What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-03-03 compared with 2025-02-27 · 186 added, 190 removed, 446 unchanged (46% of the section changed)

8 unchanged sentences

We also manage development activities for workforce accommodation facilities, including site selection, permitting, engineering and design and manufacturing and site construction management, along with providing hospitality services once the facility is constructed.

We primarily operate in some of the world’s most active met coal, oil, liquefied natural gas (LNG) and iron ore producing regions, where, in many cases, traditional hospitality accommodations and related infrastructure services often are not accessible, sufficient or cost effective.

Our customers include mining companies, major and independent oil companies, engineering companies and oilfield and mining service companies.

We primarily operate in some of the world’s most active met coal, oil, iron ore and liquefied natural gas (LNG) producing regions, where, in many cases, traditional hospitality accommodations and related infrastructure services often are not accessible, sufficient or cost effective.

Our customers include mining companies, major and independent oil companies, construction and engineering companies and oilfield and mining service companies.

Our extensive suite of services enables us to meet the unique needs of each of our customers, while providing comfortable accommodations for their employees.

9 unchanged sentences

We firmly believe that living and integrating these values into our operations is a strategic advantage that drives innovation, builds resilience and creates lasting value for our stakeholders.

Our hospitality services span the lifecycle of customer projects, from the initial exploration and resource delineation to long-term production.

Our hospitality services span the lifecycle of customer projects, from the initial exploration, resource delineation and construction to long-term production.

Initially, as customers assess the resource potential and determine how they will develop it, they typically need our hospitality services for a limited number of employees for an uncertain duration of time.

5 unchanged sentences

We own and operate 26 lodges and villages with approximately 26,500 rooms.

We operate approximately 19,000 rooms across 22 locations where the accommodations assets are owned by our customers.

We also operate approximately 19,500 rooms across 24 locations where the accommodations assets are owned by our customers.

Additionally, in Canada, we also offer a fleet of mobile assets which serve shorter term projects, such as pipeline construction.

1 unchanged sentence

For the years ended December 31, 2025, 2024 and 2023, we generated $638.8 million, $682.1 million and $700.8 million in revenues and $4.1 million, $1.3 million and $39.5 million in operating income, respectively.

The majority of our operations, assets and income are derived from the hospitality services provided at lodges and villages we own that have historically been contracted by our customers under multi-year, take-or-pay or exclusivity contracts.

The hospitality services we provide at these facilities generated 60% of our revenue for the year ended December 31, 2024.

The majority of our operations, assets and income are derived from the hospitality services provided at villages and lodges we or our customers own that have historically been contracted by our customers under multi-year, take-or-pay, exclusivity or integrated services contracts.

For the year ended December 31, 2025, the hospitality services we provide at our owned facilities generated 57% of our revenue, while our integrated services offerings at customer owned facilities generated 43% of our revenue.

Important performance metrics include revenue related to our major properties, average daily rates and aggregate billed rooms.

3 unchanged sentences

(In thousands, except for room counts and average daily rate)

Accommodation and Other Services Revenue (1)

Canada $ 214,774 $ 266,926 $ 279,455

Accommodation and Associated Services Revenue (1)

Australia $ 211,761 $ 196,684 $ 177,834

Other 10,079 11,205 3,058

Total Accommodation and Other Services Revenue $ 421,537 $ 455,965 $ 435,227

Mobile Facility Rental Revenue (2)

Canada 150,651 214,774 266,926

Other — 10,079 11,205

Total Mobile Facility Rental Revenue $ 1,523 $ 61,899 $ 114,767

Food Service and Other Services Revenue (3)

Total Accommodation and Associated Services Revenue $ 362,412 $ 421,537 $ 455,965

Mobile Facility Rental and Associated Services Revenue (2)

Canada $ 1,587 $ 1,523 $ 61,899

Total Mobile Facility Rental and Associated Sevices Revenue $ 1,587 $ 1,523 $ 61,899

Integrated Services and Other Services Revenue (3)

Australia $ 248,534 $ 230,272 $ 158,929

Other — 42 90

Total Food Service and Other Services Revenue $ 259,062 $ 182,941 $ 145,770

Manufacturing Revenue (4)

Other $ — $ — $ 1,288

Total Manufacturing Revenue $ — $ — $ 1,288

Total Revenue $ 682,122 $ 700,805 $ 697,052

Average Daily Rates for Lodges and Villages (5)

Canada 26,316 28,790 23,970

Total Integrated Services and Other Services Revenue $ 274,850 $ 259,062 $ 182,941

Total Revenue $ 638,849 $ 682,122 $ 700,805

Average Daily Rates for Owned Villages and Lodges (4)

Australia $ 76 $ 78 $ 75

Total Billed Rooms for Lodges and Villages (6)

Canada $ 97 $ 97 $ 97

Total Billed Rooms for Owned Villages and Lodges (5)

Australia 2,783,893 2,524,108 2,371,763

Canada 1,550,435 2,205,700 2,710,784

Average Exchange Rate

Canadian dollar to U.

dollar $ 0.73 $ 0.74 $ 0.77

Australian dollar to U.

dollar $ 0.64 $ 0.66 $ 0.66

(1) Includes revenues related to lodge and village rooms and hospitality services for Civeo owned rooms for the periods presented.

Canadian dollar to U.

dollar $ 0.72 $ 0.73 $ 0.73

(1) Includes revenues related to village and lodge rooms and hospitality services for Civeo owned rooms for the periods presented.

(2) Includes revenues related to mobile assets for the periods presented.

(3) Includes revenues related to food service, laundry and water and wastewater treatment services and facilities management for the periods presented.

(4) Includes revenues related to modular construction and manufacturing services for the periods presented.

Civeo's remaining manufacturing operations in Louisiana were sold in the fourth quarter of 2022.

(4) Average daily rate is based on billed rooms and accommodation and other services revenue for Civeo owned rooms during the periods presented.

(6) Billed rooms represents total billed days for Civeo owned rooms for the periods presented.

(5) Billed rooms represents total billed days for Civeo owned village and lodge assets for the periods presented.

Our history is one of identifying customer and market needs and developing economic solutions.

Our historical experience in Canada began in small, mobile camps and evolved into owning and managing large scale remote accommodations.

Our historical experience in Canada began in small, mobile assets and evolved into owning and managing large scale remote accommodations.

In Australia, our operations originated with a similar build-own-operate model as we operate in our Canadian lodges.

2 unchanged sentences

Over the next decade, we acquired a food service operation, enabling us to provide a more comprehensive accommodation solution.

Through our experience with Syncrude’s Mildred Lake Village, a 2,100 bed facility that we operated and managed for them for nearly 20 years, we recognized the need for a premium, and more permanent, solution for workforce accommodations and hospitality services in the Canadian oil sands region.

Through our experience with Syncrude’s Mildred Lake Village, a 2,100 bed facility that we built, operated and managed for them for nearly 20 years, we recognized the need for a premium, and more permanent, solution for workforce accommodations and hospitality services in the Canadian oil sands region.

Pursuing this strategy, we opened PTI Lodge in 1998, one of the first independent lodging facilities in the region.

2 unchanged sentences

During 2015, we entered the Canadian LNG market with the construction of our Sitka Lodge.

LNG Canada (LNGC), a joint venture among Shell Canada Energy, an affiliate of Shell plc (40 percent), and affiliates of PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25 percent), PetroChina (15 percent), Mitsubishi Corporation (15 percent) and Korea Gas Corporation (5 percent), is currently constructing a liquefaction and export facility in Kitimat, British Columbia (Kitimat LNG Facility).

