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wwwharriswilliamscom
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised andregulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
PAGE |
wwwharriswilliamscom
SUMMARY
1
CONTENTS
WHAT WErsquoRE READING
MampA TRANSACTIONS
PUBLIC MARKETS INDUSTRY
PUBLIC COMPARABLES
CONTACTS
UNITED STATES
Drew SpitzerManaging Directoraspitzerharriswilliamscom +1 (804) 915-0174
Brian LucasManaging Directorblucasharriswilliamscom +1 (804) 932-1323
Matt WhiteManaging Director mwhiteharriswilliamscom+1 (804) 915-0131
Luke SempleDirectorlsempleharriswilliamscom+1 (804) 915-0158
Chris BurnhamVice Presidentcburnhamharriswilliamscom +1 (804) 915-0142
Ian ThomasVice Presidentithomasharriswilliamscom+1 (804) 932-1384
EUROPE
Jeff PerkinsManaging Director jperkinsharriswilliamscom+49 (0) 69 3650638 00
MampA | SELECT RECENT ACTIVITY
Oracle (NYSEORCL) has entered into a definite agreement to acquire Opower
(NYSEOPWR) in a transaction valued at approximately $532 million Opower is a
leading provider of customer engagement and energy efficiency cloud services
to the $23 trillion utilities industry Opower serves over 100 global utilities 60 million
utility end customers and has stored and analyzed over 600 billion meter reads
into its big data platformSource | Instapaper
Tercel Oilfield Products a portfolio company of Lime Rock Partners has been
acquired by Warburg Pincus-backed Rubicon Oilfield International Tercel is a
global provider of drilling and completion tools and technologies Rubicon was
founded in partnership with Warburg Pincus in 2015 to create a global enterprise in
the upstream oilfield technology sectorSource | Instapaper
The Integrated Demand Resources (iDR) business of Johnson Controls (NYSEJCI) has been acquired by CPower CPower is an energy management company that creates strategies to help businesses streamline energy usage offset costs through Demand Response participation and reach sustainability goalsSource | Instapaper
Technip (EuronextTEC) and FMC Technologies (NYSEFTI) have entered into a definitive merger agreement that will create a global oilfield and subsea engineering and technology company with an approximate market capitalization of $13 billion The transaction is estimated to deliver at least $400 million in annual pretax cost synergies by 2019 FMC is the global leader in subsea system engineering services and technologies Technip is a world leader in project management engineering and construction for the energy industrySource | Instapaper
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
PUBLIC MARKETS | KEY TRADING STATISTICS
Stock Price Change TEV EBITDA
1 Month 12 Month May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service (42) (249) 78x 89x 144x 125x 254x
Equipment (24) (310) 75x 65x 79x 69x 111x
Small-Cap Service (116) (679) 83x 88x 110x 75x 110x
OCTG (52) (306) 65x 78x 116x 88x 121x
Distribution (55) (224) 132x 76x 97x 74x NM
Logistics (205) (659) 62x 66x 67x 54x 82x
Offshore Drillers (45) (522) 57x 44x 35x 35x 56x
Land Drillers (67) (392) 45x 43x 50x 50x 128x
EampC (50) (185) 89x 48x 47x 46x 45x
Power Services and Equipment
Large Cap PSampE (24) (71) 121x 102x 105x 107x 104x
Small-Cap PSampE (16) 08 122x 117x 108x 110x 108x
EE and Cleantech (51) (311) 103x 143x 117x 112x 95x
Industrial amp Infrastructure Services
Large Cap 05 (151) 69x 63x 85x 62x 66x
Small-Cap (83) 10 101x 94x 89x 94x 71x
Utility Services 07 03 80x 78x 79x 94x 66x
Industrial Services (68) (14) 102x 95x 75x 96x 75x
DesignProfessional Services (48) (127) 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
wwwharriswilliamscom
WHAT WErsquoRE READING
ldquoI explained how [YieldCos] (which own solar farms wind farms and similar assets) could grow their dividends atdouble-digit rates despite no internal growth or retained earnings This ldquoweird trickrdquo can work so long as the YieldCorsquosstock price is rising allowing it to sell stock at higher valuations and increase the amount of money invested per shareAs long as investors expected dividends to continue to rise rapidly they fed this virtuous cycle by bidding the stockprice up which in turn increased the expected dividend growth Many YieldCos increased their dividend increaseprojections in 2014 and early 2015 when the bubble was at its height Then the YieldCos got greedyrdquo
Greentech Media | Instapaper
2
RENEWABLES | THE YIELDCO BOOM AND BUST
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
ldquoThe final regulations unveiled Thursday will add an estimated $530 million in additional costs per year by 2025according to the Environmental Protection Agency Thatrsquos at least 25 percent higher than the preliminary versionreleased in August and it comes as low oil prices force the industry to pare spending on new explorationrdquo
Bloomberg New Energy Finance | Instapaper
OIL amp GAS | HEIGHTENED METHANE REGULATIONS
ldquoThis summer if all goes according to plan the second reactor at Watts Bar Nuclear Power Plant will begin supplyingpower to the US electrical grid Construction on the reactor in Spring City Tennessee has proceeded in fits and startssince the project began in 1973 It will be the first new nuclear reactor to come online in the US since the first WattsBar reactor was completed 20 years ago
Quartz | Instapaper
NUCLEAR | BETTER LATE THAN NEVER
COAL | REQUIEM FOR KING COAL
