Civeo Corporation, the Houston company that provides hospitality services or so-called “man camps” for oil and gas operators received a recent de-listing warning from the New York Stock Exchange.
The company has operations based in El Reno, Oklahoma and was warned after its stock fell in trading below $1 over 30 consecutive trading days. One dollar is the minimum average closing price per share required to maintain listing on the NYSE.
Bradley J. Dodson, Civeo’s President and CEO blamed falling oil prices.
“Oil prices have fallen since early summer due to continued demand growth volatility and fear of a global economic slowdown, creating increased pressure on energy capital markets, particularly for small-cap companies with operations in the U.S. and Canada such as Civeo,” he said. “Our shares have traded below $1.00 per share for a period of time long enough for the NYSE to issue a non-compliance notice. In response, the Company’s Board of Directors is reviewing all available alternatives to return to compliance with the NYSE continued listing standards.”
Dodson said if necessary, the board of directors will propose a reverse share split for shareholder approval at the company’s annual meeting in May 2020.
He also explained as required by the NYSE, the Company has notified the NYSE of its intent to cure the deficiency and restore its compliance with the NYSE continued listing standards. Civeo has six months to regain compliance. If not, it will be delisted from trading on the exchange.
The NYSE notification does not affect Civeo’s business operations or its Securities and Exchange Commission reporting requirements and does not result in a default under any of the Company’s material debt agreements.
Civeo not only provides housing services for oil and gas operations in Oklahoma, but across the U.S., Canada and Australia. It provides nearly 30,000 rooms for the energy operations including food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services.