CALGARY, ALBERTA--(Marketwire - Nov. 12, 2012) - Total Energy Services Inc. ("Total Energy" or the "Company") (TSX:TOT), announces its consolidated financial results for the three and nine month periods ending September 30, 2012.

Financial Highlights
($000's except per share data)
	Three Months Ended Sept 30						Nine Months Ended Sept 30
	(unaudited)						(unaudited)
	2012		2011		% Change		2012		2011		% Change
Revenue	$	73,517	$	87,882	(16	)%	$	229,298	$	235,146	(2	%)
Operating Earnings (1)		12,979		28,821	(55	)%		50,415		65,027	(22	%)
EBITDA (1)		20,078		34,734	(42	)%		69,333		83,426	(17	%)
Cashflow (1)		20,184		35,020	(42	)%		69,839		83,529	(16	%)
Net Income		9,456		20,603	(54	)%		37,167		45,825	(19	%)
Per Share Data (Diluted) (2)
EBITDA (1)	$	0.58	$	0.98	(41	)%	$	1.99	$	2.38	(16	%)
Cashflow (1)	$	0.58	$	0.99	(41	)%	$	2.01	$	2.39	(16	%)
Net Earnings	$	0.30	$	0.61	(51	)%	$	1.16	$	1.38	(16	%)

		Sept 30		Dec. 31
		2012 (unaudited)		2011 (audited)	% Change
Financial Position
Total Assets	$	458,776	$	434,617	6	%
Long-Term Debt, Convertible Debentures and Obligations Under Finance Leases (excluding current portion)		65,096		63,853	2	%
Working Capital (3)		105,044		120,786	(13	%)
Net Debt (4)		Nil		Nil	n/m
Shareholders' Equity		297,424		275,321	8	%
Shares Outstanding (000's)
Basic		30,700		31,375	(2	)%
Diluted (2)		34,417		35,261	(2	)%

Notes 1 through 4 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 September 30, 2012 reflect lower activity levels in Western Canada as compared to the third quarter of 2011. Expenses incurred with the establishment of Rental and Transportation Services branches in Minot, North Dakota and Slave Lake, Alberta and the startup of Spectrum Process Systems Inc. negatively impacted operating margins as revenue from these start up initiatives was nominal during the third quarter. Increased relative revenue contribution from the Gas Compression Services division, which has lower operating margins than the Contract Drilling Services and Rentals and Transportation Services divisions, also contributed to a lower consolidated operating earnings margin in the third quarter of 2012 compared to 2011.

Total Energy's Contract Drilling Services division achieved 49% utilization during the third quarter of 2012, recording 677 operating days (spud to release), compared to 855 operating days, or 66% utilization during the third quarter of 2011. Revenue per operating day realized during the third quarter of 2012 decreased 1% compared to the third quarter of 2011. The Rentals and Transportation Services division achieved a utilization rate on major rental equipment of 44% during the third quarter of 2012 as compared to a 74% utilization rate during the third quarter of 2011. The Gas Compression Services division generated revenues of $30.2 million for the three months ended September 30, 2012 compared to $28.6 million for the third quarter of 2011. At September 30, 2012 the Gas Compression Services division had a fabrication sales backlog of approximately $35.2 million compared to $40.3 million at September 30, 2011 and $28.8 million at June 30, 2012. At September 30, 2012 approximately 28,300 horsepower of compression equipment was on rent compared to 21,700 horsepower on rent at September 30, 2011. The gas compression rental fleet operated at an average utilization rate of 83% during the first nine months of 2012 as compared to 78% for the same period in 2011.

During the third quarter, Total Energy declared a quarterly dividend of $0.05 per share to shareholders of record on September 28, 2012. This dividend was paid on October 31, 2012. During the first nine months of 2012, Total Energy repurchased 902,500 common shares at an average price of $15.11 (including commissions) pursuant to its normal course issuer bid.

Outlook

Notwithstanding relatively strong oil prices, the increase in Canadian drilling and completion activity coming out of the seasonally slow second quarter has been moderate as compared to 2011. Oil and gas exploration and production companies have generally taken a cautious approach to capital spending, with many capital programs being deferred to the first quarter of 2013. Total Energy entered the third quarter with an operating capacity higher that what was required, particularly in the Rentals and Transportation Services division, and the Company has taken steps to adjust its operating cost structure to reflect the current operating environment without compromising its capacity to service what is expected to be a relatively busy first quarter of 2013.