ldquoAs crude prices have fallen about 60 percent since their most recent peak in June 2014 investors have seen $1trillion in value vanish More than 40 oil-related companies have sought bankruptcy protection and more filings areexpected Lenders are setting aside billions of dollars to cover losses But over the last seven calendar years Pioneerrsquosstock has risen an average of 34 percent annually more than 10 times the rate of Exxon and Shell In 2016 its sharesare up 29 percentrdquo
Bloomberg | Instapaper
OIL amp GAS | PIONEER ndash A RARE BRIGHT SPOT
OIL amp GAS | NOT-SO-BIG OIL
ldquoAmericarsquos coal industry is hurting In the past year thousands of workers have been laid off and a majority of thecountryrsquos major coal companies have filed for bankruptcy Coal production is at a 30-year lowBut what does itsound likerdquo
Inside Energy | Instapaper
ldquoNot only do the supermajors need to brace for the possibility of a renewed slide in oil prices in the short term theymust also prepare for a future in which oil demand is increasingly uncertain because of climate change pollution andthe emergence of alternative sources of energyhellipin the meantime companies need to develop a new businessmodel built around a quest for returns rather than for reservesldquo
The Economist | Instapaper
INFRASTRUCTURE | SYSTEM OVERLOAD
ldquoFrom the crumbling bridges of California to the overflowing sewage drains of Houston and the rusting railroad tracksin the Northeast Corridor decaying infrastructure is all around us and the consequences are so familiar that webarely notice themmdashlike urban traffic congestion slow-moving trains and flights that are often disrupted thanks to anoutdated air-traffic-control system The costs are significant once you reckon wasted time lost productivity poorpublic-health outcomes and increased carbon emissionsrdquo
The New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone +49 069 3650638 00
London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
Shanghai
Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
wwwharriswilliamscom
SUMMARY
1
CONTENTS
WHAT WErsquoRE READING
MampA TRANSACTIONS
PUBLIC MARKETS INDUSTRY
PUBLIC COMPARABLES
CONTACTS
UNITED STATES
Drew SpitzerManaging Directoraspitzerharriswilliamscom +1 (804) 915-0174
Brian LucasManaging Directorblucasharriswilliamscom +1 (804) 932-1323
Matt WhiteManaging Director mwhiteharriswilliamscom+1 (804) 915-0131
Luke SempleDirectorlsempleharriswilliamscom+1 (804) 915-0158
Chris BurnhamVice Presidentcburnhamharriswilliamscom +1 (804) 915-0142
Ian ThomasVice Presidentithomasharriswilliamscom+1 (804) 932-1384
EUROPE
Jeff PerkinsManaging Director jperkinsharriswilliamscom+49 (0) 69 3650638 00
MampA | SELECT RECENT ACTIVITY
Oracle (NYSEORCL) has entered into a definite agreement to acquire Opower
(NYSEOPWR) in a transaction valued at approximately $532 million Opower is a
leading provider of customer engagement and energy efficiency cloud services
to the $23 trillion utilities industry Opower serves over 100 global utilities 60 million
utility end customers and has stored and analyzed over 600 billion meter reads
into its big data platformSource | Instapaper
Tercel Oilfield Products a portfolio company of Lime Rock Partners has been
acquired by Warburg Pincus-backed Rubicon Oilfield International Tercel is a
global provider of drilling and completion tools and technologies Rubicon was
founded in partnership with Warburg Pincus in 2015 to create a global enterprise in
the upstream oilfield technology sectorSource | Instapaper
The Integrated Demand Resources (iDR) business of Johnson Controls (NYSEJCI) has been acquired by CPower CPower is an energy management company that creates strategies to help businesses streamline energy usage offset costs through Demand Response participation and reach sustainability goalsSource | Instapaper
Technip (EuronextTEC) and FMC Technologies (NYSEFTI) have entered into a definitive merger agreement that will create a global oilfield and subsea engineering and technology company with an approximate market capitalization of $13 billion The transaction is estimated to deliver at least $400 million in annual pretax cost synergies by 2019 FMC is the global leader in subsea system engineering services and technologies Technip is a world leader in project management engineering and construction for the energy industrySource | Instapaper
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
PUBLIC MARKETS | KEY TRADING STATISTICS
Stock Price Change TEV EBITDA
1 Month 12 Month May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service (42) (249) 78x 89x 144x 125x 254x
Equipment (24) (310) 75x 65x 79x 69x 111x
Small-Cap Service (116) (679) 83x 88x 110x 75x 110x
OCTG (52) (306) 65x 78x 116x 88x 121x
Distribution (55) (224) 132x 76x 97x 74x NM
Logistics (205) (659) 62x 66x 67x 54x 82x
Offshore Drillers (45) (522) 57x 44x 35x 35x 56x
Land Drillers (67) (392) 45x 43x 50x 50x 128x
EampC (50) (185) 89x 48x 47x 46x 45x
Power Services and Equipment
Large Cap PSampE (24) (71) 121x 102x 105x 107x 104x
Small-Cap PSampE (16) 08 122x 117x 108x 110x 108x
EE and Cleantech (51) (311) 103x 143x 117x 112x 95x
Industrial amp Infrastructure Services
Large Cap 05 (151) 69x 63x 85x 62x 66x
Small-Cap (83) 10 101x 94x 89x 94x 71x
Utility Services 07 03 80x 78x 79x 94x 66x
Industrial Services (68) (14) 102x 95x 75x 96x 75x
DesignProfessional Services (48) (127) 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
wwwharriswilliamscom
WHAT WErsquoRE READING
