Trican Well Service Ltd.

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

Thanks, everyone, for joining us. As usual, first, Scott, our CFO, will give an overview of the quarterly results. And then I'll provide some comments with respect to the corridor, the current operating conditions, and our outlook for the rest of this year and early next year. And then we'll open the call for questions. Various members of the executive team are here in the room today and available to answer any questions that may come up. So I'll now turn this back 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 Q3 of 2025. A 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 close of market last night and are available both on CDAR and our website. So with that, a brief summary of our quarterly results. I'll draw some comparisons to the third quarter of last year. and provide a bit of commentary about our activity levels and our expectations going forward. Trican's results for the quarter compared to last year's Q3 were generally stronger as overall operating activity came in a bit higher in spite of continued pressure on commodity pricing. Oil pricing in particular was hit hard as we moved through September, which led several customers to either delay or shelve projects in oilier plays. Combined with some timing shifts on natural gas-related activities, this took a bit of the wind out of our sails. on what was shaping up to be a very strong quarter. Brad will comment a little bit about our outlook on Q4 later. Our revenues for the quarter at $300.6 million compared to the $221.6 we generated in Q3 of 2024. Adjusted EBITDA for the quarter was $59.5 million or 20% of revenue compared to adjusted EBITDA, $50.2 million or 23% of revenues generated last year. Just a reminder that our results include the contributions from Iron Horse from the date of acquisition through September 30th. I would also note that our results include $2.5 million of transaction costs related to the acquisition that were expensed in the quarter. Adjusted EBITDA for the quarter came in at $66.9 million or 22% of revenue up from the $53.1 million or 24% of revenues we generated in Q3 of last year. To arrive at EBITDA, we add back the effects of cash settled share-based compensation recognized in the quarter to more clearly show the results of our operations and remove some of the mark-to-market impact of movements in our share prices between the reporting dates. And you'll note that this number was larger this quarter at $7.4 million compared to an average of about $2.3 million over the last four quarters, again, due to the movement in our share prices versus June 30th. And this is a very good example of why we always focus on EBITDAs when we have conversations versus EBITDA, as those numbers can vary pretty significantly period to period. On a consolidated basis, we generated positive earnings of 28.9 million in the quarter. That's about 15 cents per share, both on a basic and a fully diluted basis. Trican generated free cash flows, $35.4 million during the quarter. Again, our definition of free cash flow is essentially EBITDA, so less non-discretionary cash expenditures, maintenance capital interest, current taxes, and the cash settled stock-based comp piece I talked about earlier. You can see more details on this in the non-GAAP measures section of our MD&A. And again, I would note this figure is impacted both by the transaction costs that I talked about and stock-based comp I quoted earlier. CapEx for the quarter totaled $18.9 million. Again, a split between maintenance capital of about $13.5 and upgrade capital of $5.4. Again, that upgrade capital was dedicated mainly to the electrification of our fourth set of ancillary frac support equipment and ongoing investments to maintain the productive capability of our active equipment. From a balance sheet perspective, we exited the quarter with positive non-cash working capital of about $209 million. As of September 30th, we had net debt of $130.6 million, comprised of loans and borrowings of $139.1, offset by cash of $8.5. Our debt at September 30th was primarily related to the acquisition of Iron Horse and some normal working capital investing activities during the quarter. A couple of points to note, that September 30th debt number translates into just over half a turn of leverage using our trailing 12-month EBITDA figure. which does not make us uncomfortable given our outlook for the rest of this year and into early 2026. And also a portion of this is already unwound, and we would expect our debt position to trend down as we move through the end of this year and certainly into next year. With respect to return of capital, we repurchased and canceled about 100,000 shares during the quarter and closed out our 2024-2025 NCIB program. We completed that program October 4th. And under the program in total, we repurchased 13.2 million common shares at a weighted average price of about $4.27 per share. On September 30th, we announced the renewal of our NCIB program, which will allow us to purchase up to 18.4 million common shares, representing 10% of our public float as at the time of renewal. This program is scheduled to run from October 5th, 2025 through October 4th, 2026. And finally, as noted in our press release, the Board of Directors approved a dividend of 0.55 cents per share, reflecting approximately 11.7 million in aggregate payments to shareholders. The distribution is scheduled to be made on December 31st, 2025 to shareholders of record as of the close of business on December 12th, 2025. And 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.