Download PDF

1. Company Snapshot

1.a. Company Description

Total Energy Services Inc.provides various products and services to the oil and natural gas industry primarily in Canada, the United States, and Australia.It operates through four segments: Contract Drilling Services, Rentals and Transportation Services, Compression and Process Services and Well Servicing.


The Contract Drilling Services segment offers contract drilling services to oil and gas exploration and development companies.As of December 31, 2021, it operated a total fleet of 95 drilling rigs.The Rentals and Transportation Services segment provides drilling, completion and production rental equipment, and oilfield transportation services in western Canada and in the United States.


This segment owned and operated a fleet of 79 heavy trucks.The Compression and Process Services segment offers gas compression services; and designs and packages skid style compressors and proprietary trailer-mounted compressors under the NOMAD brand in Canada and the United States, the European Union, Australia, and Mexico.It had 53,800 horsepower of compression in its rental fleet.


The Well Servicing segment offers well services.This segment operated a total fleet of 83 well servicing rigs across Western Canada, mid-western United States, and Australia.The company was founded in 1996 and is headquartered in Calgary, Canada.

Show Full description

1.b. Last Insights on TOT

Total Energy Services Inc.'s recent performance was driven by strong Q2 2025 results, with revenue increasing 17% to $250.4 million and operating income rising 53% to $22.3 million. The company's EBITDA grew 21% to $45.4 million. A quarterly dividend of $0.10 per common share was declared, providing a stable income stream for shareholders. Insider Daniel Halyk's recent share purchase signals confidence in the company's prospects. With a solid financial foundation, Total Energy is well-positioned to capitalize on evolving economic conditions.

1.c. Company Highlights

2. Total Energy Services' Q3 Earnings: A Mixed Bag

Total Energy Services reported an 8% year-over-year increase in consolidated third-quarter revenue, driven by a $15.2 million increase in Compression and Process Services (CPS) segment revenue, $6.2 million from Well Servicing, and $1.6 million from the Rental and Transportation Services (RTS) segment. However, third-quarter EBITDA decreased by $7.6 million due to the relative increase in lower-margin CPS and Well Servicing segment revenues. The company's EPS came in at $0.38, missing estimates of $0.46. Despite the miss, the company's financial position remains strong, with $115.5 million of positive working capital, including $57.1 million of cash.

Publication Date: Nov -17

📋 Highlights
  • Revenue Growth:: 8% YoY increase to $X, driven by $15.2M from CPS, $6.2M from Well Servicing, and $1.6M from RTS.
  • EBITDA Decline:: $7.6M drop due to lower-margin CPS/Well Servicing revenue, $1.8M FX impact, and $1.5M higher share-based compensation.
  • Financial Strength:: $115.5M positive working capital, $57.1M cash, and $32.9M net debt, with $380.8M CPS backlog (25% QoQ).
  • Margin Pressure:: CPS compression margins fell to 15% (vs. 22% prior year), expected to rebound in Q4/Q1 2025.
  • Expansion & M&A:: $57M cash reserves to fund U.S. fabrication plant (Q1 2027 completion) and selective North American/Australian acquisitions.

Segment Performance

The CPS segment's revenue was 14% higher compared to the same period last year, but EBITDA declined $4.2 million or 22% due to increased costs, including a weakening Canadian dollar and cost inflation arising from tariff-related supply chain challenges. The Well Servicing segment revenue increased 24% year-over-year, driven by a 5% increase in revenue per service hour and a 19% increase in operating hours.

Growth Prospects

The company is expanding its U.S. fabrication capacity, with plant construction expected to be completed by the first quarter of 2027. The upgrade of a mechanical double drilling rig to a state-of-the-art AC electric triple pad rig was completed in early November and is currently drilling for a major Canadian producer. The company sees strong demand for compression equipment, driven by significant infrastructure investment related to growing LNG export capacity and demand for natural gas-fired power generation.

Valuation

The company's current P/E Ratio is 8.0, and the P/S Ratio is 0.53. With analysts estimating next year's revenue growth at 11.4%, the current valuation multiples suggest that the market is pricing in moderate growth expectations. The EV/EBITDA ratio is 3.24, indicating a relatively low valuation compared to EBITDA. The company's ROE is 11.47%, and ROIC is 9.07%, indicating a decent return on equity and invested capital.

Outlook

The company is optimistic about future opportunities and growth, driven by its disciplined approach, focus on quality and safety, and willingness to say no to low-priced business that doesn't meet their standards. With a strong balance sheet and $57 million in cash, the company is well-positioned to pursue acceptable investment opportunities, including M&A. The company's diversified customer base, including blue-chip companies, and prioritization of building strong relationships with customers and suppliers, should serve it well in all markets.