ldquoI explained how [YieldCos] (which own solar farms wind farms and similar assets) could grow their dividends atdouble-digit rates despite no internal growth or retained earnings This ldquoweird trickrdquo can work so long as the YieldCorsquosstock price is rising allowing it to sell stock at higher valuations and increase the amount of money invested per shareAs long as investors expected dividends to continue to rise rapidly they fed this virtuous cycle by bidding the stockprice up which in turn increased the expected dividend growth Many YieldCos increased their dividend increaseprojections in 2014 and early 2015 when the bubble was at its height Then the YieldCos got greedyrdquo
Greentech Media | Instapaper
2
RENEWABLES | THE YIELDCO BOOM AND BUST
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
ldquoThe final regulations unveiled Thursday will add an estimated $530 million in additional costs per year by 2025according to the Environmental Protection Agency Thatrsquos at least 25 percent higher than the preliminary versionreleased in August and it comes as low oil prices force the industry to pare spending on new explorationrdquo
Bloomberg New Energy Finance | Instapaper
OIL amp GAS | HEIGHTENED METHANE REGULATIONS
ldquoThis summer if all goes according to plan the second reactor at Watts Bar Nuclear Power Plant will begin supplyingpower to the US electrical grid Construction on the reactor in Spring City Tennessee has proceeded in fits and startssince the project began in 1973 It will be the first new nuclear reactor to come online in the US since the first WattsBar reactor was completed 20 years ago
Quartz | Instapaper
NUCLEAR | BETTER LATE THAN NEVER
COAL | REQUIEM FOR KING COAL
ldquoAs crude prices have fallen about 60 percent since their most recent peak in June 2014 investors have seen $1trillion in value vanish More than 40 oil-related companies have sought bankruptcy protection and more filings areexpected Lenders are setting aside billions of dollars to cover losses But over the last seven calendar years Pioneerrsquosstock has risen an average of 34 percent annually more than 10 times the rate of Exxon and Shell In 2016 its sharesare up 29 percentrdquo
Bloomberg | Instapaper
OIL amp GAS | PIONEER ndash A RARE BRIGHT SPOT
OIL amp GAS | NOT-SO-BIG OIL
ldquoAmericarsquos coal industry is hurting In the past year thousands of workers have been laid off and a majority of thecountryrsquos major coal companies have filed for bankruptcy Coal production is at a 30-year lowBut what does itsound likerdquo
Inside Energy | Instapaper
ldquoNot only do the supermajors need to brace for the possibility of a renewed slide in oil prices in the short term theymust also prepare for a future in which oil demand is increasingly uncertain because of climate change pollution andthe emergence of alternative sources of energyhellipin the meantime companies need to develop a new businessmodel built around a quest for returns rather than for reservesldquo
The Economist | Instapaper
INFRASTRUCTURE | SYSTEM OVERLOAD
ldquoFrom the crumbling bridges of California to the overflowing sewage drains of Houston and the rusting railroad tracksin the Northeast Corridor decaying infrastructure is all around us and the consequences are so familiar that webarely notice themmdashlike urban traffic congestion slow-moving trains and flights that are often disrupted thanks to anoutdated air-traffic-control system The costs are significant once you reckon wasted time lost productivity poorpublic-health outcomes and increased carbon emissionsrdquo
The New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone +49 069 3650638 00
London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
Shanghai
Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
wwwharriswilliamscom
WHAT WErsquoRE READING
ldquoI explained how [YieldCos] (which own solar farms wind farms and similar assets) could grow their dividends atdouble-digit rates despite no internal growth or retained earnings This ldquoweird trickrdquo can work so long as the YieldCorsquosstock price is rising allowing it to sell stock at higher valuations and increase the amount of money invested per shareAs long as investors expected dividends to continue to rise rapidly they fed this virtuous cycle by bidding the stockprice up which in turn increased the expected dividend growth Many YieldCos increased their dividend increaseprojections in 2014 and early 2015 when the bubble was at its height Then the YieldCos got greedyrdquo
Greentech Media | Instapaper
2
RENEWABLES | THE YIELDCO BOOM AND BUST
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
ldquoThe final regulations unveiled Thursday will add an estimated $530 million in additional costs per year by 2025according to the Environmental Protection Agency Thatrsquos at least 25 percent higher than the preliminary versionreleased in August and it comes as low oil prices force the industry to pare spending on new explorationrdquo
Bloomberg New Energy Finance | Instapaper
OIL amp GAS | HEIGHTENED METHANE REGULATIONS
ldquoThis summer if all goes according to plan the second reactor at Watts Bar Nuclear Power Plant will begin supplyingpower to the US electrical grid Construction on the reactor in Spring City Tennessee has proceeded in fits and startssince the project began in 1973 It will be the first new nuclear reactor to come online in the US since the first WattsBar reactor was completed 20 years ago
Quartz | Instapaper
NUCLEAR | BETTER LATE THAN NEVER
COAL | REQUIEM FOR KING COAL
ldquoAs crude prices have fallen about 60 percent since their most recent peak in June 2014 investors have seen $1trillion in value vanish More than 40 oil-related companies have sought bankruptcy protection and more filings areexpected Lenders are setting aside billions of dollars to cover losses But over the last seven calendar years Pioneerrsquosstock has risen an average of 34 percent annually more than 10 times the rate of Exxon and Shell In 2016 its sharesare up 29 percentrdquo
