Hello, and thank you so much for standing by. My name is [AP], and I will be your conference operator today. At this time, I would like to welcome everyone to the Total Energy Services Inc 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. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. There is no restriction on the Q&A. Thank you. I will now like to turn the call over to Mr. Daniel Halyk, the President and CEO of Total Energy Services Inc. Please go ahead. Thank you and good morning. Present with me is Yuliya Gorbach, Total's VP, Finance and CFO. We will review with you Total's financial and operating highlights for the three months ended March 31st, 2026. We will provide an outlook for our business and open up the phone lines for any questions. Yuliya, please go ahead. Thank you, Dan. During the course of this conference call, information may be provided containing forward-looking information concerning Total's projected operating results, anticipated capital expenditure trends, and projected activity in the oil and gas industry. Actual events or results may differ materially from those reflected in Total's forward-looking statements due to a number of risks, uncertainties, and other factors affecting Total's business and the oil and gas industry in general. These risks, uncertainties, and other factors are described under the heading Risk Factors and elsewhere in Total's most recently filed annual information form and other documents filed with Canadian provincial securities authorities that are available to the public at www.sedarplus.ca. Our discussions during this conference call are qualified with reference to the notes to the financial highlights contained in the news release issued yesterday. Unless otherwise indicated, all financial information in this conference call is presented in Canadian dollars. Total Energy's results for the three months ended March 31, 2026 reflect continued strong North American demand for natural gas compression and process equipment and the deployment of upgraded equipment in Australia and Canada that more than offset lower North American drilling and completion activity. On a year-over-year basis, consolidated first quarter revenues increased by 25%. Contributing to this increase was CAD 58.4 million of increased CPS segment revenue, CAD 6.1 million from CDS segments and CAD 2 million from Well Servicing. First quarter EBITDA increased CAD 4.7 million compared to 2025, driven by the increased activity and improved fabrication margins in the CPS segment and the deployment of upgraded rigs and higher day rates in Australia and Canada. Negatively impacting first quarter financial results was a CAD 6.5 million year-over-year increase in share-based compensation expense due to a 52% increase in the company's share price during the first quarter of 2026. That was partially offset by a CAD 2.9 million year-over-year increase in the gain on sale of property, plant, and equipment following the sale of well servicing equipment in the United States in February of 2026. CAD 6.3 million of the CAD 6.6 million of share-based compensation expense recorded in Q1 2026 was non-cash in nature. Geographically, 46% of first quarter revenue was generated in Canada, 32% in the United States, and 22% in Australia as compared to the first quarter of 2025 when 47% of consolidated revenue was generated in Canada, 31% in the United States, and 20% in Australia. By business segment, the Compression and Process Services segment contributed 52% of first quarter consolidated revenue, followed by the CDS segment at 31%, Well Servicing at 11%, and the RTS segment at 6%. In comparison, for the first quarter of 2025, the Compression and Process Services segment generated 42% of the first quarter consolidated revenue, followed by CDS at 36%, Well Servicing at 13%, and RTS segment at 9%. First quarter consolidated gross margin was 22% in 2026, which was 260 basis points lower than 2025. Contributing to this decline was a 10 percentage point increase in the first quarter revenue contribution from the CPS segment, as this business segment historically generates lower margins than the other segments. A year-over-year increase in CPS segment and Australian margins partially offset a decline in RTS and North American CDS and Well Servicing segment margins. First quarter CDS segment revenue increased 7% compared to 2025. An 18% year-over-year decline in first quarter North American operating drilling days was partially offset by a 38% increase in Australian operating days. Segment revenue per operating day increased by 11% during the first quarter of 2026, due primarily to increased pricing on upgraded rigs in Australia and Canada that was partially offset by a change in the mix of equipment operating and competitive pricing in the United States. First quarter CDS segment EBITDA decreased by 5% as segment EBITDA margin decreased by 3 percentage points compared to 2025 due to competitive pricing, costs incurred to reactivate equipment in the United States, and low utilization in Canada that was partially offset by improved Australian results. RTS segment revenue for the first quarter decreased 15% compared to 2025. This was a result of lower industry activity exacerbated by lower revenue for utilized fees resulting from the change in the mix of equipment operating. Higher costs associated with the change mix of equipment operating, competitive market conditions, and this segment's relatively high fixed cost structure resulted in a 23% year-over-year decrease in the first quarter segment EBITDA and a 4 percentage point decrease in the segment EBITDA margin. First quarter CPS segment revenu e in the increased 55% compared to 2025, driven by increased fabrication sales and higher parts and service activity. Year-over-year, first quarter CPS segment EBITDA increased by CAD 6.1 million or 39%. EBITDA margin during the first quarter of 2026 was 2 percentage points lower compared to 2025, primarily due to the year-over-year increase in relative contribution of lower margin fabrication sales to segment revenue. The fabrication sales backlog at March 31, 2026 was CAD 446.9 million, which is CAD 181.5 million or 68% higher compared to CAD 265.4 million backlog at March 31, 2025, and CAD 0.2 million higher compared to CAD 446.7 million backlog at December 31, 2025. In Well Servicing, a 