www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. ENERGY & POWER INDUSTRY UPDATE │ FEBRUARY 2015
22
Embed
ENERGY & POWER · 2/3/2015 Verengo Solar, Northeast Operations US based provider of solar installation and maintenance services in North America. NRG Energy 1/27/2015 U.S. Water Services
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
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 amp POWER
0
INDUSTRY UPDATE FEBRUARY 2015
PAGE |
wwwharriswilliamscom
SUMMARY
1
CONTENTS
WHAT WErsquoRE READING
MampA TRANSACTIONS
PUBLIC MARKETS INDUSTRY
PUBLIC COMPARABLES
CONTACTS
UNITED STATES
Andrew Spitzer | Managing Directoraspitzerharriswilliamscom+1 (804) 915-0174
Brian Lucas | Managing Directorblucasharriswilliamscom+1 (804) 932-1323
Matthew White | Director mwhiteharriswilliamscom+1 (804) 915-0131
Luke Semple | Director lsempleharriswilliamscom+1 (804) 915-0158
Chris Burnham | Vice President cburnhamharriswilliamscom+1 (804) 915-0142
Ian Thomas | Vice President ithomasharriswilliamscom+1 (804) 932-1384
North American Substation Services (ldquoNASSrdquo) a portfolio company of BBH Capital Partners has been acquired by Industrial Growth Partners NASS is a provider of maintenance repair and installation services for mission-critical power transmission and distribution infrastructureSource| Instapaper
US Water Services a portfolio company of Excellere Partners has agreed to be acquired by ALLETE for approximately $168 million US Water Services is a provider of water management and treatment chemicals and equipment for industrial end markets Source| Instapaper
Silver Spring Networks has agreed to acquire Detectent a privately held company Detectent is a provider of utility data analytics software and solutions which help improve advanced metering infrastructure and utility grid operationsSource| Instapaper
Verengo Solar has divested its Northeast Sales and Operations resources to NRGrsquos Home Solar division Verengo is a leading provider of installation and maintenance services for solar panels Source| Instapaper
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
PUBLIC MARKETS | KEY TRADING STATISTICS
Stock Price Change TEV EBITDA
1 Month 12 Month Jan-14 Aug-14 Current 2014E 2015P
Energy Services and Equipment
Large Cap Service (09) (122) 86x 107x 63x 57x 80x
Equipment (135) (258) 109x 114x 67x 67x 73x
Small-Cap Service (189) (545) 80x 115x 46x 42x 62x
OCTG (66) (563) 77x 70x 52x 52x 61x
Distribution (158) (613) 99x 111x 88x 84x 97x
Logistics (132) (436) 97x 86x 59x 62x 64x
Offshore Drillers (94) (443) 69x 69x 50x 48x 53x
Land Drillers (117) (332) 52x 67x 36x 36x 50x
EampC (146) (505) 72x 71x 46x 47x 45x
Power Services and Equipment
Large Cap PSampE (63) (100) 110x 108x 102x 92x 94x
The Economist writes that amid widespread decreases in capital spending major oil amp gas companies with strongbalance-sheets diversified businesses and the foresight to have hedged their production will soon lead industryconsolidation efforts and be poised for opportunistic acquisitionsThe Economist | Instapaper
2
OIL amp GAS | THE TOUGH GET GOING
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
A summary of interesting industry articles we have come across in the past month
Bloomberg suggests that the recent dip in oil prices may be sustained and should not be viewed as transient Theseprolonged low oil prices will also likely result in durable economic and political changesBloomberg | Instapaper
OIL amp GAS | THIS ERA OF LOW-COST OIL IS DIFFERENT
SCIENCE | WHY WE REMEMBER SO MANY THINGS WRONG
Bloomberg New Energy Finance releases its predictions for advancements and struggles of clean energy and cleanenergy investments in 2015 The article suggests that while the oil price crash will have a range of impacts on theclean energy sector it will not be the most important new energy story of 2015BNEF | Instapaper
CLEAN ENERGY | 10 PREDICTIONS FOR CLEAN ENERGY IN 2015
Slate writes that the battery market has shifted rapidly in recent years as the private sector has made hugeinvestments and strides in new technologies jump-starting the energy storage industry States are now also mandatingminimum energy storage capacitySlate | Instapaper
ENERGY STORAGE | BATTERIES ARE THE FUTURE
The Business Council for Sustainable Energy in partnership with Bloomberg New Energy Finance released theSustainable Energy in America 2015 Factbook The Factbook presents one unmistakable theme the broader USecosystem is prepared for a future in which sustainable sources of energy play a much larger roleBCSE
