Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 was $137 million, driven by strong drilling activity in Canada and steady cash flow from operations in the U.S. and Middle East [4][5] - Revenue for the quarter was $496 million, a decrease of 6% from Q1 2024 [5] - Net earnings were $35 million or $2.52 per share, marking the eleventh consecutive quarter of positive earnings [5] - Funds from operations were $110 million, with cash provided by operations at $63 million [5] - Long-term debt position net of cash was approximately $778 million, with total liquidity around $570 million [11][12] Business Line Data and Key Metrics Changes - In the U.S., drilling activity averaged 30 rigs in Q1, a decrease of four rigs from the previous quarter, with daily operating margins at $8,360, down $7.87 from Q4 [5][6] - In Canada, drilling activity averaged 74 rigs, an increase of one rig from Q1 2024, with daily operating margins at $14,779, a decrease of $858 from the prior year [9] - Internationally, drilling activity averaged eight rigs, with average day rates at $49,419, a decrease of 6% from the prior year [9] Market Data and Key Metrics Changes - U.S. drilling activity is expected to see normalized margins between $7,000 and $8,000 for Q2 [6] - Canadian market remains strong with LNG Canada's first shipments imminent, expected to drive stable Montney gas activity [19] - Internationally, contract awards have slowed, particularly in Saudi Arabia, with one rig suspended [28][92] Company Strategy and Development Direction - The company aims to maintain a strong presence in key regions while managing costs effectively [6][7] - A commitment to reducing debt by $700 million between 2022 and 2027, with a target debt reduction of $100 million for 2025 [12][13] - Focus on free cash flow generation while remaining poised for emerging opportunities [15][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding customer sentiment in both the U.S. and Canada, despite macroeconomic uncertainties [15][19] - Customers are closely monitoring oil prices, but drilling plans remain largely unaffected [15][25] - The company is focused on managing margins effectively and is not projecting a significant reduction in pricing [69][71] Other Important Information - Capital expenditures for Q1 were $60 million, with a full-year capital plan reduced from $225 million to $200 million [10] - The company exited the North Dakota market due to competitive pressures and is reallocating resources back to Canada [21] - The company is actively managing its cost structure to drive down operating costs throughout 2025 [8][30] Q&A Session Summary Question: Thoughts on performance model versus day rate model - Management prefers the a la carte style of base rate for rigs, with about a third of U.S. rigs under performance contracts [35][36] Question: Rationale for continuing debt reduction over stock buybacks - The company is committed to deleveraging and maintaining a strong capital structure, targeting a net debt to EBITDA ratio below one [38][40] Question: Impact of capital reduction on free cash flow - The capital reduction is not expected to impact cash flow guidance, as the company is focused on managing all cash outflows tightly [47] Question: Changes in U.S. margins post-restructuring - Margins are expected to improve as more rigs are added, despite some initial noise from rig mobilizations [49][50] Question: Rig mobilization and reactivation costs - Costs for rig mobilization or reactivation typically range from $500,000 to $1,000,000 [57][58] Question: Pricing pressures in Canada - There are ongoing pricing pressures from customers, but management expects to manage margins effectively [68][70] Question: Conversations with producers regarding capital spending - Conversations indicate that low oil prices in the U.S. and Canada could lead to increased uncertainty in capital spending plans [80][82]

Financial Data and Key Metrics Changes - The bank reported adjusted earnings of $2.2 billion or $1.76 per share, reflecting a 15% year-over-year growth in noninterest revenue [9][40] - Return on equity improved to 11.8% from 10.6% in the previous quarter, with return on tangible common equity at 14.3% [41][112] - Revenues increased by 11% year-over-year, driven by both net interest and non-interest income [41][112] - The provision for credit losses was approximately $1.2 billion, with a PCL ratio of 60 basis points, up 6 basis points quarter-over-quarter [42][64] Business Line Data and Key Metrics Changes - Canadian Banking reported earnings of $914 million, down 6% year-over-year due to higher loan loss provisions and expenses [47] - Global Wealth Management delivered earnings of $414 million, up 23% year-over-year, driven by higher mutual fund fees and wealth advisory revenues [50][91] - Global Banking and Markets had earnings of $517 million, up 33% year-over-year, with capital markets revenue increasing by 41% [53][94] - International Banking delivered earnings of $657 million, down 7% year-over-year, with a PCL ratio of 146 basis points [57][70] Market Data and Key Metrics Changes - The bank's overall funding profile strengthened with year-over-year deposit growth of 4%, reducing the loan-to-deposit ratio to 105% [85] - Retail deposit growth was up 4% year-over-year, with commercial business generating over $10 billion in deposit growth [98][99] - Digital active clients at Tangerine reached an all-time high of 1.4 million [100] Company Strategy and Development Direction - The bank is focused on allocating incremental capital and resources to priority markets, including a recent investment in KeyCorp [12][84] - The strategy emphasizes value over volume, with initiatives like Mortgage+ and Scene+ to enhance client acquisition [15][86] - The bank aims to improve operational excellence and return discipline, targeting stronger ROE performance across business lines [18][89] Management's Comments on Operating Environment and Future Outlook - Management acknowledged heightened geopolitical uncertainty and a less certain economic outlook, particularly in the U.S. and Mexico [35][106] - The bank is taking a conservative approach to navigate potential economic disruptions and is well-positioned to fund organic growth while resuming dividend growth [34][72] - Confidence remains in the bank's ability to manage through challenging periods while supporting clients [72][108] Other Important Information - The bank's CET1 capital ratio remained strong at 12.9%, with total risk-weighted assets at $468 billion [45][116] - The bank generated positive operating leverage of 2.8%, with a productivity ratio of 54.5% [44][114] - The effective tax rate increased to 23.8% due to changes in earnings mix and the implementation of the global minimum tax [44][112] Q&A Session Summary Question: What are the expectations regarding the impact of potential tariffs? - Management indicated that PCLs would remain elevated due to macroeconomic uncertainty and potential tariffs, with a base case scenario including modest tariff risks [63][70] Question: How is the bank addressing client acquisition and retention? - The bank is enhancing client acquisition strategies through initiatives like Mortgage+ and Scene+, with significant growth in primary clients [15][87] Question: What is the outlook for earnings growth in 2025? - The bank is on track to deliver earnings growth towards the higher end of the 5% to 7% range, excluding potential tariff impacts [104][106]