Precision Drilling Corporation

Good day, ladies and gentlemen. Thank you for standing by. And welcome to the Precision Drilling Corporation's 2021 Ford Quarter and End-of-Year Results Conference Call and Webcast. At this time, all participants are on a listen-only mode. After this week's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press the Start and the 1 key on your touch-tone telephone. Please be advised that today's conference may be recorded. If you require offer assistance, please press 5 and 0. I would now like to hand the conference over to your speaker host today, Mr. Carey Ford, Senior Vice President and Chief Financial Officer for Precision. Please go ahead, sir.

Thank you, Olivia, and good afternoon, everyone. Welcome to Precision Drilling's fourth quarter and year-end 2021 earnings conference call and webcast. Participating today on the call with me is Kevin Neveu, President and Chief Executive Officer. Through our news release earlier today, Precision reported its fourth quarter and year-end 2021 results. Please note that these financial figures are in Canadian dollars unless otherwise indicated. Some of our comments today will refer to non-IFRS financial measures such as adjusted EBITDA and field level results. Our comments will also include forward-looking statements regarding Precision's future results and prospects which are subject to certain risks and uncertainties. Please see our news release and other regulatory filings for more information on financial measures, forward-looking statements, and these risk factors. Kevin will begin today's call by providing an overview of Current Market Dynamics. I will follow with the discussion of results and our financial position. Kevin will then provide an overview and outlook for our various businesses. With that, I'll turn it over to you, Kevin.

Thank you, Carey, and good afternoon. While the global recovery remains uneven and with some lingering uncertainties, the fundamentals for precision may be the best I've witnessed in four decades. Global oil demand has almost fully recovered. both with sharply reduced activity and virtually zero exploration drilling over the last two years. The resulting oil and gas prices are strong, and the markets are firmly acknowledging the rapidly tightening oil and gas supply-demand equation. The inventories of drilled, uncompleted wells, or ducts as they are called, have dwindled. Super spec rig supply is tight, tighter than most people understand, and customer demand will shortly absorb the remaining spare capacity. Labor inflation is here and real, but service price inflation is also here and it is real. As I've said in prior calls, we are marching our day rates back into positive earnings territory and then driving rates further to achieve a reasonable return on our investment capital. Precision Super Triple Rigs are the most efficient, safe, and environmentally responsible rigs that the industry has ever operated. The technologies we are deploying under our Evergreen banner have the capability to measure, track, and eliminate GHG emissions at the drilling rig and we can do this with cost-effective proven solutions. The uneven nature of the economic recovery and the risk of further economic interruptions continue to cause some uncertainty. But this uncertainty is mitigated by the laser-like focus on financial discipline by the capital markets. Precisionist customers who are generating record levels of cash flow have responded to those investor expectations with highly disciplined capital allocation strategies. Balance sheets are largely repaired and the producers are returning capital to shareholders with dividends, special dividends, and share buybacks, further cementing the capital discipline mantra. The boom-like rapid recovery scenario we've seen in prior cycles, where rigged demand correlates with the commodity price and then overshoots, is simply not possible today. Capital discipline is well entrenched throughout the industry, and this is driving a longer, slower, and extended recovery cycle, with shareholder returns remaining prioritized. Combining the measured recovery with the industry's determined focus on emissions and corporate responsibility defines a healthy, strong future for precision and for our customers. With that, I'll now turn the call back to Carey Ford for our financial results.