Perpetual Energy Inc. (PMT) Earnings Call Transcript & Summary

Greetings, and welcome to the Perpetual Energy Annual General Meeting of Shareholders. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Susan Riddell Rose. Thank you. You may begin.

Thank you, operator. Welcome to the live audiocast Annual General Meeting of Shareholders of Perpetual Energy, Inc. My name is Sue Riddell Rose, and I'm Chairman of the Board as well as President and Chief Executive Officer of Perpetual. We are pleased to host today's meeting through this live audiocast platform so it's accessible to all of our shareholders regardless of your physical location. We sincerely appreciate your interest and participation today at our virtual Annual General Meeting. We do hope that you are keeping safe and healthy during this time. As you know, we are hosting this meeting via a live audiocast this year as a result of the COVID-19 pandemic and the related public health measures that have been enacted to protect the health and well-being of our communities and our shareholders, employees, service partners and other stakeholders that participate in our shareholder meetings. At this time, I would like to introduce the other directors and officers of Perpetual. Starting with the directors, we have Rob Maitland, Geoff Merritt, Ryan Shay and Howard Ward. The officers of Perpetual also present at today's meeting are Ryan Shay, again, our Vice President of Finance and CFO; Ryan Goosen, our Vice President, Business Development and Land; Jeff Green, our Vice President, Corporate and Engineering Services; Linda McKean our Vice President, Exploration and Development; and Marcello Rapini, Vice President, Marketing. Mark Schweitzer, retired as Vice President, Finance and CFO effective May 4, 2021. We would very much like to thank Mark for his exceptional leadership and strategic insights over the past 4 years that have positioned Perpetual for future success. Mark's contributions to Perpetual have been invaluable. And while he will be missed, we will celebrate with him in his upcoming retirement. As part of our regular succession planning, we are pleased that Ryan Shay has joined the Perpetual executive team with his experience as a Perpetual Director since 2017. And the opportunity to overlap with Mark since February of this year, we anticipate a seamless transition. I would also like to thank all of our service providers that have helped us through the year, our lawyers, our bankers, our auditors, our reserve engineers. You've all played a very valuable contribution -- or made a very valuable contribution for us. We will now begin with the business portion of the meeting. Any shareholder or duly appointed proxy holder with a question on a specific item of business is welcome to ask it when that item of business is being considered. However, if you wish to make a general comment or to ask an appropriate question not directly related to any of the matters under discussion in the formal portion of the shareholder meeting, I would kindly ask that you ask it during the question period that has been specifically designated for this purpose at the conclusion of the business portion of the meeting. In order to expedite the shareholder meeting, certain shareholders have volunteered to move or second the motion. I would also like to remind you that only registered shareholders or duly appointed proxy holders that have logged into the meeting using their previously obtained 16-digit control number are entitled to vote. Please note that this meeting is being recorded. However, no one attending is permitted to use any audio recording devices or otherwise record and distribute a recording at this meeting in any fashion whatsoever. The meeting will now come to order. I will act as the Chairman of the meeting. With your approval, I shall ask Kristin Ambrozy, the corporation's Legal Secretary -- or Legal Assistant to act as secretary of the meeting. And Gail Hibbs, representative of Odyssey Trust Company, to act as scrutineer. I have received confirmation from Odyssey as to the mailing of the notice of Annual General Meeting of Shareholders, management information circular and proxy statement, notice of access notification, instrument of proxy and voting instruction form as applicable to shareholders in compliance with applicable securities requirements. In addition, I have been advised by the scrutineer that there are present by proxy a sufficient number of shares to constitute a quorum. Accordingly, I now declare that the meeting is regularly called and properly constituted for the transaction of business. Voting on the election of individual Directors and the appointment of officers will be conducted via the telephone by pressing star 1 and following the instructions there. Registered shareholders who have sent in proxies or voted via telephone or Internet and wish to change their vote may do so now. Registered shareholders who have sent in proxies or voted via telephone or Internet and do not want to change their vote do not need to take any further action. As the first item of business, I would like to present the financial statements to shareholders, which include the auditor's report and financial statements of Perpetual for the fiscal year ended December 31, 2020. A copy of the financial statements and 2020 annual report has been mailed to each registered shareholder. The next item of business is the election of Directors of Perpetual. In accordance with Perpetual's bylaws, the Board has fixed the number of nominated Directors to be elected at this meeting at 5. Accordingly, 5 Directors are to be elected at this meeting. The only persons who have been nominated to stand for election as Directors of Perpetual in accordance with the procedures set forth in the advanced notice provisions contained in Perpetual's bylaws are the nominees set forth in the information circular for this meeting. May I have a motion to elect these nominees as directors of Perpetual?

I nominate Susan L. Riddell Rose, Robert A. Maitland, Geoffrey C. Merritt, Ryan A. Shay, Howard R. Ward, as Directors of Perpetual Energy to hold office until the next annual election of Directors or until their successors are elected or appointed subject to the provisions of the Business Corporations Act of Alberta and the bylaws of Perpetual Energy, Inc.

I second the nomination.

Thank you, Brad and Jordan. There being no further nominations delivered in accordance with our bylaws, I declare nominations closed. I will now entertain a motion for the appointment of auditors to the corporation.

I move that the firm of KPMG LLP, Chartered Accountants, be appointed auditors for the corporation until the next Annual Meeting or until their successors are appointed.