Total Energy Services Inc. Announces Preliminary 2026 Capital Expenditure Budget and Dividend Increase

Executive Summary

• Total Energy Services Inc. disclosed a preliminary 2026 capital expenditure budget of $55.8 million, split between $34.8 million for maintenance and $21.0 million for growth initiatives.
• The company announced a 20% increase to its quarterly dividend, raising it to $0.12 per common share effective Q1 2026.
• Key projects include construction of a new service rig in Australia (operational by Q2 2027) and continued expansion of the North American natural‑gas compression fleet.

Key Details

• Total 2026 CapEx: $55.8 million
• Maintenance capital: $34.8 million
  • $28.4 million for equipment maintenance, re‑certifications, and new drill pipe purchases.
  • $6.4 million non‑recurring (ERP system upgrade/harmonization – $4.0 M; acquisition of a U.S. operating facility – $2.4 M).

• Growth capital: $21.0 million

  • New service rig in Australia, slated for completion and start‑up by Q2 2027 under a long‑term contract.
  • Expansion of North American natural‑gas compression fleet.

• Carry‑over CapEx: Approximately $24.5 million of 2025 commitments will roll into 2026, covering:

• CPS segment’s U.S. fabrication capacity expansion (completion expected Q1 2027).
• Upgrade and reactivation of an idle Australian service rig (operational by Q2 2026).

• Upgrades to several Canadian drilling rigs currently in service.

• Dividend Increase: Board approved a 20% increase, raising the quarterly dividend to $0.12 per common share beginning the quarter ended March 31 2026.

• Financing Plan: The entire capex program is intended to be funded with cash on hand and cash flow from operations; no external financing disclosed.

Notable Quotes

(No direct quotes were provided in the release.)