Good day, and welcome to the Civeo Fourth Quarter Earnings Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Regan Nielsen, Corporate Development Associate at Civeo. Please go ahead.

Thank you, Evan. Welcome to Civeo’s fourth quarter 2016 earnings conference call. Our call today will be led by Bradley Dodson, Civeo’s President and Chief Executive Officer; and Frank Steininger, Senior Vice President and Chief Financial Officer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, please note that we’re relying on the Safe Harbor protections supported by Federal Law. Any such remarks should be read in the context of the many factors that affect our business, including risks disclosed in our Form 10-K, 10-Q and other SEC filings. I will now turn the call over to Bradley.

Thank you, Regan. Good morning to all of you and thanks for joining us. I’d like to begin with a brief overview of our performance for the fourth quarter and full year 2016, before discussing the industry environment. Frank will walk you through our detailed results of the fourth quarter with a discussion of each segment’s results, and then I’ll wrap up with our near-term outlook before we take your questions. 2016 was very challenging. Yet, we were able to successfully complete several strategic objectives and continue to position Civeo for growth and the recovery in our end market. The first half of 2016 was marked by historically low oil and metallurgical coal prices as well as U.S. drilling and completion activity. These conditions attribute deep customer spending reduction across our key end-market, which resulted in a 23% year-over-year decline in our consolidated revenues for the year. In response to historically difficult business environment, we continue to confront the downturn by optimizing costs, securing what new business was available and fortifying our balance sheet. For the full-year 2016, cost of sales and services, and G&A costs declined by 21% and 19% respectively. We also reduced our total debt by $44 million by virtue of our ability to generate free cash flow from operations through this difficult trough. On an operational perspective, our employees responded admirably to double daunting situation. Perhaps most notably, the devastating Alberta forest fires over the spring and summer months. When confronted with an emergency, our teams sprang into action to accommodate approximately 6,000 displaced residents, workers, children and pet in the Fort McMurray area. We are incredibly proud our employees. And we thank them for their swift response to a crisis situation. We also continued to position the company for the potential LNG project in British…

Thank you, Bradley, and good morning. Before I get into my discussion about the financial results for the quarter, a reminder on the impact of foreign exchange, the average exchange rates for the Canadian dollar relative to the U.S. dollar had a small impact on the company’s result in the fourth quarter of 2016 compared to the fourth quarter of 2015. A stronger average exchange rate between the Australian dollar relative to the U.S. dollar in the fourth quarter of 2016 compared to the fourth quarter of 2015 positively impacted revenue by $1.1 million and EBITDA by just over $400,000. This morning, we reported a GAAP - a net loss on a GAAP basis of $15.9 million or $0.15 per diluted share on revenues of $90.9 million. During the fourth quarter, adjusted EBITDA was positive $17.7 million, cash flow from operations was $13.3 million, a free cash flow of $10.1 million as a result of our continued cost containment initiatives. I’ll begin with our Canadian segment, and I will be comparing our sequential performance, that is fourth quarter 2016 with third quarter 2016. Revenues from our Canadian segment were $62.3 million, which is down 15% in the third quarter. Adjusted EBITDA decreased by 28% sequentially to $14.1 million due to temporary occupancy related to turnaround work, winding down and fourth quarter seasonality. The decline is fire-related to core occupancy was partially offset by improving room demand for shorter-term customers, and our continuous focus on cost containment and operational efficiency. Average occupancy in our Canadian lodges was 65% for the quarter versus 64% in prior quarter. Although the number of our rentable rooms decreased to approximately 9,300 rooms from approximately 10,600 rooms in the prior quarter due to our temporary closing a wing at Wapasu. Our average daily rates was US$99…

Thank you, Frank. Looking at our expectations for the first quarter and full-year of 2017, in Canada, we are assuming a Canadian dollar exchange rate of US$0.77, and we are guiding to segment revenue of $56 million to $59 million, and adjusted EBITDA of $14 million to $16 million for the first quarter of 2017. Our expectations are based on 9,600 rentable rooms. And we expect large occupancy to be between 52% and 64% [ph] with a room rate of approximately CAD126 to CAD128 per night in Canadian dollars. For the full year in Canada assuming a Canadian dollar exchange rate of US$0.76 to the U.S. dollar, we are guiding revenue of US$216 million to US$225 million. Approximately 58% of this revenue is contract. We are in the middle of negotiating the McClelland Lake contract renewal for Fort Hills and if renewed our contract revenue will be over 70%. We expect full year adjusted EBITDA from Canada to be in the range of $45 million to $49 million. This assumes 9,600 rentable rooms with lodge occupancy of 56% to 58%, and a room rate of approximately a CAD122 per night in Canadian dollars for the full year of 2017. In Canada, we are assuming an exchange rate of US$0.76 to the U.S. dollar in the first quarter of 2017. We expect $25 million to $27 million of revenues, and adjusted EBITDA of $10 million to $11 million from our Australian segment. This is based on 8,800 rentable rooms and village occupancy of 40% to 42% with average daily rates of approximately AUD106 per night in Australian dollars. For the full year of 2017, assuming an exchange rate of AUD0.74 to the U.S. dollar, we expect $99 million to $103 million of revenues, approximately 61% of this revenue is contracted. We…

[Operator Instructions] Our first question comes from Stephen Gengaro of Loop Capital Markets. Please go ahead.

Thank you. Good morning, guys. I guess, two things, one just start with simply the - on EBITDA front, you are seeing improvements in the U.S. business. It seems like you’re expecting EBITDA on the U.S. business to kind of be around flat or around zero in 2017. Is that reasonable and what might drive upside to that?

Implied in the guidance is that we will have a continued EBITDA loss in the U.S. of about $1.5 million for the first quarter. If rig count improvements and activity improvements continue we should get closer towards breakeven by the end of the year. I don’t expect in the full year we’ll reach that level though, but we should have an exit rate that is closer to a breakeven level. And certainly, the team has done a good job on cost control. If you look year-over-year on the U.S. with that guidance, that will be a significant improvement year-over-year, but we are hoping, it will be closer to breakeven and positive by the end of the year.

Okay. Thank you. And then when you - you mentioned McClelland Lake is - can you give any further color on kind of - I think it ends at the end of the first quarter if I remember correctly. I mean, have you - I imagine you’re in somewhat advanced discussions of getting that thing done, is that reasonable to assume?

Yes. The current contract ends at the end of the first quarter of this year, 2017. As we have alluded on previous earnings conference calls, we had expected that there will be a reduction in pricing that has been baked into our guidance that volumes will be consistent with 2016. And the current discussions with the customer are consistent with that. And so, we’re hopeful we’ll see the signing of that renewal here in a very short-term.

Thank you. And then just one final, on the Canadian front specifically, are you seeing any increase in customer interest for shorter-term work or more maintenance type work in the mid part of the year or have you not seen those discussions start to gain momentum yet?

Well, we have one turnaround job. It is already booked for the second quarter. That will give very nice occupancy to Beaver River and Athabasca, that’s baked into our guidance. There are a couple of more turnaround projects that we’re pursuing right now. We would still need to win that work, [that would help fill in] [ph] the third quarter and fourth quarter for those two locations. So there is prospect there. We’re just - we’ve been doing the work.

Okay. Thank you.

[Operator Instructions] And there appear to be no other questions at this time.

Okay. I know it’s a very busy earning schedule today. We appreciate everyone’s interest in Civeo. And that concludes our comments.