Total Energy Services Increases Capex Budget
Total Energy Services has increased its 2010 capital expenditure budget from $13.5 million to $27.1 million. This $13.6 million increase will be allocated as follows. $6.6 million will be directed towards the replacement and upgrade of certain existing heavy trucks and the addition of six heavy trucks; $4.5 million will be spent on land and buildings necessary to integrate operations and achieve cost efficiencies within the Rentals and Transportation Services division following the acquisition of DC Energy Services LP in January 2010; and $2.5 million will be used to expand Total's Gas Compression Services divisions' parts and service business in Western Canada.
Upon completion of the heavy truck replacement and addition program, Total's heavy truck fleet will increase from 94 to 100 heavy trucks, with an average fleet age of 3.9 years. The heavy truck additions will be deployed in time for the upcoming winter drilling season.
Total intends to finance its 2010 capital expenditure budget from operating cash flow and existing credit facilities. Total's 2010 capital expenditure budget is subject to further change during the year depending on industry conditions and business opportunities.
Total is a growth oriented energy services corporation involved in contract drilling services, rentals and transportation services and natural gas compression equipment fabrication, sales, rental and service. The common shares of Total are listed and trade on the TSX under the symbol "TOT."
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
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