Trican Well Service Ltd.

Good morning, ladies and gentlemen. Welcome to the Trican Wealth Service second quarter 2025 earnings conference call and webcast. As a reminder, the conference call is being recorded. I would now like to turn the meeting over to Brad Fedora, President and CEO of Trican Wealth Service Limited. Please go ahead, Mr. Fedora.

Thank you, everyone. Good morning and thanks for joining us. First, Scott will give an overview of the quarterly results and then I'll provide some comments on the corridor and current operating conditions and the outlook in the near future, and then we'll go to questions. We'll try to be a little quicker on this call than we normally are, just so we leave more time for questions. Several members of the team are with us today as well, so there shouldn't be a question that we can't answer.

I'll now turn that call to Scott. Thanks, Brad. So before we begin, I'd 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 MD&A for Q2 of 2025. The number of business risks and uncertainties could cause actual results to differ materially from these forward-looking statements and our financial outlook. Please refer to our 2024 Annual Information Form for the year ended December 31st, 2024 for a more complete description of business risks and uncertainties facing Trican. This document is available both on our website and on CDAR. During this call, we will refer to several common industry terms and use certain non-GAAP measures which are more fully described in our Q4 2024 MD&A. Our quarterly results were released after closing market last night and are available both on CDAR and our website. So with that, I'll provide a brief summary of our quarter. My comments will draw comparisons to the second quarter of last year, and I'll also make some comments about our quarterly activity and our expectations going forward. Trekan's results for the quarter compared to last year's Q2 were slightly higher due to increased operating activity. Customers continued to level load their programs, and as a result, activity was reasonably strong throughout the quarter. On the cost side, we saw a bit of decrease on certain items like fuel costs to do the removal of some of the carbon taxes, and we were able to do a bit more of our own trucking this quarter, which helped our transportation costs. In general, our cost structure was generally stable through the quarter, although we did experience some cost creep in certain areas like cement costs, which went up predictably May 1st. That resulted in revenue for the quarter of $213.8 million, with adjusted EBITDA of $44.9 million, or about 21% of revenue. compared to adjusted EBITDA of 40.7 million or 19% of revenues that we generated in Q2 of 2024. Adjusted EBITDAs for the quarter came in at 47.3 million or 22% of revenues, up from the 45.2 million or 21% of revenues we generated in Q2 of last year. To arrive at EBITDAs, we add back the effects of cash settled share-based compensation expense recognized in the quarter to more clearly show the results of our operations and remove some of the financial noise associated with changes in our share price as we mark to market these items. On a consolidated basis, we generated positive earnings of $19.5 million during the quarter, which translates to $0.11 per share, both on a fully diluted and basic basis. Trican generated free cash flow of $24.4 million during the quarter. Our definition of free cash flow is essentially EBITDAs, less non-discretionary cash expenditures, which includes maintenance capital, interest, current taxes and cash settled stock based comp. You can see more details on this in the non-GAAP measures section of our MD&A. CapEx for the quarter totaled 16.3 million split between maintenance capital of about 14.3 million and upgrade capital of about two. Our upgrade capital was mainly dedicated to the electrification of our fourth set of ancillary frac support equipment and ongoing investments to maintain the productive capability of our active gear. For 2025, our capital budget remains at $70.4 million, focused on a mixture of ongoing maintenance capital and targeted growth initiatives, including the fourth set of electric and solar refractive support equipment, investments in our logistics fleet, and our support infrastructure. The balance sheet remains very solid. We exited the quarter with positive working capital of approximately $114.1 million, including cash of $36.3 million. And I would note that we had a significant unwind of working capital as we worked our way through the quarter that benefited our cash position. I would expect this will build back up to a more normal level as we move through a fairly busy Q3. With respect to our return of capital strategy, we repurchased and cancelled 8 million shares under our NCIB program during the second quarter at an awaited average price of about $4 per share. We've repurchased and canceled 13.2 million shares to date under our 2024-2025 NCIB program, which represents about 69% of the total available program. As noted in our press release, following and pending closing of the acquisition of Iron Horse, the Board of Directors has approved a 10% increase to our quarterly base dividend. The increased quarterly dividend will be about 5.5 cents per share per quarter. from 5 cents per share currently, which equates to 22 cents per share on an annual basis. The distribution is scheduled to be made on September 30, 2025 to shareholders of record as of the close of business on September 12, 2025. I would note that the dividends are designated as eligible dividends for Canadian income tax purposes. So with that, I'll turn things back to Brad.