Good day, and thank you for standing by. Welcome to the Precision Drilling Corporation 2022 third quarter results conference call. I would now like to turn the conference over to Lavonne Zdunich, Vice President, Investor Relations. Please go ahead. Thank you, operator. Welcome everyone to Precision Drilling third quarter earnings conference call and webcast. Participating on today's call with me is Kevin Neveu, our President and CEO, and Carey Ford, our CFO. Earlier this morning, Precision recorded impressive third quarter results, which Carey will review with you, followed by an operational update and outlook commentary from Kevin. Once we have finished our prepared comments, we will open the call to questions. Some of our comments today will refer to non-IFRS financial measures and will include forward-looking statements, which are subject to a number of risks and uncertainties. Please see our news release and other regulatory filings for more information on financial measures, forward-looking statements, and risk factors. As a reminder, we express our financial results in Canadian dollars unless otherwise indicated. Carey, over to you. Thanks, Lavonne. Precision's revenue in the third quarter was CAD 429 million, 69% higher than the same period last year. While adjusted EBITDA was at CAD 120 million, an increase of 163% from Q3 2021. On a normalized basis, adjusted EBITDA, excluding stock-based compensation and non-recurring charges, was CAD 130 million, representing positive margins of approximately 30%. These results reflect steadily increasing North American drilling activity, improved pricing, expansion of our Alpha and EverGreen offerings, and a continued focus on cost throughout the business. We've been highlighting the operating leverage inherent in our business for several quarters. We believe our Q3 results reflect the beginning of a multi-quarter demonstration of how rising activity and rates translate into expanding EBITDA and margins for Precision. During the quarter, we completed the acquisition of High Arctic's well service and related rental assets and successfully integrated the business. Having already realized CAD 3 million of the CAD 5 million in expected synergies, we expect to realize substantially all of these by the end of Q1 2023. Moving on to the drilling business. Q3 activity increased 40% in the U.S. and 17% in Canada compared to the same period last year. While dayrates increased 37% in the U.S. and 39% in Canada. In the U.S., our normalized average daily operating margin for the quarter, absent any turnkey or IBC impact, was $9,662, $2,488 higher than Q2 and in line with our guidance. With repricing of spot market rigs impact of Alpha and EverGreen, we project normalized average margins to increase to approximately $11,500 per day in Q4, and we expect a similar sequential increase to average margins of $1,000 per day to $2,000 per day in Q1 of 2023. In Canada, our average Q3 daily operating margin was CAD 10,034 and significantly exceeded our guidance of CAD 8,000-CAD 8,500 per day. Our strong margin performance was supported by higher dayrates, Alpha and EverGreen revenue, and increased labor and cost recoveries. For Q4, we project average daily operating margins to increase sequentially to approximately CAD 12,000 per day and expect a similar sequential increase of CAD 1,000-CAD 2,000 per day in Q1 of 2023. In our C&PS segment, our revenue increased 101% to CAD 57 million, while adjusted EBITDA was CAD 15 million. These results were positively impacted by a 62% increase in well service hours, in part due to the completed acquisition of the High Arctic assets and improved pricing. An industry-wide shortage of high-quality assets and skilled labor continued to support increases in hourly rates. Moving to the balance sheet. We remain firmly committed to reducing debt by over CAD 400 million between 2022 and 2025, with a target of CAD 75 million this year, and we are on track to achieve both the short-term and long-term targets. We ended this quarter with CAD 40 million of cash on the balance sheet and CAD 540 million of available liquidity, excluding letters of credit, and our average cost of debt is 6.9%. We expect our net debt adjusted to EBITDA before share-based compensation expense to be below 3x by the end of the year and to decline further into 2023, pacing us to achieve a leverage level below 1.5x much earlier than expected. To deliver on our customer-backed rig upgrades, of which we now expect to have over 30 during 2022, and certain drill pipe commitments, we are increasing our capital budget to CAD 165 million this year from CAD 149 million. As a reminder for our upgrades, we will require full cash on cash payback within the term of the contract and rates of return well above our cost of capital. Moving on to guidance for 2022. Depreciation is expected to be approximately CAD 280 million. SG&A is expected to be approximately CAD 80 million before share-based compensation expense. Cash interest expense is expected to be CAD 85 million for the year. Cash taxes are expected to remain low, and our effective tax rate is expected to be slightly negative for the year. That concludes my comments. I'll now turn the call over to Kevin. Thank you, Carey, and good afternoon. Well, as Carey explained, our business