High Arctic Energy Services Inc.

Good afternoon, ladies and gentlemen, and welcome to the High Arctic Energy Services 2023 Q1 Results Conference Call. I would now like to turn the meeting over to High Arctic's Chief Executive Officer, Mike McGuire. Please go ahead, Mr. McGuire.

Thank you, Paul, and good afternoon to everyone. Welcome to High Arctic's first quarter conference call. Today, I'll be providing an update on the press release we issued yesterday, May 11th. Following my remarks, I will hand the call over to our Chief Financial Officer, Lance Mierendorf. Lance will be discussing our financial performance for the first quarter of 2023. As usual, after our formal comments, we'll open the call to answer any questions that you may have. Before we begin, though, I'd like to remind you that certain information presented today may include forward-looking statements. Such statements reflect High Arctic's current expectations, estimates, projections, and assumptions. These forward-looking statements are not guarantees of future performance, and they are subject to certain risks which could cause actual performance and financial results to vary materially from those contemplated in the forward-looking statements. For additional information on these risks, please take a look at our management's discussion and analysis and the 2022 Annual Information Form, both of which are available on our website or on CEDA. Look under the heading Risk Factors. Following the collection last quarter of the final $28 million payment associated with the sale of our Canadian Well Servicing business, we exited Q1 with an overcapitalized balance sheet and high Arctic placed at a strategic crossroads. Having liquidated our underperforming wealth servicing business, the company remains focused on the positive opportunities in Papua New Guinea. Reinvestment in Canada remains competitive in our area of expertise, and we believe that further Canadian service sector consolidation is needed to balance supply with customer demand over the business cycle. Yesterday, the corporation announced an intention to make a $38.2 million cash return of capital to shareholders and an intention to reorganize the legal entity structure. The recommendation to reorganize is expected to include the following elements. One, a spin-off of the international business to shareholders as a private company.

Two,