About Total Energy Services
Total Energy Services Inc. provides various products and services to the oil and natural gas industry primarily in Canada, the United States, and Australia. Businesses The company operates through four businesses: Contract Drilling Services, Rentals and Transportation Services, Compression and Process Services, and Well Servicing. Contract Drilling Services Total Energy provides contract drilling services through Savanna Drilling in Canada, Savanna Drilling LLC in the United States and Savanna Australia in Australia. As of December 31, 2019, the company operated a total fleet of 107 drilling rigs. The drilling rig fleet is supported by a fleet of owned top drives, walking systems, pumps and other ancillary equipment. Contract drilling services are carried out using drilling rigs and other auxiliary equipment. Contract drilling services are performed based on instructions from the oil and natural gas exploration and production customer which has contracted the company. Canadian Contract Drilling Operations The company has a fleet of 35 telescoping double drilling rigs, nine ultra-heavy AC electric telescoping double drilling rigs, 12 TDS-3000 drilling rigs, 10 TDS-2200 drilling rigs, 15 CT-1500 hybrid drilling rigs and one mechanical single drilling rig in Canada. Recent areas of operation in Canada are in Alberta, British Columbia and Saskatchewan and include the Bakken, Cardium, Montney, East Duvernay, Viking, Peace River Arch, Deep Basin and the oilsands basins. United States Contract Drilling Operations The company has three AC electric triple drilling rigs, 10 telescoping double drilling rigs, four ultra-heavy AC electric telescoping double drilling rigs and three TDS-3000 drilling rigs in the United States. Present areas of operation in the United States include the Permian basin and onshore Gulf Coast region in Texas and the Niobrara in Colorado. Australian Contract Drilling Operations The company has a fleet of five hybrid single drilling rigs in Queensland for LNG coal seam gas projects. In addition, the company operates its own fleet of trucks and associated equipment to support its drilling rig operations. Drilling Contracts Drilling contracts are awarded through bidding or on a negotiated basis. The company provides the drilling rig and drilling rig personnel and is responsible for the payment of wages for drilling rig personnel, expenses and certain other operating and maintenance expenses. The company's drilling contracts are carried out on a day-work basis. Under day-work contracts, the customer is charged a fixed amount per day based upon the number of days required to drill the well. Customers and Competition The company's customer base consists of various oil and gas exploration and development companies, ranging from small private entities to large organizations. In the United States, Savanna Drilling LLC marketed 20 land drilling rigs representing approximately 1% of the estimated total land drilling rigs in the United States. Likewise, in Australia, Savanna Australia marketed 5 drilling rigs representing approximately 13% of the estimated 39 total land drilling rigs. In western Canada, the main competitors include Precision Drilling Corporation (Precision), Ensign Energy Services Inc. (Ensign), Nabors Industries Inc. (Nabors), Akita Drilling Ltd., Western Energy Services Corp., and various smaller public and private drilling companies. In the United States land drilling market, the main competitors are Helmerich & Payne Inc., Patterson-UTI Energy Inc., Nabors, Precision, Pioneer Energy Services Corp., Parker Drilling Company, Ensign, and Independence Contract Drilling Inc. In the Australian land drilling market, the main competitors are Ensign, Easternwell Pty Ltd., Atlas Drilling Co Pty Ltd. and Saxon Energy Services Australia Pty Ltd. Rentals and Transportation Services Total Energy provides drilling, completion and production rental equipment and oilfield transportation services in western Canada through Total Oilfield Rentals Ltd., and in the United States through Total Oilfield Rentals, Inc. (collectively referred to as Total Oilfield Rentals). The equipment rented by Total Oilfield Rentals (which numbered approximately 10,590 pieces as at December 31, 2019) includes 400 barrel tanks, above-ground fluid containment pools, invert tanks, centrifuges, sump tanks, premix tanks, shale tanks, flare tanks, loaders, pressure vessels, rig mats, pumps, light towers, generators, separators, and other miscellaneous equipment. As at December 31, 2019, Total Oilfield Rentals also owned and operated a fleet of 87 heavy trucks. Customers and Competition Total Oilfield Rentals has established key relationships with active customers in its core business areas. The selection of suppliers of goods and services in the rental and transportation business is typically made by field personnel in cooperation with the customer's head office. Total Oilfield Rentals' competitors include Precision Rentals Ltd., a subsidiary of Precision Drilling Corporation, Strad Energy Services Ltd., and various other public and private corporations. Compression and Process Services Total Energy's Compression and Process Services segment is comprised of the gas compression services business (operated by Bidell) and the process and production services business (operated by Spectrum). Gas Compression Services Total Energy operates its natural gas compression services business through Bidell Gas Compression Ltd. in Canada and Bidell Gas Compression Inc. in the United States. Bidell operates out of approximately 246,000 square feet of production facilities located in Calgary, Alberta and a 100,000 square foot facility in Weirton, West Virginia. Bidell also has a network of 11 branch locations throughout western Canada and the United States from which its natural gas compression parts and service business is conducted. Bidell designs, fabricates, sells, leases, and services natural gas compression equipment to customers operating in western Canada and internationally. Historically, the substantial majority of revenues from the gas compression services business have been