Total Energy's Contract Drilling Services division continues to see reasonably strong demand for its heavy telescopic double rigs. Completion of construction of its 16^th rig, a 3,600 meter telescopic double, and the upgrade of one of its two conventional singles is scheduled for December 2012. Both rigs are expected to commence drilling upon completion.

Total Energy's Rentals and Transportation Services division is directly impacted by drilling and completion activity. With a significant deferral of capital programs during the third quarter, current indications are that the upcoming winter will be busy. While this division's relatively high fixed cost structure negatively impacted operating earnings margins in the third quarter, delivery of approximately 400 pieces of new rental equipment pursuant to the 2012 capital expenditure budget during the fourth quarter combined with increased winter activity levels and a right sized operating capacity are expected to improve the financial performance of this division. The Rentals and Transportation Services division will be entering the Canadian solids control market this winter with the introduction of centrifuges to its product offering.

Total Energy's Gas Compression Services division continues to see strong demand for its products and services. The purchase of the previously rented 58,000 square foot main fabrication facility on October 1, 2012 will increase annual EBITDA from this division by over $0.8 million. Spectrum Process Systems Inc., Total Energy's entry into the oil and gas process equipment fabrication business, took occupancy of a new 20,000 square foot leased manufacturing facility in mid-October of 2012, two months behind schedule due to construction delays. Spectrum is currently staffing and equipping the facility for production and is expected to be fully operational by the first quarter of 2013.

Total Energy's financial condition remains solid with a long-term debt (including convertible debentures) to long-term debt plus equity ratio of 0.19 to 1.0, $105.0 million of positive working capital (including $55.4 million of cash) and no net debt as at September 30, 2012. Total Energy's $35 million operating facility is currently fully available and undrawn. The Company's balance sheet strength provides significant capacity and flexibility to pursue further growth opportunities that may arise.

Conference Call

At 2:30 p.m. MST today, Total Energy will conduct a conference call to discuss its third 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) 440-9795. Those who are unable to listen to the call live may listen to a recording of it by calling (800) 408-3053 (passcode 8265529). The recording will be available until November 19, 2012.

Selected Financial Information

Selected financial information relating to the three and nine-month periods ended September 30, 2012 and 2011 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 third quarter report.

Condensed Consolidated Statements of Financial Position
(in thousands of Canadian dollars)
		September 30,		December 31,
		2012		2011
		(unaudited)		(audited)
Assets
Current assets:
	Cash and cash equivalents	$	55,394	$	35,658
	Accounts receivable		59,821		94,556
	Inventory		34,854		37,147
	Income taxes receivable		-		118
	Prepaid expenses and deposits		2,753		1,795
			152,822		169,274
Property, plant and equipment			301,901		261,290
Goodwill			4,053		4,053
		$	458,776	$	434,617
Liabilities & Shareholders' Equity
Current liabilities:
	Accounts payable and accrued liabilities	$	30,723	$	41,556
	Deferred revenue		3,608		3,064
	Income taxes payable		9,368		-
	Dividends payable		1,535		1,255
	Current portion of obligations under finance leases		2,544		2,613
			47,778		48,488
Obligations under finance leases			2,821		2,763
Convertible debentures			62,275		61,090
Deferred tax liability			48,478		46,955
Shareholders' equity:
	Share capital		77,147		77,917
	Contributed surplus		4,118		2,472
	Equity portion of convertible debenture		4,601		4,601
	Retained earnings		211,558		190,331
			297,424		275,321
		$	458,776	$	434,617

