NYSE:CVEO Civeo Q2 2025 Earnings Report $23.34 -0.37 (-1.55%) Closing price 08/8/2025 03:59 PM EasternExtended Trading$23.34 0.00 (-0.01%) As of 08/8/2025 04:39 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Civeo EPS ResultsActual EPS-$0.25Consensus EPS -$0.03Beat/MissMissed by -$0.22One Year Ago EPS$0.57Civeo Revenue ResultsActual Revenue$162.69 millionExpected Revenue$166.38 millionBeat/MissMissed by -$3.69 millionYoY Revenue GrowthN/ACiveo Announcement DetailsQuarterQ2 2025Date7/29/2025TimeBefore Market OpensConference Call DateTuesday, July 29, 2025Conference Call Time8:30AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)SEC FilingEarnings HistoryCompany ProfilePowered by Civeo Q2 2025 Earnings Call TranscriptProvided by QuartrJuly 29, 2025 ShareLink copied to clipboard.Key Takeaways Positive Sentiment: Management has repurchased 883,000 shares (7% of outstanding stock) in Q2, completing 30% of its 20% buyback authorization and targeting 100% of free cash flow for further repurchases. Positive Sentiment: The Australian segment delivered 4% revenue growth (7% in constant currency) and 10% EBITDA growth (12% constant currency), driven by new village acquisitions, integrated services expansion, and two large contracts worth AU$314 million. Negative Sentiment: The Canadian segment saw revenues drop to $50 million (from $79.5 million) and adjusted EBITDA fall to $7.5 million (from $17.3 million) amid subdued turnaround activity, customer cost cuts, and ongoing market headwinds. Neutral Sentiment: Civeo maintained full-year 2025 guidance of $640–670 million in revenue and $86–96 million in adjusted EBITDA, expecting stronger free cash flow in H2 to support its capital allocation plan. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallCiveo Q2 202500:00 / 00:00Speed:1x1.25x1.5x2xTranscript SectionsPresentationParticipantsPresentationSkip to Participants Operator00:00:00Greetings and welcome to the Civeo Corporation Second Quarter twenty twenty five Earnings Call. At this time, participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Regan Nielsen. Please go ahead. Regan NielsenSenior Director, Corporate Development & IR at Civeo00:00:27Thank you, and welcome to Civeo's second quarter twenty twenty five earnings conference call. Today, our call will be led by Bradley Dodson, Civeo's President and Chief Executive Officer and Colin Geary, Civeo's Chief Financial Officer and Treasurer. Before we begin, we would like to caution listeners regarding forward looking statements. To the extent that our remarks today contain anything other than historical information, please note that we're relying on the Safe Harbor protections afforded by federal law. These forward looking remarks speak only as of the date of our earnings release and this conference call. Regan NielsenSenior Director, Corporate Development & IR at Civeo00:01:01We undertake no obligation to update or revise these forward looking statements, except as required by law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our Forms 10 ks, 10 Q, and other SEC filings. I'll now turn the call over to Farley. Bradley DodsonCEO, President & Director at Civeo00:01:21Thank you, Reagan, and thank you all for joining us today for our second quarter twenty twenty five earnings call. I'll start by highlighting some of the key takeaways before walking through a brief summary of our second quarter twenty twenty five financial results. Then Colin will provide financial and segment level review. I'll conclude with our 2025 guidance and the underlying regional assumptions, and then we'll open the call up for questions. Turning to our key takeaways, I'll start with significant progress that we've made towards completing our expanded share repurchase authorization. Bradley DodsonCEO, President & Director at Civeo00:02:00We capitalized on equity market softness earlier in the second quarter to repurchase 883,000 common shares, which is approximately 7% of Civio's common shares outstanding. These repurchases made since the announcement of our new capital allocation plan equate to 30% of that new buyback authorization as of 06/30/2025. Civio has now repurchased approximately 27% of its common shares outstanding since we began our share repurchase program in August 2021. We believe that share repurchases represent a compelling use of capital, especially during broad market equity market volatility. Given the accelerated buybacks and the recently completed acquisition, we have now reached the upper end of our target net leverage ratio of two times. Bradley DodsonCEO, President & Director at Civeo00:02:58We are comfortable with that ratio as we continue to execute under our share repurchase program. We remain committed to completing the 20% share repurchase authorization as soon as practicable and intend to use no less than 100% of the annual free cash flow to achieve that goal. I'll now move to some comments on the regional results. In Australia, we remain focused on growing our integrated services business and integrating the recent acquisition. Revenue in the region increased 4% year over year or 7% on a constant currency basis and adjusted EBITDA grew by 10% or 12% on a constant currency basis. Bradley DodsonCEO, President & Director at Civeo00:03:46Contributions from the newly acquired Bowen Basin Villages and growth in our integrated services business are driving the strong margins that we experienced in the second quarter. Based on current customer discussions and our base of contracted room nights, we expect our current Australian occupancy levels to continue through the rest of the year despite weakening in met coal prices experienced recently. We completed the acquisition of four villages in May and began integrating them into our operations. Approximately two months of those results were included in our second quarter twenty twenty five results. We are pleased with their early contributions and we look to realize further margin leverage going forward. Bradley DodsonCEO, President & Director at Civeo00:04:36Additionally, we recently announced two contracts in Australia in the Bowen Basin, a renewal of a contract with an existing customer. The renewal is a four year take or pay agreement at our owned villages with expected revenues over the contract term of $250,000,000 Australian. The second contract previously announced is a three year integrated services contract worth approximately $64,000,000 in revenue. These awards validate our winning strategy and position us for continued momentum and growth in Australia. In Canada, the second quarter saw the typical seasonal increase in occupancy relative to the first quarter, driven by turnaround activity in the core Oil Sands region. Bradley DodsonCEO, President & Director at Civeo00:05:23However, on a year over year basis, turnaround occupancy remains subdued. Conditions in Canada remain challenging, given the macroeconomic headwinds, which include low and uncertain oil prices and our customers' fiscal conservatism. Customers remain steadfast in their singular focus on cost reductions in response to oil price and political uncertainty, and investor pressure to return capital to shareholders. We remain focused on controlling what we can control. We continue to take steps to optimize our cost structure in Canada and align our business with realities of the current environment without sacrificing our ability to capitalize on opportunities to diversify our business away from the Oil Sands region. Bradley DodsonCEO, President & Director at Civeo00:06:12Overall, we are executing on our strategic priorities in each region. In Australia, our Australian business is hitting on all cylinders, and while the Canadian headwinds remain, we