CALGARY, ALBERTA--(Marketwire - Aug. 10, 2011) - Total Energy Services Inc. (TSX:TOT) ("Total Energy" or the "Company"), announces its consolidated financial results for the three and six-month periods ending June 30, 2011.

Financial Highlights
($000's except per share 
 data) Three Months Ended Six Months Ended
 June 30 June 30
 (Unaudited) (Unaudited)
 % %
 2011 2010 Change 2011 2010 Change
 ------------------------------------------------------
Revenue $62,159 $37,061 68% $147,264 $ 95,899 54%
Operating Earnings (1) 9,760 1,904 413% 36,206 16,426 120%
EBITDA (1) 15,501 6,494 139% 48,692 26,447 84%
Cashflow (1) 15,308 6,831 124% 48,509 26,688 82%
Net Income 6,392 1,475 333% 25,222 11,684 116%

Per Share Data (Diluted)
EBITDA (1) $ 0.44 $ 0.21 110% $ 1.40 $ 0.85 65%
Cashflow (1) 0.39 0.22 77% 1.40 0.86 63%
Net Earnings 0.20 0.05 300% 0.77 0.38 103%

 June 30 Dec. 31
 2011 2010
 (Unaudited) (Audited) % Change
Financial Position
Total Assets $370,323 $ 342,834 8%
Long-Term Debt, Convertible
 Debentures and Obligations Under
 Finance Leases 66,281 78,717 (16)%
Working Capital (2) 93,486 64,446 45%
Net Debt (3) - 5,026 n/m
Shareholders' Equity 237,360 209,845 13%

Shares Outstanding (000's)
Basic 31,525 31,425 n/m
Diluted 35,445 32,096 10%

Notes 1 through 3 please refer to the Notes to the Financial Highlights set forth at the end of this release.

Total Energy's financial results for the three months ended June 30, 2011 represent record second quarter operating results despite prolonged wet weather conditions throughout Western Canada that negatively impacted industry activity levels. Contributing to these results were improved pricing in the Contract Drilling Services division, increased equipment utilization in the Rentals and Transportation Services division and improving sequential quarterly performance in the Gas Compression Services division, including an increased contribution from this division's parts and service business.

Total Energy's Contract Drilling Services division achieved 32% utilization during the second quarter of 2011, recording 407 operating days (spud to release) with a fleet of 14 rigs, compared to 427 operating days, or 34% utilization during the second quarter of 2010. Revenue per operating day realized during the second quarter of 2011 increased 32% compared to the second quarter of 2010 due primarily to improved pricing. The Rentals and Transportation Services division achieved a utilization rate on major rental equipment of 52% during the second quarter of 2011 as compared to a 39% utilization rate during the second quarter of 2010. The Gas Compression Services division generated revenues of $28.6 million for the three months ended June 30, 2011 compared to $14.0 for the second quarter of 2010. At June 30, 2011 the Gas Compression Services division had a fabrication backlog of approximately $48.3 million compared to a backlog of $11.0 million as at June 30, 2010. At June 30, 2011 approximately 22,700 horsepower of compression equipment was on rent compared to 18,700 horsepower on rent at June 30, 2010. The gas compression rental fleet operated at an average utilization rate of 78% during the first six months of 2011 as compared to 77% for the same period in 2010.

During the second quarter, Total Energy declared a quarterly dividend of $0.04 per share to shareholders of record on June 30, 2011. This dividend was paid on July 29, 2011.

Total Energy is reporting its financial results in accordance with International Financial Reporting Standards ("IFRS") effective January 1, 2011. A description of the impact of the implementation of IFRS on the Company's financial results is contained in the Company's Unaudited Interim Consolidated Financial Statements and related Management Discussion and Analysis as at and for the three and six months ended June 30, 2011, which documents will be filed with regulators and available on SEDAR in due course.

