North American Construction Group Ltd. Announces Five-Year Contract in Queensland, Australia

ACHESON, Alberta, Aug. 28, 2024 (GLOBE NEWSWIRE) — North American Construction Group Ltd. (“NACG” or the “Company”) (TSX:NOA.TO/NYSE:NOA) today announced that MacKellar Group (“MacKellar”) has been awarded a five-year contract by an existing customer, a leading metallurgical coal producer in the state of Queensland, Australia. The contract leverages an existing agreement to transition the leased fleet currently under contract as a dry lease to a fully maintained fleet.

The five-year contract has an expiration date of September 30, 2029 and qualifies as contractual backlog, given the minimum hourly commitments in the agreement. Scopes awarded for fully maintained equipment and related services are estimated to have an aggregate value of approximately $375 million. The contract scopes are expected to be fully scaled by mid-2025. To achieve the increased scope, the agreement calls for an on-site maintenance facility and 20 additional units, for a total growth capital of between $50 and $55 million, to be acquired and constructed by MacKellar primarily in the fourth quarter of 2024.