7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 1/21
Oil & Gas Division Overview
October 11, 2012
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 2/21
2
Forward Looking Statements
Statements contained in this presentation that are not historical facts may constitute forward-looking statements, including
statements relating to future financials, future business projects, future backlog and book of business and future business,
economic and industry trends. We believe that our expectations are reasonable and are based on reasonable assumptions; however, we caution against relying on any of our forward-looking statements as such forward-looking
statements by their nature involve risks and uncertainties. A variety of factors, including but not limited to the following,
could cause our business and financial results, as well as the timing of events, to differ materially from those expressed or
implied in our forward-looking statements: declines in the economy or client spending; changes in our book of business;
our compliance with government regulations; impairment of our goodwill; integration of acquisitions; employee, agent or
partner misconduct; our ability to procure government contracts; liabilities for pending and future litigation; environmental
liabilities; changes in commodity prices; availability of bonding and insurance; our reliance on government appropriations;
unilateral termination provisions in government contracts; our ability to make accurate estimates and assumptions; our
accounting policies; workforce utilization; our and our partners' ability to bid on, win, perform and renew contracts and
projects; liquidated damages; our dependence on partners, subcontractors and suppliers; customer payment defaults; our
ability to recover on claims; impact of target and fixed-priced contracts on earnings; the inherent dangers at our project
sites; the impact of changes in laws and regulations; nuclear indemnifications and insurance; misstatements in expert
reports; a decline in defense spending; industry competition; our ability to attract and retain key individuals; retirement
plan obligations; our leveraged position and the ability to service our debt; restrictive covenants in our credit agreement;
risks associated with international operations; business activities in high security risk countries; information technology
risks; natural and man-made disaster risks; our relationships with labor unions; our ability to protect our intellectual
property rights; anti-takeover risks and other factors discussed more fully in our Form 10-Q for the period ended June 29,
2012, as well as in other reports subsequently filed from time to time with the United States Securities and Exchange
Commission. The forward-looking statements represent our current intentions as of the date on which they were made
and we assume no obligation to revise or update any forward-looking statements.
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 3/21
3
FY 2011 Contract Risk Profile
FY 2011 Revenue by Service Offering
TechnicalServices
ProjectDevelopment
ProgramManagement
IT ServicesPlanning,Design &
Engineering
Construction& Management
Operations &Maintenance
Decommissioning& Closure
Reimbursable
Cost(1)
FixedPrice(2)
Engineering
&
TechnicalServices
Operations
&Maintenance
ConstructionManagement
&
Construction
Notes: (1) Reimbursable contracts include: Reimbursable, Time & Materials and Target Price contracts(2) Fixed Price contracts include: Firm Fixed-Price and Fixed-Price Per Unit contracts. URS has minimum exposure to “lump sum” turnkey projects
Diversified Business Mix with Full ServiceCapabilities
49%
19%
7%
12%
13%
Federal
FY 2011 Revenue by End Market
Infrastructure
Oil & Gas (>20% including Flint)
Power
Industrial
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 4/21
Oil & Gas Operational Footprint
83 Locations
11,000 Employees
4
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 5/21
Full-Cycle Energy Services
OILFIELD
SERVICESUS & Canada
PRODUCTION
SERVICESUS & Canada
FACILITY
CONSTRUCTIONCanada
MAINTENANCE
SERVICESCanada
Upstream Downstream Refining
Early Cycle Late Cycle
Midstream Production
5
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 6/21
Key services offered in both Canada and United States:
Rig moving, setup, and tear down
Fluid hauling – produced oil, waste and completions
fluids
Pressure and vacuum services – well and facilitiescleaning
Oilfield equipment hauling – well drilling consumables
URS is one of the largest rig movers in North America
6
Oilfield Services Activities
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 7/21
Rig Moving
US and Canadian rig counts
Weekly average number of working rigs (publishedweekly on Bakerhughes.com)
Wells Drilled
Monthly number of wells drilled in Canada and US(published on EIA website, Industry newsaccumulators)
Capital Spending
Annual industry capital spending forecasts(published by Spears & Associates; CAPP -Canadian Association of Petroleum Producers)
7
Oilfield Services Business Drivers
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 8/21
Rig moving for Fortuna in the Marcellus shale gasplay, Morgantown, PA
Fluid hauling contract with EOG Resources in theEagle Ford shale gas play in S.E. Texas
Pressure & vacuum Service work for Husky Energy,
Lloydminster, Alberta
8
Oilfield Services Projects
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 9/21
Key services offered in Canada and US:
Pipelines – well tie-ins, gathering lines & transportationpipelines
Construction – field & mechanical, electrical &instrumentation
Maintenance – field & plant maintenance
Tubular Management – inspection, repair,refurbishment, storage of OCTG and drill pipe (Canadaonly)
Fabrication Equipment – process equipment (US &Canada), polyethylene pipe, internal & external wear coatings (Canada)
URS is the largest midstream production
services company in North America
9
Production Services Activities
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 10/21
Oil and Gas Prices Determine capital spending for new wells and
