Civeo Corporation Initiates Regular Quarterly Dividend of $0.25 Per Share and Announces Renewal of Share Repurchase Authorization

Civeo Corporation (NYSE: CVEO) (“Civeo” or the “Company”) today announced that its Board of Directors has declared a quarterly dividend of $0.25 per common share. The cash dividend is payable on September 29, 2023 to shareholders of record as of close of business on September 15, 2023. Going forward, Civeo intends to pay regular quarterly dividends, with all future dividend payments subject to quarterly review and approval by its Board of Directors.

The quarterly dividend is a new element in the Company’s capital allocation strategy, which has historically focused on debt reduction and returning capital to shareholders through share repurchases.

“Our disciplined approach to capital allocation has enabled us to reach our target net leverage ratio range of 1.00x to 1.25x while also repurchasing the equivalent of over 2.1 million Civeo common shares, or 12.4% of our fully diluted shares outstanding over the last two years. Looking ahead, we are pleased to add this quarterly dividend to our comprehensive capital allocation strategy to reflect the evolution of our business, our expected consistent cash flow generation and strong balance sheet position,” said Bradley J. Dodson, Civeo’s President and Chief Executive Officer.

Mr. Dodson concluded, “Our expected cash flow generation and ample liquidity underpin our confidence in initiating a $0.25 per share regular quarterly dividend. This dividend allows us to consistently return capital to shareholders while also supporting our core operations, pursuing attractive growth opportunities and continuing stock repurchases opportunistically. In conjunction with this capital allocation framework, we expect to maintain a target net leverage ratio of 1.00x - 1.25x, with flexibility to increase to 2.00x to pursue accretive growth opportunities.”

Please see our updated Investor Relations presentation on our website for more details on our capital allocation strategy moving forward.

Share Repurchase Authorization

In addition to the announcement of the quarterly dividend, the Company announced today that its Board of Directors has renewed its share repurchase authorization for the Company to repurchase up to 5% of its total common shares outstanding through the facilities of the New York Stock Exchange over the next twelve months.

Civeo intends to fund repurchases through cash on hand and cash generated from operations. The Company plans to opportunistically use this program as part of the aforementioned capital allocation strategy.