SUSTAINABLE ENERGY | SUSTAINABLE ENERGY IN AMERICA
Greentech Media reviews three pathways that different states will follow in their transition to the emerging grid edgeand distributed electrical system The shift toward a decentralized distributed electric grid is already underway inmany parts of the countryGreentech Media | Instapaper
UTILITIES | THE FUTURE OF DEMAND RESPONSE
IHS writes that more than six years of historic gains in US production may come to a halt in 2015 as lower oil pricesbegin to affect production The fate of production growth past 2015 and into 2016 will be shaped by global economicconditions geopolitics and changes in industry costs all of which are in a state of fluxIHS | Instapaper
OIL amp GAS | HALTING PRODUCTION GROWTH
The New Yorker examines a study which shows that intensely stressful or exciting moments are often misrememberedThe study suggests that the more emotional the memory the more likely that only the most central and core parts ofrecollection are correctThe New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Date Target Business Description Acquirer
232015 Verengo Solar Northeast
Operations
US based provider of solar installation and maintenance serv ices in
North America
NRG Energy
1272015 US Water Serv ices US based provider of chemicals and equipment for water management
and treatment to industrial customers in North America
Allete
1272015 Gem Mobile Treatment
Serv ices
US based provider of mobile or fixed vapor control and wastewater
treatment serv ices
Evergreen Industrial
Serv ices
1132015 UCI Construction Serv ices US based provider of construction and installation serv ices for telecom
and broadband serv ices
Concentric Equity Partners
1132015 MampM Environmental Oil
Field Serv ices
US based provider of environmental serv ices and safety to various
companies
Omega Capital
Management
1132015 Klines Serv ices US based provider of septic tank and wastewater management
serv ices for industrial end markets
Wind River Env ironmental
1122015 Kirkey Specialized Drilling
and Consulting
US based provider of drilling solutions for the upstream oil and gas
industry
First Drilling Group
1102015 Longs Tank Wash US based provider of cleaning serv ices for petroleum tankers in North
America
Quala
192015 Cimarron Acid Serv ices US based provider of pressure pumping serv ices to the oil and gas
industry
Quintana Energy Serv ices
182015 North American Substation
Serv ices LLC
US based provider of installation repair and maintenance serv ices for
electrical equipment and utility substations in the US
Industrial Growth Partners
172015 Specialized Environmental
Resources
US based provider of geotechnical and environmental drilling
environmental remediation and marine transportation serv ices
Gulf Coast Specialty
Energy Serv ices
172015 Detectent US based provider of customer intelligence solutions for electric gas
and water utility decision support in North America
Silver Spring Networks
162015 Sagebrush Pipeline
Equipment
US based provider and manufacturer of pipeline products fabricated
systems and equipment to the midstream oil and gas industry
Management Buyout
162015 JP Hydro US based provider of pipeline testing and maintenance serv ices in
North America
Rock Hill Capital Group
152015 US Hose Corporation US based provider and manufacturer of high pressure and flexible
metallic hoses for industrial end markets
Arlington Capital Partners
152015 Chemtec Energy Serv ices US based manufacturer and provider of blending injection and
metering equipment for the oil and gas industry
LB Foster
12312014 TriStar Global Energy
Solutions
US based provider of tank cleaning and related serv ices to the
downstream oil amp gas and power generation industries
Thompson Street Capital
Partners
12232014 Newalta Corporation
Industrial Div ision
CA based provider of industrial and environmental serv ices for a
variety of industrial end markets in Canada and internationally
Birch Hill Equity Partners
PAGE |
PUBLIC MARKETS
4
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Energy Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
36x
46x
46x
50x
52x
59x
63x
67x
88x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Logistics
Large Cap Service
Equipment
