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Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
PAGE |
www.harriswilliams.com
SUMMARY
1
CONTENTS
WHAT WE’RE READING
M&A TRANSACTIONS
PUBLIC MARKETS INDUSTRY
PUBLIC COMPARABLES
CONTACTS
UNITED STATES
Drew SpitzerManaging [email protected] +1 (804) 915-0174
Brian LucasManaging [email protected] +1 (804) 932-1323
Matt WhiteManaging [email protected]+1 (804) 915-0131
Luke [email protected]+1 (804) 915-0158
Chris BurnhamVice [email protected] +1 (804) 915-0142
Ian ThomasVice [email protected]+1 (804) 932-1384
EUROPE
Jeffery PerkinsManaging [email protected]+49 (0) 69 3650638 00
M&A | SELECT RECENT ACTIVITY
Xylem (NYSE:XYL), the leading global water technology company, has signed a
definitive agreement to acquire Sensus for approximately $1.7 billion in cash.
Sensus, owned by funds associated with the Jordan Company and GS Capital
Partners, is a leading provider of smart meters, network technologies, and
advanced data analytics for the water, electric utility, and gas industries.Source | Instapaper
Maxim Crane, a portfolio company of Platinum Equity, has been acquired by
Apollo Global Management. Maxim is a leading provider of specialized crane
and lifting solutions in North America, serving more than 7,500 customers and
operating through a fleet of over 1,400 cranes.Source | Instapaper
Hoover Container Solutions, a portfolio company of First Reserve, and Ferguson
Group and CHEP Catalyst & Chemical Containers, subsidiaries of Brambles, the
global supply chain solutions company, announced they are merging to form
Hoover Ferguson Group (“HFG”). HFG will be a leading global provider of
container solution products to energy, petrochemical, and diversified industrial
end markets, serving customers through a network of 70 service centers and
operating a fleet of over 110,000 rental units. Source | Instapaper
AmQuip Crane Rental, a portfolio company of Clearlake Capital, has been
acquired by Apollo Global Management. AmQuip provides complex lifting
solutions to the petrochemical, refining, and diversified industrial sectors. The
transaction closed in conjunction with Apollo’s acquisition of Maxim Crane,
creating a global crane and lifting solutions provider valued at approximately $1.4
billion. HW&Co. served as the lead financial advisor to AmQuip.Source | Instapaper
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
PUBLIC MARKETS | KEY TRADING STATISTICS
Stock Price % Change TEV / EBITDA
1 Month 12 Month Aug-15 Feb-16 Current 2015 2016E
Energy Services and Equipment
Large Cap Service 0.6% (6.9%) 7.9x 10.8x 17.4x 13.1x 21.3x
Equipment (0.5%) (9.2%) 6.1x 5.4x 8.3x 6.1x 11.2x
Small-Cap Service (2.0%) (28.5%) 5.2x 5.9x 9.9x 6.4x 10.8x
OCTG (0.7%) (26.0%) 6.7x 7.2x 13.3x 9.1x 13.3x
Distribution 2.2% 18.2% 16.6x 6.1x 14.5x 7.8x NM
Logistics (21.9%) (68.3%) 6.1x 6.4x 9.6x 7.5x 8.4x
Offshore Drillers (19.1%) (34.4%) 4.4x 3.2x 3.2x 2.9x 5.3x
Land Drillers (7.3%) 7.4% 4.0x 4.6x 9.4x 5.5x 15.1x
E&C 2.2% 4.5% 7.5x 4.0x 6.9x 8.3x 4.9x
Power Services and Equipment
Large Cap PS&E 6.0% 11.1% 10.2x 9.7x 11.4x 11.4x 10.7x
Small-Cap PS&E 0.7% 15.5% 10.5x 9.5x 11.6x 11.6x 11.5x
EE and Cleantech (4.2%) (24.0%) 8.9x 5.6x 7.1x 7.2x 8.7x
Industrial & Infrastructure Services
Large Cap 1.3% 8.3% 6.4x 4.8x 7.0x 7.0x 7.3x
Small-Cap (2.5%) 20.0% 8.3x 8.2x 8.4x 10.7x 8.3x
Utility Services 5.4% 16.5% 8.3x 7.5x 10.4x 11.5x 7.9x
Industrial Services 3.5% (7.7%) 8.9x 8.2x 8.9x 10.2x 9.3x
Design/Professional Services 2.2% (8.7%) 10.1x 7.9x 9.3x 9.3x 9.3x
TEV / LTM EBITDA as of
PAGE |
www.harriswilliams.com
WHAT WE’RE READING
“The world's next energy revolution is probably no more than five or ten years away. Cutting-edge research intocheap and clean forms of electricity storage is moving so fast that we may never again need to build 20th Centurypower plants in this country, let alone a nuclear white elephant such as Hinkley Point.”
The Telegraph | Instapaper
ENERGY STORAGE | THE HOLY GRAIL
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
“The oil-train boom is waning almost as quickly as it began. Rail became a major way to move crude after companiesbegan unlocking new bounties of oil from shale formations, with volumes rising from almost nothing in 2009 to morethan one million barrels a day by 2014, according to the U.S. Energy Information Administration. But those numbersbegan falling after oil prices started tumbling two years ago, and aren’t projected to recover anytime soon. In April,just 430,000 barrels of oil rode the rails each day, according to the latest federal figures.”
The Wall Street Journal | Instapaper
OIL & GAS | OFF THE RAILS
“Far from emerging as an industry pioneer, NRG has become a cautionary tale. A power-hungry nation needs tochange the way it is fueled, but as NRG shows, transitioning to clean power is messy business. ‘The power producersand utilities are the canaries in the coal mine,’ said Aron Cramer, C.E.O. of Business for Social Responsibility, aconsulting firm. ‘And there’s a lot of road kill in the midst of this transition to a lower-carbon energy system.’ No twocompanies face the exact same set of challenges. But at some level, the quandary preoccupying NRG is one that allpower producers and utilities will ultimately face: how to make more electricity while emitting fewer greenhousegases.”
New York Times | Instapaper
POWER | A TOUGH TRANSITION
POWER | IF YOU DON’T BUILD IT
“Not long after it became clear that the robust winds that blow down from the Rocky Mountains and across the seaof sagebrush here could produce plenty of profit in a world that wants more renewable energy, some of the moreexpansive minds in the Wyoming Legislature began entertaining a lofty question: Who owns all of that wind? Theyconcluded, quickly and conveniently, that Wyoming did.”
Los Angeles Times | Instapaper
POWER | A TAX “WIND”-FALL
OIL & GAS | MADE IN AMERICA
“U.S. electricity consumers could end up paying more than $2.5 billion for nuclear plants that never get built. Utilitiesincluding Duke Energy Corp., Dominion Resources Inc., and NextEra Energy Inc. are being allowed by regulators tocharge $1.7 billion for reactors that exist only on paper, according to company disclosures and regulatory filings. Dukeand Dominion could seek approval to have ratepayers pony up at least another $839 million, the filings show.”
Bloomberg | Instapaper
“But our view is that the outlook for U.S. crude production over the intermediate term is very constructive, andcertainly better than current consensus. This relates to the superior economics of shale wells compared toconventional drilling, and the associated ability of shale Exploration and Production (E&P) companies to quicklyrespond to changing prices by adjusting drilling activity faster than their peers.”
SL Advisors | Instapaper
2
“Venture Capital (VC) firms spent over $25 billion funding clean energy technology (cleantech) start-ups from 2006 to2011 and lost over half their money; as a result, funding has dried up in the cleantech sector. In this article, we presentthe most comprehensive account to date of the cleantech VC boom and bust […] The results are stark.”
MIT Energy Initiative | Instapaper
CLEAN ENERGY | VC: NOT MUCH GREEN FROM GOING GREEN
PAGE |
M&A TRANSACTIONS
3
RECENT M&A TRANSACTIONS1,2
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Date Target Business Description Acquirer
8/15/2016 Sensus U.S. based provider of metering and related communications systems to
the water, gas, heat and electric utility industries.
Xylem
8/10/2016 SERVO2000 Italy based provider of testing equipment consulting, design, and
serv ices to automotive and civ il end markets.
