Thank you for standing by. This is the conference operator. Welcome to the Source Energy Services fourth quarter 2021 results conference call. As a reminder, all participants are in listen only mode, and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal operator by pressing star and zero. I would now like to turn the conference over to Brad Thomson, Chief Executive Officer. Mr. Thomson, please go ahead. Thank you, operator. Good morning and welcome to Source Energy Services fourth quarter 2021 conference call. My name is Brad Thomson, and I'm the Chief Executive Officer of Source. I'm joined today by Derren Newell, our Chief Financial Officer, and Scott Melbourn, our Chief Operating Officer. Today, I'll cover all the formal part of the call, and Scott and Derren will be available to answer any questions you may have. Before I get started, I'd like to refer everybody to the financial statements MD&A and the annual information form that were posted to SEDAR on the company's website last night. We'd like to point you to the advisory on forward-looking information found in our MD&A in our press release. On this call, Source's numbers are in Canadian dollars, metric tons, and we'll be referring to adjusted gross margin, adjusted EBITDA, which are all non-IFRS measures as described in our MD&A. Except for the items just mentioned, our financial information is prepared in accordance with IFRS. Last year at this time, we reviewed the results of 2020 with you, which was arguably one of the worst years on record for the Canadian oil and gas industry. A global pandemic, an OPEC price war, and the actions of our Canadian government that have decided to wage war on our industry made things very difficult for companies like Source. In 2021, however, we saw a very different environment as the world came to grips with COVID-19 and there was a significant increase in the demand for crude oil and natural gas. This fueled higher commodity prices, which in turn led to large increases in activity levels. With this backdrop, Source reported sales volumes in 2021, which were nearly at historic highs, and we set a number of daily and monthly sales records through the year. Our customers continued to focus on frac efficiency that allowed us to differentiate ourselves from other suppliers in the WCSB. On a number of occasions, Source was able to demonstrate its ability to deliver high volumes of sand in short periods of time. From our production facilities through to our in-basin storage facilities and logistics operations, our unique storage and distribution infrastructure continued to prove their value as we served our customers. As validation of our importance to our customers, Source entered into three new supply contracts during the year, and we renewed two other contracts. Over 91% of our sales in the year were made under contracts or directly to operators that were operating in the Montney and the Duvernay. Some of our other accomplishments in 2021 included sand sales volumes for 2021 that were 202,483,000 metric tons, which was a 26% increase over 2020 levels, producing sand revenue of CAD 258.5 million, which was a 23% increase from revenues in 2020. We achieved multiple service records in the year, including records for the largest daily and the largest monthly sales volume in Source's history of 382,000 metric tons. We saw a significant increase in the operating performance of our Wellsite Solutions division, which is the group that focuses on storage and delivery of frac sand at the well site, and it uses our proprietary Sahara frac sand handling equipment. Trucking volumes for this group increased by 52%, while revenues from the deployment of Sahara units increased by 55% over the year. Overall, the Sahara fleet had a 65% utilization, which was a 25% increase over 2020. We realized Adjusted Gross Margin in the year of CAD 60.4 million or CAD 24.33 per metric ton, which was 6% higher than 2020. Finally, we recorded adjusted EBITDA of CAD 38.6 million for the year, which was an increase of 2% over the prior year. While overall the year was positive for Source, it was not without its challenges. 2021 saw a rapid escalation in costs, while sales price realized on a per ton basis were lower than in previous year due to sales mix and the impact of foreign currency. In addition, higher freight and higher fuel costs and a much colder fourth quarter than in prior years also impacted our margins. Looking specifically at the fourth quarter of 2021, we achieved the following. Source sold sand volumes of 528,977 metric tons for the three months ended December 31st, 2021, generating sand revenue of CAD 55 million. Sand revenue was favorably impacted by the higher volumes to non-contracted customers, but frac sand prices increases were hard to implement. Average realized sand price only increased by CAD 1.67 per metric ton during the quarter, excluding the impact of mine gate sales and the stronger Canadian dollar. Wellsite Solutions revenue was CAD 11.9 million for the fourth quarter and was an increase of 24% or CAD 2.3 million compared to the fourth quarter of 2020. Our Sahara fleet enjoyed strong utilization in the fourth