Bloomberg | Instapaper
OIL amp GAS | PIONEER ndash A RARE BRIGHT SPOT
OIL amp GAS | NOT-SO-BIG OIL
ldquoAmericarsquos coal industry is hurting In the past year thousands of workers have been laid off and a majority of thecountryrsquos major coal companies have filed for bankruptcy Coal production is at a 30-year lowBut what does itsound likerdquo
Inside Energy | Instapaper
ldquoNot only do the supermajors need to brace for the possibility of a renewed slide in oil prices in the short term theymust also prepare for a future in which oil demand is increasingly uncertain because of climate change pollution andthe emergence of alternative sources of energyhellipin the meantime companies need to develop a new businessmodel built around a quest for returns rather than for reservesldquo
The Economist | Instapaper
INFRASTRUCTURE | SYSTEM OVERLOAD
ldquoFrom the crumbling bridges of California to the overflowing sewage drains of Houston and the rusting railroad tracksin the Northeast Corridor decaying infrastructure is all around us and the consequences are so familiar that webarely notice themmdashlike urban traffic congestion slow-moving trains and flights that are often disrupted thanks to anoutdated air-traffic-control system The costs are significant once you reckon wasted time lost productivity poorpublic-health outcomes and increased carbon emissionsrdquo
The New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
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London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
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Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
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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 amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
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London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
Shanghai
Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
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Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
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Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
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Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
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ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
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PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
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PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
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PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone +49 069 3650638 00
London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
Shanghai
Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
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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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
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has been acquired by
12
a portfolio company of
has been acquired by
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has been acquired by
amp
a portfolio company of
has been acquired by
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has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
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Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone +49 069 3650638 00
London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
Shanghai
Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
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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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
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has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
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has been acquired by
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a portfolio company of
has been acquired by
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amp
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has been acquired by
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has been acquired by
holdings of
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PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
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Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
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Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone +49 069 3650638 00
London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
Shanghai
Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
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
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
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos 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
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
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London63 Brook StreetLondon W1K 4HS EnglandPhone +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
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Energy Poweramp Infrastructure
