Slide 1: Investor Presentation March 2017
Investor Presentation March 2017
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to
Slide 3: Civeo at a Glance
Civeo at a Glance Ticker NYSE: CVEO Business One of the largest integrated providers of permanent and temporary workforce accommodations, catering, facility management and logistics services Markets Natural resource producers in some of the world’s most active oil, coal, natural gas and iron ore pro
Slide 4: Differentiated Business Model
Differentiated Business Model Integrated Provider of Remote Accommodations & Services Established a leadership position in providing a fully integrated service offering to customers Identify and acquire sites through purchase or lease Permit, engineer, design, install, own and operate full- se
Slide 5: Near-term Focus and Positioning for Growth
Near-term Focus and Positioning for Growth Maximize occupancy in lodges and villages, pursue mobile camp activity and leverage existing infrastructure to drive revenue Execute and Recovery underway in the U.S. markets and optimistic of recovery signs in Australia generate free Pursue operation
Slide 6: Why Invest in Civeo?
Why Invest in Civeo? Industry leader in core markets Differentiated Develop / Own / Operate model provides competitive advantage business model, Large, long-term projects with major producers supported by multi-year contracts world-class customers Customers investing based on long-term view,
Slide 7: Where We Operate
Where We Operate CANADA: 70% of 2016 Rev. 9 lodges with over 14,000 rooms 6 open camps with over 1,300 rooms Mobile camp assets Primary activity driver is oil sands development AUSTRALIA AUSTRALIA: 27% of 2016 Rev. 10 villages with over 9,300 rooms No mobile camp assets Primary activit
Slide 8: Accommodations Business Overview
Accommodations Business Overview Primary revenue and earnings driver is lodge and village business Lodges & Villages Mobile & Open Camps Permanent structures supporting multi-year projects Major differentiator between lodges and open camps is the size of the facility Size range from 200 rooms
Slide 9: Blue Chip Customer Base
Blue Chip Customer Base Large, long-term projects supported by multi-year contracts Civeo services some of the largest and most active companies in the natural resources sector North America Multi-national, blue chip companies Largest customers in 2015 were Imperial Oil, Fort Hills Energy LP a
Slide 10: Civeo Managing Through the Downturn and Well Positioned for Sector Recovery
Civeo Managing Through the Downturn and Well Positioned for Sector Recovery
Slide 11: Global Energy Prices are Experiencing a Recovery from Cyclical Lows
Global Energy Prices are Experiencing a Recovery from Cyclical Lows Oil Prices Met Coal Spot Prices $120 $350 WTI Price $100 $300 WCS Price $80 $250 $/bbl $/mt $60 $200 $40 $150 $20 $100 $0 $50 Oil price drop from 4Q14 to 3Q16 was driven by slower Metallurgical coal price drop from 2H12 to 1H16
Slide 12: Effectively Managing Costs while Still Pursuing Growth through the Downturn
Effectively Managing Costs while Still Pursuing Growth through the Downturn Continue to aggressively pursue Continued to grow the cost cutting and operating business organically through Recent contract awards efficiencies disciplined investments Significant improvements All new lodge investments
Slide 13: Strengthening our Balance Sheet
Strengthening our Balance Sheet (US dollars in millions except for percentages and ratios) Adjusted For Actuals As Of Equity Offering² 6/30/15 12/31/15 12/31/16 12/31/16 Cash $315.2 $7.8 $1.8 $27.6 Current debt 38.8 17.7 15.5 15.5 U.S. Term Loan 736.3 46.9 24.1 24.1 Canadian Term Loan - 285.0 274.6
Slide 14: Positive Leading Indicators Provide Visibility to Recovery