OUTLOOK

Relatively strong oil and natural gas liquids prices and a delayed commencement of summer drilling and completion activity in Western Canada due to wet weather have contributed to strong demand for the equipment and services provided by Total Energy. With recently improved weather conditions, industry activity levels have rebounded.

Execution of Total Energy's current 2011 capital expenditure budget of $71.3 million is currently on time and on budget, with all equipment expected to be deployed over the second half of 2011 in time for the upcoming winter drilling season. Included in the current capital expenditure budget is $40.5 million for upgrade and expansion of the Rentals and Transportation Services division's equipment fleet, $13.3 million for the construction of Rig 15 and ancillary equipment for the Contract Drilling Services division and $12.4 million for the Gas Compression Services division, including $10.4 million budgeted for expansion of the gas compression rental fleet. Total Energy continues to evaluate additional opportunities to grow its existing businesses.

In early July, Total Energy's Gas Compression Services division expanded its fabrication capacity by opening a third fabrication facility in Calgary. This 17,400 square foot facility expands the Company's fabrication capacity by approximately 20% and will be dedicated to fabricating Total Energy's patented NOMADTM line of mobile compression.

Total Energy's financial position remains strong with a long-term debt (including $69 million of principal amount of convertible debentures) to long-term debt plus equity ratio of 0.23 to 1.0 and no net debt as at June 30, 2011. The Company's $35 million secured bank facility is currently fully available and unutilized.

CONFERENCE CALL

At 2:30 p.m. MST today, Total Energy will conduct a conference call to discuss its second quarter financial results. Daniel Halyk, President & Chief Executive Officer, will host the conference call. The call is open to Shareholders and all other interested persons. If you wish to participate, call (877) 240-9772. Those who are unable to listen to the call live may listen to a recording of it by calling (800) 408-3053 (passcode 4875857). The recording will be available until August 17, 2011.

SELECTED FINANCIAL INFORMATION

Selected financial information relating to the three and six-month periods ended June 30, 2011 and 2010 is attached to this news release. This information should be read in conjunction with the unaudited consolidated financial statements of Total Energy and the attached notes to the consolidated financial statements and management's discussion and analysis to be issued in due course and reproduced in the Corporation's second quarter report.

Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
 June 30, December 31,
 2011 2010
----------------------------------------------------------------------------
 (unaudited)
Assets
Current assets:
 Cash and cash equivalents $ 20,595 $ 228
 Accounts receivable 71,570 70,983
 Inventory 37,203 33,488
 Income taxes receivable 118 118
 Prepaid expenses and deposits 1,783 1,818
 ------------------------
 131,269 106,635
Property, plant and equipment 235,001 232,146
Goodwill 4,053 4,053
 ------------------------
 $ 370,323 $ 342,834
 ------------------------
 ------------------------
Liabilities & Shareholders' Equity
Current liabilities:
 Accounts payable and accrued liabilities 25,265 28,353
 Deferred revenue 8,170 3,334
 Dividends payable 1,261 1,257
 Current portion of long-term debt - 6,042
 Current portion of obligations under finance leases 3,087 3,203
 ------------------------
 37,783 42,189
Long-term debt - 66,458
Convertible debenture 60,340 -
Obligations under finance leases 2,854 3,014
Deferred tax liability 31,986 21,328
Shareholders' equity:
 Share capital 77,247 76,268
 Contributed surplus 2,175 1,769
 Equity portion of convertible debenture 4,601 -
 Retained earnings 153,337 131,808
 ------------------------
 237,360 209,845
Contingencies and commitments
 ------------------------
 $ 370,323 $ 342,834
 ------------------------
 ------------------------

Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share
amounts)
 Three months ended Six months ended
 June 30 June 30
 2011 2010 2011 2010
----------------------------------------------------------------------------
 (unaudited) (unaudited) (unaudited) (unaudited)