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp 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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PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
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Technology Media amp Telecom
Specialty Distribution
Consumer
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Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
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Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
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Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service
Schlumberger Limited $111610 $7496 $7964 (59) (185) $9261 809 93x 92x 131x 116x 171x
Halliburton Company 40936 4091 4004 22 (114) 4669 876 65x 76x 119x 101x 200x
Baker Hughes Incorporated 21789 4533 4650 (25) (312) 6607 686 75x 86x 157x 134x 307x
Weatherford International plc 11087 494 802 (384) (668) 1481 334 80x 109x 281x 138x 310x
Median (42) (249) 748 78x 89x 144x 125x 254x
Equipment
National Oilwell Varco Inc $13700 $3183 $2922 89 (381) $5155 617 50x 53x 108x 67x NM
FMC Technologies Inc 6364 2712 2952 (81) (368) 4368 621 84x 75x 79x 71x 104x
Oceaneering International Inc 3692 3327 3407 (23) (377) 5377 619 68x 66x 61x 55x 89x
Dril-Quip Inc 1870 6043 6197 (25) (218) 7920 763 82x 65x 73x 68x 117x
Oil States International Inc 1691 3201 3312 (34) (251) 4381 731 56x 58x 133x 93x 434x
Forum Energy Technologies Inc 1820 1705 1466 163 (218) 2246 759 81x 86x NM 287x NM
Median (24) (310) 676 75x 65x 79x 69x 111x
Mid and Small-Cap Service
Superior Energy Services Inc $3516 $1625 $1500 83 (312) $2377 684 42x 49x 147x 88x 267x
TETRA Technologies Inc 1431 508 732 (306) (258) 944 538 125x 87x 73x 62x 110x
US Silica Holdings Inc 1721 2677 2542 53 (201) 3355 798 88x 88x 358x 200x NM
Ensign Energy Services Inc 1361 546 604 (96) (448) 953 574 54x 44x 65x 59x 100x
CampJ Energy Services Ltd 1182 032 147 (781) (979) 1592 20 123x 158x NM NM NM
Basic Energy Services Inc 1030 206 260 (208) (768) 923 223 44x 88x NM NM NM
Key Energy Services Inc 863 033 038 (136) (873) 258 127 166x NM NM NM NM
Calfrac Well Services Ltd 767 142 149 (52) (802) 685 207 52x 69x NM NM NM
Trican Well Service Ltd 382 120 131 (83) (635) 344 348 77x 173x NM NM NM
CARBO Ceramics Inc 289 1132 1625 (303) (722) 4704 241 97x NM NM NM NM
Median (116) (679) 294 83x 88x 110x 75x 110x
OCTG
Tenaris SA $14162 $1317 $1357 (30) (128) $1545 853 65x 78x 162x 118x 183x
PAO TMK 3384 285 300 (52) (306) 475 599 51x 57x 69x 58x 59x
Vallourec SA 3734 347 423 (179) (863) 2658 131 73x 138x NM NM NM
Median (52) (306) 599 65x 78x 116x 88x 121x
Distribution
MRC Global Inc $2081 $1347 $1412 (46) (150) $1610 837 72x 76x 97x 74x 310x
NOW Inc 1737 1688 1804 (64) (298) 2403 702 192x NM NM NM NM
Median (55) (224) 770 132x 76x 97x 74x NM
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
15
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Limited $41731 $45266 $48580 $35475 $30030 79 (214) $10935 $12224 $13584 $9644 $7593 262 270 280 272 253 271 268
Halliburton Company 28503 29402 32870 23633 16072 74 (301) 6087 6038 7174 4067 2709 214 205 218 172 169 212 186
Baker Hughes Incorporated 21361 22364 24551 15742 10937 72 (333) 3803 3647 4847 1621 1255 178 163 197 103 115 180 138
Weatherford International plc 15215 15263 14911 9433 6799 (10) (325) 2445 2054 2514 801 828 161 135 169 85 122 155 125
Total $106810 $112295 $120912 $84283 $63837 54 (293) $23270 $23963 $28119 $16133 $12384 218 213 233 191 194 204 179
Equipment
National Oilwell Varco Inc $17194 $19221 $21440 $14757 $7986 117 (390) $4005 $3937 $4495 $2046 $678 233 205 210 139 85 216 144
FMC Technologies Inc 6151 7126 7943 6363 5092 136 (199) 795 978 1285 896 681 129 137 162 141 134 143 145
Oceaneering International Inc 2783 3287 3660 3063 2414 147 (188) 605 747 858 666 445 217 227 234 218 184 226 212
Dril-Quip Inc 733 872 931 844 591 127 (203) 188 253 310 277 155 256 290 333 328 262 293 308
Oil States International Inc 1518 1629 1820 1100 723 95 (369) 339 358 446 183 61 223 220 245 166 84 229 165
Forum Energy Technologies Inc 1415 1525 1740 1074 662 109 (383) 290 266 312 63 (3) 205 175 179 59 (04) 186 78
Total $29794 $33661 $37533 $27200 $17469 122 (289) $6221 $6539 $7706 $4132 $2017 209 194 205 152 115 216 176
Mid and Small-Cap Service
Superior Energy Services Inc $4293 $4350 $4557 $2775 $1739 30 (382) $1254 $1140 $1199 $398 $135 292 262 263 143 77 272 161
TETRA Technologies Inc 881 909 1078 1130 922 106 (75) 123 94 113 231 181 139 104 105 204 196 116 168
US Silica Holdings Inc 442 546 877 643 502 409 (244) 141 148 222 86 31 318 270 253 134 62 281 150
Ensign Energy Services Inc 2204 1975 2005 1003 685 (46) (416) 566 455 476 231 125 257 231 237 231 183 242 217
CampJ Energy Services Ltd 1112 1070 1608 1749 1246 203 (120) 336 189 252 12 (29) 302 177 157 07 (23) 212 47
Basic Energy Services Inc 1375 1263 1491 806 565 41 (384) 297 231 313 19 (36) 216 183 210 24 (63) 203 57
Key Energy Services Inc 1960 1592 1427 792 491 (147) (413) 421 266 118 (125) (5) 215 167 83 (157) (11) 155 (28)
Calfrac Well Services Ltd 1600 1472 2156 1078 699 161 (431) 258 177 308 14 (2) 161 120 143 13 (03) 141 51
Trican Well Service Ltd 2221 1991 2078 856 428 (33) (546) 243 156 192 (66) 7 109 78 92 (77) 16 93 10
CARBO Ceramics Inc 646 667 648 280 157 02 (509) 204 172 159 (55) (57) 316 258 245 (197) (363) 273 (105)
Total $16734 $15836 $17925 $11111 $7433 73 (352) $3843 $3030 $3351 $745 $350 230 191 187 67 47 199 73
OCTG
Tenaris SA $10834 $10597 $10338 $7101 $5364 (23) (280) $2874 $2795 $2680 $1195 $888 265 264 259 168 165 263 198
