Trican Well Service Ltd.

Hello and welcome to the Trican Well Services first quarter 2026 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session, and if you would like to ask a question during this time, please press star 1 on your telephone keypad. I would now like to turn the conference over to Mr. Brad Fedora, President and Chief Executive Officer. Please go ahead.

Thank you very much for joining us and good morning everyone. First to start the call, Scott Mattson, our CFO, will give an overview of the corridor results for Q1 2026 and I'll provide some comments with respect to the corridor, the current operating conditions and our outlook for the future, both near and far. And then we'll open up the call for questions. We've got several members of our executive team in the room here today, so we should be able to answer any questions that people may have. I'll now turn it over to Scott to start us off.

Thanks, Brad, and good morning, everyone. Just 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 were reflected in the forward-looking information section of our MD&A for Q1, 2026. 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 2025 Annual Information Form for the year ended December 31st, 2025 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 2025 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, I'll provide a brief summary of our results. My comments will draw comparisons mostly to the first quarter of last year and I will also provide some commentary about our current activity levels and our expectations going forward. Trican's results for the quarter compared to last year's Q1 were generally stronger due to an increase in operating activity and also with the inclusion of a full quarter of contribution from the Iron Horse acquisition. Overall revenues for the quarter were 330.3 million compared to the 259.1 million we generated in Q1 of 2025. Adjusted EBITDA for the quarter, 70.1 million or 21% of revenues compared to adjusted EBITDA of 61.3 million or 24% of revenues generated in Q1 of last year. Adjusted EBITDA for the quarter came in at 77.7 million or 24% of revenues up from the 62.3 million or 24% of revenues in Q1 of last year. To arrive at EBITDA, we add back the effects of cash-settled stock-based comp, recognizing the quarter to more clearly show the results of our operations and remove some of the market-to-market impact from our share price between reporting dates. On a consolidated basis, we generated positive earnings of 30.3 million in the quarter. That translates to 14 cents per share, both on a basic and fully diluted basis. compared to the 31.9 million and 17 cents per share on a basic and fully diluted basis in Q1 of last year. Profit and profit per share were impacted primarily by higher depreciation expense related to Iron Horse, our technology initiative expenses, and the higher stock-based comp during the quarter. Trican generated free cash flow, 49.6 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 $18.5 million, split between maintenance capital of about $9.6 million and upgrade capital of $8.9 million. Our upgrade capital was dedicated mainly to the electrification of our fourth set of ancillary support equipment and ongoing investments to maintain the productive capability of our active equipment. We continue to maintain a very strong balance sheet exiting the quarter with positive non-cash working capital of $142.7 million and net debt of $29.8 million. Both measures meaningfully down from the December 31st 2025 levels. Reduction in net debt during the quarter was mostly a result of some working capital harvest and the free cash flow generated in the period. With respect to our return of capital strategy, we repurchased and canceled 756,900,000 shares under our NCME program in the first quarter at a weighted average cost of $6.46 per share. Subsequent to Q1 of 2026, we repurchased and canceled an additional 289,000 shares and continue to be active in our buyback program when market prices are at levels that provide for a favorable investment opportunity. As noted in our press release, the Board of Directors approved a dividend of 0.55 cents per share, reflecting approximately 11.6 million in aggregate payments to shareholders. Distribution is scheduled to be made on June 30th, 2026 to shareholders of record as of the close of business on June 15th, 2026. 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.