derived from the sale of compressor units. As of December 31, 2019, Bidell had 50,200 horsepower of compression in its rental fleet. Bidell's product line consists of reciprocating and rotary screw compressor packages, ranging from 20 to 8,000 horsepower. Bidell designs and packages skid style compressors and proprietary trailer-mounted compressors to standards, including the following: American National Standards Institute, American Petroleum Institute, American Society of Mechanical Engineers and Standards Australia. Bidell holds patents for its proprietary trailer-mounted compression package, branded the NOMAD, in Canada and the United States, the European Union, Australia and Mexico. Bidell has significant in-house engineering capabilities which enable it to focus on developing proprietary equipment designs that deliver solutions to its customers. Customers and Competition Bidell has established and retained key relationships with active customers. Bidell provides sales and services to a range of natural gas producers in Canada and internationally. Bidell's main competitors are Enerflex Ltd., Exterran Corporation, Compass Compression, Propak Systems, AG Equipment, UE Compression, CSI Compressco, Dearing Compressor and others. Process and Production Services Total Energy's process and production services business is operated through Spectrum, which entered into this business in 2012. Spectrum designs, engineers and fabricates custom made production and processing equipment for the oil and gas industry and operates out of approximately 65,000 square feet of fabrication facilities in Calgary, Alberta. Spectrum has a market presence both domestically and internationally. Customers and Competition Spectrum has established and retained various relationships with customers in Canada and internationally. Spectrum's product and service line consists of design, engineering, project management capabilities and custom fabrication to supply equipment, pressure vessels and piping for oil and gas production, heavy oil processing, refinery operations, domestic and international projects. Spectrum holds certifications from the following organizations: American National Standards Institute, American Petroleum Institute, and American Society of Mechanical Engineers Spectrum's competitors include Enerflex Ltd., Propak Systems Ltd. and a number of other public and private business operations throughout North America. Well Servicing The company entered the well servicing business with the acquisition of Savanna. The company operates its well servicing business through Savanna Well Servicing Inc. in Canada, Savanna Well Servicing Corp. in the United States and Savanna Australia in Australia. As of December 31, 2019, the company operated a total fleet of 83 well servicing rigs across Western Canada, mid-western United States and Australia. The company's fleet of service rigs were manufactured utilizing the latest in fuel, weight, and laboursaving technology available in the marketplace. Service rigs are operated by a crew of four or five workers and include additional equipment, such as circulating pumps, tanks, blow-out preventers and tools. Completion Services Completion services prepare a newly drilled well for production. Completion services might involve cleaning out the wellbore, installing production tubing, downhole and wellhead equipment. Service rigs work jointly with other services to perforate the wellbore to open the producing zones and in stimulating the producing zones to improve productivity. Well Workover Services Well workover services are provided when a well needs major repairs or modifications and often involve operations similar to those conducted during the initial completion of a well. Workovers might involve restoring or enhancing production in an existing producing zone, changing to a new producing zone, or converting the well for use as a water or steam injector well during enhanced recovery operations. Workover services also include major subsurface repairs, such as casing repair or replacement, recovery of tubing and removal of foreign objects in the wellbore. Workover activities might require a few days to various weeks to complete and additional equipment and services may be provided by the well servicing division during this process. Well Maintenance Services Well maintenance services are often required to ensure continuous and operation of producing wells. These services include routine mechanical repairs, such as repairing broken pumping equipment in an oil well or replacing damaged production tubing. Maintenance services are required throughout the life of a producing well and are required more often by oil wells than natural gas wells. Abandonment Services Well abandonment services involve the physical closure and cementing of wells. Canadian Operations The company had a Canadian service rig fleet of 57 service rigs at December 31, 2019. Present areas of operation in Canada include the Bakken, Cardium, Montney, Shaunavon, Peace River Arch, Deep Basin and the oilsands and is based in Brooks, Grande Prairie and Leduc, Alberta. United States Operations The company had a fleet of 14 service rigs in North Dakota and Wyoming at December 31, 2019. The company's United States well servicing division is based in Dickinson, North Dakota and Casper, Wyoming. Australian Operations The company had a fleet of nine service rigs and three flush-by units in Australia at December 31, 2019. The company's Australian operations are based in Toowoomba, Australia. Customers and Competition In western Canada, the main competitors include Precision, Ensign, CWC Energy Services Corp., and a number of smaller public and private well service companies. In the United States well servicing market, the main competitors are Precision, Sun Well Service, Inc., MBI Energy Services, ND Energy Services and various other smaller public and private well service companies. In the Australian service rig market, the main competitors are Easternwell Pty Ltd., Sirius Well Manufacturing Services Australia Pty Ltd. and Wild Desert Services among others. History Total Energy Services Inc. was founded in 1996.