know this market well and are working with our strategic partners to understand how we can continue to support them as we capitalize on evolving opportunities in the region. We are taking decisive action to apply our resources to position Civeo for long term resilience and cash generation. With that, I'll turn it over to Colin. Collin GerrySVP, CFO & Treasurer at Civeo00:06:46Thank you, Bradley. Thank you all for joining us this morning. Typically, I would first focus on expanding more on the underlying drivers of the results in the income statement. However, the real story for this quarter relates to the balance sheet and the impact of our recent capital allocation. As Bradley mentioned, we made significant progress on our buyback authorization, completing 30% of the program in the second quarter. Collin GerrySVP, CFO & Treasurer at Civeo00:07:11In addition, we executed on accretive growth through our acquisition in Australia. As a result, our net debt increased by $95,000,000 in the second quarter, primarily driven by $65,000,000 deployed for our recent Australian acquisition and $19,000,000 deployed for share buybacks. Consequently, our net debt was $154,000,000 as of 06/30/2025, resulting in a net leverage ratio of two times. Turning to the income statement. Today we report total revenues in the second quarter of $162,700,000 with a net loss of $3,300,000 or $0.25 per diluted share. Collin GerrySVP, CFO & Treasurer at Civeo00:07:51During the second quarter, we generated adjusted EBITDA of 25,000,000 and negative operating cash flow of $2,300,000 Our free cash flow was burdened by working capital build in the quarter and the expected payment of Australian income taxes, which included a large payment related to the prior year. The decrease in adjusted EBITDA in the 2025 compared to the year ago period was primarily due to the decreased billed rooms at the Canadian lodges. We expect this lower level of customer spending to continue as producers in the region remain keenly focused on reducing costs. As we mentioned, we are taking action to cut costs and streamline the business and identifying additional opportunities across the region. Second quarter revenues from our Australian segment were $112,700,000 up 4% from $108,600,000 in the 2024. Adjusted EBITDA was 23,700,000.0 up 10% from $21,600,000 in the 2024. The increase in revenues and adjusted EBITDA was primarily driven by the recently completed acquisition of four owned villages, as well as margin improvement in the integrated services business. The year over year increase was offset by the impact of a weakened Australian dollar relative to the U. Collin GerrySVP, CFO & Treasurer at Civeo00:09:10S. Dollar, which decreased revenues and EBITDA by $3,200,000 and $700,000 respectively. Australian owned villages, village build rooms in the quarter were 690,000 rooms, up 10% from the 2024, primarily due to our recently completed acquisition. Our daily room rate for Australian owned villages in U. S. Collin GerrySVP, CFO & Treasurer at Civeo00:09:33Dollars was $76 which decreased from $78 in the 2024, primarily due to the weakening of the Australian dollar. Turning to Canada, we reported revenues of $50,000,000 compared to revenues of $79,500,000 in the 2024. Adjusted EBITDA for the segment was $7,500,000 a decrease from $17,300,000 in the 2024. As noted, the year over year revenue and adjusted EBITDA decreases were driven by lower build rooms as our customers focused on cost and headcount reductions as well as the loss of Fort Hills related occupancy from the sale of our McLellan Lake Lodge. During the second quarter, billed rooms in our Canadian lodges totaled $450,000 which was down from $752,000 in the 2024. Collin GerrySVP, CFO & Treasurer at Civeo00:10:21Our daily room rate for the Canadian segment in U. S. Dollars was $94 which decreased from $96 in the 2024, primarily due to the weakening of the Canadian dollar. Looking at our capital structure, as mentioned earlier, Civeo's net debt as of June 30 was $154,000,000 a $95,000,000 increase since 03/31/2025, attributable to our recent acquisition as well as the significant progress made on our share repurchase authorization in the quarter. Our net leverage ratio for the quarter was two times, with total liquidity of approximately $73,000,000 Given the accelerated buybacks and recently completed acquisitions, as mentioned, we have now reached the high end of our target net leverage ratio at two times. Collin GerrySVP, CFO & Treasurer at Civeo00:11:07We have allocated $22,500,000 to share repurchases in the 2025 and assuming current valuations, we expect to utilize free cash flow to remain active repurchasing shares in the back half of the year. We will target a year ending leverage ratio of approximately two times. Turning to capital allocation, I'll start with CapEx. On a consolidated basis, capital expenditures for the 2025 were $4,500,000 down from $5,300,000 during the 2024. Capital expenditures in both periods were predominantly related to maintenance spending on our lodges and villages. Collin GerrySVP, CFO & Treasurer at Civeo00:11:46As noted, during the 2025, we repurchased approximately 883,000 shares through our share repurchase program for a total cost of approximately $19,100,000 With our recently increased share repurchase authorization and commitment to accelerating the return of capital to shareholders, we continue to believe that repurchasing Syvio shares presents a value enhancing opportunity. Second quarter market softness gave us an excellent buyback opportunity. We've made great progress on our current share repurchase authorization, and we will continue to opportunistically execute on our plan moving forward. With that, I'll turn it back over to Bradley. Bradley DodsonCEO, President & Director at Civeo00:12:25Thank you, Colin. I would now like to turn our discussion over to the full year 2025 guidance on a consolidated basis, including our underlying macroeconomic and regional assumptions. We are maintaining our full year 2025 revenue and adjusted EBITDA guidance. We continue to look for revenue this year to be in a range of $640,000,000 to $670,000,000 and adjusted EBITDA to be in the range of $86,000,000 to $96,000,000 We're also maintaining our full year capital expenditure guidance, which was a range of $20,000,000 to 25,000,000 I'll now provide the regional outlooks and corresponding underlying assumptions. In Australia, customer activity in our own villages remains very strong. Bradley DodsonCEO, President & Director at Civeo00:13:17River Bowen Basin villages continue to be effectively, continue to operate effectively at full capacity, and we are seeing strong occupancy across the remainder of our own village portfolio. Despite weakening met coal prices in the first half of the year, we expect continued strength in our own villages throughout the balance of the year. As it relates to our integrated services business, we are encouraged by the top line growth as well as the year over year margin improvement experienced in the first half of the year, and we'll continue to focus on executing on cost executing cost effectively as we on our recent contract awards. We expect to build on this through the remainder of 2025 and beyond as we work towards our goal of achieving $500,000,000,000 Australian of Australian Integrated Services revenues by 2027. In Canada, we continue to navigate the difficult operating environment in the oil sands and lower demand for temporary turnaround activity, which has been exacerbated by broader macroeconomic uncertainty. Bradley DodsonCEO, President & Director at Civeo00:14:28We expect build rooms in the second half of the year to be more in line with the 2024, though