infrastructure (Wall Street Journal – oil and gasfutures prices; industry forecasts)
Customer-Specific Regional Capital Spending
Annual budgets communicated by customers, tied tooil and gas prices, weather and seasonal access,available manpower and equipment constraints
Wells Drilled
Pipeline and field facilities construction typically lagdrilling by 6 - 9 months
10
Production Services Business Drivers
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 11/21
Pipeline Project
Saskatchewan’s Bakken shale oil resource play
Field Facility
EnCana Kiwigana Compressor Station, Phase 1C,North East BC
Field Facility
Imperial Oil Horn River, BC Pilot Plant Facility
11
Production Services Projects
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 12/21
Major project construction services include:
Project planning & management
Module fabrication & field installation
Workforce mobilization
Field construction management
General construction & commissioning
Current Contracts:
MEG Energy – Christina Lake Phase 2, field construction
ConocoPhillips – Surmont Phase 2, field facilities &pipeline construction
CNRL – Kirby Lake, module fabrication
URS is one of the largest fabricators of
oil sands equipment modules in Alberta
12
Facility Construction (Oil Sands)
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 13/21
Global Crude Oil Demand
Oil sands projects have higher hurdle rates and longer planninghorizons
Short-term fluctuations in prices do not impact project decisions
Current production of 1.5 M barrels/day to increase to 3 M barrels
per day with planned expenditures
Industry Capital Expenditures
Current spending is $20 B, expected to increase to $22 B per year
Expect $200 B in proposed projects planned in the next 10 years
Construction Costs & Capacity Constraints
As more projects sanctioned, greater competition for constructioncapacity increases costs
Increased need for detailed engineering, careful scheduling, and
partnering with experienced contractors
13
Facility Construction Drivers
Source: Peters & Company, January 2011
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 14/21
MEG Energy Christina Lake Phase 2B
Phase 2 SAGD facility, building central processingfacilities, $150 M, 2 year contract currently underway
ConocoPhillips Surmont Phase 2 Phase 2 SAGD facility, building central processing
facilities, $430 M contract, currently underway
CNRL Module Fabrication
Building process and equipment modules for MackayRiver Expansion Project, $30 M contract completedin 2012
14
Facility Construction Projects
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 15/21
URS JV is one of the top two maintenance
contractors in the oil sands region
Provide asset management and maintenance servicesto large oil sands producers and oil refineries:
Site-wide general maintenance
Turn-around planning and execution Sustaining capital projects
Management of third party maintenance services
Current multi-year customers include:
15
Maintenance Services Activities
CNRL
Exxon
Nexen
Suncor
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 16/21
Bitumen Production
As activities increase, so does maintenance spending
Turn-Arounds & Shutdowns
Maintenance activities occur every two years at major projects and increase maintenance spending
Planned Maintenance
Customers invest in more planned maintenance toreduce overall maintenance costs per flowing barrel
16
Maintenance Services Business Drivers
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 17/21
Suncor Energy, Oil Sands
5 year maintenance contract awarded in 2007, renewed
Oilsands, Firebag (SAA) & Sarnia Maintenance
contracts in 2012, with General Construction and Turn
Around contracts renewed through 2013
CNRL, Horizon
2 year evergreen contract awarded in 2010
Nexen, Energy, Long Lake
3 year contract awarded in 2010
Imperial Oil, Kearl Lake
5 year contract awarded in 2011, currently in startup
phase
17
Maintenance Services Projects
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 18/21
-
400
800
1,200
1,600
2,000
2,400
-
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010 2011 2012p 2013f
U S A
R i g s
C a n a d i a n R i
g s
Canadian Active Rigs US Active Rigs
2011 Actual
419 active rigs
11,368 wells
2012 Projected
368 rigs
10,279 wells
2013 Forecast
396 rigs
11,009 wells
Sources: Historical rig counts - Baker Hughes, Nickle’s Energy Canadian & US forecast – Spears & Associates, Drilling & Production Outlook, September 2012
2011 Actual
1,872 active rigs
45,351 wells
2012 Projected
1,942 rigs
44,086 wells
2013 Forecast
2,005 rigs
46,726 wells
Sep 16, 2012US rigs = 1,864
Can rigs = 354
US 76% OilCAN 72% Oil
18
North American Drilling
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 19/21
Current capital spending is estimatedat $20 B expected to increase to $22 Bin 2014
Expected $200 B in planned projects to
increase production from 1.5 to 3.0 Mbarrels of oil per day
Syncrude, Suncor Energy, Shell,Exxon, Husky and ConocoPhillips are
the largest producers of oil sandstoday
0
5
10
15
20
25
C $
B
i l l i o n s
In-situ Mining Upgraders
Source: Peters & Company, January 2011
19
Projected Oil Sands Capital Spending
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 20/21
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2009 2010 2011 2012E 2013F 2014F 2015F 2016F 2017F 2018F
$ B i l l i o n s
M i l l i o n B b l / D a y
Production Opex
2011 Bitumen production ~1.7 Mbbl/day and annual maintenancespending ~$3.6 B
Bitumen production expected to
increase 47% to ~2.5 M bbl/day by2015
Annual maintenance spendingprojected to increase 39% to
~$5.0 B by 2015
Sources: CAPP - oil sands production forecast, June 2012Maintenance spending - Peters & Company , January 2011
Forecast Oil Sands Production and Maintenance Spending
20
Projected Oil Sands Maintenance Spending
7/30/2019 10 11 12 URS Oil Gas Division Presentation
http://slidepdf.com/reader/full/10-11-12-urs-oil-gas-division-presentation 21/21
www.urs.com
NYSE: URS
Corporate Headquarters:
600 Montgomery Street, 26th Floor
San Francisco, CA 94111