Total Energy Services remains a compelling buy, supported by robust free cash flow and a strong balance sheet. Despite rising operating expenses, TOT delivered C$1/share in free cash flow for 9M 2025, with sustaining FCF projected at C$3/share for the full year. With net debt at just C$33M and a lease-adjusted EV/EBITDA of 3.5x, TOT continues aggressive buybacks and maintains a C$0.10/share quarterly dividend.
Total Energy Services Inc. (OTCPK:TOTZF) Q2 2025 Earnings Conference Call August 6, 2025 11:00 AM ET Company Participants Daniel Kim Halyk - President, CEO & Director Yuliya Gorbach - VP of Finance & CFO Conference Call Participants Josef I. Schachter - Schachter Energy Research Services Inc. Tim Monachello - ATB Capital Markets Inc., Research Division Operator Thank you for standing by.
Total Energy Services is undervalued versus peers, with strong cash flow, low debt, and a new dividend, making it a compelling BUY. Recent acquisitions in Australia and the U.S. diversify revenue, provide growth catalysts, and cushion against cyclical downturns in drilling activity. Valuation metrics (P/E, P/S, P/B) show a significant discount, offering 40–70% upside if re-rated closer to industry averages.
| Energy Equipment & Services Industry | Energy Sector | Ms. Yuliya Gorbach ACCA, C.A., C.P.A., CPA(CA) CEO | OTC PINK Exchange | - ISIN |
| US Country | - Employees | 30 Jun 2025 Last Dividend | - Last Split | - IPO Date |
Total Energy Services Inc. is a prominent energy services provider, primarily operating within Canada, the United States, and Australia. Since its inception in 1996, the company has carved a niche for itself in the energy sector by offering comprehensive services across various segments, including Contract Drilling Services, Rentals and Transportation Services, Compression and Process Services, and Well Servicing. With a focus on leveraging its extensive fleet of drilling rigs, heavy trucks, rental equipment, and offering state-of-the-art natural gas compression and oil and natural gas process equipment, Total Energy Services Inc. stands out for its dedication to quality, innovation, and customer satisfaction. Based in Calgary, Canada, the company's strategic approach to integrating a wide range of services under one umbrella allows it to serve a diverse clientele efficiently and effectively.
This segment is notable for its operation of a diversified fleet of drilling rigs, inclusive of several owned top drives, walking systems, pumps, and other auxiliary equipment. The primary focus here is on offering comprehensive drilling solutions tailored to meet the dynamic needs of the energy sector.
Under this service line, Total Energy Services Inc. provides an impressive fleet of heavy trucks, access matting, and a wide range of rental equipment. This segment is specifically designed to support operations in western Canada and the United States, facilitating efficient logistics and equipment rental solutions.
This division offers specialized natural gas compression equipment, alongside oil, natural gas, and other vital process equipment. It is geared towards enhancing the operational efficiency of natural gas extraction and processing, underscoring the company's commitment to innovation and technology-driven solutions.
Featuring well-servicing rigs, this segment caters to the maintenance, completion, and decommissioning phases of well operations. It showcases Total Energy Services Inc.'s dedication to extending the lifespan and productivity of energy wells through high-quality servicing operations.
Beyond the primary service lines, Total Energy Services Inc. is also involved in the fabrication, sale, rental, and servicing of new and used natural gas compression and oil and natural gas process equipment. This aspect of the business highlights the company's versatility and ability to meet a broad spectrum of customer needs across the energy sector.