performance in every service line in every region is strong and continues to improve. I'm especially thrilled to have returned to profitability. The next key benchmark we are focusing on is a return on capital target, but more on that later. I'll start by recapping our recent Kuwaiti contract award. We are very pleased to have been awarded the four contracts, which include reactivation of two of our idle rigs, bringing our active rig count up to five rigs in Kuwait by mid-2023. I wanna thank our international team for their hard work and perseverance on the successful bid process that stretched over several quarters. Remind you that these are very large 3,000 horsepower Super Triple rigs with the revenue and margin profile that looks a lot more like two North American rigs for each Kuwaiti rig. Coupled with our recent contract renewals in Saudi Arabia, all eight international rigs will be operating under five-year terms. We continue to look for other good opportunities to activate more of our remaining 5 idle rigs in the region. Our international business stands on its own as a meaningful and stable contributor to Precision's cash flow profile, and now with firm visibility through the latter part of this decade. Now following up on our recent well service acquisition, as Carey mentioned, the financial performance of Precision's well service business is strong. Tom and his team have done an excellent job integrating the acquisition while also keeping their focus on the business at hand. They're ahead of plan, achieving the expected synergies, and I believe we'll see this business continue to perform well for the foreseeable future. Now, as customer budgets wind down later this year and we hit the holiday season in mid-December, we expect a short-term moderation in activity. However, customer bookings and indicated demand for the winter season through 2023 full year will likely exceed the industry's ability to staff and support those rigs. Now, I think this is an area where Precision's reputation, coupled with our recruiting and training capabilities, creates a meaningful competitive advantage. We recently hosted a group of analysts for a tour of our Nisku drilling support center, where we highlighted our new employee recruiting and training capabilities, including showcasing our Alpha-equipped Super Triple training rig. We also introduced the group to our training and talent acquisition teams based in the Nisku center. By the way, for any of you who attended the tour and may be looking for a career change, we're accepting applications assuming you pass our controlled substance screening. I'm sure that those of you that were able to attend came away with a view that Precision's well on top of the recruiting challenge and is very well positioned to deploy high quality and very well-trained personnel to the field for our drilling rigs. I'm expecting a significant challenge crewing across the industry this winter for all OFS services, but I believe our recruiting and training teams exuded confidence that we're up to the task. Now, as we've been saying for several quarters, the Canadian drilling market is very strong for Precision. To date, we have 73 rigs running, which, as expected, exceeds our winter peak from earlier this year. Our Super Triple fleet's fully booked for the upcoming winter and should have 100% utilization during Q1. During the third quarter, we redeployed another ST1200 from the U.S to Canada. Those of you that attended our Nisku tour will have seen that rig 536, in our yard undergoing recertifications. That rig is now on location and drilling under a long-term contract for an oil and gas operator focused on LNG. Clearly, LNG drilling activity is underway and will increase over the next several years, further increasing demand for Precision's already fully utilized Super Triple fleet. While term contracts in Canada are less common, customers are increasingly looking to secure access to our Super Triple rigs by locking in those rigs with long-term take or pay contracts rather than running the risk, the availability risk of the traditional pricing agreement with no firm use commitment. Besides guaranteed access to a rig, the primary customer benefit of a take or pay rig contract is crew recruitment and retention. That steady income opportunity, firm work schedule, and close operating relationship with an oil company stabilizes the rig crew at every position. This factor alone has substantial value for our customers. With strong commodity prices and a weaker Canadian dollar, conventional heavy oil and Clearwater activity is accelerating, driving high customer demand for our Super Single rigs, which are achieving the highest utilization levels since 2014, and we expect continued growth into next year. Our EverGreen products, including battery systems, fuel monitoring apps, and lighting systems, are gaining wide market appeal. Billing activity for the new EverGreen products approached 2,000 days during the third quarter and are meaningfully contributing to Canadian revenues and margins. The outlook for Canadian drilling activity is strong. Based on our customer expectations, we expect to see peak winter activity levels approach and likely exceed 80 rigs. With these high demand levels, our confidence is in our margin guidance is firm. Now turning