Distribution
21
52
70
87
107
113
185
201
329
OCTG
EampC
Land Drillers
Large Cap Service
Small Cap Service
Logistics
Equipment
Offshore Drillers
Distribution
(80)
(59)
(54)
(34)
(23)
(13)
(08)
(02)
28
OCTG
Large Cap Services
Land Drillers
Distribution
Equipment
Offshore Drillers
EampC
Small Cap Service
Logistics
36x
42x
47x
48x
52x
57x
62x
67x
84x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Large Cap Service
Logistics
Equipment
Distribution
67
115
189
205
208
229
319
338
424
Distribution
EampC
OCTG
Equipment
Large Cap Service
Small Cap Service
Land Drillers
Logistics
Offshore Drillers
63
101
178
183
203
204
305
335
413
Distribution
EampC
Small Cap Service
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
PAGE |
PUBLIC MARKETS CONT
5
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Power Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015E)
92x
99x
102x
Large Cap
EE and Cleantech
Mid and Small-Cap
102x
108x
110x
Large Cap
EE and Cleantech
Mid and Small-Cap
37
91
214
Large Cap
Mid and Small-Cap
EE and Cleantech
(50)
66
119
Large Cap
Mid and Small-Cap
EE and Cleantech
(134)
160
168
EE and Cleantech
Large Cap
Mid and Small-Cap
(89)
157
172
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS CONT
6
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Infrastructure Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
58x
72x
73x
79x
101x
Large Cap
Industrial
Services
Utility Services
Mid and Small-
Cap
Engineering Svc
69x
73x
78x
80x
94x
Utility Services
Mid and Small-
Cap
Large Cap
Industrial Services
Engineering Svc
64
73
83
93
102
Mid and Small-Cap
Large Cap
Industrial Services
Utility Services
Engineering Svc
72
78
79
100
106
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Engineering Svc
110
126
141
197
201
Large Cap
Mid and Small-
Cap
Industrial Services
Engineering Svc
Utility Services
22
77
89
104
152
Large Cap
Mid and Small-
Cap
Utility Services
Industrial Services
Engineering Svc
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
wwwharriswilliamscom
SUMMARY
1
CONTENTS
WHAT WErsquoRE READING
MampA TRANSACTIONS
PUBLIC MARKETS INDUSTRY
PUBLIC COMPARABLES
CONTACTS
UNITED STATES
Andrew Spitzer | Managing Directoraspitzerharriswilliamscom+1 (804) 915-0174
Brian Lucas | Managing Directorblucasharriswilliamscom+1 (804) 932-1323
Matthew White | Director mwhiteharriswilliamscom+1 (804) 915-0131
Luke Semple | Director lsempleharriswilliamscom+1 (804) 915-0158
Chris Burnham | Vice President cburnhamharriswilliamscom+1 (804) 915-0142
Ian Thomas | Vice President ithomasharriswilliamscom+1 (804) 932-1384
North American Substation Services (ldquoNASSrdquo) a portfolio company of BBH Capital Partners has been acquired by Industrial Growth Partners NASS is a provider of maintenance repair and installation services for mission-critical power transmission and distribution infrastructureSource| Instapaper
US Water Services a portfolio company of Excellere Partners has agreed to be acquired by ALLETE for approximately $168 million US Water Services is a provider of water management and treatment chemicals and equipment for industrial end markets Source| Instapaper
Silver Spring Networks has agreed to acquire Detectent a privately held company Detectent is a provider of utility data analytics software and solutions which help improve advanced metering infrastructure and utility grid operationsSource| Instapaper
Verengo Solar has divested its Northeast Sales and Operations resources to NRGrsquos Home Solar division Verengo is a leading provider of installation and maintenance services for solar panels Source| Instapaper
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
PUBLIC MARKETS | KEY TRADING STATISTICS
Stock Price Change TEV EBITDA
1 Month 12 Month Jan-14 Aug-14 Current 2014E 2015P
Energy Services and Equipment
Large Cap Service (09) (122) 86x 107x 63x 57x 80x
Equipment (135) (258) 109x 114x 67x 67x 73x
Small-Cap Service (189) (545) 80x 115x 46x 42x 62x
OCTG (66) (563) 77x 70x 52x 52x 61x
Distribution (158) (613) 99x 111x 88x 84x 97x
Logistics (132) (436) 97x 86x 59x 62x 64x
Offshore Drillers (94) (443) 69x 69x 50x 48x 53x
Land Drillers (117) (332) 52x 67x 36x 36x 50x
EampC (146) (505) 72x 71x 46x 47x 45x
Power Services and Equipment
Large Cap PSampE (63) (100) 110x 108x 102x 92x 94x