more balanced between the third and fourth quarters. Lastly, we do not currently foresee any meaningful near term rebound in upstream oil sands spending. As a result, our focus remains squarely on managing on what we can control, executing on our cost reduction initiatives, enhancing operational efficiency, and aligning our resource base with demand realities. During the second quarter, we took steps to streamline our lodge footprint, including cold closure of two lodges. We are actively working with a third party consulting partner to identify additional opportunities to lower our cost structure in Canada. Bradley DodsonCEO, President & Director at Civeo00:15:17While 2025 is clearly a transitional year for our Canadian segment, we believe we are executing the decisive actions that will orient the business to capitalize on growth opportunities and position it for long term growth and improved cash flow generation. I want to take a moment to thank the hardworking Civeo team for their continued focus on operational excellence. That together with disciplined capital deployment is what's driving long term shareholder value creation. With that, we're happy to take your questions. Operator00:15:52Thank you. We will now be conducting a question and answer session. And our first question will come from Dave Storms with Stonegate. Collin GerrySVP, CFO & Treasurer at Civeo00:16:25Good Dave StormsDirector - Research at Stonegate Capital Partners00:16:25morning. Just wanted to start with maybe some of the puts and takes on your guidance at a macro level. We've seen a couple of trade deals get announced in The U. S. Over the last couple of weeks. Dave StormsDirector - Research at Stonegate Capital Partners00:16:38Do any of those deals give you confidence to maybe relook at that guidance? Is there a chance that it could be biased towards the upside or the downside? Just curious as to what your thoughts are relative to that. Bradley DodsonCEO, President & Director at Civeo00:16:54We have been watching the trades the international trade situation very closely. Obviously, thus far to date, the impact of the trade uncertainty has not impacted our business either in Canada or Australia significantly, Although we watch it very closely, we're the impact primarily to food costs has been felt very, in a very minor fashion in Canada. We're keeping an eye on it to make sure that doesn't accelerate. Most of our focus has been on whether trade uncertainty or disruption will impact our customers and how that might influence their need for rooms or their spending. But thus far, we've not seen any material impact, either previously or with recent announcements. Dave StormsDirector - Research at Stonegate Capital Partners00:17:49Understood. That's very helpful. Thank you. And then just want to turn to the acquisition that you completed in the quarter. I know you mentioned that you're expecting maybe a little bit of additional margin increase as you continue to integrate that. Dave StormsDirector - Research at Stonegate Capital Partners00:18:03I did want to double check though about the $4,900,000 in roughly two months. Does the $30,000,000 run rate sound fair for that property on the full year or are there other maybe synergies that could be squeezed out of that? Bradley DodsonCEO, President & Director at Civeo00:18:22On the run rate, originally we had talked about $11,000,000 of impact in 2025 in terms of EBITDA. That was assuming we were going to close at the April, we had closed at the May, but the fundamentals of that are intact. Right now we're not expecting, so no change to our outlook at this point. Operationally, things are, our team is doing a job of folding that into our operations. With met coal prices being a little shaky here recently, I think it's too early to make a call for improvement. Dave StormsDirector - Research at Stonegate Capital Partners00:19:14Understood. Thank you for taking my questions. I'll get back in line. Operator00:19:19Our next caller comes or question comes from Steve Farazani with Sidoti and Company. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:19:27Good morning, everyone. Bradley, your guide would seem to imply, even if we add in the full six months of the four villages, that the second half does look from a profit standpoint to be better than the first half. Can you walk through is that better turnaround activity in 3Q? Is that more impact from the cost cuts? Can you get us to what gets the second half to at least be moderately better than your first half? Bradley DodsonCEO, President & Director at Civeo00:20:04Yeah, I would say that Canada second quarter, third quarter looks fairly stable overall, both on the top line and on the adjusted EBITDA line. We'll expect in Canada in the fourth quarter to have normal seasonal downtime for the holiday season. In Australia, the third quarter will be an improvement over second quarter. One, because of the full quarter of the four acquired villages. Two, because of the integrated services business that we won in the Bowen Basin that we announced. Bradley DodsonCEO, President & Director at Civeo00:20:59And then continued strength in the base business, primarily the owned villages and the base level of integrated services. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:21:14Great, that's helpful. Obviously, we're all looking at the met coal prices and thinking that would be a concern. But then you announced a very large contract renewal for four years. I don't want to ask you if you were surprised by that. But what's your gauge on your customers in Australia given what we've seen, the extreme volatility in prices and recent weakness that you're getting those lengthy extensions, particularly with larger customers? Bradley DodsonCEO, President & Director at Civeo00:21:50Well, think it speaks to the service level, which is a combination of the field team doing a good job on food service and housekeeping coupled with exceedingly strong safety record. That coupled with a portfolio that can meet the customers needs across several of their projects across several of our villages. And I think it's being close to the customer. And as they've grown over the last five years, we've been able to serve that growth consistently, effectively, at an economic price for them. But I would say that your point is, or your question implies something that's very valid, is there is uncertainty in the market. Bradley DodsonCEO, President & Director at Civeo00:22:45And while that is a great win, I would say that it's relatively shaky. So with our contracted rooms base in Australia, we feel pretty good about the 2025 going into 2026. But as it relates to customers, if they have a, as a hypothetical, they have a contracted minimum of 500 rooms, we have a handful of customers, several customers that are using more than their contracted minimums. What starts to get called into question is how much of that above the contracted minimum are they going to use? Are they going to start deferring maintenance projects that are starting to push things to the right? Bradley DodsonCEO, President & Director at Civeo00:23:31I think that in the met coal, the current met coal commodity price environment, that becomes a little bit more uncertain. So as we sit here today, we feel good about things, but the met coal price puts our antennae up and we've to pay attention. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:23:48Got it. That's fair. If I can get one more in just about free cash flow. Obviously, the first half, you've seen an outflow. You talked about using 100% or more of free cash flow for the share buyback. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:23:59But can you talk a little bit about how this trends over the next couple of quarters given the outflows from the first? Because I didn't hear you update the free cash flow guide. Bradley DodsonCEO, President & Director at Civeo00:24:11Yes, so as it relates I guess if the underlying question is related to is the question related to repurchase program or just free cash flow in general? Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:24:22Well, I mean, if you don't generate free cash flow, it's going to affect the buyback. So I guess at the core of the question is free cash flow going to be much stronger in the second half? Or how are you thinking about it? Bradley DodsonCEO, President & Director at Civeo00:24:35Free cash flow will be stronger in the second half, yes. We had as you know, having followed us for as long as you have, seasonally or just through history, the first half free cash flow is always weak. You have a ramp up in receivables as we come out of the holiday, slow period. We have some structural things, including insurance and property taxes would typically hit in the first half of the year. And then you throw on top of that, we're now a cash taxpayer in Australia that started in earnest with the 2024 fiscal year. Those payments, as Colin noted, there was a big one this quarter that was related to 2024. So free cash flow would be better in the second half. Bradley DodsonCEO, President & Director at Civeo00:25:31Just to remind everyone, our capital allocation plan is to spend no less than 100% of free cash flow on the buyback until we get our 20% buyback authorization. So we will continue to be active in the second half of the year on the buyback program. And so that's expected to be. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:25:54Fair enough. Thanks, Brazli. Bradley DodsonCEO, President & Director at Civeo00:25:57Thank you. Operator00:26:03And we'll go next to Jawad Bhuyan with Stifel. Analyst00:26:08Hi, everyone. This is Jawad on for Steven Jagera. I just had a quick question on the Canadian occupancy. I guess, given the continued weakness in build rooms and then also coupled with the turnaround activity that you've seen, I guess could you speak a little bit on what you're seeing so far in 3Q and then maybe whether there's any signs of stabilization or improvements as we go into the second half of the year? Thanks. Bradley DodsonCEO, President & Director at Civeo00:26:38Sure. As it relates to Canadian occupancy in the second quarter and third quarter, it always depends on turnaround activity. As we sit here today, the third quarter has been a continuation of the second quarter. In order to hit what's implied in guidance, we will need to see some turnaround expected turnaround activity come to fruition in Canada, particularly in the next couple months. And so if that does not come to fruition, we'll miss that part of guidance. Bradley DodsonCEO, President & Director at Civeo00:27:13As of right now, it looks like we should see a pickup here July to August, and August to September as it relates to Canadian occupancy. As always, turnaround activity is uncertain and could run longer into the fourth quarter. That's not currently contemplated in guidance. But I would say that generally speaking, there is some stabilization in the Canadian office. Analyst00:27:49Got it. Thank you. I'll pass it on. Operator00:27:54And moving on to John Daniel with Daniel Energy Partners. John DanielFounder & CEO at Daniel Energy Partners00:27:59Hey, Bradley. Thanks. And, Collin, thanks for including me. Bradley, I've got perhaps a basic question, so apologies for the ignorance. But as you look at Australia, today you've got multiple US service companies there, Halliburton, Liberty, HP. John DanielFounder & CEO at Daniel Energy Partners00:28:17Can you walk me through the just the longer term opportunity set? I'm not looking for specific guidance per se, but just what the opportunity exists with supporting that segment of companies coming over there. Just give me that market update, you don't mind. Bradley DodsonCEO, President & Director at Civeo00:28:36Yeah, I mean, today, our Australian operations, with the exception of well, today and historically, our oil and gas exposure in Australia has been minimal to de minimis For us, our exposure has been at our Gorafe location, which from time to time has supported onshore and offshore LNG activity. As it relates to onshore land, oil and gas development, this goes back over ten years. We did a little bit of work as it related to the Curtis Island LNG work in Queensland, but that's long gone in terms of the opportunity for accommodations work. So on a go forward basis, as it relates to oil and gas opportunities in Australia, it would likely be a natural gas drilling project, something similar to the Santos project in New South Wales. Our Bogabri and Arabri locations are well suited to support that should that move forward. Bradley DodsonCEO, President & Director at Civeo00:29:49There seems to be political momentum to support further natural gas drilling in that they're facing higher power, but we're facing the whole country facing higher power prices and are starting to get more comfortable with natural gas being an answer to what will be an electricity availability and cost issue. John DanielFounder & CEO at Daniel Energy Partners00:30:18Okay, so obviously nothing now, but do you see, I guess how, what do you think these companies are doing to for accommodations for their workers? Because it is remote, isn't it? Bradley DodsonCEO, President & Director at Civeo00:30:33It is. A lot of it is in a space that we don't currently play in, is we do not have mobile camps in Australia. It's something we've looked at in the past and may, and will continue to look at in the future. I don't see it as being a major driver for us. Where I think the Australian business can grow is there are specific properties in our core business that would be additive if we were to acquire them. Bradley DodsonCEO, President & Director at Civeo00:31:07And then organic growth and potentially acquisition growth in the integrated services business. But again, we're very conscious of the fact that any capital project has to stack up against our cost of capital and the anticipated return from the buyback program. John DanielFounder & CEO at Daniel Energy Partners00:31:27Got it. Okay. That's all I had. Thanks for entertaining that question. Bradley DodsonCEO, President & Director at Civeo00:31:33Thank you, John. Operator00:31:36This now concludes our question and answer session. I would like to turn the floor back over to Bradley Dodson for closing comments. Bradley DodsonCEO, President & Director at Civeo00:31:47Thank you, Gary, and thank you everyone for joining the call today. We appreciate your interest in Civia. We look forward to speaking with you on the third quarter earnings call, which we anticipate will be at the October. Operator00:32:01Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.Read moreParticipantsExecutivesRegan NielsenSenior Director, Corporate Development & IRBradley DodsonCEO, President & DirectorCollin GerrySVP, CFO & TreasurerAnalystsDave StormsDirector - Research at Stonegate Capital PartnersSteve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLCAnalystJohn DanielFounder & CEO at Daniel Energy PartnersPowered by Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Civeo Earnings HeadlinesSidoti Csr Issues Pessimistic Estimate for Civeo EarningsAugust 3, 2025 | americanbankingnews.comCiveo Corporation (NYSE:CVEO) Q2 2025 Earnings Call TranscriptJuly 30, 2025 | msn.comHIDDEN IN THE BOOK OF GENESIS…“This land I will give to you…” — a 4,000-year-old line from Genesis may hold the key to unlocking a $150 trillion vault of untapped American wealth. Former CIA advisor Jim Rickards calls it the “Old Testament Wealth Code” — and says it could transform your financial future. He’s revealing everything in a new presentation.August 9 at 2:00 AM | Paradigm Press (Ad)Civeo Corp (CVEO) Q2 2025 Earnings Report Preview: What To ExpectJuly 30, 2025 | finance.yahoo.comCiveo Corporation (CVEO) Q2 2025 Earnings Call TranscriptJuly 29, 2025 | seekingalpha.comCiveo Reports Second Quarter 2025 ResultsJuly 29, 2025 | businesswire.comSee More Civeo Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Civeo? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Civeo and other key companies, straight to your email. Email Address About CiveoCiveo (NYSE:CVEO) provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company develops lodges and villages; and mobile assets, including modular, skid-mounted accommodation, and central facilities that provide short to medium-term accommodation needs. It offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services, and camp management services. In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as lodging and catering services. It serves oil, mining, engineering, and oilfield and mining service companies. Civeo Corporation was founded in 1977 and is headquartered in Houston, Texas.View Civeo ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Airbnb Beats Earnings, But the Growth Story Is Losing AltitudeDutch Bros Just Flipped the Script With a Massive Earnings BeatIs Eli Lilly’s 14% Post-Earnings Slide a Buy-the-Dip Opportunity?Constellation Energy’s Earnings Beat Signals a New EraRealty Income Rallies Post-Earnings Miss—Here’s What Drove ItDon't Mix the Signal for Noise in Super Micro Computer's EarningsWhy Monolithic Power's Earnings and Guidance Ignited a Rally Upcoming Earnings SEA (8/12/2025)Cisco Systems (8/13/2025)Alibaba Group (8/13/2025)NetEase (8/14/2025)Applied Materials (8/14/2025)Petroleo Brasileiro S.A.- Petrobras (8/14/2025)NU (8/14/2025)Deere & Company (8/14/2025)Palo Alto Networks (8/18/2025)Medtronic (8/19/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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PresentationSkip to Participants Operator00:00:00Greetings and welcome to the Civeo Corporation Second Quarter twenty twenty five Earnings Call. At this time, participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded. I will now turn the conference over to your host, Regan Nielsen. Please go ahead. Regan NielsenSenior Director, Corporate Development & IR at Civeo00:00:27Thank you, and welcome to Civeo's second quarter twenty twenty five earnings conference call. Today, our call will be led by Bradley Dodson, Civeo's President and Chief Executive Officer and Colin Geary, Civeo's Chief Financial Officer and Treasurer. Before we begin, we would like to caution listeners regarding forward looking statements. To the extent that our remarks today contain anything other than historical information, please note that we're relying on the Safe Harbor protections afforded by federal law. These forward looking remarks speak only as of the date of our earnings release and this conference call. Regan NielsenSenior Director, Corporate Development & IR at Civeo00:01:01We undertake no obligation to update or revise these forward looking statements, except as required by law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our Forms 10 ks, 10 Q, and other SEC filings. I'll now turn the call over to Farley. Bradley DodsonCEO, President & Director at Civeo00:01:21Thank you, Reagan, and thank you all for joining us today for our second quarter twenty twenty five earnings call. I'll start by highlighting some of the key takeaways before walking through a brief summary of our second quarter twenty twenty five financial results. Then Colin will provide financial and segment level review. I'll conclude with our 2025 guidance and the underlying regional assumptions, and then we'll open the call up for questions. Turning to our key takeaways, I'll start with significant progress that we've made towards completing our expanded share repurchase authorization. Bradley DodsonCEO, President & Director at Civeo00:02:00We capitalized on equity market softness earlier in the second quarter to repurchase 883,000 common shares, which is approximately 7% of Civio's common shares outstanding. These repurchases made since the announcement of our new capital allocation plan equate to 30% of that new buyback authorization as of 06/30/2025. Civio has now repurchased approximately 27% of its common shares outstanding since we began our share repurchase program in August 2021. We believe that share repurchases represent a compelling use of capital, especially during broad market equity market volatility. Given the accelerated buybacks and the recently completed acquisition, we have now reached the upper end of our target net leverage ratio of two times. Bradley DodsonCEO, President & Director at Civeo00:02:58We are comfortable with that ratio as we continue to execute under our share repurchase program. We remain committed to completing the 20% share repurchase authorization as soon as practicable and intend to use no less than 100% of the annual free cash flow to achieve that goal. I'll now move to some comments on the regional results. In Australia, we remain focused on growing our integrated services business and integrating the recent acquisition. Revenue in the region increased 4% year over year or 7% on a constant currency basis and adjusted EBITDA grew by 10% or 12% on a constant currency basis. Bradley DodsonCEO, President & Director at Civeo00:03:46Contributions from the newly acquired Bowen Basin Villages and growth in our integrated services business are driving the strong margins that we experienced in the second quarter. Based on current customer discussions and our base of contracted room nights, we expect our current Australian occupancy levels to continue through the rest of the year despite weakening in met coal prices experienced recently. We completed the acquisition of four villages in May and began integrating them into our operations. Approximately two months of those results were included in our second quarter twenty twenty five results. We are pleased with their early contributions and we look to realize further margin leverage going forward. Bradley DodsonCEO, President & Director at Civeo00:04:36Additionally, we recently announced two contracts in Australia in the Bowen Basin, a renewal of a contract with an existing customer. The renewal is a four year take or pay agreement at our owned villages with expected revenues over the contract term of $250,000,000 Australian. The second contract previously announced is a three year integrated services contract worth approximately $64,000,000 in revenue. These awards validate our winning strategy and position us for continued momentum and growth in Australia. In Canada, the second quarter saw the typical seasonal increase in occupancy relative to the first quarter, driven by turnaround activity in the core Oil Sands region. Bradley DodsonCEO, President & Director at Civeo00:05:23However, on a year over year basis, turnaround occupancy remains subdued. Conditions in Canada remain challenging, given the macroeconomic headwinds, which include low and uncertain oil prices and our customers' fiscal conservatism. Customers remain steadfast in their singular focus on cost reductions in response to oil price and political uncertainty, and investor pressure to return capital to shareholders. We remain focused on controlling what we can control. We continue to take steps to optimize our cost structure in Canada and align our business with realities of the current