to the U.S. While industry rig additions have moderated, our rig count continues to grind higher as our customers look to displace lower-performing rigs with Precision's Super Triples and particularly look to activate our Alpha automation services. We expect this trend to continue through 2023, with our current Super Triple fleet to be fully utilized during the first half of next year. There's a lot of talk about rates in the upper 30s and approaching $40,000 per day. While we agree with that narrative, I would point out that with our a la carte add-ons, such as Alpha automation, Alpha apps, EverGreen products, and Managed Pressure Drilling systems, we have several rigs with all-in rates well above that range. During the third quarter, over 20 rigs repriced to the current market rates. In the fourth quarter, we expect 10-15 rigs to reprice at a similar pace in the first quarter of next year. Based on our current contract book, our Super Triple utilization, and the customer interest we see, we have a high degree of confidence in our forward margins and guidance for the U.S. Now our press release mentioned that we're ahead of schedule on the Alpha automation installations. We expect to have our full Super Spec fleet kitted up by early 2024, almost a year ahead of our plan. The value proposition for Alpha is compelling and customer uptake is outpacing their expectations. Our technology deployment team has been very busy installing Alpha kits, but more importantly, also training our drillers to be our Alpha drillers. I offer a shout-out to our technology and remote ops team for the great job they're doing training and supporting our new Alpha drillers. Now our Alpha drillers love how our Alpha automation frees them up from all the mundane and highly repetitive tasks they typically perform in manual drilling. With Alpha, they're better able to lead their crew and oversee the whole drilling operation. Alpha substantially improves the drilling performance, the crew safety, and the overall execution of the customer's well plan. Everybody wins. I wanna circle back on pricing and value for a moment. I know our customers in both Canada and the U.S. are struggling with cost inflation across all OFS services, and I know the drilling rig rate inflation is concerning for them. It's our sales team's job to help our customers understand our cost drivers, our capital investments, and the efficiency gains driving the incredible value we are delivering today. When considering today's day rates, three factors must come into play, which are different than prior cycles. First of all, Precision's cost to operate a rig with labor and supply inflation has risen more than CAD 4,000 per day. In addition to the inflationary factors, we have cost inflation driven by increased maintenance due to the accelerated wear on equipment and the higher pace of drilling today. The second factor is a substantial increase in capital equipment scope, such as additional mud pumps, generators, advanced mud cleaning equipment, rig walking systems, and other upgrades on the rigs. These upgrades have involved significant investments by Precision, but also increased operating costs for the rig as the equipment's more complex, requires more maintenance. These requirements also impact the potential new builds or replacement cost for a rig. 2014's CAD 25 million rig with today's Super Spec equipment scope and steel inflation would likely cost over CAD 35 million to build, and that's only if the components are available in supply chain, which is highly unlikely. The third factor to consider is the efficiency gains these upgraded rigs deliver and the value we create through that efficiency. If you look back at the prior peak for day rates, which would've been 2014, and compare overall rig efficiency then to today, the results are startling. In the U.S, across Precision's fleet, we are drilling wells 55% faster today as compared to 2014. In Canada, drilling productivity has more than doubled when compared to 2014. Now these efficiency gains have been driven by those capital upgrades we've talked about, including pad walking systems, increased mud pump capacity, generating capacity, pipe racking capabilities, drilling automation, digital optimization, and improved crew capabilities. The equipment, the crew, and the digital capabilities have driven a massive step change in drilling performance. It's fair to conclude that while day rates are well up from the lows of 2020, the value and cost of our rigs, the crews and technology has been substantially increased, and the value we provide our customers has never been better. On that pricing note, I've been saying for several quarters that our sales team was tasked with pressing rates upwards to aid in Precision's return to profitability. I need to give a shout-out to our Canadian and U.S sales teams who've taken on that challenge. Thanks, team. Yet we still have work to do. We need to continue to improve our results and strive to achieve a reasonable rate of return on our investment and we're on that path making good progress, but we still have a ways to go. In short, great work team, but please keep it up. Regarding our strategic priorities, all three are on track. I mentioned our digital EverGreen market growth earlier. We've reaffirmed our debt reduction plan, and we will achieve our goal. Precision's improving operating margins also reflect our strict cost controls and serve to demonstrate our operational leverage. To wrap up, I'd like to thank our shareholders and our customers for their continued support. During my early prepared notes, I gave a shout-out to a few of our PD groups. For the rest of the PD team, I wanna sincerely thank all of you for your hard work, your focus, and the great results you're producing this year. Thank you. I'll now turn the call back to the operator for questions. Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press star one one on your touchtone telephone. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Aaron MacNeil with TD Securities. Your line is open. Hey, morning all. Thanks for taking my questions. Based on your Q2 and Q3 disclosures, it looks like there's 10 incremental rig upgrades. In other words, going from 20 - 30 rig upgrades in 2022. I'm just thinking about this in the context of incremental activity and your outlook there. You know, how many of those rigs are already working post-upgrade? How many were already working and just, you know, you're just doing an add-on upgrade to an already active rig? I guess what I'm really driving at is, of those 30 rig upgrades, like how many of those would be incremental to your current rig count today? Well, it's actually a very complex question, Aaron. I don't have the details, rig by rig. I can tell you that a number of these upgrades were third pump, fourth generator additions on rigs that were working and now they're stepping into much higher day rates with that addition. Of the additional upgrades you've added, I think probably something like two-thirds of those would be just stepping up the capability of the rig and reaching out to a much higher day rate class with that upgrade. I think that about a third of those, probably three or four, will be rig additions between now and into Q1. Okay, that's perfect. Maybe just a follow-up for Carey. You know, maintenance capital is obviously dependent on activity assumptions, but can you give us a glimpse of what, you know, a preliminary growth or upgrade capital spend might look like in 2023, and how many rig upgrades that might contemplate? I know what you're gonna say, but, you know, it depends on getting the right contract and everything, but just trying to get your pulse there. Upgrade capital is completely separate from maintenance. I can tell you a few things about maintenance. It has gotten a bit more expensive per day. We're trending closer to CAD 2,000 a day versus kind of the CAD 1,500-CAD 1,600 a day that we historically have trended at. That's a function of inflation largely. The other thing I'll say is that long lead items are. We're having to plan a lot earlier to purchase those. We have, for the past year, we've been doing advanced drill pipe purchases and the lead time items on those items might be 6-9 months. We are doing more of those bulk purchases. The other item I'll point out is just the weaker Canadian dollar. You know, the majority of our capital expenditures, whether it's maintenance or upgrade, they're purchased in U.S. dollars and we convert to Canadian. That makes that number go a bit higher. With that all being said, maintenance will still trend along with activity. I think if your expectations for activity increases next year are a certain percentage, say 20% higher than this year, then the baseline would be maintenance capital that's, you know, 20% higher than what we had in or what we're anticipating in 2022. On the upgrade side? On the upgrade side, I think we'll continue to see the same type of upgrades as we did this year. Increasing capacity of the rig, adding automation, adding EverGreen solutions to the rig. That will run out at some point. The level of upgrades we have beyond those kind of CAD 1 million, CAD 2 million, CAD 3 million-dollar upgrades that we've been pursuing will be related to the demand for an SCR to AC conversion, which we've said historically is gonna be about CAD 12 million to complete that upgrade. Because we want cash on cash payback within the term of a contract, we're likely going to need to see a two-year contract and a day rate approaching CAD 40,000 before we undertake that upgrade. When the Super Spec rigs are sold out in the industry and customers start looking for those types of upgrades, we'll be ready to pursue it, but we're not quite there yet. Okay, perfect. Maybe I'll just sneak one more in, if I could. The CMP business had a very strong quarter, which sort of quickly proves out the rationale for the High Arctic acquisition. I guess, you know, Kevin Neveu, does this sort of embolden you to pursue more tuck-in acquisitions like this for CMP? Even if you wanted to, do you think you could transact at similar metrics? Aaron, I think this is an important deal for us. The team has really proven that they can integrate a fleet quickly and efficiently and achieve the synergies we thought we could achieve. There's a lot of proof of concept going on right now. The market still looks quite strong, and you know, we're seeing work that was kind of delayed for several years and a backlog of work now looking forward that looks like it's several years long. The well service business has legs to it