Good morning, ladies and gentlemen, and welcome to the STEP Energy Services first quarter 2024 conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 9, 2024. I would now like to turn the conference over to Steve Glanville, President and CEO. Please go ahead. Thank you, and good morning. Welcome to our Q1 2024 conference call. My name is Steve Glanville, and I'm the President and CEO of STEP Energy Services. I'd like to invite Klaas Deemter, our Chief Financial Officer, to provide an overview of our financial results for Q1, and then I'll provide some comments on operating conditions thus far in 2024 and what we're seeing for the remainder of the year. And then we'll open the call for questions. Over to you, Klaas. Good morning. Thanks, Steve. Before I begin, I'd like to remind listeners 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 Q1 2024 MD&A. 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 Annual Information Form for the year ended December 31, 2023, for a more complete description of the business risks and uncertainties facing STEP. The AIF, along with our financial statements and MD&A, are available on our website and on SEDAR. Finally, please note all numbers are in Canadian dollars unless noted otherwise, and I will round where possible. STEP had an exceptional Q1 with consolidated revenues of CAD 321 million, up from both the Q4 and Q1 2023 revenues of CAD 195 million and CAD 263 million, respectively. Adjusted EBITDA for the quarter came in at CAD 80 million as compared to CAD 18 million in Q4 and CAD 45 million in Q1 of the prior year. Free cash flow was CAD 53 million for the quarter compared to -CAD 4 million in Q4 and CAD 17 million in Q1 of last year. These results are attributable to higher utilization, exceptional operating efficiencies, and tight cost management in the quarter, as well as the transfer of some U.S. fracturing equipment to Canada. STEP earned CAD 41 million or CAD 0.55 per diluted share in net income for Q1 2024, compared to a loss of CAD 5 million in Q4 or CAD 0.07 per diluted share and CAD 20 million or CAD 0.26 per diluted share in Q1 of 2023. These first-quarter results demonstrate the powerful economic potential of steady utilization and is a template for what this company is capable of doing. Turning now to the geographical regions of Canada and the U.S., I'll provide a few key highlights. In the Canadian segment, Q1 revenue was CAD 241 million and was a record quarter for the company. As a reminder, a previous high watermark was CAD 174 million achieved in Q1 of 2023. Compare this to CAD 112 million for Q4 of last year. Canadian fracturing revenues were approximately CAD 198 million in the quarter, up from both Q4 and Q1 of the prior year, representing STEP's highest revenue quarter for Canadian fracturing. Steve will touch more on this, but the key factor in this performance was strong client alignment, which enabled STEP to operate extremely efficiently and maintain high utilization through the quarter, increasing operating days to 450 from 233 in Q4 and 312 in Q1 of 2023. The Canadian coiled tubing business unit, which also includes ancillary fluid and nitrogen pumping crews, also generated a record quarter, earning revenue of CAD 43 million, surpassing the revenue of CAD 31 million in Q4 and CAD 35 million in Q1 of 2023. Operating days were also higher for this service line, increasing to 615 days from 510 in Q4 and 572 in Q1 of 2023. Q1 segment adjusted EBITDA for the Canadian region was CAD 72 million versus CAD 15 million in Q4 and CAD 45 million in the first quarter of 2023. Pricing has come off a bit in Canada this year, but the higher utilization and tight cost management gave the company better leverage on its fixed cost structure, resulting in an adjusted EBITDA margin of 30%, up from 13% in Q4 and 26% in Q1 of 2023, both quarters that had lower utilization. Turning to the U.S., we had Q1 revenues of CAD 79 million, down from CAD 83 million in Q4 and CAD 89 million in Q1 of last year. Q1 fracturing revenues of CAD 38 million were down 6% from Q4 and 23% from the first quarter of 2023. U.S. fracturing had three active fracturing fleets in Q1 of last year, but only two active fracturing fleets in Q1 of this year and Q4 of last year. Utilization was steady through much of the quarter, with some weakness towards the end of the period. U.S. Coiled tubing Q1 revenue was CAD 41 million, which was down 3% from Q4 but up 4% from a year ago. Utilization was affected by inclement weather conditions in both the southern and northern operating basins during the quarter, but was down only marginally from Q4 and was up from Q1 of 2023. Adjusted EBITDA of CAD 13 million was up from CAD 7 million in Q4 and CAD 5 million in Q1 of 2023. Adjusted EBITDA margin was 16%, up from 9% in Q4 and 5% in Q1 of 2023. Turning now to the allocation of our cash flow on our balance sheet, we spent CAD 36 million on capital in the quarter, up from CAD 27 million in the first quarter of 2023. Our Q1 capital spend can be divided into CAD 11 million of sustaining capital, CAD 19 million of optimization capital, and CAD 5 million of right-of-use asset additions. Approximately two-thirds of the ROU asset additions were units that we had been renting on a short-term basis and have now converted to a long-term lease. Our cash flow commitment won't change, but the reclassification will result in a slight boost to our EBITDA. The intensity of the work scope in the first quarter resulted in a substantial working capital build of CAD 49 