Secure Waste Infrastructure Corp.

Good day, ladies and gentlemen, and welcome to the Secure Energy Q3 2022 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 Wednesday, November 2, 2022. I would now like to turn the conference over to Anil Agrawala, VP Treasury and IR. Please go ahead.

Thank you, Michelle. Welcome to Secure Energy's conference call for the third quarter of 2022. Joining me on the call today is Reni Amaral, our Chief Executive Officer, Alan Grash, our newly appointed president, and Chad Maggots, our Chief Financial Officer. During the call today, we will make forward-looking statements related to future performance, and we will refer to certain financial measures and ratios that do not have any standardized meaning prescribed by GAAP, and may not be comparable to similar financial measures or ratios disclosed by other companies. The forward-looking statements reflect the current views of Secure with respect to future events and are based on certain key expectations and assumptions considered reasonable by Secure. Since forward-looking information addresses future events and conditions, by their very nature they involve inherent assumptions, risks, and uncertainties, and actual results could differ materially from those anticipated due to numerous factors involved. Please refer to our continuous disclosure documents available on CDAR as they identify risk factors applicable to secure, factors which may cause actual results to differ materially from any forward-looking statements, and identify and define our non-GAAP measures. I will now turn the call over to Ray for his opening remarks.

Thank you, Anil, and good morning, everyone. So open today, I'd like to congratulate Alan Grant on his appointment to president and Corey Heim as our new chief operating officer. Both individuals have been with Sucure since it was founded in 2007 and are a critical part of our leadership and entrepreneurial culture. They are a big part of why we are leaders in this industry. Today, we will review our financial and operational results for Q3 2022, followed by our outlook for the remainder of the year. Our third quarter was another historic quarter for Secure. We generated record adjusted EBITDA of $154 million, achieved our $75 million synergy target ahead of schedule, and improved our debt-to-EBITDA ratio to 2.2. With the success in the business and the stronger balance sheet, we're excited to announce our capital allocation priorities that will result in significantly higher shareholder returns while continuing to prioritize a strong balance sheet. Effective with our next dividend payment in January, our quarterly dividend will jump from $0.03 per share to $0.40 annually. This is a substantial increase from our current annual dividend. This new dividend amount is sustainable backed by contracted and recurring cash flows and can grow over time. in addition we plan to begin a share repurchase program in early 2023 we will be opportunistic with our buyback program which should result in additional shareholder returns in terms of our q3 performance we continue to be extremely pleased with the progress and integration of the tervita acquisition at the end of q3 we achieved 76 million of annualized run rate cost savings that impact adjusted ebitda exceeding our target of 75 million. We have achieved additional savings from refinements in our capital structure by repurchasing outstanding 11% senior secured notes. There are additional opportunities to optimize our facility network and make operational improvements. However, we don't intend to continue reporting these synergies going forward. The macro environment for the oil and gas industry remains strong, and we see that continuing, even if the economy slows down in the near future, as the fundamental need for oil and gas should continue to be supportive. This is leading to strong demand for our infrastructure across all our business lines. In Q3, we generated a adjusted EBITDA of $154 million, a 47% increase from Q3 2021. which was our first full quarter following the Trevita transaction, and another record quarter for Secure. This allowed us to reduce our leverage ratio from 2.5 to 2.2. We remain focused on deleveraging and currently have a debt principal balance of $1 billion versus our target of $850 to $950 million. In addition, To our financial and operational strengths, our commitment to ESG remains an important part of our business. We are on track to exceed our target of 5% freshwater usage reduction, having reached 7.6% in the first half of the year. Chad will now walk us through the key financial highlights of our Q3 results. Then Alan will review our operational highlights and integration update, and I will go over more details on our capital allocation and outlook for the remainder of the year and 2023.