right now, and I think the market is still too fractured. If there's an opportunity for us to do further consolidation, we'd be interested. You know, we're not gonna overpay, and if seller expectations are too high, we won't do a deal. Understood. Thanks, guys. That's all for me. I'll turn it over. Thank you, Aaron. Thanks, Aaron. One moment for our next question. Our next question comes from Waqar Syed with ATB Capital Markets. Your line is open. Thank you for taking my question. Kevin, in the press release, you mentioned that at least eight rigs could be active in the Middle East by the middle of next year. Could you maybe provide some more color of where could additional rigs be and what other tenders you're looking at? The 8 rigs we referenced were the ones that are contracted right now. We have five more idle rigs in the region. I'd say the most relevant idle rig would be the rig that we have in Kuwait, which is a 1500 horsepower AC Super Spec rig that's configured for well servicing. That rig could be easily converted to a drilling rig, so I think that's the most likely candidate for an early activation, probably somewhere on that same side of the Arabian Gulf, Saudi Arabia, Kuwait, somewhere like that. We have the one rig in Saudi, two more rigs in Kurdistan, one rig in Georgia. We continue to bid into opportunities in the region. You know, I don't think we'll have all those rigs active by the end of the year, but I think there's a good chance that we'll see opportunities that allow us to bid competitively on two or three of those. We do have active bids right now in multiple locations for those rigs. The first one that's gone from bid to the first tender we've been involved in that's actually gone to award was the Kuwaiti tender. All other tenders are still kind of hanging open. Between now and you know middle of next year when these rigs would be up and running in Kuwait, is that what the tender stipulates or is that because of the time that you require to activate the rig? What's the reason for that delay of like you know 6-9 months? Well, it's exactly according to their schedule for activation. They had this multi-rig project that they put out for tender, and they had a schedule of operations, and we bid into their schedule. We're following their schedule. There will be some recertification requirements we'll do on those rigs early next year. There'll be some capital tied to that we'll circle up on later once we have that all determined. We bid into their schedule. We'll have the rigs ready for their schedule. We'll be up. There's no early start bonus. They seem to be quite tight in their scheduling. Okay. In the U.S, you may have additional 1,200 horsepower rigs. Is there demand to move additional 1,200 horsepower rigs from the U.S into Canada? Great question. The market is short rigs in Canada for Q1. You know, we don't know how that's gonna play out for the year because not all of our 1,200-horsepower rigs are under firm take-or-pay contracts. We still have a few of these rigs up there that are on the, you know, typical Canadian pricing agreement. We're encouraging our customers that if they wanna retain those rigs, we need to lock them up with term contracts. That's good for everybody. It's good for the rig crew. It's good for the customer. You know, you have a very stable, high performance rig. If we're successful contracting up the majority of those rigs, and we can get a contract to move another rig up, I'd entertain that with the right economics. Waqar Syed, I'd just add that the utilization on our remaining 1,200 AC rigs is approaching 80% right now. There is a very strong market in the U.S. for those rigs as well. Carey, what was the cost of mobilization embedded in that CAD 4 million dollar number? Would you be amortizing that, the reimbursement over the term of the contract? Right. It was roughly CAD 1 million to move the rig, and we took the hit in the third quarter. Those are in our Canadian operating costs. Then we're gonna recoup the cost of that rig through the day rate increase that we're charging the customer over the life of the contract. Okay. All right. Yeah. That's it. Okay, good. Okay. That's all I had. Thank you very much. Thanks, Waqar. One moment for our next question. Our next question comes from Cole Pereira with Stifel. Your line is open. Hi. Afternoon, all. To start, can you just remind us where leading edge rates would have maxed out in the 2014 period? Cole, in Canada, we saw rates that got close to CAD 30,000 a day, but most rates were in the high 20s in Canada. In the US, kind of the same numbers in US dollars. Got it. As well, can you just refresh us on how many Super Spec rigs you have in your U.S. fleet? How many more are readily available, and how many rigs would be the SCR to AC upgrade candidates? Sure. Our U.S fleet was comprised of 67 Super Spec rigs right now, and 56 of those are running. 57 are running. We see a pretty good line of sight to get most of those working, as I said earlier, by mid next year or sooner. We have another 15 rigs in the U.S that are DC SCR rigs that are very good upgrade candidates for that sort of $12 million U.S price range. In Canada, well, we currently have, Carey, 28 Super Spec rigs? 29. 