quarter, with a 58% increase in utilization days when compared to the fourth quarter of 2020. These utilization rates included a unit that was fully contracted through the quarter in the United States, and a second Sahara unit has also been put in service in the United States in early 2022. Cost of sales, excluding depreciation, increased by CAD 16.6 million in the quarter when compared to the same period last year, and again was primarily driven by higher transportation and freight costs incurred during the quarter, an increase in fuel costs. The extreme weather experienced during December also resulted in higher energy costs at our production facilities. Now turning to the balance sheet for a moment. On December 31st, 2021, the principal balance outstanding on our notes was CAD 158.5 million, and the balance outstanding on our term loan was CAD 18 million. Source had CAD 18.4 million drawn on its ABL, leaving CAD 12.5 million of available liquidity. With this financial position, Source has the liquidity it needs to operate effectively, and we're also in a position we can now focus on reducing our debt. Source's capital expenditures for 2021 were CAD 6.5 million, with the bulk of our expenditures related to overburden removal and Sahara enhancements. As we look ahead to 2022, our capital spend is expected to be between CAD 8 million and CAD 10 million as additional mining will be completed to accommodate the expected increase in production levels. With the proposed levels of 2022 capital spending, Source expects it will have the capacity to increase their production volumes as well as the ability to increase volume of frac sand and other bulk materials that are distributed through our terminals without making any additional capital expenditures. As I previously mentioned, the capabilities of our distribution network were demonstrated in 2021, as we moved over 380,000 tons through our distribution networks in one month. Now, as we look ahead to where we see industry activity going to in 2022 and beyond, the growing demand for oil, natural gas globally, coupled with underinvestment in supply over the last few years, has resulted in higher demand for frac sand and other bulk completion materials as we exit 2021. This increase in demand has been observed in Canada as well as the United States. While our sales will continue to be primarily centered in the WCSB, the strengthening of the U.S. market will now allow us to be opportunistic with mine gate sales of products that aren't regularly sold in the Canadian market. The industry fundamentals driving demand in Canada and the United States have also translated into the ability for Source to make meaningful price adjustments for the first time in a number of years. In early 2022, Source has been able to implement broad frac sand price increases, and based on recent transactions, we believe that the margins will again return to historic levels and will continue through 2022. Sales volumes in the first quarter of the year have been trending slightly lower than our expectations, as completion activities for many of our customers has seemed to have caught up to the drilling rate. This has eliminated the inventory of drilled but uncompleted wells, or DUCs, that have existed in Western Canada for the last number of years. We believe this will also produce a flatter, more predictable sales profile across the four quarters of 2022. In the long term, Source also believes that our prospects are very positive. An increase in demand for natural gas driven by the conversion of coal-fired power generation facilities, increased natural gas pipeline export facilities, and the completion of LNG export facilities will continue to support increased activity levels in the Montney, Duvernay and Deep Basin. Thank you for your time this morning. That concludes my formal portion of the call. Now I'd like to ask the operator to open the lines for any questions you may have. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up the handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. Once again, if you have a question, please press star then one. The first question comes from John Gibson with BMO Capital Markets. Please go ahead. Morning, everybody. First one is just, you know, you always talked about some meaningful price increases to start 2022. I wonder if you could talk also about how volumes have sort of shaped up here to start the year and I guess how they're looking going into spring breakup, especially given the colder weather. I'm sorry, John, can you repeat that question? You just broke up. Can you hear me better now? That's good, yeah. You obviously talked about the meaningful price increases to start the year. I'm just wondering how volumes have shaped up in Q1 and then maybe even going into Q2, just given the colder weather here? Yeah, John, it's Scott here. Maybe I'll take a stab at that and then let Darren and Brad jump in with any other comments. You know, I think as Brad mentioned in the prepared remarks, we're trending slightly lower than what we would have expected in Q1. And I think that dynamic is, you know, we've for a number of our customers, they've