Total Energy Services Inc
F:5O7
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Total Energy Services Inc
F:5O7
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CA |
Total Energy Services Inc
Total Energy Services Inc. is an oilfield services company that supports drilling and producing natural gas and oil wells. It owns and runs contract drilling rigs, well servicing rigs, and equipment used to move gas, compress air, and handle field operations. Its work sits in the middle of the energy value chain: it does not produce oil or gas itself, but it helps producers drill wells, maintain them, and keep output flowing. The company sells services and equipment to exploration and production companies, oilfield contractors, and industrial customers that need compression and related field support. A big part of its income comes from charging customers for rig time, field service work, and equipment rental or sales. Because much of the business depends on active drilling and well maintenance, demand tends to follow customer spending on energy development and production upkeep. What makes Total Energy different is that it combines several related service lines under one roof rather than relying on just one rig type or one kind of customer. That gives it exposure to both drilling activity and ongoing well servicing and compression needs. For investors, it is best thought of as a service provider to the energy industry, earning money by supplying the tools, people, and equipment that producers need to build and maintain wells.
Total Energy Services Inc. is an oilfield services company that supports drilling and producing natural gas and oil wells. It owns and runs contract drilling rigs, well servicing rigs, and equipment used to move gas, compress air, and handle field operations. Its work sits in the middle of the energy value chain: it does not produce oil or gas itself, but it helps producers drill wells, maintain them, and keep output flowing.
The company sells services and equipment to exploration and production companies, oilfield contractors, and industrial customers that need compression and related field support. A big part of its income comes from charging customers for rig time, field service work, and equipment rental or sales. Because much of the business depends on active drilling and well maintenance, demand tends to follow customer spending on energy development and production upkeep.
What makes Total Energy different is that it combines several related service lines under one roof rather than relying on just one rig type or one kind of customer. That gives it exposure to both drilling activity and ongoing well servicing and compression needs. For investors, it is best thought of as a service provider to the energy industry, earning money by supplying the tools, people, and equipment that producers need to build and maintain wells.
Record results: Total Energy reported record quarterly and annual financial results for the year ended December 31, 2025, driven by stronger North American demand for compression and higher activity in Australia.
Revenue mix shift: Consolidated Q4 revenue rose 22% YoY, with CPS revenue up $45.3 million, Well Servicing up $4.9 million and CDS up $4.1 million—Australia now represents 23% of Q4 revenue (up from 19%).
Margins: Consolidated Q4 gross margin was 22%, down 130 bps YoY, largely because CPS and Well Servicing (lower-margin businesses) made up a larger share of revenue.
Backlog strength: Fabrication sales backlog was $446.7 million at Dec. 31, 2025, up $257.7 million (136%) YoY and $65.9 million (17%) vs Sept. 30, 2025—management says this provides visibility into 2027.
Cash and leverage: Cash was $59.6 million and positive working capital was $108 million; cash exceeded bank debt by $4.6 million. Senior bank debt to bank EBITDA was 0.03 and bank-defined EBITDA to interest was 44.4x.
Capital allocation: The company funded $93.7 million of capex in 2025, returned $38.8 million to shareholders, and announced a $31.6 million increase to 2026 capital budget to upgrade two drilling rigs.
Portfolio actions: Management is exiting the U.S. Well Servicing business (12 service rigs involved) and sold equipment in February; proceeds and gains will be reflected in Q1 results.
CPS momentum and constraints: CPS revenue rose 39% YoY and EBITDA rose $10.6 million (61%); management cites strong demand but component lead times (e.g., Cat engines at ~115 weeks) and floor capacity as constraints.
