STEP Energy Services Ltd.

Good day, ladies and gentlemen, and welcome to the STEP Energy Services Q3 2023 Conference Call and Webcast. 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 star zero for the operator. This call is being recorded today, November 2nd, 2023. I would now like to turn the conference over to Dana Benner, Senior Advisor, Corporate Development and Investor Relations. Please go ahead.

Thanks, operator, and good morning, everyone. Welcome to STEP's third quarter 2023 conference call and webcast. The quarter produced many excellent results, especially in the context of lower year-over-year drilling rig counts in both the U.S. and Canada. I am pleased to introduce today's roster of speakers. Steve Glanville, our president and CEO, will give some opening remarks. Klaas Deemter, our CFO, will follow with an overview of the financial highlights before turning it back to Steve for some strategy and outlook-focused commentary. We will host a Q&A session to follow. Before I turn it over to Steve, I would like to remind everyone that this conference call may contain forward-looking statements and other information based on current expectations or results for the company. Certain material factors or assumptions that were applied in drawing conclusions or making projections are reflected in the forward-looking information section of our Q3 2023 MD&A. Several business risks and uncertainties could cause actual results to differ materially from these forward-looking statements and our financial outlook. Please refer to the risk factor and risk management section of our MD&A for the quarter-ended September 30, 2023 for a more complete description of business risks and uncertainties facing STEP. This document is available both on our website and on CDAR. During this call, we will also refer to several common industry terms and certain non-IFRS measures that are fully described in our MD&A, which again is available on CDAR and on our website. With that, I will pass the call over to Steve.

Thanks, Dana, and good morning. Welcome to our third quarter earnings call. My name is Steve Glanville, and I'm the President and CEO of STEP Energy Services. Hopefully you've had the opportunity to look through our earnings release. As you see, there's a lot going on at STEP, and there's a lot of good news to talk about. First, it was another strong quarter for the company. Despite lower drilling activity versus last year in both the U.S. and Canada, three of our four business units achieved higher year-over-year revenue. Both Canadian fracturing and quo tubing bettered last year's top line, while U.S. quo tubing put up its 13th quarter in a row of sequential revenue growth and the fifth record quarter in a row. This rising trend line of revenues validates our claim that we are the industry leader in deep capacity coal tubing in North America. Once again, there are two important numbers in the quarter that I would like to highlight. First, the $52.3 million of adjusted EBITDA we generated is the best level in a quarter this year and also in line with consensus. Second, our net debt has been reduced below $100 million and by quite a bit. In fact, net debt ended the quarter at just under $90 million, which is down roughly from $116 million in Q2. The balance sheet continues to improve and is now less than 0.5 times trailing 12-month adjusted EBITDA. Historically, that would have been considered an unlevered balance sheet, but now we just call it a strong balance sheet. In these results, we also announced a major new client commitment in Canada, which is two years of significant fracturing work with a leading Montney producer, one that essentially leaves us undersupplied to meet all of our Canadian client demand as we look into 2024. We are going to address that with a solution that we will talk about shortly. I will return at the end of our earnings call to address our strategy and outlook. First, I want to turn the call over to Klaus Deemter, our CFO, to give some financial highlights. Thanks, Steve, and good morning, everyone.