2% increase in revenue per service hour combined with a 4% increase in operating hours resulted in a 6% year-over-year increase in first quarter segment revenue. Increased Australian and Canadian activity was partially offset by a substantial decline in U.S. activity following the discontinuance of U.S. well servicing operations in January of 2026. Higher pricing and increased fleet utilization following the upgrade of several rigs over the past year contributed to 126% and 10% increases, respectively, in the first quarter Australian and Canadian operating income. Segment EBITDA for the first quarter of 2026 was 110% higher compared to 2025 due to improved Australian and Canadian results as well as the cessation of operating losses in the United States. Total Energy's consolidated financial position remains very strong. At March 31, 2026, Total Energy had CAD 113.4 million of further working capital, including CAD 91.4 million of cash. Cash on hand exceeded bank debt by CAD 46.4 million at March 31, 2026. Total Energy's bank covenants consist of maximum senior debt to trailing 12 months bank-defined EBITDA of 3 x and a minimum bank-defined EBITDA to interest expense of 3 x. At March 31, 2026, the company's senior bank debt- to- bank-defined EBITDA ratio was a negative 0.19 x the total was in net cash position, and the bank interest coverage ratio was 51.1 x. Thank you, Yuliya. We are pleased with our first quarter results. For the substantial non-cash share-based compensation expense recorded due to the significant increase in Total share price during the quarter, these results would have constituted record quarterly financial results. The substantial investment we have made over the past two years reactivating Australian and Canadian equipment and supporting the inventory needs of our CPS segment continued to bear fruit and position us well for the future. Our strong balance sheet ensures we are able to continue to fund such investments while at the same time providing our owners with industry-leading shareholder returns through dividends and share buybacks. In Australia, an upgraded service rig commenced operations in early May, bringing our current Australian active rig count to 13 drilling rigs and eight service rigs. The currently active drilling rig will be taken out of service during the third quarter for approximately two months to complete certain upgrades, following which it will commence operations under a new long-term contract. A new Australian service rig is currently under construction and is scheduled to commence operations in the first quarter of 2027. In Canada, the upgrade of a second idle mechanical double drilling rig into a state-of-the-art AC electric triple pad rig is underway, with completion expected by the first quarter of 2027. Demand for this style of rig is strong, and we will look to contract the rig closer to completion. Our current expectation is that post breakup Total's active Canadian drilling rig count will exceed last year. In the United States, we are beginning to see signs of improvement with our current active U.S. drilling rig count at four. Inquiries to put additional rigs back to work have increased significantly over the past few weeks. Recent oil price strength is also contributing to increased demand for our high-spec service rigs in Canada. Any pickup in Canadian and U.S. drilling and completion activity will also provide tailwinds for our RTS segment. Our Compression and Process Services segment continues to see strong demand for its products and services driven by North American LNG infrastructure and natural gas-fired electricity generation projects. The record fabrication sales log of CAD 446.9 million at March 31st provides visibility well into 2027, and current quoting activity remains vibrant. While increasing lead times for major components such as engines makes managing this business more challenging, Total's balance sheet strength provides the capital required to support the significant inventory investment required to ensure we can continue to satisfy our customers' demands well into the future. Expansion of our U.S. fabrication capacity in Weirton, West Virginia, is underway with completion expected by the first quarter of 2027. Once completed and fully staffed, this expansion is expected to almost double our U.S. compression fabrication capacity. Our first quarter results clearly demonstrate the capacity of our business to generate free cash flow. After funding working capital needs and lease payments, as well as CAD 20.7 million of capital expenditures and CAD 6.5 million of dividends and share buybacks, we repaid another CAD 10 million of bank debt during the quarter and grew our quarter-end cash balance to CAD 91.3 million or CAD 2.49 per outstanding share. In closing, I would encourage shareholders to join us at our 30th annual meeting of shareholders, which will be held at 10:00 A.M. on Tuesday, May 19th, at the Calgary Petroleum Club. I would now like to open up the phone lines for any questions. Thank you, Mr. Daniel. At this time, I would like to remind everyone in order to ask a question, press star then the number one on your telephone keypad. Again, please press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Tim Monachello with ATB Cormark Capital Markets. Please go ahead. Hey, good morning. Good morning, Tim. Good morning. Australian activity levels were really strong in the quarter. I'm curious, about, you know, weather impacts in the quarter. It typically would be a slower seasonal, activity quarter and what activity levels would have been if it hadn't been for the weather impacts that you may have seen? First quarter is typical, was pretty wet. Particularly, we saw in the Cooper Basin where a lot of our heavier rigs were shut down, put on standby for pretty extended periods of time. Definitely that had an impact on the financial performance of Q1, but that's pretty typical, Tim. You know, as we come out of the wet season, everything else being equal, you should see better performance, you know, as we go back to full operating rate and normal operations. Did that have an impact on the Australian day rate in the quarter as well, which was down a little bit quarter-over-quarter? Yes. You get a reduced rate, either standby with crew or standby without crew or zero. Got it. Okay. Got it. Were there any reactivation