3. NewsRoom

Card image cap

Total Energy Services Inc. Announces Dividend

Dec -02

Source:

Card image cap

Can Total Energy (TSX:TOT) Turn Its Record Backlog Into Sustainable Profits Amid Margin Pressures?

Nov -14

Source:

Card image cap

Total Energy Services Inc (TOTZF) Q3 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...

Nov -13

Source:

Card image cap

Total Energy Services Inc. Announces Q3 2025 Results

Nov -12

Source:

Card image cap

Undiscovered Gems In Canada To Explore This November 2025

Nov -06

Source:

Card image cap

Total Energy Services Inc.'s (TSE:TOT) Stock's On An Uptrend: Are Strong Financials Guiding The Market?

Nov -03

Source:

Card image cap

Undiscovered Gems in Canada for November 2025

Nov -03

Source:

Card image cap

Total Energy Services Launches Normal Course Issuer Bid

Oct -17

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.72%)

6. Segments

Compression and Process

Expected Growth: 5%

Total Energy Services Inc.'s Compression and Process segment growth is driven by increasing demand for natural gas infrastructure, rising production in North America, and growing need for energy efficiency. Additionally, the company's strategic acquisitions and investments in technology have enhanced its service offerings, contributing to the 5% growth rate.

Contract Drilling

Expected Growth: 4%

Total Energy Services Inc.'s Contract Drilling segment growth is driven by increasing demand for oil and gas exploration, rising drilling activity in North America, and the company's strategic expansion into new markets. Additionally, the segment benefits from a strong backlog of contracts, improved operational efficiencies, and a growing fleet of drilling rigs.

Well Servicing

Expected Growth: 7%

Total Energy Services Inc.'s Well Servicing segment growth is driven by increasing demand for oil and gas production, rising drilling activities, and growing need for maintenance and repair services. Additionally, the company's strategic acquisitions, expansion into new markets, and investments in technology and equipment are contributing to its 7% growth.

Rentals and Transportation

Expected Growth: 3%

Total Energy Services Inc.'s Rentals and Transportation segment growth is driven by increasing demand for oilfield equipment rentals, expansion into new geographic markets, and strategic acquisitions. Additionally, the company's focus on providing a comprehensive suite of services to energy companies, including transportation and logistics, contributes to its growth. Furthermore, the rising need for energy companies to outsource non-core operations also supports the segment's growth.

7. Detailed Products

Drilling Services

Total Energy Services Inc. provides drilling services to oil and gas companies, offering a range of drilling rigs and equipment to support exploration and production activities.

Rental Services

The company offers a range of rental equipment and tools for the energy industry, including drill pipe, tubing, and other specialized equipment.

Well Servicing

Total Energy Services Inc. provides well servicing solutions, including well maintenance, repair, and optimization services to maximize oil and gas production.

Compression and Process Services

The company offers compression and process services, including natural gas compression, processing, and treating solutions.

Fabrication and Manufacturing

Total Energy Services Inc. provides fabrication and manufacturing services, including the design, manufacture, and assembly of equipment for the energy industry.

8. Total Energy Services Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Total Energy Services Inc. is medium due to the availability of alternative energy sources and the increasing adoption of renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for Total Energy Services Inc. is low due to the company's diversified customer base and the lack of concentration of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Total Energy Services Inc. is medium due to the company's dependence on a few key suppliers and the potential for supply chain disruptions.

Threat Of New Entrants

The threat of new entrants for Total Energy Services Inc. is low due to the high barriers to entry in the energy services industry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for Total Energy Services Inc. is high due to the competitive nature of the energy services industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.72%
Debt Cost 14.35%
Equity Weight 84.28%
Equity Cost 14.35%
WACC 14.35%
Leverage 18.65%

11. Quality Control: Total Energy Services Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Total Energy Services

A-Score: 7.2/10

Value: 8.8

Growth: 7.2

Quality: 5.7

Yield: 5.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Trican Well Service

A-Score: 7.0/10

Value: 7.1

Growth: 8.0

Quality: 7.0

Yield: 5.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
CES Energy Solutions

A-Score: 6.2/10

Value: 6.3

Growth: 8.4

Quality: 5.7

Yield: 4.0

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
TerraVest

A-Score: 5.4/10

Value: 2.3

Growth: 9.3

Quality: 4.6

Yield: 1.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
STEP Energy Services

A-Score: 5.3/10

Value: 8.4

Growth: 7.3

Quality: 3.8

Yield: 0.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Solaris Oilfield

A-Score: 4.6/10

Value: 2.9

Growth: 6.2

Quality: 6.7

Yield: 5.0

Momentum: 5.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.82$

Current Price

14.82$

Potential

-0.00%

Expected Cash-Flows