The Economist writes that amid widespread decreases in capital spending major oil amp gas companies with strongbalance-sheets diversified businesses and the foresight to have hedged their production will soon lead industryconsolidation efforts and be poised for opportunistic acquisitionsThe Economist | Instapaper
2
OIL amp GAS | THE TOUGH GET GOING
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
A summary of interesting industry articles we have come across in the past month
Bloomberg suggests that the recent dip in oil prices may be sustained and should not be viewed as transient Theseprolonged low oil prices will also likely result in durable economic and political changesBloomberg | Instapaper
OIL amp GAS | THIS ERA OF LOW-COST OIL IS DIFFERENT
SCIENCE | WHY WE REMEMBER SO MANY THINGS WRONG
Bloomberg New Energy Finance releases its predictions for advancements and struggles of clean energy and cleanenergy investments in 2015 The article suggests that while the oil price crash will have a range of impacts on theclean energy sector it will not be the most important new energy story of 2015BNEF | Instapaper
CLEAN ENERGY | 10 PREDICTIONS FOR CLEAN ENERGY IN 2015
Slate writes that the battery market has shifted rapidly in recent years as the private sector has made hugeinvestments and strides in new technologies jump-starting the energy storage industry States are now also mandatingminimum energy storage capacitySlate | Instapaper
ENERGY STORAGE | BATTERIES ARE THE FUTURE
The Business Council for Sustainable Energy in partnership with Bloomberg New Energy Finance released theSustainable Energy in America 2015 Factbook The Factbook presents one unmistakable theme the broader USecosystem is prepared for a future in which sustainable sources of energy play a much larger roleBCSE
SUSTAINABLE ENERGY | SUSTAINABLE ENERGY IN AMERICA
Greentech Media reviews three pathways that different states will follow in their transition to the emerging grid edgeand distributed electrical system The shift toward a decentralized distributed electric grid is already underway inmany parts of the countryGreentech Media | Instapaper
UTILITIES | THE FUTURE OF DEMAND RESPONSE
IHS writes that more than six years of historic gains in US production may come to a halt in 2015 as lower oil pricesbegin to affect production The fate of production growth past 2015 and into 2016 will be shaped by global economicconditions geopolitics and changes in industry costs all of which are in a state of fluxIHS | Instapaper
OIL amp GAS | HALTING PRODUCTION GROWTH
The New Yorker examines a study which shows that intensely stressful or exciting moments are often misrememberedThe study suggests that the more emotional the memory the more likely that only the most central and core parts ofrecollection are correctThe New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Date Target Business Description Acquirer
232015 Verengo Solar Northeast
Operations
US based provider of solar installation and maintenance serv ices in
North America
NRG Energy
1272015 US Water Serv ices US based provider of chemicals and equipment for water management
and treatment to industrial customers in North America
Allete
1272015 Gem Mobile Treatment
Serv ices
US based provider of mobile or fixed vapor control and wastewater
treatment serv ices
Evergreen Industrial
Serv ices
1132015 UCI Construction Serv ices US based provider of construction and installation serv ices for telecom
and broadband serv ices
Concentric Equity Partners
1132015 MampM Environmental Oil
Field Serv ices
US based provider of environmental serv ices and safety to various
companies
Omega Capital
Management
1132015 Klines Serv ices US based provider of septic tank and wastewater management
serv ices for industrial end markets
Wind River Env ironmental
1122015 Kirkey Specialized Drilling
and Consulting
US based provider of drilling solutions for the upstream oil and gas
industry
First Drilling Group
1102015 Longs Tank Wash US based provider of cleaning serv ices for petroleum tankers in North
America
Quala
192015 Cimarron Acid Serv ices US based provider of pressure pumping serv ices to the oil and gas
industry
Quintana Energy Serv ices
182015 North American Substation
Serv ices LLC
US based provider of installation repair and maintenance serv ices for
electrical equipment and utility substations in the US
Industrial Growth Partners
172015 Specialized Environmental
Resources
US based provider of geotechnical and environmental drilling