29 Super Spec rigs currently, and they're fully booked up for the winter, and some of those contracted out for multiple periods. Okay, great. That's helpful. Thanks. Some of your peers are talking about that their leading edge rigs are generating 50% gross margins. Are you seeing any of that in your U.S fleet yet? I mean, is there conceptually line of sight that could occur on a blended slash reported basis for your U.S business over the next few quarters? Hey, Cole. I think Kevin Neveu did a good job covering the equipment difference between 2022 and 2014 and how there's a lot more value being provided by the rigs delivering. There is an operating cost difference. Our operating cost back in 2014 was probably $13,500, and today it's about $17,500 in both markets. It's about a $4,000 a day difference. The old $30,000 needs to be $40,000 just to get the same cash margin. On a percentage basis, we now need to get day rates into the upper thirties. And we are seeing that at the leading edge. I think Kevin Neveu covered that as well. I think that we are seeing a handful of rigs that are in that 50% field margin range. In terms of getting the entire fleet to that range, we'll see how long the fundamentals of this industry stay strong. We have given guidance for Q4 and Q1 that shows pretty significant margin increases for both Canada and the U.S. I think we can expect, if the commodity prices hold together, continued increases in day rates and margins in both markets. Cole, I think we sort of guided the past. It usually takes about three quarters for leading edge rates to flow through into the fleet averages. You know, that would push us into sort of late Q2, mid Q3 next year. The fundamentals certainly look firm for that period. Okay, got it. Thanks. Just one more quick one for me. How should we be thinking about working capital in Q4? We should have kind of flat working capital, maybe a little bit of working capital relief depending on when the winter slowdown happens at the very end of the year. You know, we've had quite a big increase so far this year. It's been about CAD 80 million, and that's just reflective of higher revenues, higher activity. Got it. That's all for me. Thanks. I'll turn it back. Thanks, Cole Pereira. One moment before our next question. Our next question comes from Keith Mackey with RBC. Your line is open. Hi, good afternoon, and thanks for taking my questions. Just wanted to start out with what you're seeing on the customer inquiry front, maybe in Canada and the US. Can you just talk about, you know, the level of inquiries you're seeing versus the amount of Super Spec rigs you have available? I think importantly, are these inquiries from customers who are looking to pick up rigs or potentially upgrade from existing rigs they may be running that are either a current mechanical or SCR rig that are running now that they'd look to replace with a Super Spec rig? First of all, in Canada, I gave guidance. I thought our rig count will get into the high 70s, maybe hit 80, maybe get a bit above 80 in Q1, which would be about 15% higher than last year for activity. That's based on customer conversations and indications and firm bookings that we have. On the Super Spec front in Canada, I think the market is probably short four or five rigs in Q1, which means that customers may then look to push some more work into Q2, which would give us a stronger push into Q2. We're encouraged by that. It also supports work farther into Q2 and even into Q3. If that, you know, if we see a strong contracting pickup by our customers to lock in rigs, you know, that might mean that we have room to bring one more rig up. We'll see. That's how Canada kind of plays out. In the U.S., you know, the rig count in the U.S. is flattening out a little bit. Moves up a little bit, goes flat, moves up a little bit industry-wide. We're adding rigs. A few of our peers are adding rigs. There clearly is still this trend to increase the capability of rigs in the field with Super Spec. If a rig operating today only has two mud pumps, it'll either get replaced by a rig that has three mud pumps or an upgrade will happen. The rate moves up with it, so it's a good trade, and the capital gets recovered. We've replaced a few, you know, probably decent rigs, not Super Spec, decent rigs that had two pumps with some rigs now that have three pumps going out. You know, it's, I'd say that there's still a strong narrative of capital discipline, which is very healthy by the operators. It does feel like when we get into a new budget cycle in 2022, that, and with fresh capital and a new year and likely strong commodity prices, I think we could see a move up in rig count. I think you could see rigs being added in January, probably not much before then. Yeah. Keith, I'll just add one other point to answer your question. When we talk about customers looking to increase the capabilities of the rigs and improve performance, we are not seeing customers switch from mechanical and SCR rigs to a Precision AC rig. We're seeing competitors' AC rigs running for the customers and then the customer deciding to make a switch to improve performance by taking on a Precision rig. Got it. Thanks for that. Kevin, maybe just to follow up on your comment rather about Canada being short four or five Super Spec rigs in Q1, and then maybe some of that gets pushed into Q2 and beyond. It seems like