Link Engineering
8/9/2016 Ontility U.S. based supplier and distributor of solar energy equipment. Smith & Associates
8/8/2016 Belleli Energy Critical
Process Equipment
I taly based provider of engineering, procurement, and fabrication
serv ices related to the manufacturing of critical process equipment for
refinery and petrochemical facilities.
Tosto SRL
8/7/2016 Mayes Testing Engineers U.S. based provider of construction quality assurance serv ices. Terracon
8/5/2016 Ferguson Group & CHEP U.S. based providers of chemical tanks and cargo field serv ices. Hoover Container Solutions
8/1/2016 Maxim Crane U.S. based provider of crane and lift training, rigging serv ices,
transportation serv ices, and bare crane rental serv ices.
Apollo
8/1/2016 Catalyst Oilfield Serv ices U.S. based provider of production chemicals, fracture fluids, laboratory
serv ices, and drill pipe protection.
Canadian Energy Serv ices
& Technology Corp.
7/29/2016 AmQuip Crane Rental U.S. based leading provider of highly specialized, complex lifting
solutions to the petrochemical, refining, and industrial sectors.
Apollo
7/25/2016 RelaDyne U.S. based distributor of fuel and lubricants for industrial and commercial
end markets.
Audax
7/20/2016 Revenew U.S. based provider of monetary and cost reduction serv ices to
companies in the energy and power industry.
Sentinel
7/18/2016 Ulterra Drilling
Technologies
U.S. based designer and manufacturer of drill bits. American Securities
7/14/2016 MHWirth Managed
Pressure Operations
U.S. based subsidiary of MHWirth prov iding managed pressure drilling
(MPD) equipment for both onshore and offshore applications.
AFGlobal
7/13/2016 Redneck Oilfield Serv ices Canada based supplier of rental equipment and serv ices to the oil and
gas industry.
Strad Energy Serv ices
7/11/2016 1Energy Systems U.S. based developer of optimization software for component-based
grid energy storage systems.
Doosan
7/8/2016 Lovejoy U.S. based manufacturer of power transmission components, shaft
couplings, and hydraulic components.
The Timken Co.
7/7/2016 Des-Case U.S. based provider of contamination control products. Industrial Growth Partners
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Energy Equipment and Services
TEV / LTM EBITDA TEV / 2016E EBITDA
AVERAGE REVENUE GROWTH (2012 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016E)
AVERAGE EBITDA MARGIN (2012 – 2014) AVERAGE EBITDA MARGIN (2014 – 2016E)
3.2x
6.9x
8.3x
9.4x
9.6x
9.9x
13.3x
14.5x
17.4x
Offshore Drillers
E&C
Equipment
Land Drillers
Logistics
Small Cap Service
OCTG
Distribution
Large Cap Service
4.9x
5.3x
8.4x
10.8x
11.2x
13.3x
15.1x
21.3x
E&C
Offshore Drillers
Logistics
Small Cap Service
Equipment
OCTG
Land Drillers
Large Cap Service
(0.8%)
(0.7%)
3.3%
4.9%
5.3%
5.4%
5.7%
6.4%
8.3%
OCTG
E&C
Equipment
Land Drillers
Offshore Drillers
Large Cap Service
Logistics
Distribution
Small Cap Service
(44.0%)
(41.1%)
(31.5%)
(31.3%)
(29.6%)
(28.3%)
(26.7%)
(19.1%)
(5.8%)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Logistics
Distribution
OCTG
Offshore Drillers
E&C
6.4%
11.0%
18.5%
19.8%
20.5%
21.5%
32.0%
33.3%
43.5%
Distribution
E&C
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
1.5%
5.8%
11.5%
11.5%
16.1%
17.4%
25.9%
27.9%
47.5%
Distribution
Small Cap Service
E&C
OCTG
Large Cap Service
Equipment
Logistics
Land Drillers
Offshore Drillers
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Power Equipment and Services
TEV / LTM EBITDA TEV / 2016E EBITDA
AVERAGE REVENUE GROWTH (2012 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016E)
AVERAGE EBITDA MARGIN (2012 – 2014) AVERAGE EBITDA MARGIN (2014 – 2016E)
7.1x
11.4x
11.6x
EE and Cleantech
Large Cap
Mid and Small-Cap
8.7x
10.7x
11.5x
EE and Cleantech
Large Cap
Mid and Small-Cap
2.0%
3.1%
12.5%
Large Cap
Mid and Small-Cap
EE and Cleantech
(4.4%)
1.2%
16.6%
Large Cap
Mid and Small-Cap
EE and Cleantech
(15.4%)
17.5%
20.8%
EE and Cleantech
Mid and Small-Cap
Large Cap
(18.0%)
16.5%
16.6%
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Infrastructure Services
TEV / LTM EBITDA TEV / 2016E EBITDA
AVERAGE REVENUE GROWTH (2012 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016E)
AVERAGE EBITDA MARGIN (2012 – 2014) AVERAGE EBITDA MARGIN (2014 – 2016E)
7.0x
8.4x
8.9x
9.3x
10.4x
Large Cap
Mid and Small-Cap
Industrial Services
Design / Professional
Services
Utility Services
7.3x
7.9x
8.3x
9.3x
9.3x
Large Cap
Utility Services
Mid and Small-Cap
Industrial Services
Design / Professional
Services
5.1%
7.1%
8.8%
11.6%
11.7%
Mid and Small-Cap
Large Cap
Design / Professional
Services
Utility Services
Industrial Services
(8.4%)
(4.9%)
0.6%
7.8%
8.1%
Large Cap
Industrial Services
Mid and Small-Cap
Utility Services
Design / Professional
Services
5.7%
6.1%
7.7%
9.1%
9.7%
Large Cap
Mid and Small-Cap
Industrial Services
Design / Professional
Services
Utility Services
6.0%
6.0%
6.9%
8.9%
9.2%
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design / Professional
Services
PAGE |
INDUSTRY STATISTICS
7
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
(Indexed to 100%)
TRAILING TWELVE MONTHS
Commodity Prices
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $2.59 $2.76 $2.80 (6.0%) (7.5%)
Crude Oil ($ per bbl) 45.74 45.95 42.50 (0.5%) 7.6%
Coal (CAPP) ($ per ton) 39.50 39.50 42.88 0.0% (7.9%)
25%
50%
75%
100%
125%
150%
Aug-15 Nov-15 Feb-16 May-16 Aug-16
Natural Gas (NYMEX:^NG) Crude Oil (NYMEX:^CL) Coal (NYMEX:^QL)
PAGE |
INDUSTRY STATISTICS
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
U.S. RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
U.S. OIL VS. GAS RIG COUNT
U.S. HORIZONTAL/DIRECTIONAL VS. VERTICAL RIG COUNT
8
400
600
800
1,000
1,200
1,400
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
32
12
42
88
51
33
-
70
52
98
300
153
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
Horizontal / Directional
Vertical
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
Oil
Gas
0
500
1,000
1,500
2,000
2,500
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
PAGE |
INDUSTRY STATISTICS
9
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
U.S. OIL RIG COUNT BY REGION U.S. GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN U.S. OIL RIG COUNT BY REGION YTD CHANGE IN U.S. GAS RIG COUNT BY REGION
83
--
--
--
--
--
1
4
4
10
15
18
29
29
29
189
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
Gulf of Mexico
DJ-Niobrara
Cana Woodford
Williston
Eagle Ford
Permian
25
--
--
--
--
--
--
--
--
--
2
2
7
14
14
21
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Gulf of Mexico
Eagle Ford
Utica
Haynesville
Marcellus
(49%)
(100%)
(100%)
(100%)
(100%)
(100%)
(60%)
(49%)
(44%)
(13%)
--
--
--
--
--
--
Others
Permian
Fayetteville
Cana Woodford
Barnett
Granite Wash
Gulf of Mexico
Marcellus
Haynesville
Eagle Ford
Mississippian
Williston
Ardmore Woodford
Arkoma Woodford
DJ-Niobrara
Utica
(28%)
(100%)
(100%)
(67%)
(57%)
(50%)
(45%)
(25%)
(22%)
(20%)
(15%)
(10%)
43%
--
--
--
Others
Arkoma Woodford
Utica
Mississippian
Eagle Ford
Ardmore Woodford
Williston
Gulf of Mexico
DJ-Niobrara
Barnett
Cana Woodford
Permian
Granite Wash
Fayetteville
Marcellus
Haynesville
PAGE |
INDUSTRY STATISTICS
10
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Construction Spend4
% YoY CHANGE BY SECTOR % MoM CHANGE BY SECTOR
NON-RESIDENTIAL U.S. CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
Total Private Public
(14.5%)
(14.0%)
(10.4%)
(8.4%)
(6.0%)
(5.9%)
(4.8%)
(4.3%)
(3.3%)
(0.7%)
3.0%
3.7%
7.5%
8.3%
16.1%
16.2%
Sewage & Waste
Water Supply
Manufacturing
Public Safety
Communication
Highway & Street
Healthcare
Educational
Transportation
Amusement
Power
Religious
Commercial
Conservation
Lodging
Office
(4.5%)
(2.6%)
(2.2%)
(1.4%)
(1.4%)
(1.0%)
(0.6%)
(0.3%)
0.1%
0.2%
0.4%
0.5%
0.6%
0.7%
2.2%
3.3%
Manufacturing
Sewage & Waste
Commercial
Healthcare
Highway & Street
Educational
Conservation
Communication
Transportation
Power
Office
Amusement
Public Safety
Lodging
Religious
Water Supply
PAGE |
INDUSTRY STATISTICS
11
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) C&I AND INSTITUTIONAL ABI SCORES
Construction Indicators5,6
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
20
25
30
35
40
45
50
55
60
65
70
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
Commercial / Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ju
n-1
1
De
c-1
1
Ju
n-1
2
De
c-1
2
Ju
n-1
3
De
c-1
3
Ju
n-1
4
De
c-1
4
Ju
n-1
5
De
c-1
5
Ju
n-1
6
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
July: 51.5 57.5 50.3 50.7
July: 51.8 134.7
ABI: Derived from the AIA’s monthly Work-on-the-Boards survey, an index score above 50 denotes increased billing from prior month, and vice versa.