environment without sacrificing our ability to capitalize on opportunities to diversify our business away from the Oil Sands region. Bradley DodsonCEO, President & Director at Civeo00:06:12Overall, we are executing on our strategic priorities in each region. In Australia, our Australian business is hitting on all cylinders, and while the Canadian headwinds remain, we know this market well and are working with our strategic partners to understand how we can continue to support them as we capitalize on evolving opportunities in the region. We are taking decisive action to apply our resources to position Civeo for long term resilience and cash generation. With that, I'll turn it over to Colin. Collin GerrySVP, CFO & Treasurer at Civeo00:06:46Thank you, Bradley. Thank you all for joining us this morning. Typically, I would first focus on expanding more on the underlying drivers of the results in the income statement. However, the real story for this quarter relates to the balance sheet and the impact of our recent capital allocation. As Bradley mentioned, we made significant progress on our buyback authorization, completing 30% of the program in the second quarter. Collin GerrySVP, CFO & Treasurer at Civeo00:07:11In addition, we executed on accretive growth through our acquisition in Australia. As a result, our net debt increased by $95,000,000 in the second quarter, primarily driven by $65,000,000 deployed for our recent Australian acquisition and $19,000,000 deployed for share buybacks. Consequently, our net debt was $154,000,000 as of 06/30/2025, resulting in a net leverage ratio of two times. Turning to the income statement. Today we report total revenues in the second quarter of $162,700,000 with a net loss of $3,300,000 or $0.25 per diluted share. Collin GerrySVP, CFO & Treasurer at Civeo00:07:51During the second quarter, we generated adjusted EBITDA of 25,000,000 and negative operating cash flow of $2,300,000 Our free cash flow was burdened by working capital build in the quarter and the expected payment of Australian income taxes, which included a large payment related to the prior year. The decrease in adjusted EBITDA in the 2025 compared to the year ago period was primarily due to the decreased billed rooms at the Canadian lodges. We expect this lower level of customer spending to continue as producers in the region remain keenly focused on reducing costs. As we mentioned, we are taking action to cut costs and streamline the business and identifying additional opportunities across the region. Second quarter revenues from our Australian segment were $112,700,000 up 4% from $108,600,000 in the 2024. Adjusted EBITDA was 23,700,000.0 up 10% from $21,600,000 in the 2024. The increase in revenues and adjusted EBITDA was primarily driven by the recently completed acquisition of four owned villages, as well as margin improvement in the integrated services business. The year over year increase was offset by the impact of a weakened Australian dollar relative to the U. Collin GerrySVP, CFO & Treasurer at Civeo00:09:10S. Dollar, which decreased revenues and EBITDA by $3,200,000 and $700,000 respectively. Australian owned villages, village build rooms in the quarter were 690,000 rooms, up 10% from the 2024, primarily due to our recently completed acquisition. Our daily room rate for Australian owned villages in U. S. Collin GerrySVP, CFO & Treasurer at Civeo00:09:33Dollars was $76 which decreased from $78 in the 2024, primarily due to the weakening of the Australian dollar. Turning to Canada, we reported revenues of $50,000,000 compared to revenues of $79,500,000 in the 2024. Adjusted EBITDA for the segment was $7,500,000 a decrease from $17,300,000 in the 2024. As noted, the year over year revenue and adjusted EBITDA decreases were driven by lower build rooms as our customers focused on cost and headcount reductions as well as the loss of Fort Hills related occupancy from the sale of our McLellan Lake Lodge. During the second quarter, billed rooms in our Canadian lodges totaled $450,000 which was down from $752,000 in the 2024. Collin GerrySVP, CFO & Treasurer at Civeo00:10:21Our daily room rate for the Canadian segment in U. S. Dollars was $94 which decreased from $96 in the 2024, primarily due to the weakening of the Canadian dollar. Looking at our capital structure, as mentioned earlier, Civeo's net debt as of June 30 was $154,000,000 a $95,000,000 increase since 03/31/2025, attributable to our recent acquisition as well as the significant progress made on our share repurchase authorization in the quarter. Our net leverage ratio for the quarter was two times, with total liquidity of approximately $73,000,000 Given the accelerated buybacks and recently completed acquisitions, as mentioned, we have now reached the high end of our target net leverage ratio at two times. Collin GerrySVP, CFO & Treasurer at Civeo00:11:07We have allocated $22,500,000 to share repurchases in the 2025 and assuming current valuations, we expect to utilize free cash flow to remain active repurchasing shares in the back half of the year. We will target a year ending leverage ratio of approximately two times. Turning to capital allocation, I'll start with CapEx. On a consolidated basis, capital expenditures for the 2025 were $4,500,000 down from $5,300,000 during the 2024. Capital expenditures in both periods were predominantly related to maintenance spending on our lodges and villages. Collin GerrySVP, CFO & Treasurer at Civeo00:11:46As noted, during the 2025, we repurchased approximately 883,000 shares through our share repurchase program for a total cost of approximately $19,100,000 With our recently increased share repurchase authorization and commitment to accelerating the return of capital to shareholders, we continue to believe that repurchasing Syvio shares presents a value enhancing opportunity. Second quarter market softness gave us an excellent buyback opportunity. We've made great progress on our current share repurchase authorization, and we will continue to opportunistically execute on our plan moving forward. With that, I'll turn it back over to Bradley. Bradley DodsonCEO, President & Director at Civeo00:12:25Thank you, Colin. I would now like to turn our discussion over to the full year 2025 guidance on a consolidated basis, including our underlying macroeconomic and regional assumptions. We are maintaining our full year 2025 revenue and adjusted EBITDA guidance. We continue to look for revenue this year to be in a range of $640,000,000 to $670,000,000 and adjusted EBITDA to be in the range of $86,000,000 to $96,000,000 We're also maintaining our full year capital expenditure guidance, which was a range of $20,000,000 to 25,000,000 I'll now provide the regional outlooks and corresponding underlying assumptions. In Australia, customer activity in our own villages remains very strong. Bradley DodsonCEO, President & Director at Civeo00:13:17River Bowen Basin villages continue to be effectively, continue to operate effectively at full capacity, and we are seeing strong occupancy across the remainder of our own village portfolio. Despite weakening met coal prices in the first half of the year, we expect continued strength in our own villages throughout the balance of the year. As it relates to our integrated services business, we are encouraged by the top line growth as well as the year over year margin improvement experienced in the first half of the year, and we'll continue to focus on executing on cost executing cost effectively as we on our recent contract awards. We expect to build on this through the remainder of 2025 and beyond as we work towards our goal of achieving $500,000,000,000 Australian of Australian Integrated Services revenues