Civeo Agrees to Sell its McClelland Lake Lodge Assets for Approximately C$49 Million

Civeo Corporation (NYSE: CVEO) today announced that it has entered into a definitive agreement to sell its McClelland Lake Lodge assets to a US-based mining project for approximately C$49 million, or US$36 million. The Company expects to close the transaction before January 31, 2024, subject to the satisfaction of customary closing conditions.

Highlights of the transaction include:

• Purchase price of approximately US$36 million with anticipated net proceeds of US$30 million after net demobilization costs;
• Anticipated gains from the McClelland Lake Lodge assets of approximately US$35 million to be recognized throughout the second half of 2023 and first quarter of 2024;
• Possible future opportunities to provide ancillary services to the buyer; and
• An expected increase in the Company’s 2023 cash flow of approximately US$20 million, with the remaining net proceeds to be received in 2024.

“We believe that this transaction maximizes the value of the McClelland Lake Lodge assets. Driven by numerous factors, including mining activity for energy transition and inflationary pressure on newbuild pricing, demand for existing accommodations assets is strong throughout North America. After years of solid returns from this asset, we are pleased that, subject to the satisfaction of customary closing conditions, we will have additional financial flexibility to fund growth opportunities and return capital to shareholders while maintaining our strong balance sheet,” said Bradley Dodson, Civeo’s President & Chief Executive Officer.

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 24 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 26,000 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.