environmental remediation and marine transportation serv ices
Gulf Coast Specialty
Energy Serv ices
172015 Detectent US based provider of customer intelligence solutions for electric gas
and water utility decision support in North America
Silver Spring Networks
162015 Sagebrush Pipeline
Equipment
US based provider and manufacturer of pipeline products fabricated
systems and equipment to the midstream oil and gas industry
Management Buyout
162015 JP Hydro US based provider of pipeline testing and maintenance serv ices in
North America
Rock Hill Capital Group
152015 US Hose Corporation US based provider and manufacturer of high pressure and flexible
metallic hoses for industrial end markets
Arlington Capital Partners
152015 Chemtec Energy Serv ices US based manufacturer and provider of blending injection and
metering equipment for the oil and gas industry
LB Foster
12312014 TriStar Global Energy
Solutions
US based provider of tank cleaning and related serv ices to the
downstream oil amp gas and power generation industries
Thompson Street Capital
Partners
12232014 Newalta Corporation
Industrial Div ision
CA based provider of industrial and environmental serv ices for a
variety of industrial end markets in Canada and internationally
Birch Hill Equity Partners
PAGE |
PUBLIC MARKETS
4
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Energy Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
36x
46x
46x
50x
52x
59x
63x
67x
88x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Logistics
Large Cap Service
Equipment
Distribution
21
52
70
87
107
113
185
201
329
OCTG
EampC
Land Drillers
Large Cap Service
Small Cap Service
Logistics
Equipment
Offshore Drillers
Distribution
(80)
(59)
(54)
(34)
(23)
(13)
(08)
(02)
28
OCTG
Large Cap Services
Land Drillers
Distribution
Equipment
Offshore Drillers
EampC
Small Cap Service
Logistics
36x
42x
47x
48x
52x
57x
62x
67x
84x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Large Cap Service
Logistics
Equipment
Distribution
67
115
189
205
208
229
319
338
424
Distribution
EampC
OCTG
Equipment
Large Cap Service
Small Cap Service
Land Drillers
Logistics
Offshore Drillers
63
101
178
183
203
204
305
335
413
Distribution
EampC
Small Cap Service
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
PAGE |
PUBLIC MARKETS CONT
5
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Power Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015E)
92x
99x
102x
Large Cap
EE and Cleantech
Mid and Small-Cap
102x
108x
110x
Large Cap
EE and Cleantech
Mid and Small-Cap
37
91
214
Large Cap
Mid and Small-Cap
EE and Cleantech
(50)
66
119
Large Cap
Mid and Small-Cap
EE and Cleantech
(134)
160
168
EE and Cleantech
Large Cap
Mid and Small-Cap
(89)
157
172
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS CONT
6
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Infrastructure Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
58x
72x
73x
79x
101x
Large Cap
Industrial
Services
Utility Services
Mid and Small-
Cap
Engineering Svc
69x
73x
78x
80x
94x
Utility Services
Mid and Small-
Cap
Large Cap
Industrial Services
Engineering Svc
64
73
83
93
102
Mid and Small-Cap
Large Cap
Industrial Services
Utility Services
Engineering Svc
72
78
79
100
106
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Engineering Svc
110
126
141
197
201
Large Cap
Mid and Small-
Cap
Industrial Services
Engineering Svc
Utility Services
22
77
89
104
152
Large Cap
Mid and Small-
Cap
Utility Services
Industrial Services
Engineering Svc
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
WHAT WErsquoRE READING
The Economist writes that amid widespread decreases in capital spending major oil amp gas companies with strongbalance-sheets diversified businesses and the foresight to have hedged their production will soon lead industryconsolidation efforts and be poised for opportunistic acquisitionsThe Economist | Instapaper
2
OIL amp GAS | THE TOUGH GET GOING
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
A summary of interesting industry articles we have come across in the past month
Bloomberg suggests that the recent dip in oil prices may be sustained and should not be viewed as transient Theseprolonged low oil prices will also likely result in durable economic and political changesBloomberg | Instapaper
OIL amp GAS | THIS ERA OF LOW-COST OIL IS DIFFERENT
SCIENCE | WHY WE REMEMBER SO MANY THINGS WRONG
