Ensign Energy Services Inc.

Good day ladies and gentlemen and welcome to the Enzyme Energy Services, Inc. second quarter 2023 results conference call. At this time, all lines are in a 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 star zero for the operator. This call is being recorded on Friday, August 4th, 2023. I would now like to turn the conference over to Nicole Romano. Please go ahead.

Thank you, Michelle. Good morning and welcome to Enzyme Energy Services' second quarter conference call and webcast. On our call today, Bob Geddes, President and COO, and Mike Gray, Chief Financial Officer, will review Enzyme's second 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 second quarter earnings release and CDR Plus 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. Enzyme team delivered a strong quarter with increasing margins year over year and quarter over quarter as tightness in certain rig type classes continues to support the rate increases that industry realized through the back half of 2022, first quarter 23, and into second quarter 23. But with some cost headwinds building up primarily from higher R&M costs, the result of high spec rigs continue to drill longer and longer reach laterals. While operating days were fairly static year over year for the quarter, Our Canadian business unit was frustrated with 25% of its active fleet impacted by the wildfires and floods that affected operations in Western Canada in the quarter. The quarter also had a few timing drags on projects that were scheduled to start in the second quarter that have been delayed until the third quarter. EBITDA margins improved quarter over quarter, and gross margins improved. Enzyme continues to manage its balance sheet, only spending $53 million in planned maintenance capital to maintain the high-spec fleet in the second quarter. As we have mentioned, the focus continues with the goal to reducing debt by $600 million over the next three years. I'll turn it over to Mike Gray for a detailed summary of the quarter. Mike.