Trican Well Service Ltd.

Thank you for standing by. My name is Tina and I will be your conference operator today. At this time, I would like to welcome everyone to the Trican Well Service's second quarter 2026 results 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. To ask a question, simply press star 1 on your telephone keypad. To withdraw your question, press star 1 again. It is now my pleasure to turn the call over to Brad Fedora. Please go ahead.

Good morning, everyone. Thanks for joining us. We'll start off with Scott Matson, our Chief Financial Officer. He'll give an overview of the corridor, and then I will provide some comments with respect to the corridor, the current operating conditions, and our outlook for the near future. And then we'll open up the call for questions. As usual, we have several members from our executive team in the room today and are available to answer any questions anyone may have. I'll now turn over the call to Scott. Thanks, Brad.

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 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 31, 2025 for a more complete description of business risks and uncertainties facing Trican. The 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 on our website. So with that brief summary of the quarter, my comments will draw comparisons to the second quarter of last year and I'll provide some comments about our current active levels and expectations going forward as well. And before getting into the details of the quarter, it's important to recognize that Q2 of 2025 was an exceptionally strong period for Trican. During that time, there was significant concern across the industry regarding operators' abilities to secure sufficient water resources to support planned frac programs heading into the fall. In addition, Alberta and British Columbia experienced an active wildfire season with operators anticipating access challenges at completion locations as we moved into Q3. Both of these items had resulted in demand for available service capacity being pulled forward into Q2. As a result, Trican benefited from an unusually strong activity level throughout Q2 2025, culminating in a very, very busy June. In contrast, Q2 of 2026 reflected a more typical spring breakup period with reduced operating activity and lower equipment utilization across much of our business lines. While the acquisition of Iron Horse in August of 2025 expanded our service offering and increased our operations scale, The contribution reflected its seasonally weaker second quarter operating profile with seasonal softness further weighing on profitability. So with that, overall revenues for the quarter came in at $214.6 million compared to the $213.8 million we generated in Q2 of 2025. Again, lower activity and utilization levels throughout breakup together with the wet weather conditions in certain operating areas during June. were largely offset by the contribution from Iron Horse resulting in revenues that were broadly consistent with last year. Adjusted EBITDA for the quarter was $22.6 million or 11% of revenue compared to the adjusted EBITDA of $44.9 million or 21% of revenue in Q2 of 2025. This was driven by lower activity and utilization levels compounded by continued pricing pressure across our service lines as recovering the full impact of freight, fuel and other operating costs Increases remains challenging in a very competitive environment. Adjusted EBITDA for the quarter came in at $25.2 million or 12% of revenue compared to the $47.3 million or 22% of revenue in Q2 of last year. To arrive at EBITDA we add back the effects of our cash settled share based comp recognized in the quarter to more clearly show the results of operations and remove some of the mark to market impact of movements and our share price between the operating dates. On a consolidated basis, this resulted in a loss of $2.3 million during the quarter, translates to $0.01 per share on both a basic and fully diluted basis, compared to earnings of $19.5 million or $0.11 per share on a basic and fully diluted basis in Q2 of last year. Net earnings and earnings per share were also impacted by higher depreciation and amortization costs with Iron Horse, technology initiative expenses, and some higher share-based comp costs. While profitability was below prior year, we continue to be encouraged by the underlying customer activity levels, our market position, and ability to generate free cash flow and further strengthen the balance sheet. We generated free cash flow of $13 million during the quarter. Again, our definition of free cash flow is essentially EBITDA plus non-discretionary cash expenditures. You can see more details on this in the non-GAAP measures section of our MD&A. CapEx for the quarter totaled $20.8 million. We split between maintenance capital of $9.5 million and upgrade capital of $11.3 million. Our upgrade capital was dedicated primarily to the electrification of our fourth set of ancillary frac support equipment, construction of Canada's first 100% natural gas-fueled continuous heavy-duty hydraulic fracturing fleet, 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 $81 million. and a cash balance of $15.4 million with no outstanding debt. During the quarter, we harvested significant working capital as receivables were collected following an active winter season and inventory levels reduced accordingly. Those proceeds were used to repay our outstanding borrowings and further strengthen our balance sheet. With respect to our return of capital strategy, we repurchased and cancelled 885,000 shares under our NCFE program during the quarter. at a weighted average cost of $7.28 per share. Subsequent to quarter end, we repurchased and canceled 305,000 shares and will continue to be active with 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 5.5 cents per share, reflecting approximately $11.5 million in aggregate return to shareholders. This distribution is scheduled to be made on September 30th, 2026. To shareholders of record as of the close of business on September 15th, 2026. And I would note that the dividends are designated as eligible dividends for Canadian tax purposes. So with that, I'll turn things back to Brad. Okay, thanks.