Revenue $ 62,159 $ 37,061 $ 147,264 $ 95,899

Expenses:
 Cost of services 40,396 24,150 84,631 56,993
 Selling, general 
 and administration 6,416 6,242 14,041 12,380
 Share-based compensation 458 292 678 614
 Depreciation 5,129 4,473 11,708 9,486
 -----------------------------------------------------
Results from operating 
 activities 9,760 1,904 36,206 16,426
 Gain on disposal of 
 property, plant and 
 equipment 612 117 778 535
 Finance costs (1,382) (741) (2,571) (1,576)
 -----------------------------------------------------
Net income before income 
 taxes 8,990 1,280 34,413 15,385

 Current income tax expense 39 48 83 48
 Deferred income tax 
 expense (recovery) 2,559 (243) 9,108 3,653
 -----------------------------------------------------
Total income tax 
 expense (recovery) 2,598 (195) 9,191 3,701
 -----------------------------------------------------
Net income and total 
 comprehensive income 
 for the period 6,392 1,475 25,222 11,684
 -----------------------------------------------------
Retained earnings, 
 beginning of period 149,377 112,392 131,808 103,114

 Dividends (1,261) (931) (2,522) (1,862)
 Repurchase and 
 cancellation of 
 common shares 
 in excess of stated 
 common share capital (1,171) - (1,171)
 -----------------------------------------------------
Retained earnings, 
 end of period $ 153,337 $ 112,936 $ 153,337 $ 112,936
 -----------------------------------------------------
 -----------------------------------------------------

Earnings per share :
 Basic $ 0.20 $ 0.05 $ 0.80 $ 0.38
 Diluted $ 0.20 $ 0.05 $ 0.77 $ 0.38 



Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)

 Three months ended Six months ended
 June 30 June 30
 2011 2010 2011 2010
----------------------------------------------------------------------------
 (unaudited) (unaudited) (unaudited) (unaudited)

Cash provided by (used in):

Operations:
 Net income for the 
 period $ 6,392 $ 1,475 $ 25,222 $ 11,684
 Add (deduct) items not 
 affecting cash:
 Depreciation 5,129 4,473 11,708 9,486
 Share-based compensation 458 292 678 614
 Gain on sale of property, 
 plant and equipment (612) (117) (778) (535)
 Finance costs 1,382 741 2,571 1,576
 Current income tax expense 39 48 83 48
 Future income tax expense 
 (recovery) 2,559 (243) 9,108 3,653
 Taxes paid (39) 162 (83) 162
 ----------------------------------------------------
 15,308 6,831 48,509 26,688

 Changes in non-cash 
 working capital items:
 Accounts receivable 16,339 20,351 (587) (10,226)
 Inventory (574) (4,477) (3,715) (1,941)
 Prepaid expenses and 
 deposits (461) 479 35 687
 Accounts payable and 
 accrued liabilities (9,672) (5,490) (5,523) 15,421
 Deferred revenue 3,587 (670) 4,836 (2,237)
 ----------------------------------------------------
 24,527 17,024 43,555 28,392

Investments:
 Purchase of property, 
 plant and equipment (10,860) (5,183) (15,790) (9,037)
 DC Energy Services LP 
 acquisition - - - (31,093)
 Proceeds on disposal of 
 property, plant and 
 equipment 2,329 237 3,538 2,164
 Changes in non-cash 
 working capital items 1,226 1,900 1,666 1,784
 ----------------------------------------------------
 (7,305) (3,046) (10,586) (36,182)

Financing:
 Advances under long-term 
 debt - - - 51,182
 Issuance of convertible 
 debenture, net of issue 
 costs - - 65,927 -
 Repayments of long-term 
 debt - (12,500) (72,500) (17,500)
 Repayment of obligations 
 under finance leases (788) (476) (1,809) (1,068)
 Dividends to shareholders (1,261) (931) (2,522) (1,862)
 Dividends payable 4 - 4 56
 Issuance of common shares 466 - 948 302
 Repurchase of common 
 shares (1,412) - (1,412) -
 Interest paid (43) (515) (1,238) (1,350)
 Decrease in bank 
 indebtedness - - - (19,869)
 ----------------------------------------------------
 (3,034) (14,422) (12,602) 9,891
 ----------------------------------------------------
Change in cash and cash 
 equivalents 14,188 (444) 20,367 2,101