DMI: 12-month indicator of future construction spending and demand for construction products / services.
20
25
30
35
40
45
50
55
60
65
70
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
Billings Inquiries
50
75
100
125
150
175
200
'02
'03
'04
'05
'06
'07
'08
'09
'10
'11
'12
'13
'14
'15
'16
PAGE |
OUR GROUP
Harris Williams & Co. is a leading advisor to the energy, power, and infrastructure M&A market. Our Energy, Power &Infrastructure Group has experience across a broad range of sectors, including services, products, and technologiesthat support or enhance energy and power infrastructure.
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
SELECT RELEVANT EXPERIENCE
Oil & Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
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a portfolio company of
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PAGE |
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ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
TEV Aug-16 Jul-16 Prior Month Prior Year High % of High Aug-15 Feb-16 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger NV $124,754 $82.04 $79.35 3.4% (2.2%) $85.12 96.4% 9.0x 9.8x 15.9x 12.7x 18.8x
Halliburton Co. 48,020 44.45 45.46 (2.2%) 5.9% 46.69 95.2% 6.8x 8.2x 18.8x 13.1x 23.8x
Baker Hughes, Inc. 21,379 50.64 45.92 10.3% (11.7%) 58.23 87.0% 7.9x 11.8x NM 13.1x NM
Weatherford International Plc 12,041 5.78 6.02 (4.0%) (41.6%) 11.49 50.3% 7.9x 15.2x NM 15.1x NM
Median 0.6% (6.9%) 91.1% 7.9x 10.8x 17.4x 13.1x 21.3x
Equipment
National Oilwell Varco, Inc. $14,756 $34.85 $33.74 3.3% (11.9%) $42.62 81.8% 4.2x 4.7x 13.1x 5.6x NM
FMC Technologies, Inc. 6,296 27.07 27.32 (0.9%) (17.5%) 35.93 75.3% 6.2x 5.1x 8.3x 6.1x 11.2x
Oceaneering International, Inc. 3,234 28.80 30.89 (6.8%) (31.7%) 48.11 59.9% 6.0x 4.8x 6.3x 5.0x 8.5x
Dril-Quip, Inc. 1,661 57.09 59.25 (3.6%) (6.4%) 69.43 82.2% 6.5x 5.7x 7.7x 6.1x 12.0x
Forum Energy Technologies, Inc. 1,838 17.40 16.28 6.9% 15.9% 19.32 90.1% 6.8x 8.3x NM 14.5x NM
Oil States International, Inc. 1,651 32.25 32.30 (0.2%) 12.8% 36.73 87.8% 5.5x 6.9x 16.9x 9.1x NM
Median (0.5%) (9.2%) 82.0% 6.1x 5.4x 8.3x 6.1x 11.2x
Mid and Small-Cap Service
Superior Energy Services, Inc. $3,677 $17.36 $18.04 (3.8%) 6.7% $19.83 87.5% 3.9x 5.4x 17.7x 8.3x NM
U.S. Silica Holdings, Inc. 2,560 39.80 34.11 16.7% 61.9% 40.24 98.9% 7.7x 12.4x NM NM NM
TETRA Technologies, Inc. 1,471 6.30 6.27 0.5% (15.9%) 9.44 66.7% 9.8x 6.5x 9.9x 6.4x 11.3x
Ensign Energy Services, Inc. 1,401 5.83 5.69 2.5% (23.7%) 7.96 73.3% 4.3x 4.5x 8.0x 5.6x 10.3x
C&J Energy Services Ltd. 1,312 0.30 0.33 (9.1%) (95.5%) 7.11 4.2% 9.4x NM NM NM NM
Basic Energy Services, Inc. 916 0.67 1.35 (50.7%) (88.0%) 6.05 11.0% 5.2x NM NM NM NM
Calfrac Well Services Ltd. 917 2.54 2.88 (11.6%) (33.3%) 4.15 61.1% 3.9x NM NM NM NM
Key Energy Services, Inc. 804 0.08 0.20 (59.5%) (89.7%) 0.95 8.6% NM NM NM NM NM
Trican Well Service Ltd. 451 1.74 1.75 (0.2%) 72.5% 2.07 84.1% 4.5x NM NM NM NM
CARBO Ceramics, Inc. 338 14.34 13.78 4.1% (52.4%) 32.25 44.5% 14.4x NM NM NM NM
Median (2.0%) (28.5%) 63.9% 5.2x 5.9x 9.9x 6.4x 10.8x
OCTG
Tenaris SA $15,470 $14.20 $14.30 (0.7%) 7.7% $14.87 95.5% 6.7x 8.9x 19.8x 12.5x 21.1x
TMK PAO 3,337 2.65 2.86 (7.2%) (26.0%) 4.20 63.1% 5.0x 5.4x 6.8x 5.7x 5.5x
Vallourec SA 2,105 4.65 3.98 16.9% (44.4%) 8.64 53.9% 6.7x NM NM NM NM
Median (0.7%) (26.0%) 63.1% 6.7x 7.2x 13.3x 9.1x 13.3x
Distribution
MRC Global, Inc. $2,174 $15.05 $14.38 4.7% 16.4% $15.49 97.2% 6.6x 6.1x 14.5x 7.8x NM
NOW, Inc. 2,255 20.63 20.67 (0.2%) 20.0% 21.33 96.7% 26.6x NM NM NM NM
Median 2.2% 18.2% 97.0% 16.6x 6.1x 14.5x 7.8x NM
TEV / LTM EBITDA as of
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PUBLIC COMPARABLES
15
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Revenue Revenue Growth EBITDA EBITDA Margin Avg. Margin
2012 2013 2014 2015 2016E '12-14 '14-16E 2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E '12-14 '14-16E
Energy Services and Equipment
Large Cap Service
Schlumberger NV $41,731 $45,266 $48,580 $35,475 $29,159 7.9% (22.5%) $10,746 $11,963 $13,679 $9,798 $6,653 25.8% 26.4% 28.2% 27.6% 22.8% 26.8% 26.2%
Halliburton Co. 28,503 29,402 32,870 23,633 15,946 7.4% (30.3%) 6,087 6,130 7,174 3,671 2,018 21.4% 20.8% 21.8% 15.5% 12.7% 21.3% 16.7%
Baker Hughes, Inc. 21,361 22,364 24,551 15,742 9,925 7.2% (36.4%) 3,824 3,668 4,904 1,627 355 17.9% 16.4% 20.0% 10.3% 3.6% 18.1% 11.3%
Weatherford International Plc 15,215 15,263 14,911 9,433 5,970 (1.0%) (36.7%) 2,445 2,148 2,514 798 335 16.1% 14.1% 16.9% 8.5% 5.6% 15.7% 10.3%
Total $106,810 $112,295 $120,912 $84,283 $61,000 5.4% (31.5%) $23,102 $23,909 $28,271 $15,894 $9,361 21.6% 21.3% 23.4% 18.9% 15.3% 20.5% 16.1%
Equipment