we have seen a little bit more of a flattened seasonality structure in Canada with a little bit more of that happening. We're always gonna have breakup and always gonna have, you know, times of the year when it's more amenable to getting equipment in and out of the field. Do you see that becoming more of a trend where the industry looks to supply maybe more of an average basis year over year or during the year rather than the peak demand as much, you know, which ultimately may bode well for overall margins and activity levels? Is it just more of circumstance that we've seen it, you know, the curve shape up that way? Keith, I'd say that there's always been a desire in healthier times by E&P companies to try and level load. You know, that was around in the mid-2000s when gas activity was going strong. Level loading was around in 2010, 2012, when we had strong commodity prices. What's changed and made it probably more likely now is this broad abundance of Super Spec pad-walking rigs. We can load the pad up with enough casing and mud and maybe bring some fuel in across road bans, but you can keep that rig running deep into breakup. If it's a dry enough spring, you can get kind of back up and fired up and keep things going without losing any time at all. I'd say that, development style drilling with large pad rigs really plays into that level loading when you've got a healthy commodity price environment, which is what we see today. Perfect. Well, thanks so much for the comments. We'll turn it back. Great. Thank you. Again, ladies and gentlemen, if you have a question or a comment at this time, please press star one one on your touchtone telephone. One moment for our next question. Our next question comes from John Daniel with Daniel Energy Partners. Your line is open. Hey, guys. Thanks for squeezing me in. I guess, Kevin, not a numbers question for you or Carey, but you go back the last several quarters, you know, the whole labor topic was a big company discussion point just across the industry, the challenges and so forth. During that same timeframe, ESG was also a big question, talking point from sell side, buy side. I'm just curious, speak to us on both of those, what you see today. I'd say that virtually every buy-side investor meeting we have, the labor question comes up. Because it's still a huge issue for the industry. I've used that term industry, John, in my comments a number of times. The industry is challenged. The drilling contractors in general, and Precision for sure, I think have been able to manage that a little better, particularly with contracted rigs where you can attract crews because they know they've got stable work for a long period of time, and it's a structured not call-out style work. For us, and for most of the drilling contractors, labor's been a challenge, but easier than a lot of the other oil services have to deal with. Even our well service group struggles because of the nature of the business on labor. I'd say that question still remains a big question on the buy side. We haven't seen it limit our business. We've been able to move forward. We've been able to staff rigs, and most of our peers have done the same. Yeah. On the other question on ESG, I'd say that if it's raised by an investor, the investor is also now thinking about energy security to some degree. Yeah. A little more balance is coming into the discussion, and it's being raised by a lot fewer investors I believe. Yeah. John, I would just add, it seems like the larger institutional investors are still interested in ESG. They wanna have us communicate the things that we're doing that touch ESG, but we're seeing very few investors who tell us they are not able to invest in our securities because of ESG. Right. Real quick, going back to the labor, I mean, you guys have done a good job of, you know, deploying equipment once the demand has shown up. When we hear comments from companies about labor could be a headwind to activity growth, I mean, again, making an industry question and not on Precision, but it really doesn't seem that obvious to us. Would you characterize it as a headwind that limits activity growth next year at all? I'm just trying to make sure I understand that. I think from the drilling side, actually, no. Kevin, here's my theory. Yeah. The drilling rig operates a bit, you've heard the term factory drilling or industrialized drilling is pretty common. Once you set up a rig and get running, you really don't wanna stop it because there's a huge stop start cost. There's a huge switching cost associated with rigs. Our customers tend to plan the drilling operations, which is why they'll let their DUCs build up at times if they can't get the rest of the services. Right. Customers are incentivized to keep the rig running kind of independent of whether they can complete the rest of the well or not. Cool. Okay. I was just curious. Thanks. I appreciate you guys letting me ask questions. Great. Thanks, John. Okay. Bye-bye. I'm not showing any further questions at this time. I'd like to turn the call back over to Lavonne for any closing remarks. Thank you. I'd like to thank everyone for your interest in Precision and joining us today. That wraps up our third quarter conference call. Have a great day. Bye. Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.