Condensed Interim Consolidated Statements of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
		Three months ended September 30						Nine months ended September 30
		2012			2011			2012			2011
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenue		$	73,517		$	87,882		$	229,298		$	235,146
	Cost of services		46,569			45,725			137,826			130,356
	Selling, general and administration		6,764			7,126			21,594			21,167
	Share-based compensation		1,092			368			2,023			1,046
	Depreciation		6,113			5,842			17,440			17,550
Results from operating activities			12,979			28,821			50,415			65,027
	Gain on sale of property, plant and equipment		986			71			1,478			849
	Finance costs		(1,149	)		(1,351	)		(3,678	)		(3,922	)
Net income before income taxes			12,816			27,541			48,215			61,954
	Current income tax expense		5,355			11			9,525			94
	Deferred income tax (recovery) expense		(1,995	)		6,927			1,523			16,035
Total income tax expense			3,360			6,938			11,048			16,129
Net income and total comprehensive income for the period		$	9,456		$	20,603		$	37,167		$	45,825
Earnings per share
	Basic earnings per share	$	0.31		$	0.65		$	1.19		$	1.46
	Diluted earnings per share	$	0.30		$	0.61		$	1.16		$	1.38

Condensed Interim Consolidated Statements of Cash Flows
(in thousands of Canadian dollars)
			Three months ended September 30						Nine months ended September 30
			2012			2011			2012			2011
			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Cash provided by (used in):
Operations:
	Net income for the period		$	9,456		$	20,603		$	37,167		$	45,825
	Add (deduct) items not affecting cash:
		Depreciation		6,113			5,842			17,440			17,550
		Share-based compensation		1,092			368			2,023			1,046
		Gain on sale of property, plant and equipment		(986	)		(71	)		(1,478	)		(849	)
		Finance costs		1,149			1,351			3,678			3,922
		Current income tax expense		5,355			11			9,525			94
		Deferred income tax (recovery) expense		(1,995	)		6,927			1,523			16,035
	Income taxes paid			-			(11	)		(39	)		(94	)
				20,184			35,020			69,839			83,529
	Changes in non-cash working capital items:
		Accounts receivable		(4,745	)		(15,923	)		34,735			(16,510	)
		Inventory		1,399			(2,795	)		2,293			(6,510	)
		Prepaid expenses and deposits		(726	)		(1,397	)		(958	)		(1,362	)
		Accounts payable and accrued liabilities		(484	)		5,454			(7,606	)		(69	)
		Deferred revenue		(2,106	)		2,830			544			7,666
				13,522			23,189			98,847			66,744
Investments:
	Purchase of property, plant and equipment			(18,870	)		(15,557	)		(60,291	)		(31,347	)
	Proceeds on disposal of property, plant and equipment			4,460			571			6,207			4,109
	Changes in non-cash working capital items			2,286			2,318			(1,900	)		3,984
				(12,124	)		(12,668	)		(55,984	)		(23,254	)
Financing:
	Issuance of convertible debenture, net of issue costs			-			-			-			65,927
	Repayment of long-term debt			-			-			-			(72,500	)
	Repayment of obligations under finance leases			(757	)		(933	)		(2,500	)		(2,742	)
	Dividends to shareholders			(1,550	)		(1,261	)		(4,370	)		(3,779	)
	Issuance of common shares			-			-			1,197			948
	Repurchase of common shares			(3,837	)		(2,215	)		(13,634	)		(3,627	)
	Interest paid			(1,740	)		(1,977	)		(3,820	)		(3,215	)
				(7,884	)		(6,386	)		(23,127	)		(18,988	)
Change in cash and cash equivalents				(6,486	)		4,135			19,736			24,502
Cash and cash equivalents, beginning of period				61,880			20,595			35,658			228
Cash and cash equivalents, end of period			$	55,394		$	24,730		$	55,394		$	24,730

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 and process equipment. Amounts presented in the following tables are in thousands of Canadian dollars.

As at and for the three months ended September 30, 2012 (unaudited)
As at and for the three months ended September 30, 2012	Contract Drilling Services			Rentals and Transportation Services			Gas Compression Services			Other(1)			Total
Revenue	$	12,782		$	30,563		$	30,172		$	-		$	73,517
Cost of services		7,516			14,030			25,022			1			46,569
Selling, general and administration		760			3,306			1,628			1,070			6,764
Share-based compensation		-			-			-			1,092			1,092
Depreciation		1,320			3,787			997			9			6,113
Results from operating activities		3,186			9,440			2,525			(2,172	)		12,979
Gain on sale of property, plant and equipment		21			140			825			-			986
Finance costs		(254	)		(583	)		(69	)		(243	)		(1,149	)
Net income before income taxes		2,953			8,997			3,281			(2,415	)		12,816
Goodwill		-			2,514			1,539			-			4,053
Total assets		95,887			223,830			92,644			46,415			458,776
Total liabilities		18,460			47,573			19,369			75,950			161,352
Capital expenditures	$	5,144		$	11,409		$	2,291		$	26		$	18,870