National Oilwell Varco, Inc. $20,035 $22,751 $21,414 $14,738 $7,311 3.4% (41.6%) $4,153 $4,066 $4,610 $2,657 $244 20.7% 17.9% 21.5% 18.0% 3.3% 20.0% 14.3%
FMC Technologies, Inc. 6,140 7,137 7,958 6,482 4,675 13.8% (23.4%) 701 925 1,310 1,038 562 11.4% 13.0% 16.5% 16.0% 12.0% 13.6% 14.8%
Oceaneering International, Inc. 2,783 3,287 3,660 3,063 2,396 14.7% (19.1%) 605 751 858 640 380 21.7% 22.8% 23.4% 20.9% 15.9% 22.7% 20.1%
Dril-Quip, Inc. 733 872 931 844 541 12.7% (23.7%) 188 253 305 274 139 25.6% 29.0% 32.8% 32.5% 25.6% 29.1% 30.3%
Forum Energy Technologies, Inc. 1,415 1,525 1,740 1,074 600 10.9% (41.3%) 290 274 313 127 (20) 20.5% 18.0% 18.0% 11.8% (3.4%) 18.8% 8.8%
Oil States International, Inc. 4,424 2,670 1,820 1,100 688 (35.9%) (38.5%) 927 790 435 182 50 21.0% 29.6% 23.9% 16.5% 7.3% 24.8% 15.9%
Total $35,530 $38,243 $37,522 $27,301 $16,211 3.3% (31.3%) $6,864 $7,058 $7,832 $4,918 $1,356 19.3% 18.5% 20.9% 18.0% 8.4% 21.5% 17.4%
Mid and Small-Cap Service
Superior Energy Services, Inc. $4,568 $4,612 $4,557 $2,775 $1,505 (0.1%) (42.5%) $1,246 $1,085 $1,197 $445 $118 27.3% 23.5% 26.3% 16.0% 7.8% 25.7% 16.7%
U.S. Silica Holdings, Inc. 442 546 877 643 533 40.9% (22.0%) 141 151 221 85 26 31.8% 27.6% 25.3% 13.2% 4.9% 28.2% 14.5%
TETRA Technologies, Inc. 881 909 1,078 1,130 756 10.6% (16.2%) 123 91 113 231 131 13.9% 10.0% 10.5% 20.4% 17.3% 11.5% 16.0%
Ensign Energy Services, Inc. 2,198 2,036 2,102 1,087 665 (2.2%) (43.7%) 565 469 499 251 136 25.7% 23.1% 23.7% 23.1% 20.5% 24.2% 22.4%
C&J Energy Services Ltd. 1,112 1,070 1,608 1,749 913 20.3% (24.6%) 336 189 253 12 (121) 30.2% 17.7% 15.7% 0.7% (13.3%) 21.2% 1.0%
Basic Energy Services, Inc. 1,375 1,263 1,491 806 512 4.1% (41.4%) 299 231 313 19 (39) 21.7% 18.3% 21.0% 2.4% (7.7%) 20.3% 5.2%
Calfrac Well Services Ltd. 1,596 1,518 2,261 1,169 591 19.0% (48.9%) 257 183 330 22 (15) 16.1% 12.0% 14.6% 1.9% (2.6%) 14.2% 4.6%
Key Energy Services, Inc. 1,960 1,592 1,427 792 417 (14.7%) (46.0%) 421 266 119 (132) (25) 21.5% 16.7% 8.3% (16.7%) (6.0%) 15.5% (4.8%)
Trican Well Service Ltd. 2,214 2,053 2,448 929 272 5.2% (66.7%) 240 188 236 (70) (37) 10.8% 9.2% 9.6% (7.6%) (13.7%) 9.9% (3.9%)
CARBO Ceramics, Inc. 646 667 648 280 111 0.2% (58.6%) 204 172 159 (40) (59) 31.6% 25.8% 24.5% (14.4%) (53.4%) 27.3% (14.4%)
Total $16,991 $16,266 $18,497 $11,359 $6,275 8.3% (41.1%) $3,831 $3,026 $3,440 $822 $114 22.5% 18.6% 18.6% 7.2% 1.8% 19.8% 5.8%
OCTG
Tenaris SA $10,834 $10,597 $10,338 $7,101 $4,855 (2.3%) (31.5%) $2,852 $2,781 $2,692 $1,240 $733 26.3% 26.2% 26.0% 17.5% 15.1% 26.2% 19.5%
TMK PAO 6,688 6,432 6,009 4,127 4,342 (5.2%) (15.0%) 1,001 916 777 580 612 15.0% 14.2% 12.9% 14.1% 14.1% 14.0% 13.7%
Vallourec SA 6,841 7,406 7,561 4,218 3,319 5.1% (33.7%) 989 1,230 1,102 (105) (268) 14.5% 16.6% 14.6% (2.5%) (8.1%) 15.2% 1.3%
Total $24,363 $24,435 $23,908 $15,445 $12,515 (0.8%) (26.7%) $4,842 $4,926 $4,571 $1,715 $1,077 19.9% 20.2% 19.1% 11.1% 8.6% 18.5% 11.5%
Distribution
MRC Global, Inc. $5,571 $5,231 $5,933 $4,529 $3,039 3.2% (28.4%) $475 $386 $393 $280 $63 8.5% 7.4% 6.6% 6.2% 2.1% 7.5% 5.0%
NOW, Inc. 3,414 4,296 4,105 3,010 2,122 9.7% (28.1%) 180 241 202 (79) (170) 5.3% 5.6% 4.9% (2.6%) (8.0%) 5.3% (1.9%)
Total $8,985 $9,527 $10,038 $7,539 $5,160 6.4% (28.3%) $655 $627 $595 $201 ($107) 7.3% 6.6% 5.9% 2.7% (2.1%) 6.4% 1.5%
PAGE |
PUBLIC COMPARABLES
16
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
TEV Aug-16 Jul-16 Prior Month Prior Year High % of High Aug-15 Feb-16 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd. $12,904 $37.57 $35.87 4.8% 22.1% $37.75 99.5% 8.7x 9.0x 10.4x 10.7x 8.6x
Tidewater, Inc. 1,532 3.24 4.77 (32.1%) (81.6%) 18.71 17.3% 6.0x 6.7x 9.9x 7.2x NM
Bristow Group, Inc. 1,534 12.41 13.35 (7.0%) (68.9%) 41.10 30.2% 8.5x 6.1x 9.1x 7.7x 8.2x
Hornbeck Offshore Services 1,062 5.79 8.72 (33.6%) (69.3%) 20.35 28.5% 5.5x 4.9x 9.2x 5.1x 19.3x
Civeo Corp. 533 1.34 1.71 (21.6%) (15.2%) 2.40 55.8% 2.5x 3.7x 6.1x 4.1x 6.8x
GulfMark Offshore, Inc. 518 2.66 3.42 (22.2%) (67.8%) 9.04 29.4% 6.2x 9.6x 17.1x 9.0x NM
Median (21.9%) (68.3%) 29.8% 6.1x 6.4x 9.6x 7.5x 8.4x
Offshore Drillers
Transocean Ltd. $9,833 $10.43 $12.15 (14.2%) (24.1%) 17.19 60.7% 2.7x 2.7x 5.1x 2.9x 6.0x
Ensco Plc 5,662 8.96 10.28 (12.8%) (46.0%) 18.93 47.3% 3.6x 3.1x 3.0x 2.7x 4.6x
Noble Corp. Plc 5,671 6.75 8.24 (18.1%) (44.7%) 14.64 46.1% 6.9x 3.3x 2.8x 2.9x 6.1x
Diamond Offshore Drilling, Inc. 5,030 20.60 25.84 (20.3%) (6.8%) 26.72 77.1% 4.9x 4.2x 5.4x 4.7x 7.3x
Rowan Cos. Plc 3,674 14.17 17.76 (20.2%) (14.7%) 21.83 64.9% 5.1x 3.6x 3.5x 3.6x 4.5x
Atwood Oceanics, Inc. 1,780 9.32 11.92 (21.8%) (50.2%) 19.65 47.4% 3.9x 2.5x 2.6x 2.3x 3.1x
Median (19.1%) (34.4%) 54.1% 4.4x 3.2x 3.2x 2.9x 5.3x
Land Drillers
Helmerich & Payne, Inc. $6,340 $62.60 $68.72 (8.9%) 7.4% 70.28 89.1% 4.0x 4.7x 9.3x 4.8x 16.3x