PAO TMK 6688 6432 6009 4127 3409 (52) (247) 1006 929 782 580 516 150 144 130 141 152 142 141
Vallourec SA 7022 7682 6900 4131 3620 (09) (276) 1088 1259 1024 (93) (232) 155 164 148 (22) (64) 156 21
Total $24544 $24711 $23247 $15358 $12393 (28) (267) $4969 $4983 $4486 $1683 $1172 202 202 193 110 95 187 120
Distribution
MRC Global Inc $5571 $5231 $5933 $4529 $3180 32 (268) $475 $386 $406 $280 $71 85 74 68 62 22 76 51
NOW Inc 3414 4296 4105 3010 2081 97 (288) 180 241 202 (79) (152) 53 56 49 (26) (73) 53 (17)
Total $8985 $9527 $10038 $7539 $5260 64 (278) $655 $627 $608 $201 ($81) 73 66 61 27 (15) 64 17
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Logistics
ATCO Ltd $12025 $3217 $3143 24 (79) $3323 968 98x 95x 103x 113x 81x
Bristow Group Inc 1634 1459 2139 (318) (760) 6115 239 93x 73x 64x 53x 72x
Tidewater Inc 1696 625 855 (269) (775) 2798 223 65x 58x 69x 41x 82x
Hornbeck Offshore Services Inc 1139 889 1058 (160) (616) 2330 382 56x 50x 47x 55x 105x
Gulfmark Offshore Inc 577 430 573 (250) (703) 1455 296 59x 93x 84x 136x 249x
Civeo Corporation 614 192 130 477 (525) 406 473 32x 34x 34x 50x 83x
Median (205) (659) 339 62x 66x 67x 54x 82x
Offshore Drillers
Transocean Ltd $9592 $932 $1068 (127) (536) 2031 459 40x 36x 30x 32x 65x
Noble Corporation plc 6756 867 1155 (249) (508) 1777 488 67x 52x 34x 34x 58x
Ensco plc 7549 1016 1134 (104) (598) 2527 402 43x 38x 36x 36x 54x
Diamond Offshore Drilling Inc 5163 2418 2376 18 (256) 3274 739 61x 49x 47x 48x 74x
Rowan Companies plc 4218 1703 1678 15 (270) 2361 721 67x 49x 42x 41x 47x
Atwood Oceanics Inc 2110 1140 915 246 (661) 3363 339 53x 33x 27x 27x 38x
Median (45) (522) 473 57x 44x 35x 35x 56x
Land Drillers
Nabors Industries Ltd $5664 $810 $1038 (220) (489) 1590 509 45x 44x 50x 50x 81x
Helmerich amp Payne Inc 5942 5881 6306 (67) (221) 7631 771 48x 43x 58x 45x 128x
Patterson-UTI Energy Inc 3225 1744 1842 (53) (189) 2164 806 40x 40x 42x 55x 156x
Precision Drilling Corporation 2504 447 491 (89) (392) 684 654 72x 66x 76x 107x 123x
Pioneer Energy Services Corp 556 289 276 47 (620) 763 379 36x 33x 34x 50x 168x
Median (67) (392) 654 45x 43x 50x 50x 128x
Engineering amp Construction
Saipem SpA $6454 $040 $042 (50) (971) 1409 29 89x 267x 172x 119x 45x
Technip SA 4105 5346 5984 (107) (232) 7117 751 52x 39x 36x 36x 32x
Petrofac Limited 5461 1154 1325 (129) (183) 1475 782 92x 142x 188x 188x 69x
Subsea 7 SA 2346 922 874 54 (185) 1041 885 29x 20x 19x 19x 37x
McDermott International Inc 1296 454 455 (02) (50) 600 757 107x 48x 47x 46x 54x
Median (50) (185) 757 89x 48x 47x 46x 45x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
17
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 $4025 $4103 $3932 $2977 $3535 (12) NM $1537 $1580 $1437 $1060 $1489 382 385 365 NM NM 377 365
Bristow Group Inc 1199 1344 1516 1727 1746 124 73 263 291 291 310 228 220 217 192 180 130 209 167
Tidewater Inc 1060 1230 1418 1468 989 157 (165) 265 347 417 417 207 250 282 294 284 209 275 262
Hornbeck Offshore Services Inc 463 548 635 476 335 171 (274) 192 255 284 209 109 414 466 447 438 325 442 404
Gulfmark Offshore Inc 389 455 496 275 155 129 (441) 103 159 172 42 23 265 349 347 154 150 320 217
Civeo Corporation 1109 1041 943 518 NM (78) NM 492 427 331 123 74 444 410 351 NM NM 402 351
Total $8246 $8721 $8941 $7442 $6761 82 (202) $2852 $3059 $2932 $2161 $2130 346 351 328 290 315 338 294
Offshore Drillers
Transocean Ltd $8773 $9070 $8952 $6802 $3984 10 (333) $3518 $3385 $3796 $3002 $1487 401 373 424 441 373 399 413
Noble Corporation plc 2135 2472 3148 3262 2331 214 (140) 1053 1189 1559 1973 1165 493 481 495 605 500 490 533
Ensco plc 3639 4323 4565 4063 2963 120 (194) 1814 2201 2348 2074 1393 498 509 514 510 470 507 498
Diamond Offshore Drilling Inc 2936 2844 2737 2360 1607 (34) (234) 1337 1186 1133 1067 693 455 417 414 452 431 429 432
Rowan Companies plc 1393 1579 1824 2137 1877 145 14 526 587 707 1030 895 378 372 388 482 477 379 449
Atwood Oceanics Inc 756 1018 1103 1342 1050 208 (24) 390 548 561 777 562 517 538 508 579 535 521 541
Total $19631 $21306 $22329 $19966 $13812 110 (152) $8639 $9096 $10104 $9922 $6195 440 427 452 497 448 454 478
Land Drillers
Nabors Industries Ltd $6843 $6152 $6804 $3864 $2349 (03) (413) $1966 $1680 $1753 $1130 $695 287 273 258 292 296 273 282
Helmerich amp Payne Inc 3138 3374 3706 3151 1572 87 (349) 1278 1400 1559 1310 464 407 415 421 416 295 414 377
Patterson-UTI Energy Inc 2723 2716 3182 1891 938 81 (457) 990 916 986 584 207 364 337 310 309 220 337 280
Precision Drilling Corporation 2047 1911 2030 1121 765 (04) (386) 478 600 581 235 203 234 314 286 210 265 278 254
Pioneer Energy Services Corp 919 960 1055 541 317 71 (452) 248 235 264 111 33 269 244 251 205 105 255 187
Total $15671 $15113 $16778 $10569 $5940 46 (411) $4960 $4830 $5143 $3371 $1602 317 320 307 319 270 311 276
Engineering amp Construction
Saipem SpA $17304 $16307 $15582 $12497 $11837 (51) (128) $2567 $958 $1457 $541 $1445 148 59 94 43 122 100 86
Technip SA 10817 12184 12194 11228 12206 62 00 1321 1381 1200 1153 1274 122 113 98 103 104 111 102
Petrofac Limited 6240 6329 6241 6844 7870 00 123 842 1013 887 291 791 135 160 142 43 101 146 95
Subsea 7 SA 6297 6297 6870 4758 3761 45 (260) 1044 816 1345 1261 628 166 130 196 265 167 164 209
McDermott International Inc 3642 2659 2301 3070 2900 (205) 123 410 (251) 72 279 238 113 (94) 32 91 82 17 68
Total $44299 $43776 $43187 $38397 $38573 (30) (28) $6184 $3917 $4961 $3524 $4376 140 89 115 92 113 107 112
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
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The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Siemens 103368 10545 10808 (24) (34) 11301 933 115x 111x 105x 114x 93x
