Ensign Energy Services Inc.

Good afternoon, ladies and gentlemen, and welcome to the Ensign Energy Services Inc. first quarter 2023 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press zero for the operator. This call is being recorded on Monday, May 8, 2023. I would now like to turn the conference over to Nicole Romano, Investor Relations. Please go ahead.

Thank you, Joelle. Good morning and welcome to Enzyme Energy Services' first quarter 2023 conference call and webcast. On our call today, Bob Geddes, President and COO, and Mike Gray, Chief Finance Officer, will review Enzyme's first quarter highlights and financial results, followed by our operational update and outlook. We'll then open the call for questions. Our discussion today may include forward-looking statements based upon current expectations that involve several business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, political, economic, and market conditions, crude oil and natural gas prices, foreign currency fluctuations, weather conditions, the company's defense of lawsuits, the ability of oil and gas companies to pay accounts receivable balances, or other unforeseen conditions which could impact the demand for the services supplied by the company. Additionally, our discussion today may refer to non-GAAP financial measures such as adjusted EBITDA. Please see our first quarter earnings release and CDR filings for more information on forward-looking statements and the company's use of non-GAAP financial measures. With that, I'll pass it on to Bob.

Thanks, Nicole. Good morning, everyone. I'll just start with a quick summary before Mike gets into some of the details. So a strong quarter with increasing margins year over year and quarter over quarter. as tightness in certain RIC-type classes continues to support the rate increases that industry realized through the back half of 2022 and into the first quarter of 23. Every one of our operational areas, U.S., Canada, and international, delivered significant operating day increases. The quarter had a few timing drags for projects that were scheduled to start in Q1, have been delayed until the second quarter. EBITDA margin jumped another 5%, and gross margins on our high-spec rigs jumped about 15%. Enzyme continues to manage its balance sheet, spending only $41 million in planned maintenance capital to maintain the high-spec fleet in the first quarter. The target for CapEx maintenance and upgrade is still around $157 million for the year, and the focus is reducing debt by $600 million over the next three years. I'll turn it over to Mike for a detailed summary of the quarter.