Construction activity of Phase 1 of the Kitimat LNG Facility is nearing completion, with commercial operations expected to begin in mid-2025.

The Coastal GasLink Pipeline was completed in 2024 and entered commercial operations.

The majority of our contracted commitments associated with the Coastal GasLink Pipeline were completed in the fourth quarter of 2023.

Our Sitka Lodge supports the LNG Canada (LNGC) project and related pipeline projects (specifically, the Coastal GasLink Pipeline, the pipeline constructed to transport natural gas feedstock to LNGC).

Construction activity of Phase 1 of the Kitimat LNG Facility has been completed and commercial operations commenced in June 2025.

The Coastal GasLink Pipeline was completed in 2024.

As such, we expect continued lower occupancy at our Sitka Lodge in the near-term until subsequent phases of the LNGC project are approved and commence, or additional construction activity in the region drive increased occupancy demand.

4 unchanged sentences

This acquisition enhanced our service offering, expanded our geographic footprint, added exposure to new commodities in Australia and underlined our focus on pursuing growth opportunities that fit within our core competencies and strategic direction.

In May 2025, we acquired Qantac Pty Ltd (Qantac), located in Queensland, Australia (the Qantac Acquisition).

The Qantac Acquisition included four villages, with 1,368 rooms in Australia’s Bowen Basin and the associated accommodation assets, land and customer contracts.

This acquisition expanded our existing accommodations business into the Blackwater region of the Bowen Basin, which was not previously served by our existing villages.

Our Customers

1 unchanged sentence

Our scalable facilities provide long-term and temporary workforce accommodations where, in many cases, traditional hospitality accommodations and related infrastructure services often are not accessible, sufficient or cost effective.

Through our wide range of hospitality services offerings, we are able to identify, solve and implement solutions and services that enhance the guest experience and reduce the customer’s total cost of housing a workforce in a remote operating location.

Through our wide range of hospitality services, we are able to identify, solve and implement solutions and services that enhance the guest experience, improve workforce productivity and reduce the customer’s total cost of housing a workforce in a remote operating location.

In addition to catering and food service, lodging, housekeeping and maintenance at accommodation facilities that we or our customers own, our hospitality services have evolved to include fitness centers, water and wastewater treatment, laundry service and many other enhancements.

2 unchanged sentences

(ii) they believe in the long-term nature of their resource project;

and/or (iii) they desire to maintain control over the supply of rooms for their project.

Where customers have chosen to own their accommodations assets, customers usually subcontract the management

of the facility and the provision of the hospitality services to a third-party provider, such as Civeo through our integrated services model in customer-owned facilities.

and/or (iii) they desire to maintain control over the supply of rooms for

their project.

Where customers have chosen to own their accommodations assets, customers usually subcontract the management of the facility and the provision of the hospitality services to a third-party provider, such as Civeo through our integrated services model in customer-owned facilities.

Historically, Australian mining companies and Canadian oil sands developers built and owned the accommodations necessary to house their personnel in these remote regions because local labor and third-party owned rooms were not available.

3 unchanged sentences

The Queensland Bowen Basin region and the Canadian oil sands region are two geographic areas that fit this market dynamic.

Initial demand for our hospitality services has historically been driven by our customers’ capital spending programs related to the construction and development of natural resource projects and associated infrastructure.

Historically, initial demand for our hospitality services has been driven by our customers’ capital spending programs related to the construction and development of natural resource projects and associated infrastructure.

Long-term demand for our services has been driven by natural resource production, maintenance, operation and expansion of those facilities.

In general, industry capital spending programs are based on the outlook for commodity prices, production costs, economic growth, perceived political risk, global commodity supply/demand, estimates of resource production and the expectations of our customers' shareholders.

As a result, demand for our hospitality services is largely sensitive to expected commodity prices, principally related to met coal, oil, LNG and iron ore, and the resultant impact of these commodity price expectations on our customers’ spending.

Other factors that can affect our business and financial results include the general global economic environment, including inflationary pressures, supply chain disruptions and labor shortages, instability affecting the global banking system and financial markets, availability of capital to the natural resource industry and regulatory changes in Canada, Australia and other markets, including governmental measures introduced to fight climate change.

In general, industry capital spending programs are based on the outlook for commodity prices, production costs, economic growth, perceived political risk, global commodity supply/demand, reserve replacement requirements, estimates of resource production, annual maintenance requirements and the expectations of our customers' shareholders.

As a result, demand for our hospitality services is sensitive to expected commodity prices, principally related to met coal, oil, iron ore and LNG, and the resultant impact of these commodity price expectations on our customers’ spending.

Other factors that can affect our business and financial results include the general global economic environment, including inflationary pressures, supply chain disruptions and labor shortages, the impact of global tariff changes and other changes to trade policies, volatility affecting the banking system and financial markets, availability of capital to the natural resource industry and regulatory changes in Australia, Canada and other markets, including governmental measures introduced to mitigate climate change.

We believe that our existing industry divides accommodations into two primary types:

(i) lodges and villages and (ii) mobile assets.

Civeo is principally focused on hospitality services at lodges and villages that are either owned by Civeo or customer-owned.

Lodges and villages typically contain a larger number of rooms and require more time and capital to develop.

(i) villages and lodges and (ii) mobile assets.

Civeo is principally focused on hospitality services at villages and lodges that are either owned by Civeo or customer-owned.

Villages and lodges typically contain a larger number of rooms and require more time and capital to develop.

These facilities typically have dining areas, meeting rooms, recreational facilities, pubs and taverns and landscaped grounds where weather permits.

Lodges and villages are generally supported by multi-year, take-or-pay or exclusivity contracts.

Villages and lodges are generally supported by multi-year, take-or-pay or exclusivity contracts.

These facilities are designed to serve the long-term needs of customers in developing and producing their natural resource developments.

Mobile assets are designed to follow customers’ activities and can be deployed rapidly to scale.

They are often used to support conventional and in-situ drilling crews, as well as pipeline and seismic crews, and are contracted on a project-by-project or short-term basis.

They are often used to support pipeline and infrastructure construction as well as conventional and in-situ drilling crews and are contracted on a project-by-project or short-term basis.

Oftentimes, customers will initially require mobile assets as they evaluate or initially develop a field or mine.

Mobile asset projects can be dedicated and committed to a single customer or project or can serve multiple customers.

Our largest customers in 2025 were Fortescue Metals Group Ltd.

and Suncor Energy Inc., who each accounted for more than 10% of our 2025 revenues.

Our Competitors

The accommodation facilities market supporting the natural resource industry is segmented into competitors that serve components of the overall value chain, but very few offer the entire suite of hospitality services to customers.

We estimate that customer-owned rooms represent over 50% of the market.

Historically, many customers have invested in their own accommodations.

We estimate that our existing and potential customers own approximately 50% of the rooms available in both the Australian coal mining regions and Canadian oil sands.

Engineering firms such as Bechtel and Fluor often design accommodations facilities.

Many public and private firms, such as ATCO Structures & Logistics Ltd.

(ATCO), Alta-Fab Structures Ltd.

and Northgate Industries Ltd., build modular accommodations for sale.

Dexterra Group Inc.