Honeywell International Inc 94053 11322 11580 (22) 64 11656 971 121x 114x 120x 122x 112x
ABB Ltd 46321 2044 2035 05 (71) 2235 915 106x 83x 104x 102x 104x
Schneider Electric SE 42267 6306 6348 (07) (195) 7998 788 126x 101x 102x 102x 95x
Emerson Electric Co 36609 5065 5565 (90) (179) 6230 813 93x 86x 92x 86x 94x
Eaton Corporation plc 35512 5980 6277 (47) (185) 7351 813 121x 102x 108x 107x 107x
Median (24) (71) 915 121x 102x 105x 107x 104x
Mid and Small-Cap Equipment and Services
Ametek Inc $12925 $4753 $5099 (68) (135) $5767 824 135x 137x 121x 118x 122x
Hubbell Inc 6464 10480 10859 (35) (52) 11192 936 109x 98x 109x 109x 112x
Valmont Industries Inc 3396 13109 12538 46 34 14594 898 86x 89x 107x 107x 98x
Littelfuse Inc 2546 10910 12104 (99) 88 12459 876 122x 131x 130x 137x 111x
AZZ incorporated 1749 5641 5749 (19) 143 6036 935 101x 111x 103x 111x 103x
ESCO Technologies Inc 1053 3857 3883 (07) 08 3998 965 129x 124x 117x 128x 105x
Badger Meter Inc 1100 7214 7305 (12) 121 7872 916 161x 153x 158x 175x 153x
Babcock amp Wilcox Enterprises Inc 807 2150 2186 (16) NM 2399 896 NM 153x 103x 93x 61x
Thermon Group Holdings Inc 625 1855 1885 (16) (204) 2563 724 95x 86x 97x 77x 99x
Powell Industries Inc 328 3361 3027 110 (83) 3945 852 171x 87x 70x 87x 138x
Median (16) 08 897 122x 117x 108x 110x 108x
Energy Efficiency and Clean Technology
SolarCity Corporation $5884 $2194 $3028 (275) (647) $6312 348 NM NM NM NM NM
Itron Inc 1846 4191 4108 20 152 4329 968 103x 143x 132x 132x 95x
Silver Spring Networks Inc 534 1295 1438 (99) (16) 1618 800 NM 187x 117x 54x 310x
Ameresco Inc 427 482 463 41 (340) 798 604 124x 117x 96x 112x 80x
EnerNOC Inc 202 684 721 (51) (311) 1121 610 82x NM NM NM NM
Median (51) (311) 610 103x 143x 117x 112x 95x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
19
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Company $100148 $100542 $106758 $105808 $124942 32 82 $21313 $18072 $19794 $16264 $21194 213 180 185 154 170 193 170
Siemens 99396 99404 88711 83241 89034 (55) 02 11457 9984 10498 9040 11141 115 100 118 109 125 111 117
Honeywell International Inc 37665 39055 40306 38581 40644 34 04 5082 6490 6755 7711 8407 135 166 168 200 207 156 191
ABB Ltd 39336 41848 39830 35481 34755 06 (66) 5240 5649 4888 4552 4446 133 135 123 128 128 130 126
Schneider Electric SE 31572 32214 30187 28933 28746 (22) (24) 5186 5013 4510 4139 4467 164 156 149 143 155 156 149
Emerson Electric Co 24412 24669 24537 22304 20751 03 (80) 4751 4766 4885 4264 3877 195 193 199 191 187 196 192
Eaton Corporation plc 16311 22046 22552 20855 19947 176 (60) 2350 3307 3586 3314 3312 144 150 159 159 166 151 161
Total $348841 $359778 $352881 $335203 $358819 25 (20) $55379 $53281 $54916 $49284 $56845 159 148 156 147 158 156 158
Mid and Small-Cap Equipment and Services
Ametek Inc $3334 $3594 $4022 $3974 $3951 98 (09) $851 $934 $1056 $1094 $1060 255 260 263 275 268 259 269
Hubbell Inc 3044 3184 3359 3390 3491 50 19 535 574 597 594 578 176 180 178 175 165 178 173
Valmont Industries Inc 3030 3304 3123 2619 2521 15 (102) 451 563 444 317 347 149 170 142 121 138 154 134
Littelfuse Inc 668 758 852 868 1026 129 97 141 168 182 186 229 211 221 214 214 223 215 217
AZZ incorporated 469 571 752 817 899 266 94 98 127 143 157 171 210 223 191 192 190 208 191
ESCO Technologies Inc 479 490 531 537 584 53 49 65 73 82 82 100 135 149 154 153 171 146 159
Badger Meter Inc 320 334 365 378 414 68 65 58 53 63 63 72 180 157 174 167 174 170 171
Babcock amp Wilcox Enterprises Inc 2039 1768 1486 1757 1779 (146) 94 216 234 19 87 133 106 133 13 49 75 84 46
Thermon Group Holdings Inc 272 284 277 309 275 09 (05) 58 71 72 81 63 214 248 261 262 229 241 251
Powell Industries Inc 691 641 648 662 542 (32) (86) 60 60 41 38 24 87 93 64 57 44 81 55
Total $14346 $14927 $15415 $15311 $15481 51 22 $2532 $2856 $2702 $2698 $2775 177 191 175 176 179 174 167
Energy Efficiency and Clean Technology
SolarCity Corporation $127 $164 $255 $400 $576 418 503 ($70) ($107) ($237) ($481) ($587) (553) (650) (931) (1204) (1019) (711) (1051)
Itron Inc 2178 1949 1971 1878 1921 (49) (13) 265 178 169 140 194 122 91 86 75 101 100 87
Silver Spring Networks Inc 197 327 191 490 301 (14) 255 (82) (35) (80) 99 17 (415) (107) (417) 201 57 (313) (53)
Ameresco Inc 631 574 593 631 655 (31) 51 49 27 38 38 53 78 47 64 60 82 63 69
EnerNOC Inc 278 383 472 400 388 303 (94) 2 50 45 (53) (36) 06 130 96 (132) (92) 77 (43)
Total $3411 $3397 $3482 $3797 $3841 125 140 $164 $114 ($65) ($257) ($358) 48 33 (19) (68) (93) (157) (198)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Infrastructure Services
Large Cap Infrastructure Services
Fluor Corporation $6916 $4997 $5360 (68) $5889 (151) $5891 848 57x 48x 62x 62x 66x
Chicago Bridge amp Iron Company NV 5829 3659 3641 05 5748 (363) 5782 633 66x 53x 47x 47x 55x
Jacobs Engineering Group Inc 6037 4922 4296 146 4432 111 5072 970 72x 72x 108x 102x 90x
SNC-Lavalin Group Inc 5182 3937 3735 54 3636 83 3982 989 111x 114x 152x 111x 104x
KBR Inc 1251 1427 1492 (44) 1854 (230) 2077 687 NM NM NM 60x 41x
Median 05 (151) 848 69x 63x 85x 62x 66x
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $3955 $653 $716 (87) $1470 (556) $1436 455 150x 83x 76x 81x 78x
Granite Construction Incorporated 1435 4121 4712 (125) 3761 96 4859 848 101x 94x 89x 89x 75x
Tutor Perini Corporation 1775 2119 1576 345 2291 (75) 2431 872 69x 80x 121x 121x 70x
Primoris Services Corporation 1271 2136 2377 (101) 1900 124 2525 846 73x 101x 97x 94x 72x
Aecon Group Inc 842 1305 1348 (32) 1145 140 1328 983 117x 99x 88x 94x 63x
