Source Energy Services Ltd. (SHLE) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you for standing by. This is the conference operator. Welcome to the Source Energy Services fourth quarter 2025 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Scott Melbourne, CEO. Mr. Melbourne, please proceed. Thank you, operator. Good morning, and welcome to Source Energy Services' fourth quarter 2025 conference call. My name is Scott Melbourne. I'm the CEO of Source. I'm joined today by Darren Newell, our CFO. This morning, we will provide a brief overview of the quarter and the year, which will immediately be followed by a question and answer period. Before I get started, I would like to refer everyone to the financial statements in the MD&A that were posted to CDAR and the company's website last night and remind you of the advisory on forward-looking information found in our MD&A and press release. On this call, Source's numbers are in Canadian dollars and metric tons. And we will refer to adjusted gross margin, adjusted EBITDA, and free cash flow, which are non-IFRS measures as described in our MD&A. Except the items just mentioned, our financial information is prepared in accordance with IFRS. As we expected, fourth quarter activity levels rebounded, and we recorded sales volume of 907,000 tons for the quarter, an 18% increase over the fourth quarter of 2024. With this strong finish to the year, and despite the commodity price ch...