Bloomberg New Energy Finance releases its predictions for advancements and struggles of clean energy and cleanenergy investments in 2015 The article suggests that while the oil price crash will have a range of impacts on theclean energy sector it will not be the most important new energy story of 2015BNEF | Instapaper
CLEAN ENERGY | 10 PREDICTIONS FOR CLEAN ENERGY IN 2015
Slate writes that the battery market has shifted rapidly in recent years as the private sector has made hugeinvestments and strides in new technologies jump-starting the energy storage industry States are now also mandatingminimum energy storage capacitySlate | Instapaper
ENERGY STORAGE | BATTERIES ARE THE FUTURE
The Business Council for Sustainable Energy in partnership with Bloomberg New Energy Finance released theSustainable Energy in America 2015 Factbook The Factbook presents one unmistakable theme the broader USecosystem is prepared for a future in which sustainable sources of energy play a much larger roleBCSE
SUSTAINABLE ENERGY | SUSTAINABLE ENERGY IN AMERICA
Greentech Media reviews three pathways that different states will follow in their transition to the emerging grid edgeand distributed electrical system The shift toward a decentralized distributed electric grid is already underway inmany parts of the countryGreentech Media | Instapaper
UTILITIES | THE FUTURE OF DEMAND RESPONSE
IHS writes that more than six years of historic gains in US production may come to a halt in 2015 as lower oil pricesbegin to affect production The fate of production growth past 2015 and into 2016 will be shaped by global economicconditions geopolitics and changes in industry costs all of which are in a state of fluxIHS | Instapaper
OIL amp GAS | HALTING PRODUCTION GROWTH
The New Yorker examines a study which shows that intensely stressful or exciting moments are often misrememberedThe study suggests that the more emotional the memory the more likely that only the most central and core parts ofrecollection are correctThe New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Date Target Business Description Acquirer
232015 Verengo Solar Northeast
Operations
US based provider of solar installation and maintenance serv ices in
North America
NRG Energy
1272015 US Water Serv ices US based provider of chemicals and equipment for water management
and treatment to industrial customers in North America
Allete
1272015 Gem Mobile Treatment
Serv ices
US based provider of mobile or fixed vapor control and wastewater
treatment serv ices
Evergreen Industrial
Serv ices
1132015 UCI Construction Serv ices US based provider of construction and installation serv ices for telecom
and broadband serv ices
Concentric Equity Partners
1132015 MampM Environmental Oil
Field Serv ices
US based provider of environmental serv ices and safety to various
companies
Omega Capital
Management
1132015 Klines Serv ices US based provider of septic tank and wastewater management
serv ices for industrial end markets
Wind River Env ironmental
1122015 Kirkey Specialized Drilling
and Consulting
US based provider of drilling solutions for the upstream oil and gas
industry
First Drilling Group
1102015 Longs Tank Wash US based provider of cleaning serv ices for petroleum tankers in North
America
Quala
192015 Cimarron Acid Serv ices US based provider of pressure pumping serv ices to the oil and gas
industry
Quintana Energy Serv ices
182015 North American Substation
Serv ices LLC
US based provider of installation repair and maintenance serv ices for
electrical equipment and utility substations in the US
Industrial Growth Partners
172015 Specialized Environmental
Resources
US based provider of geotechnical and environmental drilling
environmental remediation and marine transportation serv ices
Gulf Coast Specialty
Energy Serv ices
172015 Detectent US based provider of customer intelligence solutions for electric gas
and water utility decision support in North America
Silver Spring Networks
162015 Sagebrush Pipeline
Equipment
US based provider and manufacturer of pipeline products fabricated
systems and equipment to the midstream oil and gas industry
Management Buyout
162015 JP Hydro US based provider of pipeline testing and maintenance serv ices in
North America
Rock Hill Capital Group
152015 US Hose Corporation US based provider and manufacturer of high pressure and flexible
metallic hoses for industrial end markets
Arlington Capital Partners