As at and for the three months ended September 30, 2011 (unaudited)
As at and for the three months ended September 30, 2011	Contract Drilling Services			Rentals and Transportation Services			Gas Compression Services			Other(1)			Total
Revenue	$	16,274		$	43,020		$	28,588		$	-		$	87,882
Cost of services		7,959			13,893			23,873			-			45,725
Selling, general and administration		835			3,911			1,364			1,016			7,126
Share-based compensation		-			-			-			368			368
Depreciation		1,468			3,531			830			13			5,842
Results from operating activities		6,012			21,685			2,521			(1,397	)		28,821
Gain (loss) on sale of property, plant and equipment		-			81			(10	)		-			71
Finance costs		(254	)		(597	)		(153	)		(347	)		(1,351	)
Net income before income taxes		5,758			21,169			2,358			(1,744	)		27,541
Goodwill		-			2,514			1,539			-			4,053
Total assets		81,418			205,773			87,612			29,351			404,154
Total liabilities		17,290			39,367			27,687			65,019			149,363
Capital expenditures	$	3,689		$	9,603		$	2,216		$	49		$	15,557

As at and for the nine months ended September 30, 2012 (unaudited)
As at and for the nine months ended September 30, 2012	Contract Drilling Services			Rentals and Transportation Services			Gas Compression Services			Other(1)			Total
Revenue	$	39,896		$	102,004		$	87,398			-		$	229,298
Cost of services		22,323			42,884			72,622			(3	)		137,826
Selling, general and administration		2,556			10,960			4,501			3,577			21,594
Share-based compensation		-			-			-			2,023			2,023
Depreciation		3,604			10,953			2,854			29			17,440
Results from operating activities		11,413			37,207			7,421			(5,626	)		50,415
Gain on sale of property, plant and equipment		65			409			1,004			-			1,478
Finance costs		(760	)		(1,740	)		(262	)		(916	)		(3,678	)
Net income before income taxes		10,718			35,876			8,163			(6,542	)		48,215
Goodwill		-			2,514			1,539			-			4,053
Total assets		95,887			223,830			92,644			46,415			458,776
Total liabilities		18,460			47,573			19,369			75,950			161,352
Capital expenditures	$	12,433		$	31,546		$	14,472		$	1,840		$	60,291

As at and for the nine months ended September 30, 2011 (unaudited)
As at and for the nine months ended September 30, 2011	Contract Drilling Services			Rentals and Transportation Services			Gas Compression Services			Other(1)			Total
Revenue	$	41,370		$	113,962		$	79,814		$	-		$	235,146
Cost of services		22,752			40,193			67,411			-			130,356
Selling, general and administration		2,294			11,794			3,998			3,081			21,167
Share-based compensation		-			-			-			1,046			1,046
Depreciation		4,045			11,095			2,372			38			17,550
Results from operating activities		12,279			50,880			6,033			(4,165	)		65,027
Gain on sale of property, plant and equipment		7			271			571			-			849
Finance costs		(720	)		(1,776	)		(432	)		(994	)		(3,922	)
Net income before income taxes		11,566			49,375			6,172			(5,159	)		61,954
Goodwill		-			2,514			1,539			-			4,053
Total assets		81,418			205,773			87,612			29,351			404,154
Total liabilities		17,290			39,367			27,687			65,019			149,363
Capital expenditures	$	8,968		$	16,460		$	5,867		$	52		$	31,347

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

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 and process 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)	Per share data (diluted) and the number of common shares outstanding on a diluted basis includes the impact of the approximate 3.1 million common shares issuable upon the entire conversion of the $69 million principal amount of convertible debentures issued by the Company in February 2011.
(3)	Working capital equals current assets minus current liabilities.
(4)	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:

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

Contact Information:

Total Energy Services Inc.

Daniel Halyk

President & Chief Executive Officer

(403) 216-3921





Total Energy Services Inc.

Mark Kearl

Vice-President Finance and Chief Financial Officer

(403) 216-3920

investorrelations@totalenergy.ca

www.totalenergy.ca