(Dexterra), Black Diamond Group Limited (Black Diamond), ATCO, Royal Camp Services Ltd.

and Target Hospitality Corp.

(ATCO), Alta-Fab Structures Ltd., Fleetwood Australia and Northgate Industries Ltd., build modular accommodations for sale.

Dexterra Group Inc., Black Diamond Group Limited, ATCO, Ausco Modular (a subsidiary of Modulaire Group) and Target Hospitality Corp.

primarily own and lease units to customers and, in some cases, provide facility management services, usually on a shorter-term basis with a more limited number of rooms, similar to our mobile assets business.

Facility service companies, such as Aramark Corporation (Aramark), Sodexo Inc.

(Sodexo), Compass Group PLC (Compass Group) and Cater Care Australia Pty.

(Cater Care), typically do not invest in and own the accommodations assets but will provide hospitality services at third-party or customer-owned facilities.

Facility service companies, such as Aramark Corporation, Sodexo Inc., ISS, Compass Group PLC and Cater Care Australia Pty.

Ltd., typically do not invest in and own the accommodations assets but will provide hospitality services at third-party or customer-owned facilities.

During the year ended December 31, 2025, we generated 72% of our revenue from our Australian operations.

As of December 31, 2024, we owned 8,950 rooms across eight villages, of which 7,488 rooms service the Bowen Basin of central Queensland, one of the premier met coal basins in the world.

We are Australia’s largest provider of hospitality services for people

working in the Bowen Basin.

As of December 31, 2025, we owned 10,318 rooms across twelve villages, of which 8,856 rooms service the Bowen Basin of central Queensland, one of the premier met coal basins in the world.

We are Australia’s largest provider of hospitality services for people working in the Bowen Basin.

We provide hospitality services on a day rate basis to mining and related service companies (including construction contractors), typically under short- and medium-term contracts (from several months to six years) with minimum nightly room commitments.

In addition, we provide integrated services to the mining industry in Western Australia and South Australia.

On February 18, 2025, we entered into a definitive asset purchase agreement with a private seller to acquire four villages with 1,340 rooms in Australia’s Bowen Basin and the associated long-term customer contracts (the “Proposed Acquisition”).

Under the terms of the agreement, Civeo would acquire the assets and customer contracts for total cash consideration of A$105 million, or approximately US$67 million, funded with cash on hand and borrowings from its existing revolving credit facility.

The Proposed Acquisition is anticipated to close in the second quarter of 2025, subject to regulatory approvals and customary conditions.

On May 6, 2025, we acquired the assets of Qantac, located in Queensland, Australia, for total consideration of A$105 million (or approximately US$68 million) in cash.

The Qantac Acquisition included four villages, with 1,368 rooms in Australia’s Bowen Basin and the associated accommodation assets, land and customer contracts.

As a result of the Qantac Acquisition, we expanded our existing accommodations business into the Blackwater region of the Bowen Basin, which was not previously served by our existing villages.

Australian Market

13 unchanged sentences

However, new construction projects and expansionary projects are typically canceled or deferred during periods of lower met coal and iron ore prices.

New project construction activity typically requires larger workforces than day-to-day operations, where proximity and availability of customer-owned rooms influences the demand for our rooms and services.

New project construction activity typically requires larger workforces than day-to-day operations, where proximity and availability of customer-owned locations influences the demand for our rooms and services.

Demand for rooms at our Australian villages is primarily driven by production, maintenance and operational activities.

Our Australian operations primarily serve the Bowen Basin of Queensland and the Pilbara region in Western Australia.

During the year ended December 31, 2024, our five villages in the Bowen Basin generated 40% of our Australian revenue, or 25% of our consolidated revenue.

During the year ended December 31, 2025, our nine villages in the Bowen Basin generated 41% of our Australian revenue, or 29% of our consolidated revenue.

Further, our Australian operations include provision of village operations for two customer owned sites in the Bowen Basin.

The Bowen Basin contains one of the largest coal deposits in Australia and is renowned for its premium met coal.

3 unchanged sentences

At the end of 2025, we had two villages with over 1,000 combined rooms in the Gunnedah Basin, a thermal and met coal region in New South Wales.

In Western Australia, we serve workforces related to LNG facilities operations on the Northwest Shelf through our Karratha village.

In addition, we provide hospitality services in Western Australia and South Australia at ten customer-owned villages which support workforces related to nickel, copper, zinc, silver and gold production in the Goldfields-Esperance region, lithium production in the Pilbara region and copper, silver and gold in Western Australia and South Australia.

In Western Australia, we serve workforces related to the construction of a Urea facility on the Burrup Peninsula through our Karratha village.

In addition, we provide hospitality services in Western Australia and South Australia at ten customer-owned locations which support workforces related to nickel, copper,

zinc, silver and gold production in the Goldfields-Esperance region, lithium production in the Pilbara region and copper, silver and gold in Western Australia and South Australia.

Australian Village Locations

11 unchanged sentences

Karratha Pilbara LNG, iron ore 298 298 298

Rosewood Bowen met coal 734 — —

Waratah Bowen met coal 494 — —

Vitrinite Bowen met coal 84 — —

Acacia Bowen met coal 56 — —

Total Rooms 10,318 8,950 8,910

Our Australian segment includes eight company-owned villages with 8,950 rooms as of December 31, 2024, which are strategically located near long-lived, low-cost mines operated by large mining companies.

Our Australian segment includes twelve company-owned villages with 10,318 rooms as of December 31, 2025, which are strategically located near long-lived, low-cost mines operated by large mining companies.

Our Australian business provides hospitality services to mining and related service companies under short- and medium-term contracts.

Our growth plan for this part of our business continues to include enhanced occupancy and expansion of these properties where we believe there is durable long-term demand, as well as to provide hospitality services at customer-owned assets.

Our Coppabella, Dysart, Moranbah, Middlemount and Nebo villages are located in the Bowen Basin.

Our Coppabella, Dysart, Moranbah, Middlemount, Nebo, Rosewood, Waratah, Vitrinite and Acacia villages are located in the Bowen Basin.

Coppabella, at over 3,100 rooms, is our largest village and provides rooms and related hospitality services to a variety of customers.

3 unchanged sentences

Australian Hospitality Services at Third-Party Owned Facilities

We also provide hospitality services at customer-owned villages to the mining industry in Western Australia and South Australia.

We also provide hospitality services at customer-owned locations to the mining industry in Western Australia and South Australia.

Historically, this has been focused on natural resource production-related village facilities that are primarily owned by iron ore production companies.

1 unchanged sentence

The facilities we manage range anywhere from 100 to over 1,900 rooms.

We work together with our customers to customize our service offerings depending on our customer’s needs.

We work together with our customers to customize our service offerings depending on our customers' needs.

Hospitality services can be performed on an end-to-end basis with catering and food service, housekeeping and site maintenance or just portions of the services offered such as food service only.

21 unchanged sentences

Of Canada’s approximately 42 million residents, approximately half of the population lives in ten cities, while approximately 12% of the population lives in Alberta and less than 1% of the population lives within 100 kilometers of the oil sands activity.

The local municipalities, of which the town of Fort McMurray is the largest, have limited infrastructure to respond to workforce accommodation demands and are a significant driving distance from many of the oil sands projects.

municipalities, of which the town of Fort McMurray is the largest, have limited infrastructure to respond to workforce accommodation demands and are a significant driving distance from many of the oil sands projects.

