Civeo Corporation, leading provider of hospitality services in remote communities, today announced the successful completion of its acquisition of four accommodation villages in Australia's Bowen Basin. The acquisition, previously announced, includes 1,340 rooms and associated customer contracts for a total cash consideration of A$105 million (approximately $67 million). Civeo funded the transaction through a combination of existing cash reserves and borrowings from its revolving credit facility.

This acquisition marks a significant expansion of Civeo's presence in the Bowen Basin, globally recognized as a premier region for metallurgical coal production. By adding these four villages, Civeo not only increases its room inventory but also establishes a foothold in the Blackwater region, effectively broadening its reach and service capabilities across the entire basin. The company anticipates that this accretive acquisition will immediately bolster its operating cash flow.

Bradley J. Dodson, President and Chief Executive Officer of Civeo, expressed his enthusiasm regarding the completed transaction. "We are pleased to have completed this important acquisition earlier than expected as it builds on Civeo’s strong momentum in Australia and is immediately accretive to our company’s operating cash flow," he stated. He further added, "We have updated Civeo’s 2025 guidance to reflect the expected revenue and Adjusted EBITDA contributions from these newly acquired villages and look forward to deepening our relationships with our customers in the Bowen Basin."

The acquired villages come with robust contract coverage from both new and existing metallurgical coal producers, underpinned by "take-or-pay" agreements. This contractual framework provides Civeo with a stable and predictable revenue stream. The company projects that the acquisition will contribute approximately A$50 million (around $32 million) in annualized revenue and A$27 million (approximately $17 million) in Adjusted EBITDA.

The strategic rationale behind the acquisition is multifold. Firstly, it significantly expands Civeo's owned-village portfolio within the highly sought-after Bowen Basin. Secondly, it establishes Civeo in the Blackwater region, extending its already strong presence and capabilities across a wider geographical area within the basin. This enhanced regional coverage allows Civeo to better serve its existing clientele and capitalize on new opportunities within the metallurgical coal sector. Finally, the acquisition brings with it solid contract coverage, ensuring revenue visibility and stability.

Dodson also highlighted the company's financial strength and commitment to shareholder returns. "Civeo’s long-term track record of consistently generating positive free cash flow enables this disciplined, value-creating growth, while at the same time facilitating the accelerated return of capital to shareholders under our updated capital allocation framework," he concluded. This statement underscores Civeo's ability to pursue strategic growth initiatives while simultaneously delivering value to its shareholders.