million. Our working capital fluctuates with the seasonality of our business, and as expected, working capital was higher at the end of Q1 compared to Q4 due to the high utilization in the quarter, pushing up our AR balance. We expect working capital to go lower at the end of Q2 as we harvest these receivables. A consequence of our working capital build is that we ended the quarter with a net debt of CAD 108 million, up from approximately CAD 88 million at the end of last year. Debt reduction remains a core focus of our management team, and we expect that this balance will reduce at our Q2 release and continue reducing through the balance of the year. Going back to 2018, the company has paid down over CAD 200 million of debt. This reduction of debt is the first phase of our shareholder return framework, and we've seen that value accrue to equity holders. In addition to Adjusted EBITDA, one of STEP's other key non-GAAP measures is Free Cash Flow. We had Free Cash Flow in the first quarter of CAD 54 million compared to CAD 17 million in Q1 of 2023. This translates to Free Cash Flow of CAD 0.72 per diluted share or a 20% quarterly yield, which is higher than the prior year's Q1 2023 results of CAD 0.23 per share or a 7% quarterly yield. Our rolling four-quarter free cash flow per diluted share is CAD 1.62 or a 46% yield. You can read more details on this in the non-GAAP measures section of our MD&A. Finally, I'd like to provide an update on our Normal Course Issuer Bid, which began at the end of 2023. To date, STEP has purchased just over 1.5 million shares at an average price of CAD 4.16 per share, of which just over 900,000 shares were repurchased in Q1. For reference, our book value per share at Q1 was CAD 5.56, substantially higher than where we're trading at today. We continue to see excellent value in STEP shares, and we'll continue with our share buyback program. I'll now turn it back to Steve for his comments on operations and outlook. Yeah. Thanks, Klaas. Let's start by reviewing the current market dynamics. In the first quarter of 2024, we saw divergence in pricing trends between natural gas and crude oil. Mild winter conditions across North America and Europe contributed to high natural gas supply levels, keeping prices low. We've seen major energy players like EQT and Chesapeake Energy and others curtail production and reduce capital programs to manage volumes, but storage levels have continued to grow in Canada and the U.S. Conversely, crude oil prices rallied, supported by ongoing production restraint from OPEC+ and concerns over tensions in the Middle East. Despite this, U.S. drilling rig counts remained stable, with modest increases in oil-directed rig count offset by declines in gas-directed drilling. The Canadian market was relatively stronger, with rig counts tracking at or close to the upper end of the five-year range through the quarter. As Klaas has highlighted, Q1 was an incredible quarter for our company. We achieved record quarterly revenue, demonstrating the torque in our business from combining steady utilization, high-intensity work programs, and a commitment to operational excellence. I want to draw your attention to a few highlights. In Canada, we saw significant fracturing revenue growth driven by improved efficiencies and higher intensity well completions, reflecting strong client alignment and technical leadership. We deployed a sixth fleet in Canada in the first quarter based on client-backed commitments and saw a substantial increase in operating days. As you can see from the stats we show in our MD&A, our fracturing utilization improved significantly from Q1 last year, increasing from 69% to 83%. The higher intensity was reflected in the amount of proppant pumped, which increased in Q1 2024 to 559,000 tons, a 150% increase over Q4 2023 and almost a 90% increase compared to Q1 of 2023. The amount of sand we pumped is staggering. All the sand gets to the well site on a truck, meaning that we had nearly 14,000 loads of sand delivered to our job sites. We hauled a significant amount of this sand ourselves with our industry-leading logistics fleet, providing additional value to our clients as well to our company. Activity for STEP's coiled tubing and ancillary pumping and fluid services was also strong throughout the first quarter. We had high utilization on our fluid pumping services and added a 10th coil unit to our fleet, enabling us to set a record for the amount of running meters and revenue record for this combined service line. This outstanding performance could not be possible without strong alignment with our valued clients. We strive to deliver outstanding service to our clients and earn a fair return for our stakeholders. Managing the challenges of weather, drilling delays, and subsurface issues requires service providers and clients to work together to make things work, and we thank our clients for their flexibility. Our U.S. operations delivered improved profitability this quarter despite running fewer fleets, thanks to higher operating efficiencies and a focus on cost management. The improvement in efficiencies is evident in the proppant pumped, which increased by 27% compared to the prior year despite a decrease in operating days by 28%. Our coiled tubing utilization was higher than last year despite some challenging weather conditions in both the southern and northern basins. We continue to see strong results from this business, with a focus on client alignment delivering some of the most complex milling programs for the