Civeo lodges are strategically placed near customer mining and production facilities to enhance their productivity and safety of their workforce.

With respect to LNG and related pipeline activity in Canada, a number of multinational energy companies believe there is a potential to export LNG from Canada to meet the increasing global LNG demand, particularly in Asia.

Currently, Western Canada does not have any operational LNG export facilities.

Phase 1 of the Kitimat LNG Facility is nearing completion, with commercial operations expected to begin in mid-2025.

Construction activity of Phase 1 of the Kitimat LNG Facility has been completed and commercial operations commenced at the end of June 2025.

The Coastal GasLink Pipeline was completed in 2024.

The population of Kitimat and the surrounding area is approximately 9,000 people, whereas the LNGC project had almost 7,500 workers at its peak to construct the Kitimat LNG Facility.

7 unchanged sentences

Oil sands mining operations are characterized by large capital requirements, large reserves, larger personnel requirements, long-term reserve lives, very low exploration or reserve risk and relatively lower cash operating costs per barrel of bitumen produced.

Our Conklin, Anzac, Red Earth and Wabasca lodges are focused in the southern portion of the region where we primarily serve in-situ operations and pipeline expansion and maintenance activity.

In-situ methods are used on reserves that are too deep for traditional mining methods.

Our Conklin and Anzac lodges are focused in the southern portion of the region where we primarily serve in-situ operations and pipeline expansion and maintenance activity.

In-situ methods are used on reserves that are too deep for traditional surface mining methods.

In-situ technology typically injects steam or solvents into the deep oil sands in place to separate the bitumen from the sand and pumps it to the surface where it undergoes the same upgrading treatment as the mined bitumen.

3 unchanged sentences

Most of our oil sands lodges are located on land with leases obtained from the province of Alberta, with initial terms of ten years, or subleased from the resource developer.

Our leases have expiration dates that range from 2025 to 2030 with the exception of one lease that expires in 2049.

Our leases have expiration dates that range from 2027 and 2035 with the exception of one lease that expires in 2049.

In recent years, we have successfully renewed or extended all expiring land leases which we have requested to renew or extend.

We did not renew an expiring land lease associated with our McClelland Lake Lodge in Alberta, Canada, which expired in June 2023, in order to support our customer’s intent to mine the land where the lodge was located.

Two of our oil sands properties are located on land which we own.

In order to operate a lodge in Canada, we are required to obtain a development permit from the regional municipality in which the lodge is located.

8 unchanged sentences

We provide our hospitality services at the lodges we own on a day rate or monthly rental basis, and our customers typically commit for short to long-term contracts (from several months up to several years).

Most customers make a minimum nightly or monthly room commitment or an aggregate total room night commitment for the term of the contract, and the multi-year contracts typically provide for inflationary escalations in rates for increased food, labor and utilities costs.

Most customers make a minimum nightly or monthly room commitment or an aggregate total room night commitment for the term of the contract, and the multi-year contracts typically provide for annual escalation provisions for increased food, labor and utilities costs.

Canadian British Columbia Lodge

Phase 1 of the Kitimat LNG Facility is nearing completion, with commercial operations expected to begin in mid-2025.

The Coastal GasLink Pipeline was completed in 2024 and entered commercial operations.

Construction activity of Phase 1 of the Kitimat LNG Facility has been completed and commercial operations commenced in June 2025.

The Coastal GasLink Pipeline was completed in 2024.

Accordingly, we reduced the room count at Sitka in 2025 by relocating some rooms to the Canadian mobile assets for future deployment and selling other rooms to a third party.

Canadian Lodge Locations

Rooms in our Canadian Lodges

As of December 31,

5 unchanged sentences

Athabasca mining 2,005 2,005 2,005

McClelland Lake (2)

Athabasca mining — — 1,997

Beaver River N.

2 unchanged sentences

Athabasca mining 326 256 —

Black Bear (1)

Athabasca mining 531 531 531

12 unchanged sentences

Sitka Lodge Kitimat, BC LNG 689 961 961

Total Lodge Rooms 16,034 17,208 16,952

Mobile Assets 2,660 2,870 2,979

Total Rooms 18,694 20,078 19,931

3 unchanged sentences

See Note 4 - Impairment Charges to the notes to the consolidated financial statements in Item 8 of this annual report for further discussion.

(2) The land lease associated with the assets expired in June 2023 and was not renewed and the assets were demobilized and completely removed from the existing site in the first quarter of 2024.

Canadian Hospitality Services at Third-Party Owned Facilities

5 unchanged sentences

Our focus on hospitality service contracts has allowed us to successfully pursue food service only opportunities.

Due to our experience servicing customer-owned facilities, this business easily fits into our overall strategy.

Due to our experience servicing customer-owned locations, this business complements our overall strategy.

Canadian Mobile Assets

22 unchanged sentences

Through our membership with Supply Nation, a non-profit organization committed to supplier diversity and Indigenous business development, we directed approximately A$17.4 million in 2025, up 14% from A$15.3 million in 2024, into Indigenous-owned and operated companies, and we are always looking for more opportunities to partner with these businesses.

In addition, we have three unincorporated joint venture partnerships with Indigenous landowners in Western Australia.

In addition, we have five unincorporated joint venture partnerships with Indigenous landowners in Western Australia.

Under these agreements, we strive to develop the business capacity, project management skills and expertise of the Indigenous joint venture members, providing local employment opportunities and training.

One of the four unincorporated joint venture partnerships entitles Indigenous landowners to a profit distribution calculated in accordance with the unincorporated joint venture deeds.

Additionally, two of the three remaining agreements incentivize the joint venture members via milestone payments for business objectives achieved.

One of the five unincorporated joint venture partnerships entitles Indigenous landowners to a retail profit distribution calculated in accordance with the unincorporated joint venture deeds.

Additionally, three of the four remaining agreements incentivize the joint venture members via milestone payments for business objectives achieved.

With a focus on long-term Indigenous community participation, our Canadian operations continue to work closely with a number of First Nations to develop mutually beneficial partnerships focused on revenue sharing, capacity building, employment and community investment and support.

12 unchanged sentences

Beyond revenue sharing, these arrangements provide procurement, employment, training, and ancillary business opportunities for Indigenous owned businesses.

Customers and Competitors

Our customers primarily operate in oil sands mining and development, drilling, exploration and extraction of oil and natural gas and coal and other extractive industries.

To a lesser extent, we also support other activities, including pipeline construction, forestry and humanitarian aid.

Our largest customers in 2024 were Suncor Energy Inc.

and Fortescue Metals Group Ltd., who each accounted for more than 10% of our 2024 revenues.

Our primary competitors in Australia for our village hospitality services are customer-owned and operated villages as well as Ausco Modular (a subsidiary of Modulaire Group), Fleetwood Corporation and smaller independent village operators.

We compete against ISS, Sodexo, Compass Group, Northern Rise (as a division of Sirrom Corporation) and Cater Care for third-party facility management services.

Our primary competitors in Canada in lodge and mobile asset hospitality services include ATCO, Black Diamond, Dexterra and Clean Harbors, Inc.

Some of these competitors have one or two locations similar to our oil sands lodges;

however, based on our estimates, these competitors do not have the breadth or scale of our lodge operations.

In Canada, we also compete against Aramark, Sodexo, Compass Group and Royal Camp Services for third-party facility management and hospitality services.

Historically, many customers have invested in their own accommodations.