Positive Leading Indicators Provide Visibility to Recovery Commodity Prices On November 30, 2016 at a meeting of OPEC officials, OPEC agreed to a substantial cut of 1.2 MMbpd of oil in an attempt to rebalance global inventories This has driven renewed enthusiasm in global oil price outlooks. Sub
Slide 15: Latest Financial Results - 4Q 2016 Highlights
Latest Financial Results - 4Q 2016 Highlights (U.S. Dollars) Revenues of $90.9 million, down 13% from 3Q16 Adjusted EBITDA of $17.7 million, down 30% from 3Q16 Canada Segment Australia Segment Revenues down by $11 million Revenue down by $2 million from 3Q16 to $62 million from 3Q16 to $26 m
Slide 16: Guidance for 1Q17 and Full Year 2017
Guidance for 1Q17 and Full Year 2017 (U.S. Dollars except for average daily rates) 1Q17 Guidance Full Year 2017 Guidance Consolidated Consolidated Revenue of $85-$90 million Revenue of $337-$353 million Adj EBITDA of $16-$19 million Adj EBITDA of $60-$65 million Capex of ~$15-$18 million C
Slide 17: Growth Opportunities
CIVEO Growth Opportunities
Slide 18: Civeo has a Number of Opportunities to Grow Revenue Base and Profitability
Civeo has a Number of Opportunities to Grow Revenue Base and Profitability Canadian LNG Longer-term Opportunities Increasing Occupancy 2 major potential LNG projects with 4Q16 occupancy at 65% in Canada and associated pipeline and drilling 41% in Australia (of rentable rooms) infrastructure Compares
Slide 19: Canada – Strong Operating Leverage to Improving Activity Levels
Canada – Strong Operating Leverage to Improving Activity Levels Existing Canadian lodges Strong cash flow potential Minimal maintenance capital required during low point in the cycle Canada - Incremental EBITDA Sensitivity ($ in USD millions)² Negligible reactivation capital Incremental Occu
Slide 20: Australia – Strong Operating Leverage to Improving Activity Levels
Australia– Strong Operating Leverage to Improving Activity Levels Existing Australian Villages Strong cash flow potential Minimal maintenance capital Australia - Incremental EBITDA Sensitivity ($ in USD millions)² required during low point in the cycle Incremental Occupancy¹ $26.7 1% 5% 10% 20
Slide 21: Canadian LNG Opportunity
Canadian LNG Opportunity Sitka Lodge ($30 million in potential annual revenue at current room count) 436 rooms in Kitimat, B.C. originally contracted by LNG Canada (“LNGC”), a Shell-led consortium, to support initial phases of LNGC’s proposed LNG facility Expandable to 1,000 rooms with strong pr
Slide 22: Canadian LNG Accommodation Opportunity
Canadian LNG Accommodation Opportunity Civeo’s Sitka Lodge at Kitimat LNG Canada Cedar Valley Lodge New 436-room Sitka Lodge to service Bird-Civeo Joint Venture awarded contract for the LNG Canada – only LNG-related design and construction of LNG Canada’s 4,500 accommodations contract awarded ro
Slide 23: Leverage to Shorter Cycle Businesses in Both the U.S. and Canada
Leverage to Shorter Cycle Businesses in Both the U.S. and Canada Historical U.S. Rig Count Combined Shorter Cycle Revenue(1) 2,500 $250.0 2,000 $200.0 1,500 $150.0 1,000 $100.0 500 ? ? $50.0 0 $0.0 2013 2014 2015 2016 2017 2018 Historically, Civeo’s short cycle businesses in Canada and the U.S. have
Slide 24: Significant Consolidation Opportunity
Significant Consolidation Opportunity Third-Party Competitors and Customer-Owned Rooms Total Rooms: ~35,000 Total Rooms: ~73,000 Civeo Market Share (Australia) Civeo 34% Operator Owned 49% 3rd Party Comp 17% Total Rooms: ~27,000 Source: Management estimates Note: Australia market share is a sample s
Slide 25: Appendix
Appendix Dysart Village, Queensland Investor Presentation March 2017 25
Slide 26: Historical Financial Results
Historical Financial Results (U.S. Dollars in millions except for EPS; share count in millions) Year Ended December 31, 2012 2013 2014 2015 2016 Revenues $1,108.9 $1,041.1 $942.9 $518.0 $397.2 Gross Profit $556.5 $491.5 $398.0 $190.4 $137.6 Gross Profit Margin 50.2% 47.2% 42.2% 36.7% 34.6% Adjusted
