Civeo Corporation

Greetings and welcome to the CVO Corporation's second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Regan Nielsen, Vice President, Corporate Development. You may begin.

Thank you, and welcome to Cibio's second quarter 2026 earnings conference call. Today, our call will be led by Bradley Dodson, Cibio's President and Chief Executive Officer, and Collin Gerry, Cibio'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 statements speak only as of the date of our earnings release and this conference call. We undertake no obligation to update or revise these 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-K, 10-Q, and other SEC filings. I'll now turn the call over to Bradley.

Thank you, Regan, and thank you all for joining us today on our second quarter 2026 earnings call. I'll start with the key takeaways for the quarter, then summarize our consolidated and regional performance. After that, Collin will provide further financial and segment-level details and I'll conclude our prepared remarks with our outlook for 2026. We will then open the call for questions. There are four key takeaways for the call today. First, North American growth represents a tangible opportunity set for CIVIO. Our bid pipeline remains robust with more than $1.5 billion in total contract value in line with what we disclosed last quarter. While the pace and timing of these opportunities are dependent on customer final investment decisions, We remain focused on what we can control, maintaining a sharp business development focus, preparing our assets and operating platform to execute, and preserving the financial flexibility to pursue the right opportunities as they advance. Second, the convertible debt offering we completed after the quarter end provides CBO with the financial firepower to play offense. It gives us the flexibility to pursue the opportunities that I just described. We raised lower-cost, fixed-rate capital and completed the first phase of our shareholder return commitment. Third, Australia remains the strength of our business, although the second quarter results reflected near-term softness from cost inflation and customer caution, tied principally to the fuel costs and availability amid ongoing Middle East seaborne trade dislocation. With metallurgical coal prices in the $220 plus range, the underlying operating environment is healthy and we see upside as this temporary noise dissipates. Lastly, in our base oil sands business, we believe there is more upside than downside from the current activity levels. Our confidence in the long-term outlook for the business is supported by the increasing focus from the federal and Alberta governments and the oil sands producers on advancing pipeline and carbon capture infrastructure projects. I'll now start with our operational results for the quarter. On a consolidated basis, the second quarter results in operating drivers were in line with our expectations. In Australia, we had solid occupancy in our own villages and continued to focus on mitigating inflationary pressures largely brought by the Middle East conflict and labor availability. Australian platform remains well contracted, generates strong cash flow, and is positioned to benefit when fuel market conditions normalize. In Canada, the second quarter results were as expected, and our bidding activity remains robust. We continue to manage the base oil sands business for current demand while preserving the capacity to benefit from future infrastructure activity.