We estimate that our existing and potential customers own approximately 50% of the rooms available in both the Australian coal mining regions and Canadian oil sands.

Our Lodge and Village Contracts

During the year ended December 31, 2024, revenues from our lodges and villages represented over 60% of our consolidated revenues.

Our Village and Lodge Contracts

During the year ended December 31, 2025, revenues from our villages and lodges represented over 57% of our consolidated revenues.

Our contract terms generally provide for a daily rate for a reserved room and an occupied room rate that compensates us for hospitality services, including food service, housekeeping, utilities and maintenance for workers staying in the lodges and villages.

In most multi-year contracts, our rates typically have annual escalation provisions to cover increases in labor, food and consumables costs over the contract term.

In most multi-year contracts, our rates typically have annual escalation provisions to cover increases in labor,

food and consumables costs over the contract term.

In some contracts, customers have a contractual right to terminate, for reasons other than a breach, in exchange for a termination fee.

4 unchanged sentences

Over the term of a take-or-pay contract, the customer commits to either a minimum number of rooms over a specified period or an aggregate number of room nights over the period, generally for terms greater than 12 months.

During the year ended December 31, 2024, we billed approximately 2.3 million room nights under our long-term take-or-pay contracts, which included 0.5 million room nights in excess of the take-or-pay minimums.

For the year ended December 31, 2025, we have commitments for 1.9 million room nights under our long-term take-or-pay contracts.

During the year ended December 31, 2025, we billed approximately 2.5 million room nights under our long-term take-or-pay contracts, which represented approximately 57% of our total billed rooms, which included 0.4 million room nights in excess of the take-or-pay minimums.

For the year ending December 31, 2026, we have commitments for 1.9 million room nights under our long-term take-or-pay contracts.

Short-Term Take-or-Pay Contracts.

2 unchanged sentences

During the year ended December 31, 2025, we billed approximately 0.3 million room nights under our short-term take-or-pay contracts.

For the year ended December 31, 2025, we have commitments for 0.1 million room nights under our short-term take-or-pay contracts.

For the year ending December 31, 2026, we have commitments for 0.1 million room nights under our short-term take-or-pay contracts.

Exclusivity Contracts.

20 unchanged sentences

We were party to collective bargaining agreements covering 491 employees located in Canada and 1,609 employees located in Australia as of December 31, 2025.

As a company, we acknowledge the significance of a diverse workforce composed of individuals from various backgrounds, experiences, and perspectives.

As a company, we acknowledge the significance of a workforce composed of individuals from various backgrounds, experiences, and perspectives.

As many of our projects in Canada and Australia operate in traditional territories, we work closely with Indigenous communities to actively explore mutually beneficial investment, employment and business opportunities.

Our ability to cultivate and strengthen relationships with Indigenous communities is vital to the success of our business.

In Canada, we are committed to expanding our Indigenous workforce to 10%.

In 2024, we reached 5% Indigenous employment in Canada, excluding corporate staff.

Approximately 6% of our total new hires in Canada were of Indigenous background during 2024.

We strive to offer competitive compensation, benefits and services that meet the needs of our employees, including short- and long-term incentive packages, various defined contribution plans, healthcare benefits, and wellness and employee assistance programs.

Management monitors market compensation and benefits in order to attract, retain, and promote employees and reduce turnover and its associated costs.

Safety is a foundational pillar of Civeo’s corporate culture.

Safety is central to Civeo’s corporate culture.

We are committed to operating in a safe, secure and responsible manner for the benefit of our employees, customers and the communities we serve.

Our commitment to safeguarding employees,

contractors, and guests is demonstrated through our employee-named Making Zero Count initiative, which emphasizes the importance of eliminating harm and focuses on the processes required to achieve exceptional performance.

Our commitment to safeguarding employees, contractors, and guests is demonstrated through our employee-named "Making Zero Count" initiative, which emphasizes the importance of eliminating harm and focuses on the processes required to achieve exceptional performance.

At Civeo, we believe that investing in our employees is fundamental to our success.

30 unchanged sentences

At a federal level, the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is Australia’s key piece of environmental legislation.

The EPBC Act protects of matters of national environmental significance, for example, threatened species and communities (e.g.

Koalas), migratory species, Ramsar wetlands and world heritage properties.

The EPBC Act protects 9 types of matters of national environmental significance, including threatened species and communities (e.g.

Koalas), migratory species, Ramsar wetlands and world heritage places.

Activities that have the potential to impact matters protected by the EPBC Act trigger referral to the federal government for assessment and approval.

In October 2020, the findings of an independent review of the EPBC Act (Independent Review) recommended significant reforms including (but not limited to) introduction of legally binding ‘National Environmental Standards’, a ‘climate change’ referral trigger, measures to harness and recognize the importance of indigenous knowledge, stronger compliance and enforcement powers, proposals for revised bilateral agreements with the States and Territories to streamline the assessment and approval process of some activities regulated by the EPBC Act and criminal penalties for offenses relating to emissions-intensive actions.

In December 2022 the federal government announced its response to the Independent Review.

This response proposed various changes to the EPBC Act in line with the Independent Review, for example, the introduction of ‘National Environmental Standards’, creation of a federal Environmental Protection Agency to administer the EPBC Act and the introduction of a requirement to achieve ‘net positive’ outcomes.

A comprehensive draft bill to effect these reforms was introduced before Parliament in 2024 together with a draft of the proposed National Environmental Standards.

Notably, the federal government is not presently proposing to introduce the climate change referral trigger recommended by the Independent Review;

however, there appears to be significant support for the trigger amongst opposition parties, and a federal election will occur in 2025.

If any of the recommended reforms take effect, our obligations under, and compliance with, the EPBC Act ought to be reviewed.

However, its implications for our Australian operations are not anticipated to be significant.

Ongoing awareness of these reforms is important as the legislative and policy changes may affect our customers’ operations and have impacts on the non-renewable resources sector generally.

In October 2020, the findings of an independent review of the EPBC Act (Independent Review) recommended significant and fundamental reforms be made to that act.

In November 2025, federal Parliament passed a reform package which would effect significant amendments to the EPBC Act.

These amendments are intended to implement core recommendations from the Independent Review and include amendments to:

facilitate the establishment of a framework for the Minister to make, vary and revoke national environmental standards;

facilitate the establishment of Australia’s first independent National Environmental Protection Agency;

introduce a requirement for projects that have significant impacts on matters of national environmental significance to achieve a net positive outcome;

requirements for proponents of major projects to disclose expected GHG emissions (and provide plans for how they intend to reduce those emissions);

facilitate more robust and efficient project assessments, including through the introduction of bioregional plans (that provide a landscape/seascape scale approach to environmental planning) and increase penalties for individuals and corporations for breaches of the EPBC Act.

The full suite of amendments are expected to take effect by the end of November 2026.

The amendments do not have retrospective effect and will apply to future projects only.

We have reviewed and, once the reforms take effect, will continue to review, our obligations under, and compliance with, the EPBC Act.

However, the implications for our Australian operations are not anticipated to be significant.

They may, however, affect our customers’ operations and have impacts on the non-renewable resources sector generally.

There is an increasing emphasis from regulators on sustainability and energy efficiency in business operations.

Federal requirements are now in place for the mandatory disclosure of energy performance under building rating schemes.

Federal requirements are in place for the mandatory disclosure of energy performance under building rating schemes.

These schemes require the tracking of specific environmental performance factors.