Cash and cash equivalents, 
 beginning of period 6,407 2,545 228 -
 ----------------------------------------------------
Cash and cash equivalents, 
 end of period $ 20,595 $ 2,101 $ 20,595 $ 2,101
 ----------------------------------------------------
 ----------------------------------------------------

SEGMENTED INFORMATION

The Company operates in three main industry segments, which are substantially in one geographic segment. These 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 and Gas Compression Services, which includes the fabrication, sale, rental and servicing of natural gas compression equipment.

As at and for the three months ended June 30, 2011 (unaudited)

 Contract Rentals and Gas
 Drilling Transportation Compression
 Services Services Services Other(1) Total
----------------------------------------------------------------------------
Revenue $ 7,514 $ 26,047 $ 28,598 $ - $ 62,159

Cost of services 4,819 11,259 24,318 - 40,396
Selling, general 
 and administration 667 3,440 1,412 897 6,416
Share-based 
 compensation - - - 458 458
Depreciation 869 3,435 813 12 5,129
----------------------------------------------------------------------------
Results from operating 
 activities 1,159 7,913 2,055 (1,367) 9,760
Gain (loss) on sale of 
 property, plant and
 equipment (8) 174 446 - 612
Finance costs (254) (592) (152) (384) (1,382)
----------------------------------------------------------------------------
Net income before 
 income taxes 897 7,495 2,349 (1,751) 8,990
----------------------------------------------------------------------------
Goodwill - 2,514 1,539 - 4,053
Total assets 74,007 191,268 78,476 26,572 370,323
Total liabilities 14,308 32,669 22,615 63,371 132,963
----------------------------------------------------------------------------
Capital expenditures $ 3,596 $ 4,716 $ 2,547 $ 1 $ 10,860
----------------------------------------------------------------------------
----------------------------------------------------------------------------


As at and for the three months ended June 30, 2010 (unaudited)

 Contract Rentals and Gas
 Drilling Transportation Compression
 Services Services Services Other(1) Total
----------------------------------------------------------------------------
Revenue $ 5,957 $ 17,089 $ 14,015 $ - $ 37,061

Cost of services 4,623 8,516 10,996 15 24,150
Selling, general 
 and administration 438 4,097 917 790 6,242
Share-based compensation - - - 292 292
Depreciation 765 3,168 533 7 4,473
----------------------------------------------------------------------------
Results from operating 
 activities 131 1,308 1,569 (1,104) 1,904
Gain (loss) on sale of 
 property, plant and
 equipment - 118 (1) - 117
Finance costs (124) (517) (80) (20) (741)
----------------------------------------------------------------------------
Net income before 
 income taxes 7 909 1,488 (1,124) 1,280
----------------------------------------------------------------------------
Goodwill - 2,514 1,539 - 4,053
Total assets 70,573 163,729 59,003 3,655 296,960
Total liabilities 14,408 36,729 14,430 43,090 108,657
----------------------------------------------------------------------------
Capital expenditures $ 1,114 $ 3,837 $ 216 $ 16 $ 5,183
----------------------------------------------------------------------------
----------------------------------------------------------------------------


As at and for the six months ended June 30, 2011 (unaudited)

 Contract Rentals and Gas
 Drilling Transportation Compression
 Services Services Services Other(1) Total
----------------------------------------------------------------------------
Revenue $ 25,096 $ 70,942 $ 51,226 $ - $ 147,264