Nabors Industries Ltd. 6,039 10.07 9.71 3.7% (8.0%) 12.33 81.7% 4.0x 4.6x 7.7x 5.4x 10.0x
Patterson-UTI Energy, Inc. 3,549 20.09 21.25 (5.5%) 20.1% 22.12 90.8% 3.6x 4.5x 10.3x 6.1x 18.3x
Precision Drilling Corp. 2,567 4.57 4.93 (7.3%) (2.4%) 6.08 75.2% 4.4x 5.4x 9.4x 6.6x 13.8x
Pioneer Energy Services Corp. 602 3.53 4.37 (19.2%) 8.3% 5.05 69.9% 2.7x 4.2x 12.6x 5.5x NM
Median (7.3%) 7.4% 81.7% 4.0x 4.6x 9.4x 5.5x 15.1x
Engineering & Construction
Saipem SpA $5,410 $0.46 $0.46 0.7% (52.9%) 1.17 39.2% 20.5x 13.0x 10.0x 9.8x 3.9x
Petrofac Ltd. 5,152 10.82 10.62 1.9% (16.2%) 14.74 73.4% 12.3x 19.2x 20.0x 20.0x 6.9x
Technip SA 6,391 57.11 55.73 2.5% 4.5% 61.37 93.1% 5.2x 4.0x 5.1x 5.4x 4.9x
Subsea 7 SA 3,059 11.27 10.40 8.3% 38.9% 11.38 99.0% 2.4x 1.1x 2.4x 2.4x 3.6x
McDermott International, Inc. 1,694 5.12 5.01 2.2% 18.0% 6.00 85.3% 7.5x 3.4x 6.9x 8.3x 6.7x
Median 2.2% 4.5% 85.3% 7.5x 4.0x 6.9x 8.3x 4.9x
TEV / LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Revenue Revenue Growth EBITDA EBITDA Margin Avg. Margin
2012 2013 2014 2015 2016E '12-14 '14-16E 2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E '12-14 '14-16E
Energy Services and Equipment
Logistics
ATCO Ltd. $4,364 $4,230 $4,123 $3,229 $3,541 (2.8%) (7.3%) $1,642 $1,677 $1,537 $1,205 $1,504 37.6% 39.6% 37.3% 37.3% 42.5% 38.2% 39.0%
Tidewater, Inc. 1,244 1,435 1,496 979 622 9.6% (35.5%) 347 417 416 212 48 27.9% 29.1% 27.8% 21.6% 7.7% 28.3% 19.0%
Bristow Group, Inc. 1,508 1,670 1,859 1,716 1,480 11.0% (10.8%) 289 278 303 198 188 19.2% 16.6% 16.3% 11.6% 12.7% 17.4% 13.5%
Hornbeck Offshore Services 513 548 635 476 236 11.3% (39.0%) 209 255 284 209 55 40.7% 46.6% 44.7% 43.8% 23.3% 44.0% 37.3%
Civeo Corp. 1,109 1,041 943 518 395 (7.8%) (35.3%) 492 422 334 131 78 44.4% 40.5% 35.4% 25.3% 19.8% 40.1% 26.8%
GulfMark Offshore, Inc. 389 455 496 275 126 12.9% (49.7%) 103 159 172 58 3 26.5% 34.9% 34.7% 21.0% 2.7% 32.0% 19.5%
Total $9,127 $9,379 $9,551 $7,192 $6,399 5.7% (29.6%) $3,082 $3,208 $3,046 $2,012 $1,877 33.8% 34.2% 31.9% 28.0% 29.3% 33.3% 25.9%
Offshore Drillers
Transocean Ltd. $9,196 $9,484 $9,174 $7,386 $3,861 (0.1%) (35.1%) $2,808 $3,407 $3,851 $3,450 $1,643 30.5% 35.9% 42.0% 46.7% 42.5% 36.1% 43.7%
Ensco Plc 4,301 4,920 4,565 4,063 2,634 3.0% (24.0%) 2,123 2,373 2,355 2,098 1,221 49.4% 48.2% 51.6% 51.6% 46.3% 49.7% 49.9%
Noble Corp. Plc 3,547 4,234 3,233 3,352 1,967 (4.5%) (22.0%) 1,530 1,980 1,563 1,975 929 43.1% 46.8% 48.4% 58.9% 47.2% 46.1% 51.5%
Diamond Offshore Drilling, Inc. 2,987 2,920 2,815 2,419 1,634 (2.9%) (23.8%) 1,345 1,200 1,134 1,068 684 45.0% 41.1% 40.3% 44.1% 41.9% 42.1% 42.1%
Rowan Cos. Plc 1,393 1,579 1,824 2,137 1,713 14.5% (3.1%) 526 587 707 1,028 820 37.8% 37.2% 38.8% 48.1% 47.8% 37.9% 44.9%
Atwood Oceanics, Inc. 787 1,064 1,174 1,396 1,031 22.1% (6.3%) 390 547 550 779 570 49.6% 51.4% 46.9% 55.8% 55.3% 49.3% 52.7%
Total $22,210 $24,201 $22,784 $20,754 $12,841 5.3% (19.1%) $8,723 $10,094 $10,160 $10,398 $5,867 39.3% 41.7% 44.6% 50.1% 45.7% 43.5% 47.5%
Land Drillers
Helmerich & Payne, Inc. $3,152 $3,388 $3,720 $3,165 $1,400 8.6% (38.6%) $1,278 $1,393 $1,559 $1,310 $388 40.5% 41.1% 41.9% 41.4% 27.7% 41.2% 37.0%
Nabors Industries Ltd. 6,990 6,152 6,804 3,864 2,223 (1.3%) (42.8%) 1,974 1,639 1,749 1,112 602 28.2% 26.6% 25.7% 28.8% 27.1% 26.9% 27.2%
Patterson-UTI Energy, Inc. 2,723 2,716 3,182 1,891 879 8.1% (47.5%) 990 916 986 585 194 36.4% 33.7% 31.0% 30.9% 22.0% 33.7% 28.0%
Precision Drilling Corp. 2,041 1,970 2,128 1,216 715 2.1% (42.0%) 671 620 725 387 186 32.9% 31.5% 34.1% 31.8% 26.0% 32.8% 30.6%
Pioneer Energy Services Corp. 919 960 1,055 541 272 7.1% (49.2%) 246 235 263 109 13 26.8% 24.4% 24.9% 20.2% 4.8% 25.4% 16.6%
Total $15,826 $15,186 $16,890 $10,678 $5,490 4.9% (44.0%) $5,159 $4,803 $5,282 $3,503 $1,383 32.6% 31.6% 31.3% 32.8% 25.2% 32.0% 27.9%
Engineering & Construction
Saipem SpA $17,172 $15,720 $17,075 $12,760 $11,687 (0.3%) (17.3%) $2,813 $915 $1,596 $550 $1,388 16.4% 5.8% 9.3% 4.3% 11.9% 10.5% 8.5%
Petrofac Ltd. 6,240 6,329 6,241 6,844 7,875 0.0% 12.3% 843 1,014 882 257 749 13.5% 16.0% 14.1% 3.8% 9.5% 14.6% 9.1%
Technip SA 10,538 11,746 13,362 11,464 11,979 12.6% (5.3%) 1,283 1,343 1,352 1,181 1,304 12.2% 11.4% 10.1% 10.3% 10.9% 11.2% 10.4%
Subsea 7 SA 6,297 6,297 6,870 4,758 3,674 4.5% (26.9%) 1,084 844 1,353 1,268 845 17.2% 13.4% 19.7% 26.6% 23.0% 16.8% 23.1%
McDermott International, Inc. 3,642 2,659 2,301 3,070 2,700 (20.5%) 8.3% 441 (236) 66 204 253 12.1% (8.9%) 2.9% 6.6% 9.4% 2.0% 6.3%
Total $43,888 $42,752 $45,850 $38,897 $37,915 (0.7%) (5.8%) $6,464 $3,879 $5,248 $3,460 $4,539 14.7% 9.1% 11.4% 8.9% 12.0% 11.0% 11.5%
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PUBLIC COMPARABLES
18