Carbon reporting requirements currently exist for corporations which meet a reporting threshold for greenhouse gases (GHG) or energy use or production for a reporting (financial) year under federal legislation.

From July 1, 2023, new obligations and reporting requirements took effect with respect to the ‘Safeguard Mechanism’ – Australia’s policy for reducing emissions from facilities that emit more than 100,000t CO2-e per financial year that has been in place since 2016.

These reforms are intended to assist Australia meet its emissions reduction targets of 43% below 2005 levels by 2030 and affect large scale industry customers.

In 2024, the federal government introduced further legislation requiring companies that satisfy key threshold criteria based upon employee numbers and/or revenue, to make climate-related disclosures, including information about their GHG emissions, climate-related targets, offset contributions, transition plans, and information about strategies, plans and governance procedures/controls in place to monitor and manage climate-related risks and opportunities.

These reforms will commence with initial reporting required in 2026 for the preceding year.

Civeo meets the relevant thresholds and will be required to make these annual disclosures in Australia.

In addition to our own requirement to commence disclosure to ASIC in accordance with the new legislation, our operations represent a portion of each of our customer’s Scope 3 emissions;

we will be required by our customers to provide certain emissions information in order for our customers to meet their disclosure obligations.

Complexity and resourcing are identified as significant challenges as we navigate the new legislation.

Carbon reporting requirements currently exist for corporations which meet a reporting threshold for GHG or energy use or production for a reporting (financial) year under federal legislation.

From July 1, 2023, obligations and reporting requirements took effect with respect to the ‘Safeguard Mechanism’ – Australia’s policy for reducing emissions from facilities that emit more than 100,000t CO2-e per financial year that has been in place since 2016.

These requirements are intended to assist Australia meet its emissions reduction targets of 43% below 2005 levels by 2030 and net zero by 2050 and affect large scale industry customers.

We are required to comply with mandatory climate-related disclosures in compliance with Australian Accounting Standard Board S2 Climate-related Disclosures (“AASB S2”) of the Australian Sustainability Reporting Standards (“ASRS”).”

State and Territory Controls

1 unchanged sentence

Queensland, New South Wales and Western Australia all have multiple acts regulating matters of the environment, conservation, vegetation management and protection of aboriginal and Torres Strait Islander use rights which are administered by each States’ independent environment protection regulator (e.g.

Queensland’s Department of Environment, Science and

If amendments are made to the EPBC Act to effect new bilateral agreements, the States and Territories will likely be given further power to assess and approve certain actions regulated the EPBC Act.

Queensland’s Department of Environment, Tourism, Science and

The States and Territories also have power to assess some larger projects in conjunction with the federal government under bilateral agreements established pursuant to the EPBC Act.

Under state law, some specified activities, such as sewage treatment at our sites, may require regulation by way of environmental approvals.

4 unchanged sentences

We have a positive obligation under state legislation to notify of an incident causing (or threatening) serious or material environmental harm.

Examples of notifiable environment harm include effluent overflow, chemical leaks and chemical fires.

Examples of notifiable environmental harm include effluent overflow, chemical leaks and chemical fires.

Failure to discharge this obligation can attract significant sanctions and financial penalties.

16 unchanged sentences

Regulations are being proposed to allow treated process-affected water to be released back into the Athabasca River system.

In May 2024, the Government of Canada released a preliminary report outlining proposed solutions and public concerns.

In February 2025, Environment and Climate Change Canada released a discussion paper outlining potential regulations for managing process-affected water.

Industry representatives expressed concern that the proposed regulations would cause delays because of regulatory uncertainty and put capital decisions at risk.

Industry representatives called for regulation by 2025 to reduce uncertainty, but no definitive plans have been announced by the Government of Canada.

Planning for and meeting these proposed regulations may result in additional costs or liabilities for our customers’ operations.

However, as of the beginning of 2026, draft regulations have not been published.

The absence of a regulatory framework permitting the release of process-affected water from oil sands operations, or a regulatory framework that is more stringent than what may be anticipated by our customers could affect their development plans or result in additional costs or liabilities for our customers’ operations.

Proposed Emissions Cap

1 unchanged sentence

The Proposed Emissions Cap aims to use a cap-and-trade system to reduce emissions by 35% below 2019 levels by 2030.

If the Proposed Emissions Cap is approved, it will be phased in beginning in 2026.

As currently proposed, the cap-and-trade system would apply to liquified natural gas producers as well as producers in the conventional oil, offshore, oil sands and natural gas production and processing subsectors.

Producers would be required to reduce their emissions or purchase "allowances" from other facilities that have reduced their emissions.

These requirements, if implemented, may result in additional costs or liabilities for our customers’ operations.

The Government of Alberta and the oil and gas industry oppose the Proposed Emissions Cap and argue that it serves as a de facto production cap.

The Proposed Emissions Cap is currently undergoing a feedback period and the final and binding

regulations are not expected to be released until late 2025.

If the Proposed Emissions Cap becomes law, the Canadian oil and gas industry may be significantly harmed.

On November 27, 2025, the Governments of Canada and Alberta agreed to the Canada-Alberta Memorandum of Understanding (MOU).

Pursuant to the MOU, Canada committed to not implement the Proposed Emissions Cap.

Air Quality Management

The Government of Canada (Canada), the Government of Alberta (Alberta), and the Government of British Columbia (British Columbia) each have frameworks for air quality management that may affect us and our customers.

The Government of Canada, the Government of Alberta, and the Government of British Columbia each have frameworks for air quality management that may affect us and our customers.

At the federal level, the Reduction in the Release of Volatile Organic Compounds Regulations (Petroleum Sector) were published in 2020 and have not been amended since January 2023.

4 unchanged sentences

Upstream Petroleum Industry Flaring, Incinerating, and Venting (Directive 060).

Directive 60 was last updated in April 2020 and applies to all upstream petroleum industry wells, facilities and pipelines as well as all oil sands schemes and operations with the exception of oil sands mining.

Directive 060 was last updated in June 2025 and applies to all upstream petroleum industry wells, facilities and pipelines as well as all oil sands schemes and operations with the exception of oil sands mining.

Directive 060 requires operators to eliminate or reduce flaring associated with a wide variety of energy development activities and operations.

3 unchanged sentences

These requirements, among other things, set limits on methane emissions from various facilities and require annual reporting of such emissions to the AER.

The methane reduction requirements in Directive 60 took effect in 2020, additional vent gas limits took effect on January 1, 2022 and further, more stringent vent gas limits took effect on January 1, 2023.

Directive 060's methane reduction requirements took effect in 2020, with additional vent gas limits introduced on January 1, 2022, followed by more stringent limits on January 1, 2023.

On June 19, 2025, Directive 060 was updated to remove the solution gas flaring limit in section 4.1 while maintaining all other regulatory tools in Directive 060.

Meeting these regulatory requirements may result in additional costs or liabilities for our customers’ operations.

2 unchanged sentences

BCER oversees compliance with the Drilling and Production Regulation, which is one of British Columbia's primary regulatory instruments governing all aspects of oil and natural gas drilling and production.

Effective January 1, 2020, that regulation was amended to require operators to eliminate or reduce natural gas leaking or venting associated with a wide variety of equipment and activities in energy development.

Effective January 1, 2020, the regulation was amended to require operators to eliminate or reduce natural gas leaking or venting associated with a wide variety of equipment and activities in energy development.

