STEP Energy Services Ltd.

you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 7th, 2025. I would now like to turn the conference over to Steve Glanville. Please go ahead.

Thank you and good morning. We welcome you to our Q2 2025 conference call where we will review our second quarter performance and discuss our perspectives for the remainder of the year. To begin, I'll hand things over to our Chief Financial Officer, Klaas Deenter, who will walk you through the financial highlights for Q2. After that, I'll share insights into our operational performance during the second quarter and touch on our expectations as we continue through 2025. Following these remarks, we'll open the floor to your questions. Over to you, Klaas.

Thanks, Steve, and good morning, everyone. My comments today will include forward-looking statements regarding STEP's future results and prospects. Please note that these forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause our results to differ materially from our expectations. For more information on the forward-looking statements and these risk factors, please refer to our CDAR Plus filings for this quarter, as well as our 2024 AIF. Finally, please note that all numbers are in Canadian dollars, and I will round where possible. Steph's Q2 consolidated revenues decreased to $228 million from the prior quarter's revenue of $308 million. This large quarter-over-quarter swing is typical for the second quarter as the industry deals with spring breakup. This transition from winter to spring results in soft ground conditions as it thaws, limiting the ability of heavy equipment to access sites. We're seeing less impact than we have in the past due to the large paths we work on, but there's still nonetheless an impact. This quarter was in line with last year's Q2 revenues of $231 million. Q2 consolidated revenue included no revenue from the U.S. fracturing terminated operations compared to $14 million included in the prior quarter and $23 million included in Q2 of last year. As a result of the decision to terminate our U.S. fracturing operations, STEP expanded the definition of adjustity but on Q1 of 2025 to exclude the results from these operations to provide clarity on the company's normal course business activities. Therefore, please note that adjusted EBITDA from previous periods has also been updated to comply with this definition. Adjusted EBITDA for the quarter came in at $35 million or a 15% margin compared with $59 million or a 19% margin in the prior quarter and $42 million or an 18% margin in Q2 of the prior year. Steph had a net income of $6 million or $0.08 per diluted share in Q2 of this year. compared to $24 million or $0.33 per diluted share in the prior quarter. Included in Q2 2025 net income was a net loss from terminated operations of $5 million compared to a $4 million net loss from terminated operations in the prior quarter. Prior year Q2 earnings were $10 million or $0.14 per diluted share, which also included $9 million of loss from the terminated operations. During the quarter, we had free cash flow of $17 million compared to $32 million in the prior quarter and $20 million in Q2 of last year. In the quarter, we spent about $14 million on capital expenditures. This was made up of $6 million for sustaining capital, $7 million for optimization capital, and $1 million for right-of-use asset additions. In conjunction with the terminated operations of the US fracturing CGU, the company has to plan to sell some of those assets by the end of 2025. The company has $15 million of assets held for sale at the end of the quarter, which includes inventory and equipment. We purchased 166,000 shares during the second quarter under our NCIB, and no additional purchases have been made subsequent to the quarter end. We've slowed down on the NCIB a bit, given some of the second half uncertainty, focusing instead on reducing our balance sheet leverage. We're extremely pleased that we ended the quarter with net debt of $44 million, which is down from approximately $85 million in the prior quarter. And I'll turn it back to Steve for his comments on the operations and outlook.