Core Viewpoint - Total Energy Services Inc. reported record financial results for the second quarter of 2025, driven by increased activity in Australia and strong demand in North America, despite declines in U.S. drilling and completion activity [2][18]. Financial Highlights - Revenue for the three months ended June 30, 2025, was $250.4 million, a 17% increase from $213.3 million in 2024. For the six months, revenue rose 20% to $502.3 million from $418.0 million [2]. - Operating income increased by 53% to $22.3 million in Q2 2025 from $14.6 million in Q2 2024, and for the six months, it rose 32% to $48.4 million [2]. - EBITDA for Q2 2025 was $45.4 million, up 21% from $37.4 million in Q2 2024, while for the six months, it increased 19% to $95.9 million [2]. - Net income attributable to shareholders for Q2 2025 was $17.1 million, an 11% increase from $15.5 million in Q2 2024, and for the six months, it rose 17% to $36.1 million [2]. Segment Performance Contract Drilling Services (CDS) - Revenue for CDS in Q2 2025 was $71.2 million, a 5% increase from $67.9 million in Q2 2024. For the six months, revenue rose 9% to $162.3 million [5]. - EBITDA for CDS increased by 11% to $16.0 million in Q2 2025 from $14.5 million in Q2 2024 [5]. - The segment experienced a decline in U.S. activity but was offset by increased Australian activity following the acquisition of Saxon [6]. Rentals and Transportation Services (RTS) - RTS revenue decreased by 9% to $16.2 million in Q2 2025 from $17.8 million in Q2 2024, with a 2% decline for the six months [7]. - EBITDA for RTS fell by 8% to $5.6 million in Q2 2025 [7]. - The decline was attributed to lower industry activity and a change in the mix of equipment operating [8]. Compression and Process Services (CPS) - CPS revenue increased by 22% to $133.2 million in Q2 2025 from $109.5 million in Q2 2024, and for the six months, it rose 28% to $239.4 million [9]. - EBITDA for CPS grew by 26% to $22.2 million in Q2 2025 [9]. - The segment benefited from increased fabrication sales and parts and service activity [10]. Well Servicing (WS) - WS revenue surged by 64% to $29.8 million in Q2 2025 from $18.2 million in Q2 2024, with a 47% increase for the six months [11]. - EBITDA for WS increased by 66% to $3.5 million in Q2 2025 [11]. - The growth was driven by increased activity in Australia and Canada, offsetting declines in the U.S. [14]. Financial Position - Total assets as of June 30, 2025, were $949.9 million, a 1% increase from $937.7 million in 2024 [23]. - Long-term debt and lease liabilities increased by 37% to $108.7 million [4]. - The company reported positive working capital of $111.8 million, including $34.2 million in cash [16]. Capital Expenditures and Outlook - Total Energy executed $26.3 million in capital expenditures in Q2 2025, primarily for rig upgrades and rental equipment acquisitions [15]. - The company increased its 2025 capital expenditure budget by $19.5 million to $102.4 million, focusing on growth opportunities [19]. - The CPS segment's backlog reached a record $303.9 million, providing visibility into 2026 [18].

Financial Performance - Total Energy Services Inc. reported a revenue of $251.9 million for the three months ended March 31, 2025, representing a 23% increase from $204.7 million in the same period of 2024 [2] - Operating income rose to $26.1 million, an 18% increase from $22.0 million year-over-year [2] - EBITDA increased by 17% to $50.5 million compared to $43.3 million in the prior year [2] - Net income attributable to shareholders was $19.0 million, up 23% from $15.5 million in Q1 2024 [2] Segment Performance - Contract Drilling Services (CDS) revenue increased by 12% to $91.1 million, with EBITDA rising 13% to $25.2 million [4][6] - Rentals and Transportation Services (RTS) revenue grew by 3% to $23.0 million, but EBITDA decreased by 13% to $8.4 million [7][8] - Compression and Process Services (CPS) segment saw a significant revenue increase of 37% to $106.2 million, with EBITDA up 44% to $15.7 million [10][11] - Well Servicing (WS) revenue increased by 34% to $31.6 million, with EBITDA rising 23% to $5.3 million [12][14] Financial Position - Total assets increased by 7% to $999.6 million as of March 31, 2025, compared to $937.7 million at the end of 2024 [2] - Shareholders' equity rose to $586.3 million, a 3% increase from $571.0 million [2] - The company reported positive working capital of $83.6 million, including $65.1 million in cash [16] Capital Expenditures and Outlook - Total Energy invested $34.5 million in capital expenditures during Q1 2025, focusing on upgrading Australian drilling and service rigs [15] - The company has increased its 2025 capital expenditure budget to $73.9 million, targeting growth opportunities and equipment upgrades [18] - Despite recent oil price weaknesses and political uncertainties, industry conditions remain stable in North America and Australia [17]