by 2027. In Canada, we continue to navigate the difficult operating environment in the oil sands and lower demand for temporary turnaround activity, which has been exacerbated by broader macroeconomic uncertainty. Bradley DodsonCEO, President & Director at Civeo00:14:28We expect build rooms in the second half of the year to be more in line with the 2024, though more balanced between the third and fourth quarters. Lastly, we do not currently foresee any meaningful near term rebound in upstream oil sands spending. As a result, our focus remains squarely on managing on what we can control, executing on our cost reduction initiatives, enhancing operational efficiency, and aligning our resource base with demand realities. During the second quarter, we took steps to streamline our lodge footprint, including cold closure of two lodges. We are actively working with a third party consulting partner to identify additional opportunities to lower our cost structure in Canada. Bradley DodsonCEO, President & Director at Civeo00:15:17While 2025 is clearly a transitional year for our Canadian segment, we believe we are executing the decisive actions that will orient the business to capitalize on growth opportunities and position it for long term growth and improved cash flow generation. I want to take a moment to thank the hardworking Civeo team for their continued focus on operational excellence. That together with disciplined capital deployment is what's driving long term shareholder value creation. With that, we're happy to take your questions. Operator00:15:52Thank you. We will now be conducting a question and answer session. And our first question will come from Dave Storms with Stonegate. Collin GerrySVP, CFO & Treasurer at Civeo00:16:25Good Dave StormsDirector - Research at Stonegate Capital Partners00:16:25morning. Just wanted to start with maybe some of the puts and takes on your guidance at a macro level. We've seen a couple of trade deals get announced in The U. S. Over the last couple of weeks. Dave StormsDirector - Research at Stonegate Capital Partners00:16:38Do any of those deals give you confidence to maybe relook at that guidance? Is there a chance that it could be biased towards the upside or the downside? Just curious as to what your thoughts are relative to that. Bradley DodsonCEO, President & Director at Civeo00:16:54We have been watching the trades the international trade situation very closely. Obviously, thus far to date, the impact of the trade uncertainty has not impacted our business either in Canada or Australia significantly, Although we watch it very closely, we're the impact primarily to food costs has been felt very, in a very minor fashion in Canada. We're keeping an eye on it to make sure that doesn't accelerate. Most of our focus has been on whether trade uncertainty or disruption will impact our customers and how that might influence their need for rooms or their spending. But thus far, we've not seen any material impact, either previously or with recent announcements. Dave StormsDirector - Research at Stonegate Capital Partners00:17:49Understood. That's very helpful. Thank you. And then just want to turn to the acquisition that you completed in the quarter. I know you mentioned that you're expecting maybe a little bit of additional margin increase as you continue to integrate that. Dave StormsDirector - Research at Stonegate Capital Partners00:18:03I did want to double check though about the $4,900,000 in roughly two months. Does the $30,000,000 run rate sound fair for that property on the full year or are there other maybe synergies that could be squeezed out of that? Bradley DodsonCEO, President & Director at Civeo00:18:22On the run rate, originally we had talked about $11,000,000 of impact in 2025 in terms of EBITDA. That was assuming we were going to close at the April, we had closed at the May, but the fundamentals of that are intact. Right now we're not expecting, so no change to our outlook at this point. Operationally, things are, our team is doing a job of folding that into our operations. With met coal prices being a little shaky here recently, I think it's too early to make a call for improvement. Dave StormsDirector - Research at Stonegate Capital Partners00:19:14Understood. Thank you for taking my questions. I'll get back in line. Operator00:19:19Our next caller comes or question comes from Steve Farazani with Sidoti and Company. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:19:27Good morning, everyone. Bradley, your guide would seem to imply, even if we add in the full six months of the four villages, that the second half does look from a profit standpoint to be better than the first half. Can you walk through is that better turnaround activity in 3Q? Is that more impact from the cost cuts? Can you get us to what gets the second half to at least be moderately better than your first half? Bradley DodsonCEO, President & Director at Civeo00:20:04Yeah, I would say that Canada second quarter, third quarter looks fairly stable overall, both on the top line and on the adjusted EBITDA line. We'll expect in Canada in the fourth quarter to have normal seasonal downtime for the holiday season. In Australia, the third quarter will be an improvement over second quarter. One, because of the full quarter of the four acquired villages. Two, because of the integrated services business that we won in the Bowen Basin that we announced. Bradley DodsonCEO, President & Director at Civeo00:20:59And then continued strength in the base business, primarily the owned villages and the base level of integrated services. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:21:14Great, that's helpful. Obviously, we're all looking at the met coal prices and thinking that would be a concern. But then you announced a very large contract renewal for four years. I don't want to ask you if you were surprised by that. But what's your gauge on your customers in Australia given what we've seen, the extreme volatility in prices and recent weakness that you're getting those lengthy extensions, particularly with larger customers? Bradley DodsonCEO, President & Director at Civeo00:21:50Well, think it speaks to the service level, which is a combination of the field team doing a good job on food service and housekeeping coupled with exceedingly strong safety record. That coupled with a portfolio that can meet the customers needs across several of their projects across several of our villages. And I think it's being close to the customer. And as they've grown over the last five years, we've been able to serve that growth consistently, effectively, at an economic price for them. But I would say that your point is, or your question implies something that's very valid, is there is uncertainty in the market. Bradley DodsonCEO, President & Director at Civeo00:22:45And while that is a great win, I would say that it's relatively shaky. So with our contracted rooms base in Australia, we feel pretty good about the 2025 going into 2026. But as it relates to customers, if they have a, as a hypothetical, they have a contracted minimum of 500 rooms, we have a handful of customers, several customers that are using more than their contracted minimums. What starts to get called into question is how much of that above the contracted minimum are they going to use? Are they going to start deferring maintenance projects that are starting to push things to the right? Bradley DodsonCEO, President & Director at Civeo00:23:31I think that in the met coal, the current met coal commodity price environment, that becomes a little bit more uncertain. So as we sit here today, we feel good about things, but the met coal price puts our antennae up and we've to pay attention. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:23:48Got it. That's fair. If I can get one more in just about free cash flow. Obviously, the first half, you've seen an outflow. You talked about using 100% or more of free cash flow for the share buyback. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:23:59But can you talk a little bit about how this trends over the next couple of quarters given the outflows from the first? Because I didn't hear you update the free cash flow guide. Bradley DodsonCEO, President & Director at Civeo00:24:11Yes, so as it relates I guess if the underlying question is related to is the question related to repurchase program or just free cash flow in general? Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:24:22Well, I mean, if you don't generate free cash flow, it's going to affect the buyback. So I guess at the core of the question is free cash flow going to be much stronger in the second half? Or how are you thinking about it? Bradley DodsonCEO, President & Director at Civeo00:24:35Free cash flow will be stronger in the second half, yes. We had as you know, having followed us for as long as you have, seasonally or just through history, the first half free cash flow is always weak. You have a ramp up in receivables as we come out of the holiday, slow period. We have some structural things, including insurance and property taxes would typically hit in the first half of the year. And then you throw on top of that, we're now a cash taxpayer in Australia that started in earnest with the 2024 fiscal year. Those payments, as Colin noted, there was a big one this quarter that was related to 2024. So free cash flow would be better in the second half. Bradley DodsonCEO, President & Director at Civeo00:25:31Just to remind everyone, our capital allocation plan is to spend no less than 100% of free cash flow on the buyback until we get our 20% buyback authorization. So we will continue to be active in the second half of the year on the buyback program. And so that's expected to be. Steve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLC00:25:54Fair enough. Thanks, Brazli. Bradley DodsonCEO, President & Director at Civeo00:25:57Thank you. Operator00:26:03And we'll go next to Jawad Bhuyan with Stifel. Analyst00:26:08Hi, everyone. This is Jawad on for Steven Jagera. I just had a quick question on the Canadian occupancy. I guess, given the continued weakness in build rooms and then also coupled with the turnaround activity that you've seen, I guess could you speak a little bit on what you're seeing so far in 3Q and then maybe whether there's any signs of stabilization or improvements as we go into the second half of the year? Thanks. Bradley DodsonCEO, President & Director at Civeo00:26:38Sure. As it relates to Canadian occupancy in the second quarter and third quarter, it always depends on turnaround activity. As we sit here today, the third quarter has been a continuation of the second quarter. In order to hit what's implied in guidance, we will need to see some turnaround expected turnaround activity come to fruition in Canada, particularly in the next couple months. And so if that does not come to fruition, we'll miss that part of guidance. Bradley DodsonCEO, President & Director at Civeo00:27:13As of right now, it looks like we should see a pickup here July to August, and August to September as it relates to Canadian occupancy. As always, turnaround activity is uncertain and could run longer into the fourth quarter. That's not currently contemplated in guidance. But I would say that generally speaking, there is some stabilization in the Canadian office. Analyst00:27:49Got it. Thank you. I'll pass it on. Operator00:27:54And moving on to John Daniel with Daniel Energy Partners. John DanielFounder & CEO at Daniel Energy Partners00:27:59Hey, Bradley. Thanks. And, Collin, thanks for including me. Bradley, I've got perhaps a basic question, so apologies for the ignorance. But as you look at Australia, today you've got multiple US service companies there, Halliburton, Liberty, HP. John DanielFounder & CEO at Daniel Energy Partners00:28:17Can you walk me through the just the longer term opportunity set? I'm not looking for specific guidance per se, but just what the opportunity exists with supporting that segment of companies coming over there. Just give me that market update, you don't mind. Bradley DodsonCEO, President & Director at Civeo00:28:36Yeah, I mean, today, our Australian operations, with the exception of well, today and historically, our oil and gas exposure in Australia has been minimal to de minimis For us, our exposure has been at our Gorafe location, which from time to time has supported onshore and offshore LNG activity. As it relates to onshore land, oil and gas development, this goes back over ten years. We did a little bit of work as it related to the Curtis Island LNG work in Queensland, but that's long gone in terms of the opportunity for accommodations work. So on a go forward basis, as it relates to oil and gas opportunities in Australia, it would likely be a natural gas drilling project, something similar to the Santos project in New South Wales. Our Bogabri and Arabri locations are well suited to support that should that move forward. Bradley DodsonCEO, President & Director at Civeo00:29:49There seems to be political momentum to support further natural gas drilling in that they're facing higher power, but we're facing the whole country facing higher power prices and are starting to get more comfortable with natural gas being an answer to what will be an electricity availability and cost issue. John DanielFounder & CEO at Daniel Energy Partners00:30:18Okay, so obviously nothing now, but do you see, I guess how, what do you think these companies are doing to for accommodations for their workers? Because it is remote, isn't it? Bradley DodsonCEO, President & Director at Civeo00:30:33It is. A lot of it is in a space that we don't currently play in, is we do not have mobile camps in Australia. It's something we've looked at in the past and may, and will continue to look at in the future. I don't see it as being a major driver for us. Where I think the Australian business can grow is there are specific properties in our core business that would be additive if we were to acquire them. Bradley DodsonCEO, President & Director at Civeo00:31:07And then organic growth and potentially acquisition growth in the integrated services business. But again, we're very conscious of the fact that any capital project has to stack up against our cost of capital and the anticipated return from the buyback program. John DanielFounder & CEO at Daniel Energy Partners00:31:27Got it. Okay. That's all I had. Thanks for entertaining that question. Bradley DodsonCEO, President & Director at Civeo00:31:33Thank you, John. Operator00:31:36This now concludes our question and answer session. I would like to turn the floor back over to Bradley Dodson for closing comments. Bradley DodsonCEO, President & Director at Civeo00:31:47Thank you, Gary, and thank you everyone for joining the call today. We appreciate your interest in Civia. We look forward to speaking with you on the third quarter earnings call, which we anticipate will be at the October. Operator00:32:01Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.Read moreParticipantsExecutivesRegan NielsenSenior Director, Corporate Development & IRBradley DodsonCEO, President & DirectorCollin GerrySVP, CFO & TreasurerAnalystsDave StormsDirector - Research at Stonegate Capital PartnersSteve FerazaniSenior Equity Analyst - Diversified Industrials & Energy at Sidoti & Company, LLCAnalystJohn DanielFounder & CEO at Daniel Energy PartnersPowered by