largest operators in each basin. Our success in the first quarter underscores the importance of evaluating our business on a year-over-year basis rather than a quarter-over-quarter. We continue to focus on a high utilization model coupled with high pumping and proppant intensities. This model reflects our culture of continuous improvement and operational optimization, which is integral to our success. Additionally, this quarter underscored that the model is most effective when it is executed by the best professionals in the business. I'm incredibly proud of the work our teams of operations professionals did this quarter. Their drive towards excellence, their tenacity, and focus on exceeding client expectations is the main factor in our reputation and success. I'd like to discuss several key differentiators that set STEP apart, including our technology and performance. Our strategic investment in equipment enhancements, such as upgrading our asset base to Tier 4 dual-fuel capable systems, have proven to be significant differentiators for our company. Clients are increasingly interested in reducing diesel consumption during operations, and our dual-fuel capable assets, along with our operational expertise and process, can displace up to 85% of diesel consumption. In our recently published 2023 ESG report, we highlighted that approximately 26.7 million liters of our clients' diesel was displaced with natural gas using dual-fuel equipment in 2023. In this past quarter, we displaced 17.5 million liters, representing substantial savings for energy producers as they seek ways to reduce diesel consumption and associated emissions. This quarter, STEP achieved several records. In addition to the amount of proppant pumped by our Canadian business units, STEP's fracturing service line set monthly pumping records in both geographic regions, achieving 629 hours in one month in Canada and 547 hours in the U.S. This underscores the capabilities of the professionals operating and managing these service lines, as well as the exceptional alignment with key clients that made this possible. During the quarter, STEP reactivated one coiled tubing spread, bringing the total active spreads in Canada and in the U.S. to 22, which is among the largest fleets in North America. The fleet continues to set depth records in the U.S., where we hit a depth record of 8,356 meters or 27,413 feet during the first quarter. On the topic of coiled tubing services, wells are becoming increasingly complex, with long laterals exceeding three miles in length. As coiled tubing services evolve, our technology offering, like STEP-conneCT, which is a real-time data acquisition tool conveyed by an E-line string, allows clients to optimize complex well operations and achieve cost savings. In a recent post-project analysis, we determined that a client saved approximately 15% of the project budget using STEP-conneCT. Additionally, the tool significantly enhances operational consistency and supports real-time decision-making in these complex extended laterals. We are industry leaders in deploying this technology, and our clients are seeing the benefits. Finally, I want to emphasize our geographic diversity as a key differentiator. Our ability to deploy assets between the U.S. and Canada was evident in Q1. We moved fracturing equipment from the U.S. to Canada based on a client-backed work program, allowing us to allocate resources to the basins that keep the fleet highly utilized, supporting our high utilization model. This quarter's results demonstrate the benefits of our geographic diversity, enabling us to optimize margins and leverage market opportunities effectively. The medium to long-term outlook for the North American energy sector remains positive, with major infrastructure projects like the TMX and the upcoming LNG initiatives expected to strengthen the market. We anticipate some near-term volatility in our U.S. fracturing division in Q2 but are seeing our coiled tubing division pick up some of that slack. We'll see a bit of a spring breakup slowdown in Canada mid-quarter, but overall, we expect a good quarter for Canada. Visibility into the second half of the year is good. We expect an active Q3 to carry into Q4, but it's likely that activity will ramp down in a mid-quarter as our clients reach the limits of their capital budgets and achieve their production targets. Q4 is becoming increasingly difficult to predict, so our outlook is similar to cautious. Our strategic priorities focus on generating free cash flow to continue our dual-pronged shareholder return model of debt reduction and share buybacks, as well as upgrading our asset base. We believe in our business value and our commitment to delivering shareholder returns through technological leadership and operational excellence. Finally, I want to recognize our exceptional professionals at STEP Energy Services for their dedication and achievements. Now I invite the operator to open the floor for any questions or comments. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star followed by number one on your touch-tone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by number two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Keith Mackey from RBC Capital Markets. Your line is now open. Please ask your question. Hi. Good morning. Just wanted to start out in Canada for a second on that 6th fleet. Can you just talk about the outlook for utilization running six fleets in Canada? I know you've got some ability to move equipment back and forth across the border. Do you expect to keep all of that equipment in Canada and utilized in an acceptable manner, or do you think some of that footprint might have to change throughout the year? Good morning, Keith. It's Steve. Good question. I mean, we've made that decision back in Q4 based on our client-backed program to move some assets up from the U.S. And as we see our work schedule, obviously, Q2, with a typical seasonal breakup, we'll see a bit lighter utilization. But our team, of course, is looking for a well-deserved kind of a nice reset. But we do see activity for six frac t fleets in the Q3 as well as in the Q4. So our plan is to continue to operate that. But we will shut it down if we see prices drop, and it's an oversupply. But we think the market's pretty balanced right now. Yeah. Okay. Got it. And just continuing that comment about a balanced market, and you also, I think, mentioned pricing is down a bit year-over-year. Can you talk about what you think the current state of the market means for pricing going forward? Do you see it being kind of flat from Q1, or is there going to be some move up or down, do you think? I think, Keith, we demonstrated that, obviously, we're happy with where the prices are at, but it is all based on high utilization. And I think our clients are realizing that. They see the value in keeping a dedicated fract fleet, or what we've proven is, from an efficiency standpoint, we can gain margin as long as they can provide the hours to us. And I think pricing, of course, is important, but more to that is not having gaps in our schedule. And I think that's where the industry really needs to lead to, is just keeping that asset base active. Yeah. Okay. Got it. I'll leave it there. Thank you very much. Thank you. Your next question comes from the line of Waqar Syed from ATB Capital Markets. Your line is now open. Please ask your question. Good morning and congrats on a great quarter. Steve, I just wanted to understand a little bit about the concept of client alignment. Does that mean that you're picking up clients that can provide you with efficiencies that your fleets can deliver, or is it more so you're choosing clients, or are you just with the existing client base? Are you working better together as a team to create those efficiencies? It's been an interesting dynamic, Waqar. Thank you for recognizing a great quarter that we had. As you've seen, our clients are getting larger through acquisition. I would say that we saw that in the U.S. primarily last year, as well as some in Canada. Really, what we talk about client alignment for us is aligning with clients that have full, steady programs. Sorry, I'm just hearing a bunch of typing. Is that you, Waqar? Is that maybe the operator? No, it's not my end. I thought it was on your end. No, not my end. No, no, no. It must be the operator. So sorry. But yeah, really, what we're seeing is our clients are consolidating. The Montney, of course, is a world-class resource that we have in Canada. And we're just seeing operators or clients having programs that are lasting a full year of activity with a full-time fract crew. And I think that's where you gain back to my point about efficiencies. We're able to haul a majority of our sand that's pumped in Canada with our logistics team. And when you couple that all together, you really have, I would say, a finely oiled machine on creating the margins that we're happy with. If I can just add, too, we were deliberate in targeting certain clients that had that large work scope, Waqar. So we've got three clients or kind of two big ones and then a number of very solid ones that are kind of just a bit smaller that provide steady work scope. So it's much easier for us to forecast utilization when you've got these longer-term commitments from clients. As well, with our bundled services offering, a couple of these clients, not only do we provide fracturing service, we provide pump-down services and coiled tubing. This efficiency gains then and this client alignment, you think, is sticky at least through the course of this year? Yeah, this year and we believe into next year as well. Okay. Great. Second, on the U.S. side, in the Permian, there was some wording in the MD&A which leads to me believe that you may be thinking of maybe relocating some assets. Could you talk about what your plan is for your two U.S. dual-fuel fleets? Yeah. As of today, we're happy with our size of operating the two fleets in the U.S. I don't think it's a surprise to anybody that the pricing isn't where we need it to be. It needs to go higher. And the crews that have left the Haynesville or the gas markets to kind of rush to the Permian hasn't benefited us at all or really a lot of the fract companies. So I think we do have a niche offering with our dual-fuel technology. There's still 40% of the fract fleets that are operating today are strictly using diesel. So we do have that advantage. And I guess, Waqar, as we've mentioned before, is our diversity of having operating basins in both the U.S. and Canada. This allows us to put that asset base where we see the best margin. Sure. When you think of relocation, you're not thinking of moving from Permian to the north of the U.S. or some other base in the U.S. If you ever think about it, would be relocation to Canada? Yeah. I would say right now, we're focused in West Texas and the Permian. Okay. Just one final question. Of the 490,000 horsepower that you have, how much horsepower is fully active today? Yeah. We would basically consider all of