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Civeo Announces a 12-Year Contract Renewal in Canada

Press Release

HOUSTON & CALGARY, Alberta—-Jul. 18, 2022– Civeo Corporation (“Civeo” or the “Company”) (NYSE:CVEO) today announced that the Company has been awarded a contract renewal to continue providing rooms and hospitality services at its Wapasu Lodge in the Canadian oil sands for Imperial Oil Resources Limited.

The highlights of the contract award include a 12-year, take-or-pay contract inclusive of daily minimum occupancies that balance rate reductions with a range of planned cost savings initiatives. The new agreement commences November 1, 2022 and will terminate on October 31, 2034. It includes approximately C$500 million of guaranteed take-or-pay revenues, as well as significant upside in excess of take-or-pay based on current occupancy levels.

Bradley J. Dodson, Civeo’s President and Chief Executive Officer, stated, “Serving Imperial’s Kearl operation at our Wapasu Lodge has been a cornerstone of our Canadian business dating back to 2009. Imperial remains a highly valued customer, and we are excited to extend this longstanding relationship. Civeo is committed to ensuring the cost efficiency of our customers’ producing assets, and this contract renewal represents an excellent collaboration between two long-term partners to maximize value in the current operating environment in a mutually beneficial way.”

In conjunction with this contract award, Civeo expects to deploy approximately C$5 million in capital, primarily in 2022, which will include renovations and improvements to Wapasu Lodge. Due to this contract renewal and the supporting capital improvements, Civeo is raising its full year 2022 capital expenditure guidance to US$24-US$29 million.

About Civeo

Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently operates a total of 27 lodges and villages in Canada, Australia and the U.S., with an aggregate of over 28,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo’s website at www.civeo.com.

Investor Relations and Civeo Corporate Contact:
Carolyn J. Stone
Civeo Corporation
Senior Vice President & Chief Financial Officer
713-510-2400

Media and Civeo Canada Contact:
Allan D. Schoening
President, Civeo Canada
780-440-7831

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