 30, 2020.

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, 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.

https://ml.globenewswire.com/media/856d5cd4-629c-49b6-9e15-9089ee811bd7/small/totallogo2-jpg.jpg

comtex tracking

 
<< Previous
Bullboard Posts
Next >>