Superior Plus Corp.

Good day and thank you for standing by. Welcome to the Superior Plus 2026 Second Quarter Results Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. I would now like to hand the conference over to your speaker today, Chris Lichtenheldt, Vice President, Investor Relations.

Thank you. Good morning, everyone, and welcome to Superior Plus' conference call and webcast to review our 2026 second quarter results. On the call today, we have Allan MacDonald, President and CEO, Grier Colter, Executive Vice President and Chief Financial Officer, and Dale Winger, President of Soteris. For this morning's call, Allan and Grier will begin with their prepared remarks, and then we'll open the call for questions. Listeners are reminded that some of the comments made today may be forward-looking in nature and information provided may refer to non-GAAP measures. Please refer to our continuous disclosure documents available on CDAR Plus and our website. The dollar amounts discussed on today's call are expressed in U.S. dollars unless otherwise noted. I'll now turn the call over to Allan.

Thanks, Chris. Good morning, everyone. Thanks for joining us today. Well, Q2 was another quarter of meaningful progress for Superior. We delivered year-over-year growth in adjusted EBITDA, driven by strong performance across the business, including a record second quarter for Soteras. Adjusted EBITDA was $36.8 million, up 10%, and adjusted EBTDA per share grew by approximately 40% to $0.07, driven by higher EBITDA and lower shares outstanding. McGreer will take us through the financial details here shortly. Before I dive into the details of the quarter, I want to spend a moment on what's most important. The strategic priorities that continue to guide our decisions and shape the future of both Soteris and Propane. At Soteris, the strategy is straightforward and has two key pillars. First, defending our leadership position in the well site market by being the safest, most reliable and lowest cost operator. Second, accelerating growth by expanding our hub network, entering new geographies and opening new verticals. We committed to that strategy when the well site market was under real pressure In propane, the mandate is different. This is a mature, seasonal, weather-dependent business where growth will come from execution rather than the market itself. Our priority is a systematic rebuild of the way we work, how we deliver, how we buy, and how we retain and acquire customers. What I want to do this morning is walk through both businesses within the context of those commitments. What we said we would do, what we've done, and where we stand relative to our own expectations. Now, Soteris is the mobile gas solutions leader. Our value proposition is simple. We safely deliver reliable energy solutions that help customers maximize uptime and reduce operating costs. Soteris isn't just a gas transporter, it's a mobile energy infrastructure company. Whether it's fueling oil field operations, truck fleets, industrial plants, or AI data centers, the business model is the same. Compress natural gas, transport it where pipelines don't exist or aren't available, and provide the equipment needed to use it safely and reliably. Starting with our first commitment to defend the well site, our strategy is paying off. We've maintained our market share and delivered record second quarter and first half volumes. Most importantly, we achieved this while delivering our best safety record in recent history. In terms of pricing in WellSight, while we've continued to face a year-over-year headwind in the second quarter, we've now had four quarters of stable pricing, and our margins and returns in the business remain robust. Our second commitment is accelerating growth, and the results this quarter are the clearest evidence yet that the strategy is working. Looking at the quarter, a key contributor to Sataris's outstanding results is the continued momentum we're seeing in the data center market. Industrial volumes increased approximately 50% in Q2. That growth is driven by a diverse set of customers, including not only new data center business, but also expanding work with other power generation customers and in existing markets such as mining. Notably, this growth is occurring even before our most significant data center project comes online in the second half of next year. Now, Soteris is a North American company, not a regional player, and we continue to expand the largest hub network in the industry, being the first to market for our customers. We now have 23 hubs across North America, with Utah recently coming online in May and already emerging as one of our highest volume locations. Houston will be opening this quarter, and California will follow later in 2026. Each new hub expands the addressable market for our industry-leading fleet, further building our funnel of opportunity with modest incremental capital. Beyond the growth we're seeing today, the pipeline of prospective data center opportunities also continues to expand. It is substantially larger than it was a year ago, and we continue to see strong interest from prospective customers seeking scalable energy solutions. A number of our early data center projects have now extended beyond their original timelines. This is creating longer duration work for Soteris and reinforcing the value of our ability to deliver reliable energy where and when customers need it and the widening gap between energy demand and the infrastructure expansion. We continue to win new business as well. Since the last quarter, we secured another data center contract, smaller than our largest award, but a further proof point of the demand We believe we're at an inflection point for Soteris. We're seeing increased demand for CNG as a preferred energy solution across a broader set of industries. Infrastructure constraints, diesel price volatility, and emissions requirements Our driving cluster is toward delivered energy and our expanding hub network puts us in a position to serve them. That brings me to another significant announcement we made today, the launch of our mobile fleet CNG fleet fueling business. Mobile fleet fueling is designed to help logistics companies and other fleet operators accelerate the adoption of CNG powered trucking. It's a competitive solution offering both economic and environmental benefits. By bringing fuel directly to their fleets, we help customers avoid off-site refueling, materially lowering their operating costs, reducing emissions, and increasing the time their drivers are on the road. And we are well positioned here given our focus on safety, reliability, and operational excellence. We also announced our first mobile fleet fueling contract and the opening of a new CNG supply hub in Houston, Texas. Under a two-year agreement, Soteris will provide turnkey fueling services for a leading global logistics company, fueling approximately 100 Class 8 natural gas trucks from our new Houston hub. We expect Houston to commence gas flow in the third quarter of 26, providing a base load volume for the facility from day one. Now, this is an important proof point of the value proposition of mobile fleet fueling and for the broader role Soteris can play as CNG adoption expands. We believe CNG power trucking has significant long-term potential. Advances in technology are improving CNG engine performance and economics and expanding the addressable market, while customers are increasingly focused on operating costs, reliability, and environmental benefits. For context, there are more than 3 million tractor trailers on the road in North America. Now, we're not going to forecast how quickly that converts, But the market provides a long runway of opportunity. As a market leader across the continent, Soteris is well positioned to serve this sector in a way that's competitive, scalable, and aligned with where we believe the industry is headed. Moving now to the propane business, the business performed as expected during what is always a seasonally slower period. I want to be straightforward about where we are because this transformation is headed in the right direction. but as previously indicated, it's taking longer than we initially said it would. Our teams remain focused on improving service execution, customer retention, and operational readiness ahead of the upcoming heating season. Against these three priorities I mentioned, how we deliver, how we buy, and how we retain and acquire customers. Overall, we've made meaningful strides since last winter. Tank levels are healthy, supported by proactive fills throughout the year and we've improved coordination across field operations, supply teams and customer service. We also continue to strengthen forecasting, inventory management and delivery planning across our footprint. What we are pleased with the work our teams have done and continue to do, we remain focused on both customer retention and acquisition going into the second half of the year. The improvements we've made are real and permanent. We're continuing to drive progress and success is not a matter of question of if, it's a question of when. Now before I hand it over to Grier, a word on capital allocation. When we talk about our recent step up in capital spending, I want to be clear about what this is. This is not maintenance or the obligatory cost of keeping the business running. It's growth investment. New mobile storage units and equipment being deployed for contracted work. We're investing in scaled capacity to serve demand we've already won. And it's being funded from the cash the business generates. We're also being selective. Growth for the sake of growth is not our objective. We're not chasing every opportunity in front of us. We'll continue to allocate capital only where we believe it creates meaningful long-term shareholder value. So with that, thank you. I'll hand things over to Grier.