North American Construction Group Ltd. announces additional 5-year term contract in the oil sands
North American Construction Group Ltd. (“NACG” or “the Company”) (TSX:NOA.TO/NYSE:NOA) today announced a 5-year Multiple Use Contract and an associated term contract with a major oil sands customer. The agreement runs through December 2023 and the backlog value is expected to be approximately $400 million.
The agreement was executed within a newly formed joint venture, the Mikisew North American Limited Partnership. Our joint venture partner, the Mikisew Group of Companies, is directly owned by the Mikisew Cree First Nation.
Joe Lambert, President & Chief Operating Officer, stated: “This contract award is the third time in the last year that a significant customer has demonstrated long-term faith in NACG and further enforces our future growth projections. This agreement not only strengthens our backlog and five-year outlook but also represents the first agreement with our new partner, the Mikisew Cree First Nation. We are excited to work with the Mikisew Group and believe this is the beginning of a long-term relationship in providing opportunity and benefits to their community while also providing safe, quality construction and mining services to our oil sands customers.”
Mr. Lambert added: “Our core backlog now stands at over $1.6 billion, compared with less than $100 million at this time last year. This distinct shift from a largely spot market to one underpinned by long term work commitments is directly linked to robust and consistent production outputs from several oil sands mines.”
Edward Courtoreille, Chief Executive Officer, Mikisew Group of Companies, stated: “We are proud to partner with the marketplace leader of heavy construction and mining services and elated of our subsequent 5-year agreement. Our new partnership allows our Group of Companies to provide long-term fiscal and employment benefits to members of the First Nation. This partnership not only provides opportunity for operating contracts throughout the full, multi-decade lifecycle of an oil sands mine but also allows us to pursue opportunities complimentary to our other businesses and further benefit our communities and the Mikisew Cree First Nation.”
About the Mikisew Group of Companies
Mikisew Group of Companies is owned directly by the Mikisew Cree First Nation. The Mikisew Group of Companies is comprised of two main operating entities (wholly owned) and 11 limited partnerships and joint ventures (majority owned) servicing the Alberta oil sands in various industries including site services, fleet maintenance, transportation services, emergency medical response and fire response, camp and catering services, construction services, structural steel, electrical and instrumentation services, aerodrome handling and facilities maintenance. For more information, visit www.mikisewgroup.com.
About the Company
North American Construction Group Ltd. (www.nacg.ca) is one of Canada’s largest providers of heavy construction and mining services. For more than 60 years, NACG has provided services to large oil, natural gas and resource companies.