Under this regulation, requirements are imposed for facilities detecting leaks and inspecting seals as well as restrictions or prohibitions on the types of equipment used for energy development.

3 unchanged sentences

The BCER is currently conducting a regulatory review and engagement on the development of new regulations designed to achieve a 75% reduction in methane emissions from the oil and gas sector by 2030 relative to 2014 levels.

Meeting these regulatory requirements may result in additional costs or liabilities for our customers’ operations.

The Drilling and Production Regulation was updated in 2025 to tighten natural gas venting from commodity unloading and surface casing venting and introduce stricter leak detection and repair (LDAR) standards.

Meeting these increased regulatory requirements may result in additional costs or liabilities for our customers’ operations.

Environmental Assessment of Major Projects

The Impact Assessment Act (IAA) came into force in August 2019.

The IAA and its subordinate legislation apply to the development of many large projects, including oil sands mining and in situ projects, met mining projects, pipelines, and other large developments.

The IAA and its subordinate legislation apply to the development of many large projects, including oil sands mining and in situ projects, mining projects, pipelines, and other large developments.

One of the stated objectives of the IAA was to shorten review times for projects.

1 unchanged sentence

Our customers operate in the aforementioned industries and could be considering future projects that would be subject to the IAA.

To the extent our customers are required to comply with this legislation, it is possible that the uncertainty regarding cost and timelines for navigating the planning, assessment, and decision-making processes may negatively impact our customers' decisions on whether to proceed with those projects.

The Government of Alberta, supported by the governments of Ontario and Saskatchewan, challenged the constitutionality of the IAA.

2 unchanged sentences

Changes included narrowing the scope of federal responsibility, increasing cooperation between federal and provincial governments, and providing an interim plan to smooth the transition from the old IAA to the amended IAA.

However, despite the amendments,

there remains significant uncertainty about the future impact of Canada's federal environmental assessment legislation on our customers.

Despite the amendments, the Government of Alberta has challenged whether the amended IAA is constitutional, and the matter is currently before the courts.

Accordingly, there remains significant uncertainty about the future impact of Canada's

federal environmental assessment legislation on our customers.

Climate Change Regulation

3 unchanged sentences

NDCs are updated every five years with increasingly ambitious targets.

In March 2016, the government of Canada and the U.S.

In March 2016, the governments of Canada and the U.S.

jointly announced their intention to take action to reduce methane emissions from the oil and gas sector in an effort to meet their respective NDCs pursuant to the Paris Agreement.

4 unchanged sentences

Certain requirements of the Federal Methane Regulations came into effect January 1, 2020, and other emissions limits are now in place for certain equipment installed on or after January 1, 2023.

In March 2022, the federal government began consultation on a proposed strategy to expand coverage and increase stringency of methane reduction obligations on the oil and gas sector specifically, and was expected to issue draft regulations in 2023.

In December 2023, the federal government published proposed amendments to the Federal Methane Regulations for public comment.

The proposed amendments are intended to reduce methane emissions in Canada's upstream oil and gas sector by at least 75% below 2012 levels by 2030.

To achieve that objective, the proposed amendments would prohibit venting natural gas to the environment, subject to limited exceptions.

They would also impose requirements on hydrocarbon combustion systems and measures to reduce fugitive methane emissions.

As of December 2024, the proposed amendments have not been enacted.

The proposed amendments may result in additional costs or liabilities for our customers’ operations.

On December 12, 2025, Canada announced amendments to the Federal Methane Regulations which will impose stricter methane controls on regulated oil and gas facilities, including enhanced management of fugitive emissions, prohibitions on venting, limits on hydrocarbon gas destruction, and mandatory inspection and maintenance programs.

The amendments will apply to new facilities beginning in 2028 and all facilities by 2030.

The amendments will require the federal government to reassess its equivalency agreements with BC and Alberta.

Absent new agreements, oil and gas facilities in those provinces may be subject to the federal Methane Regulations in 2028 which may negatively impact our customers' operations.

In 2018, the federal government enacted the Greenhouse Gas Pollution Pricing Act (GGPPA), which came into force on January 1, 2019.

This regime has two parts:

an output-based pricing system for large industry and a regulatory fuel charge.

This system serves as a "backstop" and applies in provinces and territories that request it and in those that do not have their own emissions pricing systems in place that meet the federal standards.

This ensures that there is a uniform price on emissions across the country.

As of December 2024, the backstop price is $80 per tonne of CO2e.

The current government plan is to continue increasing that price by $15 each year until it reaches $170/tonne of CO2e in 2030.

On November 19, 2020, the federal government introduced the Canadian Net-Zero Emissions Accountability Act in Parliament.

That Act was passed by Parliament and received Royal Assent on June 29, 2021 and binds the Government of Canada to a process intended to help Canada achieve net-zero emissions by 2050.

a regulatory fuel charge on consumers for gasoline and diesel;

and an output-based carbon pricing system for large industrial emitters.

The regulatory fuel charge on consumers for gasoline and diesel was removed by the federal government effective April 1, 2025.

The second part of the regime serves as a "backstop" and applies to provinces and territories that request it and to those that do not have their own carbon emissions pricing systems in place that meet the federal standards.

This ensures that there is a uniform price on carbon emissions across the country.

The backstop price is $95/tonne of CO2e as of December 2025.

The current federal government plan is to continue increasing the backstop price each year until it reaches $170/tonne in 2030.

In Alberta, the Technology Innovation and Emissions Reduction Regulation (TIER) meets the GGPPA standards for an output-based carbon pricing system and replaces the GGPPA for large industrial emitters in the province.

Facilities within Alberta that are subject to the TIER Regulation are not subject to the full costs of complying with the GGPPA.

The TIER Regulation applies to Alberta-based facilities that emit over 100,000 tonnes of CO2e per year.

Under the TIER Regulation, emissions from each facility are compared to either an industry-wide benchmark or a facility-specific benchmark which effectively permits facilities to emit GHGs up to a certain amount without being subject to the provincial carbon price.

Those benchmarks “tighten” resulting in more onerous compliance costs, every year.

Facilities with emissions that exceed the industry-wide benchmark or facility-specific benchmark, as applicable, must rely on one or more of the compliance options established by the TIER Regulation, such as purchase credits or offsets for each tonne of CO2e in excess of their limits.

On May 12, 2025, the Alberta government announced that it would freeze the industrial carbon price at $95/tonne of CO2e.

In British Columbia, the Output-Based Pricing System is an emissions pricing system created through amendments to the Greenhouse Gas Industrial Reporting and Control Act that replaces the GGPPA for large industrial emitters in the province.

The industrial carbon price is $95/tonne of CO2e as of December 2025 and is set to increase to $110/tonne of CO2e in 2026.

Despite the current price freeze in Alberta, potential further increases in the cost of industrial carbon pricing and annual benchmark tightening rates may result in additional costs or liabilities for our customers’ operations.

On November 19, 2020, the federal government introduced the Canadian Net-Zero Emissions Accountability Act (Net-Zero Act) in Parliament.

The Net Zero Act was passed by Parliament and received Royal Assent on June 29, 2021 and binds the Government of Canada to a process intended to help Canada achieve net-zero emissions by 2050.

It also establishes rolling five-year emissions-reduction targets and requires the government to develop plans to reach each target.

The federal government is required to support those efforts by creating a Net-Zero Advisory Body and by publishing annual reports that describe how departments and Crown corporations are considering the financial risks and opportunities of climate change in their decision-making.