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
TEV Aug-16 Jul-16 Prior Month Prior Year High % of High Aug-15 Feb-16 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Co. $395,365 $31.24 $32.88 (5.0%) 19.8% $33.00 94.7% 15.9x 17.1x 15.6x 16.2x 19.4x
Siemens 122,361 119.93 104.61 14.6% 13.1% 120.77 99.3% 10.8x 10.3x 11.6x 13.2x 10.7x
Honeywell International, Inc. 99,389 116.84 119.23 (2.0%) 10.1% 120.02 97.4% 11.6x 10.9x 11.8x 12.2x 11.7x
ABB Ltd. 49,844 22.17 20.00 10.9% 11.1% 22.22 99.8% 9.7x 7.9x 9.6x 10.0x 10.7x
Schneider Electric SE 46,624 68.41 61.33 11.5% 1.8% 69.20 98.9% 9.3x 7.3x 9.7x 9.7x 10.6x
Emerson Electric Co. 39,119 54.71 56.23 (2.7%) 10.3% 56.82 96.3% 7.9x 8.0x 9.3x 8.7x 10.6x
Eaton Corp. Plc 38,984 67.63 63.83 6.0% 12.8% 68.01 99.4% 10.2x 9.7x 11.4x 11.4x 11.8x
Median 6.0% 11.1% 98.9% 10.2x 9.7x 11.4x 11.4x 10.7x
Mid and Small-Cap Equipment and Services
AMETEK, Inc. $13,029 $48.31 $47.62 1.4% (14.7%) $57.67 83.8% 14.2x 11.5x 12.4x 11.9x 13.0x
Hubbell, Inc. 6,679 107.37 106.92 0.4% 3.7% 111.23 96.5% 10.4x 9.5x 11.4x 11.5x 11.6x
Valmont Industries, Inc. 3,436 131.05 137.80 (4.9%) 16.9% 145.94 89.8% 8.2x 9.5x 11.2x 11.3x 10.0x
Littelfuse, Inc. 2,907 120.05 120.42 (0.3%) 29.2% 126.32 95.0% 12.5x 10.6x 11.6x 13.2x 13.2x
AZZ, Inc. 2,017 65.43 62.27 5.1% 22.5% 65.75 99.5% 10.5x 9.5x 11.6x 11.8x 10.5x
ESCO Technologies, Inc. 1,210 44.91 42.59 5.4% 21.2% 44.95 99.9% 11.9x 11.1x 13.1x 14.7x 11.5x
Badger Meter, Inc. 1,065 70.16 74.70 (6.1%) 14.1% 78.72 89.1% 15.7x 15.4x 14.7x 16.9x 15.4x
Thermon Group Holdings, Inc. 674 19.99 20.91 (4.4%) (14.8%) 23.83 83.9% 10.3x 8.7x 8.5x 8.2x 12.5x
Babcock & Wilcox Enterprises, Inc. 565 16.73 15.59 7.3% (11.3%) 23.99 69.7% NM 7.4x NM 6.6x 6.9x
Powell Industries, Inc. 350 38.11 37.71 1.1% 38.0% 40.96 93.0% 8.1x 5.9x 8.8x 9.2x 11.4x
Median 0.7% 15.5% 91.4% 10.5x 9.5x 11.6x 11.6x 11.5x
Energy Efficiency and Clean Technology
SolarCity Corp. $6,468 $23.99 $25.04 (4.2%) (50.9%) $58.87 40.8% NM NM NM NM NM
Itron, Inc. 2,093 48.39 44.05 9.9% 44.1% 48.71 99.3% 13.3x 5.6x 6.9x 7.2x 11.0x
Silver Spring Networks, Inc. 627 14.02 12.45 12.6% (1.6%) 16.18 86.7% NM 4.3x 7.2x 6.4x NM
Ameresco, Inc. 330 4.95 5.27 (6.1%) (24.0%) 7.10 69.7% 8.9x 7.9x 7.1x 8.7x 6.4x
EnerNOC, Inc. 191 5.87 7.09 (17.2%) (34.9%) 9.79 60.0% 4.7x NM NM NM NM
Median (4.2%) (24.0%) 69.7% 8.9x 5.6x 7.1x 7.2x 8.7x
TEV / LTM EBITDA as of
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PUBLIC COMPARABLES
19
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Revenue Revenue Growth EBITDA EBITDA Margin Avg. Margin
2012 2013 2014 2015 2016E '12-14 '14-16E 2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E '12-14 '14-16E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Co. $144,909 $142,461 $119,021 $122,364 $125,624 (9.4%) 2.7% $37,052 $33,285 $21,690 $24,357 $20,341 25.6% 23.4% 18.2% 19.9% 16.2% 22.4% 18.1%
Siemens AG 100,332 96,332 96,607 86,622 89,356 (1.9%) (3.8%) 11,669 10,538 11,319 9,297 11,483 11.6% 10.9% 11.7% 10.7% 12.9% 11.4% 11.8%
Honeywell International, Inc. 37,672 39,062 40,301 38,564 40,297 3.4% (0.0%) 5,538 7,176 7,353 8,148 8,464 14.7% 18.4% 18.2% 21.1% 21.0% 17.1% 20.1%
ABB Ltd. 39,336 41,842 39,830 35,481 34,234 0.6% (7.3%) 5,530 6,113 5,152 4,982 4,648 14.1% 14.6% 12.9% 14.0% 13.6% 13.9% 13.5%
Schneider Electric SE 30,758 31,056 33,080 29,542 28,289 3.7% (7.5%) 31,803 5,200 5,363 4,825 4,414 103.4% 16.7% 16.2% 16.3% 15.6% 45.5% 16.0%
Emerson Electric Co. 24,409 24,645 24,527 22,304 20,332 0.2% (9.0%) 4,948 4,894 5,051 4,501 3,697 20.3% 19.9% 20.6% 20.2% 18.2% 20.2% 19.7%
Eaton Corp. Plc 16,311 22,046 22,552 20,855 19,956 17.6% (5.9%) 2,357 3,308 3,675 3,427 3,315 14.5% 15.0% 16.3% 16.4% 16.6% 15.3% 16.4%
Total $393,727 $397,444 $375,919 $355,732 $358,088 2.0% (4.4%) $98,897 $70,514 $59,602 $59,537 $56,363 25.1% 17.7% 15.9% 16.7% 15.7% 20.8% 16.5%
Mid and Small-Cap Equipment and Services
AMETEK, Inc. $3,334 $3,594 $4,022 $3,974 $3,870 9.8% (1.9%) $851 $934 $1,037 $1,094 $1,004 25.5% 26.0% 25.8% 27.5% 25.9% 25.8% 26.4%
Hubbell, Inc. 3,044 3,184 3,359 3,390 3,520 5.0% 2.4% 539 578 596 583 577 17.7% 18.1% 17.7% 17.2% 16.4% 17.9% 17.1%
Valmont Industries, Inc. 3,030 3,304 3,123 2,619 2,505 1.5% (10.4%) 453 558 459 305 343 15.0% 16.9% 14.7% 11.6% 13.7% 15.5% 13.3%
Littelfuse, Inc. 668 758 852 868 1,016 12.9% 9.2% 139 166 182 221 221 20.8% 21.9% 21.3% 25.5% 21.7% 21.3% 22.8%
AZZ, Inc. 571 752 817 903 955 19.6% 8.1% 127 149 157 171 193 22.3% 19.8% 19.2% 18.9% 20.2% 20.4% 19.4%
ESCO Technologies, Inc. 688 490 531 537 574 (12.2%) 4.0% 95 73 82 82 105 13.8% 14.9% 15.4% 15.3% 18.4% 14.7% 16.3%
Badger Meter, Inc. 320 334 365 378 414 6.8% 6.5% 58 53 62 63 69 18.0% 15.8% 17.0% 16.7% 16.7% 16.9% 16.8%
