Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2024 Q3

Rhea-AI Summary

Civeo (NYSE: CVEO) continues to demonstrate strong financial performance in Q3 2024, generating $28.3M in free cash flow, following $30.9M in Q2. The company has raised its full-year 2024 FCF guidance range to $50.0M-$60.0M, up from $45.0M-$60.0M. Notable achievements include a 33% year-over-year revenue growth in the Australian segment and a significant 33-month contract renewal with a major Canadian oil sands producer valued at approximately C$150 million through June 2027. The company has also updated its 2024 guidance, projecting revenue between $675M-$700M and adjusted EBITDA of $83M-$88M.

Positive

• Generated strong Q3 2024 free cash flow of $28.3M
• 33% year-over-year revenue growth in Australian segment
• Secured C$150M contract renewal with major Canadian oil sands producer through June 2027
• Raised low end of 2024 FCF guidance from $45M to $50M
• Projected 2024 revenue of $675M-$700M with adjusted EBITDA of $83M-$88M

Negative

• Q3 2024 FCF slightly decreased from $30.9M in Q2 to $28.3M

Insights

Financial Analyst

The Q3 update reveals significant financial strength for Civeo. The company's consistent free cash flow generation remains impressive, with $28.3M in Q3 and $30.9M in Q2. The raised guidance floor to $50M FCF for 2024 demonstrates management's growing confidence in operational performance.

The new Canadian contract renewal, valued at approximately C$150M, provides substantial revenue visibility through mid-2027. Combined with 33% year-over-year revenue growth in Australia and tightened full-year guidance of $675M-700M in revenue and $83M-88M in adjusted EBITDA, CVEO's financial outlook appears robust.

The company's ability to maintain strong cash flows while securing long-term contracts positions it well for continued stability and potential shareholder returns.

Dallas, Texas--(Newsfile Corp. - November 5, 2024) - Civeo Corporation (NYSE: CVEO) Stonegate Capital Partners updates their coverage on Civeo Corporation. Civeo has consistently generated positive free cash flow every year since 2014 and continues to do so. In 3Q24, CVEO produced $28.3M in FCF, building on the $30.9M achieved in 2Q24. This quarter's FCF, while slightly lower than the previous quarter, still represents a strong performance. CVEO remains optimistic about maintaining positive free cash flow and has updated its full-year 2024 guidance, raising the low end to its guidance range from $45.0M to $50.0M, increasing the midpoint from $52.5M to $55.0M as the high end of guidance was maintained at $60.0M. We note that this consistent generation of cash flow not only highlights Civeo's solid financial health but also reflects its strategic commitment to enhancing shareholder returns.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• The Australian segment continues to deliver strong growth, with revenues up 33% on a year-over-year basis.
• Announced a 33-month contract renewal with a major Canadian oil sands producer through June 2027 with expected revenues totaling approximately C$150 million.
• CVEO tightened its full-year 2024 guidance with revenue projected to range from $675M to $700M and adjusted EBITDA between $83M and $88M.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/228961

FAQ

What was Civeo 's (CVEO) free cash flow in Q3 2024?

Civeo generated $28.3M in free cash flow during Q3 2024.

What is CVEO's updated free cash flow guidance for 2024?

CVEO raised its 2024 FCF guidance range to $50.0M-$60.0M, increasing the midpoint to $55.0M.

What was the value and duration of CVEO's recent Canadian contract renewal?

CVEO secured a 33-month contract renewal with a major Canadian oil sands producer worth approximately C$150 million, extending through June 2027.

What is Civeo's revenue guidance for 2024?

Civeo projects 2024 revenue to range between $675M and $700M with adjusted EBITDA between $83M and $88M.