it active, Waqar. When you look at these large pads, we were on a pad in Canada for like 62 days from the time we rigged up to the time we rigged down. And in order to be pumping at 22 hours a day on average, you need to make sure you have an additional asset base that's available to basically come in and provide relief for maintenance. And so in order for that, you have this taxi squad of assets that we've talked about in the past. Right. Okay. Great. Well, thank you very much, and congrats again on a great quarter. Thank you, Waqar. Your next question comes from the line of John Gibson from BMO Capital Markets. Your line is now open. Please ask your question. Good morning and congrats on the strong quarter again. I'm just wondering. Hey, John. First, on the cadence of spending from producers in Canada, are you seeing a lot more front-waiting at the beginning of the year now? I guess what I'm wondering is, pending all things come together, could you achieve these results even if it's on sort of a monthly basis at some point in the back half of the year? A great question, John. And I mean, our clients that we've aligned with in the past have typically been front-end loaded. Call it the first three quarters. They're quite active. And then, unfortunately, we demonstrated in Q4 not a great quarter to continue to have fixed costs, which are very high in this business. So I think we've troughed on a natural gas perspective, I hope anyways. And I would see more activity if gas were to reach $3 in the back half of this year. We are not modeling that today. We're being quite conservative for kind of Q4. But I guess, John, it doesn't take much, right, where people move capital forward. What we saw in Q1 was everyone was full. The calendars were full. I think from our client's perspective, we were fortunate enough to have a March that we didn't have an early thaw season, or else there would have been a lot of work that never got done in the quarter. So just bearing that in mind, I believe if we do see obviously, LNG Canada starts offtaking product, call it this time next year or perhaps even earlier, I do believe that there'll be some more activity that we see in Q4. I think one thing to add to, Steve, you talked about is the size of these pads. If a pad hasn't started by kind of mid to late November, clients are very reluctant to start just given the challenges of keeping water heated over a holiday break and things like that. So that's where we saw that last year in Q4 last year where the work in kind of mid-November, it just ramped down considerably. LNG Canada could be a catalyst that would change that for this coming year. Obviously, gas prices weren't that attractive at the end of last year. But the client's focus is to have things wound down comfortably, but before the end of the year. There's some that we can incent with some attractive pricing to work into December. By and large, it's getting more difficult to convince them of that as these pads get bigger and bigger. Okay. Great. Second one for me, you touched on last-mile logistics being a big constraint. Obviously, you've done a lot of work on this front. But wondering how you frame this in terms of monetization. Are you charging clients for last-mile or just gaining more work based on your availability to do so? No, we're definitely charging for that, John. I think we looked at this opportunity a number of years back of we've seen, obviously, a proppant intensity increase per stage to really compare itself to the Permian. And the difference, of course, in the Permian, you have localized sand mines. In Canada, we ship about 80% of our proppant that's shipped up on rail. So for us, it's really quite a, I would say, an orchestrated event to be able to have, what, 60 trucks running around the clock 24 hours a day providing proppant to all of our fract fleets. And I would argue our team is one of the best in the business to be able to gain those efficiencies. So there's two benefits with that that we see. Number one is we can provide proppant to crews that are pumping faster, being more efficient. We have that flexibility. Two, it's just isolating us from any third-party charges that increase. Typically, in Q1, we see an increase of third-party trucking costs. We're isolated by having our own fleet. Okay. Great. Last one for me. On your U.S. business, it's obviously been challenged on the fract side, but offset by more stability in coiled tubing. How do you think about these two things for offsetting each other for the balance of the year in terms of margins? Yeah. The coiled tubing business, we obviously like that. We've stood up a 13th coiled tubing unit in the U.S. When we started looking at these 3-mile laterals, it's quite amazing, the technology that we're able to see with our STEP-conneCT and knowing how much further we can get out. These string designs, 2 5/8 quench-and-tempered strings, we're able to they're about $400,000 a string. So for us, it's managing that, getting the most life out of that pipe. And you have to do that with the data that's provided to you. And so investing in our real-time data acquisition, our real-time information to be able to monitor that is important. So we do see gains in the coiled tubing business for this year. I think we've proven, John, that there's at one time, it used to be a pretty low barrier to entry on the coil tubing side. Now, there's been some consolidation that has happened. And to get into this business, you're about $10 million per spread of coil tubing assets. And