costs or one-time costs in the Drilling segment in Q1? Yes. In the U.S., we went from very low utilization, came into Q2 with four rigs utilized, so we spent some money, expanded, not capitalized money to reactivate rigs there. That hit our U.S. In Canada, nothing out of the ordinary or normal kinda ramp up into Q1. I would say it was a bit more pronounced in the U.S. Do you expect those reactivation costs to continue in the next couple quarters? Sounds like you're expecting some stronger activity levels in the U.S. in particular. Well, hopefully. You know, as we put more rigs to work and we expense all that, unless it's obviously a major upgrade or recert. The difference is you're gonna be spreading those costs over more operating days, which obviously helps. You know, to the extent we continue to ramp up in the U.S., we'll have additional reactivation costs. We have traditionally not broken that out. That's just part of running a business. Can you speak a little bit about the pricing environment in Canada and U.S. for drilling? Really depends on the class of rigs. I would say high-spec rigs, in Canada, notably, AC triples, doubles, AC doubles and super singles. It's a tight market, so pricing tends to be pretty stable and positive there. You know, the mechanical double lower spec market tends to be very competitive still. You know, the U.S. we're not big enough, I think, to give any meaningful insight. You know, we certainly saw some pretty competitive pricing last year, which caused us to give up some market share. Obviously that's changing where, you know, we're comfortable putting rigs back to work here, so we're not big enough player in the U.S. to give any market insight. Got it. In the Compression Process business, the financial performance, the revenue is up a lot, maintaining the backlog at record levels. That would suggest that, you know, your throughput of backlog and bookings were relatively strong in the quarter. Have you changed anything in terms of the number of shifts you're running in those, in your manufacturing facilities to increase throughput, or? No, we're- How should we think about throughput through the year relative to the Q1 level? No, we're running a pretty steady state there. I think, you know, the big difference will be next year as we look to ramp up our U.S. operations. You know, completion of facility for Q1 is the target. We're on track and obviously your staff, you know, taking your headcount up will take some time. You know, we're already, you know, working on that. I would say good steady operations, you know, that'll help us improve margins over time. You know, trying to add a whole bunch of overtime in that, easier said than done. Again, if someone's willing to pay a premium, we'll get things done. We're really trying to load level and run a steady operation. You know, one of the big challenges in that regard is just engine deliveries and working around that. So far, you know, our group has done a pretty good job on that front. Got it. With that capacity addition in the U.S., you mentioned 50% addition to your U.S. manufacturing capacity. What would that addition be in terms of your total CPS manufacturing capacity? It would almost double our U.S. fabrication capacity, not, 50%. Oh, sorry. Yeah, double. Our initial projection was at least 75%. You know, as we work through some things here, we're seeing a near double. You can look at U.S. You know, there's, again, for various reasons, competitive and otherwise, we don't break out rental revenues. You can see the U.S. rental fleet has shrunk considerably over the past several quarters as we sell units. You know, increasingly the revenue is primarily fabrication. You can sort of extrapolate, assuming we can, you know, ramp it up to, you know, almost 100% what that means from a revenue point of view. Obviously, you know, if you're doubling production, you're gonna get some cost synergies. Everything else being equal, I'd expect a significant ramp up in activity in the U.S., you know, once we've got crews properly oriented and all that, 'cause there's gonna be some startup expenses and headaches and efficiency challenges. Once we get that ramped up, you know, again, you're spreading your overhead over a larger number of hours, which should benefit margins. Got it. Just given the lead times for large engines, being over two years here and the increased capacity you have, I would imagine that you have some lead orders in place that would help you fill that capacity. Is that the right way to think about it? Yeah. Lead times on certain engines are now well north of three years. It's actually kind of ridiculous where it's at right now. You know, what we're doing is certainly trying to load level as much as we can and, you know, manage our inventory purchasing decisions around load leveling of shops. Okay. Getting pretty long in the tooth here, but just one more. Can you talk a little bit about how you're thinking about M&A in the current market? If I mean, obviously your balance sheet's in a very good position and you've got lots of capacity. Just curious if you're tracking anything or how to think about it. Yeah, no, I think we're thinking about it the same way we always do, which is, can we get a return on the investment that reflects our cost of capital and how does it compare to organic opportunities and which includes share buybacks? You know, we're very active in evaluating opportunities, both internal, external. We continue to see good opportunities to upgrade equipment and, you know, we can also walk and chew gum at the same time. We're gonna stay disciplined, you know, our bias is to grow if it makes sense. It's gotta make sense financially as well. We are active evaluating many different opportunities, we'll update as appropriate. Okay. I appreciate it and, nice quarter. Thank you. Thank you. Again, if you would like to ask a question, press star one on your telephone keypad. All right. That will conclude our question- and- answer session, and I will now turn the call back over to Mr. Daniel Halyk for closing remarks. Please go ahead. Thank you. Well, thank you everyone for joining us this morning, and hope to see some of you at our AGM next Tuesday. Have a great weekend. Thank you. Ladies and gentlemen, that concludes today's call. Thank you so much all for joining. You may now disconnect. Goodbye.