Thermon Group Holdings, Inc. 284 277 309 302 284 4.2% (4.1%) 71 73 81 82 54 24.9% 26.2% 26.3% 27.2% 18.9% 25.8% 24.2%
Babcock & Wilcox Enterprises, Inc. 2,039 1,923 1,589 1,757 1,756 (11.7%) 5.1% 216 298 4 86 82 10.6% 15.5% 0.2% 4.9% 4.7% 8.8% 3.3%
Powell Industries, Inc. 717 675 648 662 557 (5.0%) (7.3%) 61 63 43 38 31 8.6% 9.4% 6.6% 5.8% 5.5% 8.2% 6.0%
Total $14,695 $15,291 $15,615 $15,390 $15,453 3.1% 1.2% $2,610 $2,944 $2,702 $2,724 $2,679 17.8% 19.3% 17.3% 17.7% 17.3% 17.5% 16.6%
Energy Efficiency and Clean Technology
SolarCity Corp. $127 $164 $255 $400 $675 41.8% 62.7% ($70) ($107) ($236) ($479) ($577) (55.3%) (65.3%) (92.5%) (120.0%) (85.5%) (71.0%) (99.3%)
Itron, Inc. 2,178 1,949 1,971 2,062 1,947 (4.9%) (0.6%) 265 172 169 292 191 12.2% 8.8% 8.6% 14.1% 9.8% 9.9% 10.8%
Silver Spring Networks, Inc. 197 327 191 490 299 (1.4%) 25.1% (81) (35) (79) 99 17 (41.4%) (10.7%) (41.4%) 20.1% 5.8% (31.2%) (5.2%)
Ameresco, Inc. 631 574 593 631 653 (3.1%) 4.9% 48 26 38 38 51 7.6% 4.5% 6.4% 6.0% 7.9% 6.2% 6.8%
EnerNOC, Inc. 278 383 472 400 390 30.3% (9.1%) 6 56 53 (42) (39) 2.1% 14.7% 11.2% (10.4%) (10.0%) 9.3% (3.1%)
Total $3,411 $3,397 $3,482 $3,981 $3,964 12.5% 16.6% $168 $113 ($55) ($93) ($357) 4.9% 3.3% (1.6%) (2.3%) (9.0%) (15.4%) (18.0%)
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PUBLIC COMPARABLES
20
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Stock Performance
Stock Price Change from 52-Week TEV / EBITDA EBITDA
TEV Aug-16 Jul-16 Prior Month Prior Year High % of High Aug-15 Feb-16 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corp. $7,430 $52.02 $53.04 (1.9%) 8.3% $55.69 93.4% 4.7x 4.8x 7.0x 6.6x 7.3x
Jacobs Engineering Group, Inc. 6,525 54.25 52.70 2.9% 22.8% 55.89 97.1% 6.8x 6.5x 9.6x 8.7x 9.8x
SNC-Lavalin Group, Inc. 6,622 43.65 43.09 1.3% 42.6% 44.83 97.4% 19.2x 10.5x 16.2x 17.3x 12.5x
Chicago Bridge & Iron Co. NV 5,487 34.04 38.01 (10.4%) (34.3%) 52.68 64.6% 6.1x 4.6x 5.1x 4.5x 5.8x
KBR, Inc. 1,465 15.76 14.57 8.2% (14.9%) 19.94 79.0% NM 4.3x 6.6x 7.0x 4.7x
Median 1.3% 8.3% 93.4% 6.4x 4.8x 7.0x 7.0x 7.3x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler Plc $4,003 $6.66 $6.35 4.9% (48.2%) $13.09 50.9% 11.8x 6.2x 7.3x 7.3x 9.1x
Granite Construction, Inc. 2,108 49.99 49.94 0.1% 46.3% 51.35 97.4% 12.6x 9.1x 13.0x 13.1x 13.0x
Tutor Perini Corp. 1,836 23.78 25.04 (5.0%) 40.8% 25.98 91.5% 6.9x 7.6x 8.4x 10.7x 6.5x
Primoris Services Corp. 1,083 17.85 19.19 (7.0%) (0.8%) 25.25 70.7% 8.3x 8.3x 7.7x 8.1x 7.9x
Aecon Group, Inc. 1,213 14.72 14.10 4.4% 62.0% 14.86 99.0% 9.1x 8.2x 10.7x 12.1x 8.7x
Great Lakes Dredge & Dock Corp. 590 3.88 4.81 (19.3%) (31.2%) 5.88 66.0% 8.3x 6.1x 7.4x 6.6x 7.1x
Orion Group Holdings, Inc. 285 6.42 5.52 16.3% (11.1%) 7.56 84.9% 6.5x 9.8x 9.6x 13.6x 5.3x
Willbros Group, Inc. 158 1.90 2.61 (27.2%) 137.7% 3.43 55.4% NM NM NM NM 9.4x
Median (2.5%) 20.0% 77.8% 8.3x 8.2x 8.4x 10.7x 8.3x
Utility Services
Quanta Services, Inc. $4,210 $25.38 $25.46 (0.3%) 3.5% $27.05 93.8% 9.0x 7.6x 9.9x 8.5x 7.7x
Dycom Industries, Inc. 3,614 87.75 94.85 (7.5%) 29.5% 98.45 89.1% 11.5x 7.4x 10.8x 14.4x 9.5x
MasTec, Inc. 3,550 30.58 24.53 24.7% 75.6% 30.74 99.5% 7.5x 8.7x 13.6x 14.9x 8.1x
MYR Group, Inc. 522 28.35 25.53 11.0% (4.0%) 29.86 94.9% 6.1x 4.8x 7.4x 6.4x 7.1x
Median 5.4% 16.5% 94.4% 8.3x 7.5x 10.4x 11.5x 7.9x
Industrial Services
EMCOR Group, Inc. $3,588 $57.28 $51.87 10.4% 19.6% $57.39 99.8% 8.5x 7.3x 9.4x 9.9x 9.2x
Bilfinger SE 1,502 31.48 29.31 7.4% (22.6%) 49.13 64.1% 6.3x 8.7x 6.6x 6.7x 10.7x
Team, Inc. 1,389 33.30 27.66 20.4% (27.3%) 46.20 72.1% 14.0x 11.2x 19.0x 19.0x 12.3x
Aegion Corp. 939 18.85 20.45 (7.8%) (1.0%) 22.41 84.1% 7.2x 6.7x 8.5x 7.8x 8.4x
MISTRAS Group, Inc. 838 25.24 25.34 (0.4%) 63.4% 26.47 95.3% 9.3x 10.3x 10.4x 10.4x 9.3x
Matrix Service Co. 405 17.60 17.94 (1.9%) (14.3%) 26.22 67.1% 14.8x 7.8x 6.0x 12.6x 6.3x
Median 3.5% (7.7%) 78.1% 8.9x 8.2x 8.9x 10.2x 9.3x
Design / Professional Services
AECOM $9,355 $35.09 $34.35 2.2% 21.0% $36.20 96.9% 10.1x 7.9x 9.3x 9.3x 8.6x
WSP Global, Inc. 4,020 33.72 30.01 12.4% (6.8%) 37.99 88.7% 13.4x 8.8x 11.5x 11.9x 10.3x
Stantec, Inc. 3,212 23.34 25.54 (8.6%) (8.7%) 26.87 86.9% 10.5x 9.9x 13.8x 13.7x 11.0x
Tetra Tech, Inc. 2,221 34.29 31.62 8.4% 26.5% 34.37 99.8% 11.3x 8.8x 11.2x 11.9x 11.1x
Arcadis NV 1,808 13.75 14.78 (7.0%) (45.3%) 27.27 50.4% 9.3x 5.2x 6.3x 5.7x 7.1x
Atkins (WS) Plc 1,710 19.55 17.61 11.0% (18.6%) 24.87 78.6% 8.3x 5.7x 6.6x 6.6x 6.9x
RPS Group Plc 676 2.47 2.50 (1.1%) (33.1%) 3.83 64.6% 7.7x 6.6x 6.8x 6.8x 9.3x
Median 2.2% (8.7%) 86.9% 10.1x 7.9x 9.3x 9.3x 9.3x
TEV / LTM EBITDA as of
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PUBLIC COMPARABLES
21
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
Revenue Revenue Growth EBITDA EBITDA Margin Avg. Margin