caught up to the drilling rigs, and so the inventory of DUCs isn't there. Therefore, you know, we need the drilling rig to get a little ahead of activity to get the completion activity back up to the level. As you mentioned, John, you know, we also had some pockets of cold weather that have impacted us a little bit, but I wouldn't say that's the major driver of what we're seeing in Q1. The colder weather, I'm just wondering. Yeah. If that's gonna help, maybe move some work into Q2. Yeah, you know, absolutely. I think, you know, as we see, you know, a little bit of any delays in Q1, the work then starts to move into Q2 and starts to spread out. You know, I think over the past, you know, many years, our customer group and the industry in general in Canada has gotten much better at working through Q2 and working through spring breakup. So we absolutely expect some of that, the work that may not have occurred in Q1 to push into early Q2. John, maybe I'll just pile on a little bit to give you a little bit more clarity. Of course, you're looking at what sort of activity levels gonna exist in 2022. One of the things we have seen as we come into this year is we have a little bit more visibility of 2022. We're pretty confident that we'll see a step up in that, in the volumes from what we saw last year, a meaningful step up. It's positive overall. There was a little bit of a lag, like you say, because of the cold weather. Those things will work through the system. Overall, we think it's gonna be a little bit stronger, maybe dramatically stronger, Q3 and Q4 than we've seen in the past. Yeah, I guess that's kinda my next question. I guess more specifically though, we're seeing a little bit of, you know, I think demand is there to add pressure pumping crews in Q3 and Q4. I'm just wondering how your business correlates to the ability to add pressure pumping crews. I know there have been some challenges on that side. I'm wondering, when you speak to the pressure pumpers, you know, what are you expecting there in terms of obviously the demand is there, but it might be a little bit challenging to add, you know, six crews, seven crews as we move into the back half of the year. Yeah. I think you know, from a Source standpoint, and I won't speak for on behalf of pressure pumpers, but from a Source standpoint, you know, when we see sort of lumpy demand like that, and especially in an incredibly busy quarter, versus you know, a slower period, you know, it puts a strain on the logistics infrastructure. You know, it really actually benefits Source in that in periods of time like that. You know, anytime we see sort of a really big pickup in activity, you know, you need to have all of the logistics infrastructure to be able to handle that big pickup in activity. Case in point is if we look back at 2021, that happened to us in July. Really it gives Source a distinct competitive advantage on that front. In terms of the pressure pumping community being able to add crews, I think everyone is challenged with people in this environment and pressure pumping crews businesses will be the same. If you look at Q3 as being an incredibly busy quarter, if you look at another quarter being incredibly busy, I think what happens is the dynamic in the market is it just spreads the work out through the other quarters. Got it, thanks. The last one for me, obviously the payment in kind interest ended mid-February. Can you maybe just walk through the logistics of, you know, ensuring that you can make that interest payment? Obviously, you don't wanna give guidance, but just maybe some handholding here, as you navigate through that, especially in Q1. Yeah. I'll jump in, John and Derren. Really, as we move through Q1, the you know, traditionally busy quarter, this one might not be quite as busy as some may seem, but you know, there's a natural build in our liquidity that occurs through that quarter, and we're feeling good about that. As we look out over the balance of the year and look at our liquidity forecast, we feel like we're in pretty good shape, and see no issues with making those payments as required this year. Yeah. John, just to add a little bit of color to what Darren was just saying, you know, as we come into November, December out of the year, what we do is we build inventory in two respects, inventory in our storage facilities, but we also bring in additional trains of sand so that we're prepared for January, February. Then, of course, that converts into cash liquidity in our system as we sell that product. Yeah, we're in a good position. We got it. Thanks. I appreciate the comments. I'll turn it back. Thanks. Once again, if you have a question, please press star then one. There are no more questions in the queue. I would like to turn the conference back over to Source Energy Services for any closing remarks. Good. Thank you, operator. Thank you to everybody for joining us on Source's Q4 2021 conference call. If you have any additional questions, please don't hesitate to contact myself, Scott or Darren. Always open to chatting to you about Source's business. Thank you and have a good day. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.