Great Lakes Dredge amp Dock Corp 617 438 476 (80) 574 (237) 617 710 104x 72x 72x 75x 67x
Orion Marine Group Inc 253 500 571 (124) 841 (405) 845 592 70x 103x 121x 121x 46x
Willbros Group Inc 231 307 241 274 220 395 343 895 NM NM NM NM 105x
Median (83) 10 847 101x 94x 89x 94x 71x
Utility Services
Quanta Services Inc $3702 $2282 $2289 (03) $3015 (243) $3061 746 96x 65x 61x 74x 64x
Dycom Industries Inc 2854 7197 6813 56 5882 224 9082 792 109x 111x 98x 114x 78x
MasTec Inc 2846 2229 2191 17 1809 232 2388 933 65x 92x 97x 114x 68x
MYR Group Inc 401 2338 2630 (111) 2987 (217) 3171 737 62x 41x 43x 49x 47x
Median 07 03 769 80x 78x 79x 94x 66x
Industrial Services
EMCOR Group Inc $2700 $4577 $4833 (53) $4640 (14) $5237 874 85x 84x 76x 75x 72x
Bilfinger SE 1955 4208 4362 (35) 4573 (80) 5070 830 82x 82x 58x 85x 64x
Team Inc 1097 2535 3101 (183) 4012 (368) 4755 533 103x 132x 136x 140x 81x
Aegion Corporation 923 1948 2158 (97) 1884 34 2241 869 73x 72x 70x 77x 77x
Mistras Group Inc 797 2455 2511 (22) 1801 363 2647 927 102x 107x 117x 138x 93x
Matrix Service Company 349 1576 1934 (185) 1828 (138) 2622 601 130x 140x 75x 108x 45x
Formation Group plc 31 009 010 (68) 004 1269 018 482 272x NM 09x NM NM
Median (68) (14) 830 102x 95x 75x 96x 75x
Design Professional Services
AECOM $8858 $3162 $3057 34 $3330 (50) $3540 893 128x 89x 90x 87x 84x
WSP Global Inc 3799 3171 3173 (01) 3615 (123) 3241 978 190x 131x 134x 128x 96x
Stantec Inc 3155 2484 2610 (48) 2847 (127) 2903 856 129x 114x 140x 150x 97x
ARCADIS NV 1942 1614 1906 (153) 2854 (435) 2995 539 127x 110x 71x 74x 65x
Tetra Tech Inc 1913 2872 3122 (80) 2657 81 3174 905 119x 88x 105x 101x 91x
WS Atkins plc 1715 1940 2019 (39) 2249 (138) 2435 797 98x 90x 75x 85x 71x
RPS Group plc 676 260 296 (123) 364 (287) 358 724 78x 85x 56x 71x 70x
Median (48) (127) 856 127x 90x 90x 87x 84x
TEV LTM EBITDA as of
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
PUBLIC COMPARABLES
21
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 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 Corporation $27577 $27352 $21532 $18114 $18567 (116) (71) $946 $1397 $1409 $1116 $1042 34 51 65 62 56 50 61
Chicago Bridge amp Iron Company NV 5485 11095 12975 12930 11691 538 (51) 515 938 1176 1229 1069 94 85 91 95 91 90 92
Jacobs Engineering Group Inc 10894 11818 12695 12115 11487 80 (49) 695 766 774 593 674 64 65 61 49 59 63 56
SNC-Lavalin Group Inc 7550 6730 6334 6749 7231 (84) 69 662 452 559 465 496 88 67 88 69 69 81 75
KBR Inc 7770 7214 6366 5096 4326 (95) (176) 361 237 (232) 209 308 46 33 (36) 41 71 14 25
Total $59276 $64208 $59901 $55003 $53302 64 (56) $3180 $3791 $3686 $3612 $3588 54 59 62 66 67 60 62
Mid and Small-Cap Infrastructure Services
Amec Foster Wheeler plc $6644 $6583 $6223 $8045 $7542 (32) 101 $518 $543 $471 $491 $504 78 83 76 61 67 79 68
Granite Construction Incorporated 2083 2267 2275 2371 2537 45 56 110 58 115 160 191 53 26 50 68 75 43 64
Tutor Perini Corporation 4111 4176 4492 4920 5191 45 75 214 260 295 147 253 52 62 66 30 49 60 48
Primoris Services Corporation 1542 1944 2086 1929 2146 163 14 129 176 163 136 177 84 90 78 70 83 84 77
Aecon Group Inc 2897 2888 2257 2103 2362 (117) 23 122 115 90 90 134 42 40 40 43 57 41 46
Great Lakes Dredge amp Dock Corporation 588 731 807 857 876 171 42 70 79 74 82 92 119 108 91 96 105 106 98
Orion Marine Group Inc 292 355 386 466 648 149 296 7 21 33 21 55 25 60 86 45 85 57 72
Willbros Group Inc 1834 1495 1594 909 892 (68) (252) 62 37 9 (21) 22 34 25 05 (23) 25 21 02
Total $19992 $20440 $20121 $21601 $22194 45 44 $1232 $1291 $1249 $1106 $1428 62 63 62 51 64 61 59
Utility Services
Quanta Services Inc $5920 $6412 $7747 $7572 $7619 144 (08) $623 $621 $655 $497 $579 105 97 85 66 76 96 75
Dycom Industries Inc 1201 1609 1812 2022 2549 228 186 128 173 178 250 364 107 108 98 124 143 104 122
MasTec Inc 3727 4325 4612 4208 4685 112 08 331 429 404 250 417 89 99 88 59 89 92 79
MYR Group Inc 999 903 944 1062 1112 (28) 85 80 86 89 82 85 80 96 95 77 77 90 83
Total $11847 $13248 $15115 $14865 $15965 114 68 $1162 $1309 $1325 $1080 $1446 98 99 88 73 91 95 90
Industrial Services
EMCOR Group Inc $6195 $6334 $6425 $6719 $6920 18 38 $315 $305 $356 $362 $375 51 48 55 54 54 51 54
Bilfinger SE 11001 10412 7560 7039 6767 (171) (54) 600 612 299 231 304 55 59 40 33 45 51 39
Team Inc 624 714 813 980 1300 142 265 73 74 85 78 136 117 104 105 80 105 108 96
Aegion Corporation 1017 1091 1331 1334 1292 144 (15) 113 109 126 120 120 111 100 95 90 93 102 92
Mistras Group Inc 437 529 623 711 712 195 69 60 61 63 58 86 137 116 101 81 121 118 101
Matrix Service Company 739 893 1263 1343 1341 307 30 43 49 79 32 77 58 55 63 24 57 59 48
Formation Group plc 4 9 13 37 NM 875 NM (1) (0) (0) (0) 0 (225) (40) (08) NM NM (91) (08)
Total $20016 $19982 $18029 $18162 $18332 216 55 $1203 $1211 $1009 $881 $1097 60 61 56 49 60 57 61
Professional Services
AECOM $8218 $8153 $8357 $17990 $18356 08 482 $434 $447 $418 $1020 $1055 53 55 50 57 57 53 55
WSP Global Inc 1262 1898 2506 4371 3860 409 241 110 142 191 298 396 87 75 76 68 103 79 82
Stantec Inc 1559 1725 1792 1711 2536 72 190 216 232 243 210 325 139 135 135 123 128 136 129
ARCADIS NV 3344 3465 3189 3714 3672 (23) 73 251 267 237 261 298 75 77 74 70 81 76 75
Tetra Tech Inc 2022 2025 1860 1719 1898 (41) 10 208 129 152 189 210 103 64 82 110 111 83 101
WS Atkins plc 2736 2589 2917 2610 2627 33 (51) 187 169 199 202 240 68 65 68 77 92 67 79
RPS Group plc 903 940 892 836 731 (07) (94) 113 123 122 95 96 126 131 137 114 131 131 127
Total $20044 $20795 $21513 $32949 $33680 65 122 $1518 $1509 $1561 $2276 $2620 76 73 73 69 78 89 93
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22