then, of course, when you add the cost of these strings, you need to make sure that you're financed properly for that. And secondly, on the fract side, I think we've troughed. There's been some discipline recently on laying down fract crews by a lot of the larger players. And I'll just go back to, we're happy running our two fleets currently today. Our team has done an amazing job of managing the costs through this. It's not a business that we're going to be able to kind of quadruple our size in the near term, but it is something that we're still proud of to have. It still generates good margins. Great. I appreciate the responses and great quarter. Turn it back. Thanks, John. Your next question comes from the line of Josef Schachter from Schachter Energy Research. Your line is now open. Please ask your question. Good morning, Steve and Klaas. I have two questions. Looking at the Baker Hughes data, it shows the rig count up 29% for Canada, 120 rigs up from 93 a year ago. But it shows the gas side only up about 2%, 60 rigs working. But it shows oil 60 versus 34. Of your six fract fleets, are all of them working for natural gas liquids in the Montney, or what mix do you have of the six working for the oil side versus the liquids-rich Montney play? Yeah. I mean, it's really good information to highlight, Josef, and I appreciate you talking about that. When we look at rig count, it's hard to actually get a number of rigs per fract fleet ratio just because a lot of the rigs are working in the heavy oil, which, of course, doesn't require stimulation services. But what we basically have five Montney-Duvernay type fleets from a horsepower standpoint. And the sixth fleet is what we consider more focused on shallower oil plays like the Cardium, the Viking, and even the Bakken. So that's sort of how we operate today is sort of five in the Montney and the Duvernay and one elsewhere. But they have wheels. They can travel to different basins. Okay. On margins, of course, fabulous utilization and margin. Are we looking at this being peaked given, as you mentioned, that you had long utilization, 22 hours a day of utilization? Is that 30% about as high as you're going to be able to go, or what's your thoughts on that? Q1 is typically the best quarter that we have. Q3 comes close, but just the Q1 performance is unlikely to be matched again for the rest of the year. That's typical for most years. Okay. In terms of bookings for later this year into 2025 with LNG Canada startup, are you seeing more bookings on your BC side of the business, or is it northwest Alberta that is getting the bulk of your business going forward? Kind of a little bit of both, Josef. I mean, you look at the BC rig count, call it post-breakup. It's been the highest it's been in 5 years. So obviously, the activity is showing up for LNG Canada. I think we need to from our understanding is the Coastal GasLink pipeline is full, and it's basically flaring gas right now. So they are taking product. And I guess I would expect some additional drilling rigs to hit the field kind of Q4. Talking with the drillers, they do expect that as well as the high-spec rigs to be sold out. And I think I'll just couple that comment, Josef, with the efficiencies from the drilling rig side. They're drilling these Montney wells in 10-11 days. And it takes us about, call it, 3-4 days to frack these Montney wells depending on the number of stages. You can kind of look at a ratio of, call it, two drilling rigs to one fract crew for the Montney if things go from a pad drilling perspective. Super. Thanks very much for answering my questions, and congratulations on the great quarter. Thanks, Josef. We don't have any further questions at this time. Presenters, please continue. We have a follow-up question from the line of John Daniel from Daniel Energy Partners. Your line is now open. Please ask your question. Guys, thanks for including me. Hopefully, you can hear me. Just one question. As you guys do more of these 3-mile laterals with your coil business, have you seen legacy stick pipe customers officially make the conversion, or are these always sort of coil tubing enthusiasts? I'm trying to see the transition in the market. John, a bit harder to hear about it. Maybe I'll repeat the question that I thought I heard. You're wondering if these 3-mile laterals are with our success of our coiled tubing being switched from a snubbing unit or service rate perspective to coil. Is that the question? Yes. Yeah. We're definitely seeing some interest, particularly with our STEP-conneCT technologies. The advantage with that is on these lower-pressure reservoirs that typically have been used with stick pipe. We're seeing success deploying that technology because we can really monitor the bottom hole pressure. So the advantage of that just allows us not to be stuck in the hole. That minimizes that risk. So I think going forward, you're going to see that as well as some other technologies that are coming out to be able to put additional weight on bit on these long horizontals. Okay. Thank you. Sorry for the issues with the phone. Yeah. No worries, John. Thank you. We don't have further questions at this time. Steve, please continue. Yeah. I'll just close off by thanking everyone for your interest in STEP Energy Services. We had a wonderful quarter. We're proud of that. And we look forward to our call that will happen for Q2 this summer. Thank you very much. This concludes today's conference call. Thank you for your participation. You may now disconnect.