2012 2013 2014 2015 2016E '12-14 '14-16E 2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E '12-14 '14-16E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corp. $27,577 $27,352 $21,532 $18,114 $19,189 (11.6%) (5.6%) $961 $1,399 $1,412 $1,127 $1,024 3.5% 5.1% 6.6% 6.2% 5.3% 5.1% 6.0%
Jacobs Engineering Group, Inc. 10,894 11,818 12,695 12,115 11,160 8.0% (6.2%) 703 768 776 752 664 6.5% 6.5% 6.1% 6.2% 5.9% 6.4% 6.1%
SNC-Lavalin Group, Inc. 7,979 7,569 7,304 7,371 6,856 (4.3%) (3.1%) 550 401 415 382 528 6.9% 5.3% 5.7% 5.2% 7.7% 6.0% 6.2%
Chicago Bridge & Iron Co. NV 5,485 11,095 12,975 12,930 10,859 53.8% (8.5%) 515 938 1,176 1,229 940 9.4% 8.5% 9.1% 9.5% 8.7% 9.0% 9.1%
KBR, Inc. 7,921 7,214 6,366 5,096 4,204 (10.4%) (18.7%) 512 246 (232) 209 310 6.5% 3.4% (3.6%) 4.1% 7.4% 2.1% 2.6%
Total $59,856 $65,048 $60,872 $55,625 $52,267 7.1% (8.4%) $3,240 $3,752 $3,547 $3,698 $3,466 5.4% 5.8% 5.8% 6.6% 6.6% 5.7% 6.0%
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler Plc $6,478 $6,212 $6,575 $8,334 $6,942 0.7% 2.8% $510 $511 $519 $550 $441 7.9% 8.2% 7.9% 6.6% 6.3% 8.0% 6.9%
Tutor Perini Corp. 4,111 4,176 4,492 4,944 5,205 4.5% 7.6% 214 260 295 171 284 5.2% 6.2% 6.6% 3.5% 5.5% 6.0% 5.2%
Granite Construction, Inc. 2,083 2,267 2,275 2,371 2,561 4.5% 6.1% 110 61 115 160 162 5.3% 2.7% 5.0% 6.8% 6.3% 4.3% 6.0%
Primoris Services Corp. 1,542 1,944 2,086 1,929 1,984 16.3% (2.5%) 129 175 163 133 137 8.4% 9.0% 7.8% 6.9% 6.9% 8.4% 7.2%
Aecon Group, Inc. 2,888 2,978 2,367 2,281 2,533 (9.5%) 3.5% 121 119 97 100 139 4.2% 4.0% 4.1% 4.4% 5.5% 4.1% 4.7%
Great Lakes Dredge & Dock Corp. 688 731 807 857 782 8.3% (1.6%) 55 78 75 89 83 8.0% 10.7% 9.3% 10.4% 10.6% 9.3% 10.1%
Orion Group Holdings, Inc. 292 355 386 466 626 14.9% 27.4% 7 21 33 21 53 2.5% 6.0% 8.6% 4.5% 8.5% 5.7% 7.2%
Willbros Group, Inc. 2,004 2,019 2,027 909 774 0.6% (38.2%) 76 76 40 (19) 17 3.8% 3.8% 2.0% (2.1%) 2.2% 3.2% 0.7%
Total $20,086 $20,681 $21,015 $22,092 $21,407 5.1% 0.6% $1,223 $1,303 $1,337 $1,206 $1,317 6.1% 6.3% 6.4% 5.5% 6.1% 6.1% 6.0%
Utility Services
Quanta Services, Inc. $5,920 $6,523 $7,851 $7,572 $7,754 15.2% (0.6%) $623 $689 $708 $497 $545 10.5% 10.6% 9.0% 6.6% 7.0% 10.0% 7.5%
Dycom Industries, Inc. 1,201 1,609 1,812 2,022 2,655 22.8% 21.1% 128 173 178 250 381 10.7% 10.8% 9.8% 12.4% 14.3% 10.4% 12.2%
MasTec, Inc. 3,727 4,325 4,612 4,208 5,025 11.2% 4.4% 331 427 404 239 440 8.9% 9.9% 8.8% 5.7% 8.8% 9.2% 7.7%
MYR Group, Inc. 999 903 944 1,062 1,069 (2.8%) 6.4% 80 88 92 81 74 8.0% 9.7% 9.7% 7.6% 6.9% 9.1% 8.1%
Total $11,847 $13,359 $15,219 $14,865 $16,503 11.6% 7.8% $1,162 $1,376 $1,381 $1,068 $1,439 9.8% 10.3% 9.1% 7.2% 8.7% 9.7% 8.9%
Industrial Services
EMCOR Group, Inc. $6,347 $6,417 $6,425 $6,719 $7,409 0.6% 7.4% $344 $289 $356 $362 $391 5.4% 4.5% 5.5% 5.4% 5.3% 5.2% 5.4%
Bilfinger SE 10,717 10,037 10,210 7,187 4,806 (2.4%) (31.4%) 562 564 368 225 140 5.2% 5.6% 3.6% 3.1% 2.9% 4.8% 3.2%
Team, Inc. 714 750 -- 980 1,254 NM NM 74 72 -- 73 113 10.4% 9.6% NA 7.5% 9.0% 10.0% 8.3%
Aegion Corp. 1,028 1,091 1,331 1,334 1,258 13.8% (2.8%) 110 109 126 120 112 10.7% 10.0% 9.5% 9.0% 8.9% 10.1% 9.1%
MISTRAS Group, Inc. 529 623 711 719 728 15.9% 1.2% 62 64 62 81 90 11.7% 10.3% 8.8% 11.2% 12.3% 10.3% 10.8%
Matrix Service Co. 739 893 1,263 1,343 1,291 30.7% 1.1% 43 50 82 32 65 5.8% 5.6% 6.5% 2.4% 5.0% 6.0% 4.6%
Total $20,074 $19,812 $19,941 $18,282 $16,746 11.7% (4.9%) $1,196 $1,148 $995 $892 $911 6.0% 5.8% 5.0% 4.9% 5.4% 7.7% 6.9%
Professional Services
AECOM $8,218 $8,153 $8,357 $17,990 $17,765 0.8% 45.8% $444 $447 $418 $1,004 $1,093 5.4% 5.5% 5.0% 5.6% 6.2% 5.3% 5.6%
WSP Global, Inc. 1,258 1,957 2,628 4,740 3,786 44.5% 20.0% 123 163 215 339 391 9.7% 8.3% 8.2% 7.2% 10.3% 8.8% 8.6%
Stantec, Inc. 1,871 2,170 2,291 2,249 2,467 10.7% 3.8% 222 247 264 235 291 11.8% 11.4% 11.5% 10.5% 11.8% 11.6% 11.3%
Tetra Tech, Inc. 2,022 2,025 1,860 1,719 1,919 (4.1%) 1.6% 205 134 149 187 200 10.1% 6.6% 8.0% 10.9% 10.4% 8.3% 9.8%
Arcadis NV 3,258 3,340 3,495 3,792 3,702 3.6% 2.9% 252 285 306 319 257 7.7% 8.5% 8.8% 8.4% 6.9% 8.3% 8.0%
Atkins (WS) Plc 2,694 2,778 2,828 2,804 2,673 2.5% (2.8%) 197 222 258 260 247 7.3% 8.0% 9.1% 9.3% 9.2% 8.1% 9.2%
RPS Group Plc 881 887 942 866 684 3.4% (14.8%) 112 116 127 99 72 12.8% 13.1% 13.5% 11.5% 10.6% 13.1% 11.9%
Total $20,201 $21,311 $22,400 $34,160 $32,996 8.8% 8.1% $1,554 $1,614 $1,738 $2,443 $2,551 7.7% 7.6% 7.8% 7.2% 7.7% 9.1% 9.2%
PAGE |
ENERGY, POWER & INFRASTRUCTURE
SOURCES
ENERGY, POWER & INFRASTRUCTURE
INDUSTRY UPDATE │ AUGUST 2016
1. Capital IQ.
2. MergerMarket.
3. Baker Hughes.
4. U.S. Department of Commerce
5. American Institute of Architects
6. Dodge Data & Analytics
DISCLOSURES
22
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