Cost of services 14,793 26,300 43,538 - 84,631
Selling, general and 
 administration 1,459 7,883 2,634 2,065 14,041
Share-based compensation - - - 678 678
Depreciation 2,577 7,564 1,542 25 11,708
----------------------------------------------------------------------------
Results from operating 
 activities 6,267 29,195 3,512 (2,768) 36,206
Gain on sale of property, 
 plant and
 equipment 7 190 581 - 778
Finance costs (466) (1,179) (279) (647) (2,571)
----------------------------------------------------------------------------
Net income before 
 income taxes 5,808 28,206 3,814 (3,415) 34,413
----------------------------------------------------------------------------
Goodwill - 2,514 1,539 - 4,053
Total assets 74,007 191,268 78,476 26,572 370,323
Total liabilities 14,308 32,669 22,615 63,371 132,963
----------------------------------------------------------------------------
Capital expenditures $ 5,279 $ 6,857 $ 3,651 $ 3 $ 15,790
----------------------------------------------------------------------------
----------------------------------------------------------------------------


As at and for the six months ended June 30, 2010 (unaudited)

 Contract Rentals and Gas
 Drilling Transportation Compression
 Services Services Services Other(1) Total
----------------------------------------------------------------------------
Revenue $ 18,890 $ 52,819 $ 24,190 $ - $ 95,899

Cost of services 13,553 24,489 18,836 115 56,993
Selling, general and 
 administration 993 8,043 1,758 1,586 12,380
Share-based compensation - - - 614 614
Depreciation 2,289 6,150 1,033 14 9,486
----------------------------------------------------------------------------
Results from operating 
 activities 2,055 14,137 2,563 (2,329) 16,426
Gain on sale of 
 property, plant and
 equipment - 224 311 - 535
Finance costs (265) (1,091) (170) (50) (1,576)
----------------------------------------------------------------------------
Net income before 
 income taxes 1,790 13,270 2,704 (2,379) 15,385
----------------------------------------------------------------------------
Goodwill - 2,514 1,539 - 4,053
Total assets 70,573 163,729 59,003 3,655 296,960
Total liabilities 14,408 36,729 14,430 43,090 108,657
----------------------------------------------------------------------------
Capital expenditures 
 (2) $ 1,912 $ 4,113 $ 2,985 $ 27 $ 9,037
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Other includes the Company's corporate activities, accretion of
 convertible debentures and obligations pursuant to long-term credit
 facilities.

(2) Excludes the acquisition of DC Energy.

Total Energy Services Inc. is a growth oriented energy services corporation involved in contract drilling services, rentals and transportation services and the fabrication, sale, rental and servicing of natural gas compression equipment. The common shares of Total Energy are listed and trade on the TSX under the symbol TOT.

Notes to Financial Highlights

(1) Operating earnings means results from operating activities and is equal to net income before income taxes minus gain on sale of property, plant and equipment plus finance costs. EBITDA means earnings before interest, taxes, depreciation and amortization and is equal to net income before income taxes plus finance costs plus depreciation. Cashflow means cash provided by operations before changes in non-cash working capital items. Operating earnings, EBITDA and cashflow are not recognized measures under IFRS. Management believes that in addition to net income, operating earnings, EBITDA and cashflow are useful supplemental measures as they provide 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 operating earnings, EBITDA and cashflow 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 operating earnings, EBITDA and cashflow may differ from other organizations and, accordingly, operating earnings, EBITDA and cashflow 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 obligations under finance leases plus convertible debentures plus current liabilities minus current assets.

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. 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. Such factors include fluctuations in the market for oil and natural gas and related products and services, political and economic conditions, the demand for products and services provided by Total Energy, Total Energy's ability to attract and retain key personnel and other factors. 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Daniel Halyk
Total Energy Services Inc.
President & Chief Executive Officer
(403) 216-3921

OR

Mark Kearl
Total Energy Services Inc.
Vice-President Finance and Chief Financial Officer
(403) 216-3920
investorrelations@totalenergy.ca
www.totalenergy.ca

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.