Slide 27: Canadian Operations Overview
Canadian Operations Overview Largest integrated accommodations provider in Canada Primarily targeting Canadian oil sands and in situ projects in northern Alberta Serves the lifecycle of a customer’s project by providing Mobile and contract camps for initial and exploratory phases Prmanent
Slide 28: Australian Operations Overview
Australian Operations Overview Largest third-party accommodations provider in Australia Primarily centered around metallurgical coal mines Exposure to other resources such as thermal coal, LNG, gold and iron ore The five villages of Bowen Basin comprise 76% of room capacity Karratha Villag
Slide 29: Mobile and Open Camp Overview
Mobile and Open Camp Overview Canada and U.S. Open camps are smaller facilities that provide amenities similar to larger lodges Typically used by customers for exploratory, seasonal or short-term projects, including drilling, completion and pipeline projects Average contract of 6-18 months M
Slide 30: Canadian Lodges Overview
Canadian Lodges Overview Geography / Extraction As of December 31, Lodges / Open Camps Province Technique 2012 2013 2014 2015 2016 Lodges: Wapasu N. Athabasca Mining 5,174 5,174 5,174 5,174 5,246 Athabasca N. Athabasca Mining 1,877 1,557 2,005 2,005 2,005 McClelland Lake N. Athabasca Mining -- -- 1,
Slide 31: Australian Villages Overview
Australian Villages Overview Resource Targeted As of December 31, Australian Villages Basin Resource 2012 2013 2014 2015 2016 Coppabella Bowen Met Coal 2,912 3,048 3,048 3,048 3,048 Dysart Bowen Met Coal 1,912 1,912 1,798 1,798 1,798 Moranbah Bowen Met Coal 1,240 1,240 1,240 1,240 1,240 Middlemount
Slide 32: The Civeo Lodge Experience
The Civeo Lodge Experience Investor Presentation March 2017 32
Slide 33: The Civeo Lodge Experience
The Civeo Lodge Experience Investor Presentation March 2017 33
Slide 34: Innovation in Service Delivery
Innovation in Service Delivery • EDI system allows guests to order dinner entrées a la carte • Guests use iPads and room keys to order from over 25 entrée items and three daily chef’s specials including vegetables and side dishes, allowing guests to makes requests and input allergies • Implemented E
Slide 35: Lodge Amenities
Lodge Amenities Civeo is known as the provider of high-end accommodations for natural resource developers and producers Investor Presentation March 2017 35
Slide 36: Villages in Australia
Villages in Australia Investor Presentation March 2017 36
Slide 37: Village Environment & Facilities
Village Environment & Facilities Guest Commuter Bus Kinetic Gym Outside Facilities Swimming Pools Tennis Courts Work-out Circuits Running Track Storage Rooms Storage Containers Crew Rooms Meeting Space Locker Management Guest Transit Service – Village to Township Investor P
Slide 38: EBITDA and Adjusted EBITDA Reconciliation
EBITDA and Adjusted EBITDA Reconciliation (U.S. dollars in millions) The term EBITDA is defined as net income plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges and certain other costs such as those incurred assoc
Slide 39: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (U.S. dollars in millions) The term Free Cash Flow is defined as net cash flows provided by operating activities less capital expenditures plus proceeds from asset sales. Free Cash Flow is not a measure of financial performance under generally accepted accounting princi
Slide 40: First Quarter and Full Year 2017 Guidance EBITDA Reconciliation
First Quarter and Full Year 2017 Guidance EBITDA Reconciliation (U.S. dollars in millions) Three Months Ending 3/31/2017 Year Ending 12/31/2017 Low High Low High EBITDA Range $ 16.0 $ 19.0 $ 60.0 $ 65.0 The following table sets forth a reconciliation of estimated EBITDA to estimated net income (loss