Core Viewpoint - High Arctic Energy Services Inc. reported a solid start to 2025 despite challenges in well completion rates in Canada due to market uncertainty and customer consolidation events [2][3]. Financial Performance - Revenue from continuing operations for Q1 2025 was $2,335 thousand, a decrease of 22% compared to $2,988 thousand in Q1 2024 [7][9]. - Adjusted EBITDA from continuing operations was $504 thousand in Q1 2025, significantly up from $92 thousand in Q1 2024, representing 22% of revenue [7][9]. - The oilfield services operating margin percentage improved to 53.1% in Q1 2025 from 49.4% in Q1 2024, despite a decrease in revenue [7][9]. - General and administrative expenses were reduced by 59% compared to Q1 2024, contributing to a decrease in operating loss from $1,070 thousand in Q1 2024 to $128 thousand in Q1 2025 [7][14]. Operational Highlights - The company maintained operational excellence with recordable incident-free work and a focus on safety [7]. - The integration of Delta Rental Services is delivering financial performance in line with expectations, with anticipated upside as gas well completion rates increase [3][20]. - The equity investment in Team Snubbing remained stable at $7.4 million as of March 31, 2025, with positive net income contributions from its financial results [7][9]. Liquidity and Capital Resources - As of March 31, 2025, working capital was $3,199 thousand, an increase from $2,692 thousand as of December 31, 2024, primarily due to positive EBITDA and the settlement of contingent consideration in common shares [18][19]. - Cash flow from continuing operations was $31 thousand in Q1 2025, down from $271 thousand in Q1 2024, while funds flow from operating activities increased to $495 thousand from $197 thousand [12][13]. Strategic Objectives and Outlook - The company aims to grow core businesses through selective investments, manage operating costs, and execute accretive acquisitions to drive shareholder value [7][20]. - The outlook for 2025 is influenced by the performance of the investment in Team Snubbing, with total assets related to this investment at $9.8 million [25][26]. - Positive developments in Canadian infrastructure, such as the completion of the Trans Mountain pipeline expansion and expectations for LNG exports, are expected to support long-term fundamentals for the upstream energy service business [23][24].