The federal government is required to support those efforts by creating a Net-Zero Advisory Body and by publishing annual reports that describe how

departments and Crown corporations are considering the financial risks and opportunities of climate change in their decision-making.

The Net-Zero Act was last updated in 2023.

The current 2030 Emissions Reduction Plan is an ambitious target to reduce emissions by 40% below 2005 levels by 2030.

3 unchanged sentences

In October 2024, Canada unveiled a draft framework to protect the right to a healthy environment through further modernization of the CEPA.

As of December 2024, the draft framework still has not been finalized and there remains significant uncertainty regarding how these proposed changes to the CEPA will be implemented and the potential of the proposed changes to affect our customers' operations.

In Alberta, GHGs are regulated pursuant to the Emissions Management and Climate Resilience Act and the Technology Innovation and Emissions Reduction Regulation (TIER Regulation).

In December 2019, the TIER Regulation was deemed equivalent to the backstop prescribed by the federal GGPPA, meaning that facilities within Alberta subject to the TIER Regulation are not subject to the full costs of complying with the GGPPA.

The TIER Regulation generally applies to Alberta-based facilities that emit over 100,000 tonnes of CO2e per year.

Under the TIER Regulation, emissions from each facility are

compared to either an industry-wide benchmark or a facility-specific benchmark which effectively permits facilities to emit GHGs up to a certain amount without being subject to the provincial carbon price.

Those benchmarks “tighten” resulting in more onerous compliance costs, every year.

The Alberta government issues an order every year setting the price to acquire credits, which effectively dictates compliance costs.

In January 2023, the Alberta government published amendments to the TIER Regulation, including increases to the carbon price and increases to annual benchmark tightening rates.

These changes were implemented in order to ensure that the TIER Regulation maintains equivalency with the framework established by GGPPA.

Increases to the cost of TIER Regulation credits and annual benchmark tightening rates may result in additional costs or liabilities for our customers’ operations.

In addition, similar increases in stringency of provincial GHG regulatory frameworks within British Columbia and Saskatchewan may result in additional costs or liabilities for our customers’ operations.

In July 2025, Canada published the Implementation Framework for the Right to a Healthy Environment under the Canadian Environmental Protection Act , 1999 (framework).

The framework elaborates on the meaning of the right to a healthy environment and provides flexible and practical guidance for government decision-makers.

There remains significant uncertainty regarding how these proposed changes to the CEPA will be implemented and the potential for the proposed changes to affect our customers' operations.

The Canadian Species at Risk Act (SARA) is intended to prevent wildlife species in Canada from disappearing and to provide for the recovery of wildlife species that no longer exist in the wild in Canada, or that are endangered or threatened as a result of human activity, and to manage species of special concern to prevent them from becoming endangered or threatened.

1 unchanged sentence

The designation of previously unprotected species as threatened or endangered in areas of Canada where our customers’ oil and natural gas exploration and production operations are conducted could cause them to incur increased costs arising from species protection measures or could result in limitations on their exploration and production activities, which could have an adverse impact on demand for our services.

Woodland caribou habitat covers large portions of several Canadian provinces including British Columbia, Alberta, and Saskatchewan.

Woodland caribou habitat covers large portions of several Canadian provinces including British Columbia and Alberta.

Many of our customers have existing or proposed developments in or near woodland caribou habitat.

3 unchanged sentences

However, certain local governments have created caribou range plans (also known as sub-regional plans) that may limit oil and gas developments by limiting the creation of right-of-ways (e.g., pipelines, electricity transmission lines, seismic lines, etc.) that break up caribou habitat and provide predators like wolves with easier access to caribou herds.

For example, the Cold Lake sub-regional plan states that all new development in caribou ranges “must be issued with a no-surface-disturbance restriction.” Wildlife protection legislation may create challenges to development that may negatively impact our customers’ operations.

For example, the Cold Lake sub-regional plan states that all new development in caribou ranges “must be issued with a no-surface-disturbance restriction.” Effective January 1, 2026, the Upper Smoke Sub-Regional Plan will apply to resource development in northwestern Alberta and includes provisions to protect caribou while still advancing Alberta’s economic interests.

Wildlife protection legislation may create challenges to development that may negatively impact our customers’ operations.

Abandonment and Remediation of Oil and Gas Infrastructure

As the lifecycle regulator for energy resource activities, the AER oversees closure requirements, including the abandonment and reclamation of wells, well sites, facilities, facility sites and pipelines.

Beginning in 2020, the Government of Alberta (Alberta) began implementing legislative and regulatory changes to the framework used to manage liability from oil and gas facilities within the province.

Beginning in 2020, the Government of Alberta began implementing legislative and regulatory changes to the framework used to manage liability from oil and gas facilities within the province.

In particular, in July 2020, Alberta released a new Liability Management Framework (AB LMF) which includes a series of mechanisms and requirements to improve and expedite reclamation efforts and to require industry to better manage clean-up of wells, pipelines and facilities.

4 unchanged sentences

Eligibility Requirements for Acquiring and Holding Energy Licenses and Approvals (Directive 067) to ensure the AER closely scrutinizes those parties seeking eligibility to hold AER licenses by evaluating whether they pose an "unreasonable risk" based on a variety of factors.

Directive 067 was last updated in March 2024.

In December 2021, the AER published Directive 088:

3 unchanged sentences

Finally, Directive 088 establishes the Inventory Reduction Program and allows the AER to set licensee-specific and industry-wide closure targets.

These and any other changes to the AER's approach to manages closure requirements for energy resource activities may result in additional costs or liabilities for our customers’ operations.

Directive 088 and the supplemental Manual 23 were updated in 2025 to create more flexibility for licensees regarding mandatory closure spending requirements and licensee capability assessments.

Further, the AER made minor updates to Directives 001, 011 and 068 in 2025.

These and any other changes to the AER's approach to managing closure requirements for energy resource

activities may result in additional costs or liabilities for our customers’ operations as the updated regulations place heightened focus on remediation and reclamation.

In British Columbia the British Columbia Energy Regulator's (BCER) Comprehensive Liability Management Plan addresses liability management, improves the rate of inactive site restoration and addresses orphan sites.

1 unchanged sentence

The BCER addresses dormant sites through the Dormancy and Shutdown Regulation , which ensures producers responsibly bring their energy resource activities to regulatory closure within a reasonable time frame.

In November 2025, the BCER increased the Orphan Site Restoration Levy by an additional $9 million, raising the total fund to $24 million.

If or when applicable to operations, any changes to the BCER’s approach to managing dormancy and closure requirements for energy resource activities may result in additional costs or liabilities for our customers’ operations.

Building Canada Act

In 2025, the federal government passed the Building Canada Act (BCA).

The BCA aims to streamline approval processes to build major projects faster.

Currently, there are a number of projects that have been designated for further review and potentially expedited approvals, including:

Pathways Plus, an Alberta-based carbon capture, utilization and storage project in support of the oil and gas industry;

Critical Minerals Strategy, prioritizing critical mineral development in Canada;

LNG Canada Phase 2, an expansion to double the capacity of LNG Canada’s current export facility on the BC coast;

and Ksi Lisims LNG, a proposed floating LNG export facility on the BC coast.

Although many of these projects have yet to be confirmed, the BCA demonstrates a renewed emphasis on resource development in Alberta and BC which may lead to increased opportunities for our customers.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business