152015 Chemtec Energy Serv ices US based manufacturer and provider of blending injection and
metering equipment for the oil and gas industry
LB Foster
12312014 TriStar Global Energy
Solutions
US based provider of tank cleaning and related serv ices to the
downstream oil amp gas and power generation industries
Thompson Street Capital
Partners
12232014 Newalta Corporation
Industrial Div ision
CA based provider of industrial and environmental serv ices for a
variety of industrial end markets in Canada and internationally
Birch Hill Equity Partners
PAGE |
PUBLIC MARKETS
4
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Energy Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
36x
46x
46x
50x
52x
59x
63x
67x
88x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Logistics
Large Cap Service
Equipment
Distribution
21
52
70
87
107
113
185
201
329
OCTG
EampC
Land Drillers
Large Cap Service
Small Cap Service
Logistics
Equipment
Offshore Drillers
Distribution
(80)
(59)
(54)
(34)
(23)
(13)
(08)
(02)
28
OCTG
Large Cap Services
Land Drillers
Distribution
Equipment
Offshore Drillers
EampC
Small Cap Service
Logistics
36x
42x
47x
48x
52x
57x
62x
67x
84x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Large Cap Service
Logistics
Equipment
Distribution
67
115
189
205
208
229
319
338
424
Distribution
EampC
OCTG
Equipment
Large Cap Service
Small Cap Service
Land Drillers
Logistics
Offshore Drillers
63
101
178
183
203
204
305
335
413
Distribution
EampC
Small Cap Service
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
PAGE |
PUBLIC MARKETS CONT
5
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Power Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015E)
92x
99x
102x
Large Cap
EE and Cleantech
Mid and Small-Cap
102x
108x
110x
Large Cap
EE and Cleantech
Mid and Small-Cap
37
91
214
Large Cap
Mid and Small-Cap
EE and Cleantech
(50)
66
119
Large Cap
Mid and Small-Cap
EE and Cleantech
(134)
160
168
EE and Cleantech
Large Cap
Mid and Small-Cap
(89)
157
172
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS CONT
6
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Infrastructure Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
58x
72x
73x
79x
101x
Large Cap
Industrial
Services
Utility Services
Mid and Small-
Cap
Engineering Svc
69x
73x
78x
80x
94x
Utility Services
Mid and Small-
Cap
Large Cap
Industrial Services
Engineering Svc
64
73
83
93
102
Mid and Small-Cap
Large Cap
Industrial Services
Utility Services
Engineering Svc
72
78
79
100
106
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Engineering Svc
110
126
141
197
201
Large Cap
Mid and Small-
Cap
Industrial Services
Engineering Svc
Utility Services
22
77
89
104
152
Large Cap
Mid and Small-
Cap
Utility Services
Industrial Services
Engineering Svc
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Date Target Business Description Acquirer
232015 Verengo Solar Northeast
Operations
US based provider of solar installation and maintenance serv ices in
North America
NRG Energy
1272015 US Water Serv ices US based provider of chemicals and equipment for water management
and treatment to industrial customers in North America
Allete
1272015 Gem Mobile Treatment
Serv ices
US based provider of mobile or fixed vapor control and wastewater
treatment serv ices
Evergreen Industrial
Serv ices
1132015 UCI Construction Serv ices US based provider of construction and installation serv ices for telecom
and broadband serv ices
Concentric Equity Partners
1132015 MampM Environmental Oil
Field Serv ices
US based provider of environmental serv ices and safety to various
companies
Omega Capital
Management
1132015 Klines Serv ices US based provider of septic tank and wastewater management
serv ices for industrial end markets
Wind River Env ironmental
1122015 Kirkey Specialized Drilling
and Consulting
US based provider of drilling solutions for the upstream oil and gas
industry
First Drilling Group
1102015 Longs Tank Wash US based provider of cleaning serv ices for petroleum tankers in North
America
Quala
192015 Cimarron Acid Serv ices US based provider of pressure pumping serv ices to the oil and gas
industry
Quintana Energy Serv ices
182015 North American Substation
Serv ices LLC
US based provider of installation repair and maintenance serv ices for
electrical equipment and utility substations in the US
Industrial Growth Partners
172015 Specialized Environmental
Resources
US based provider of geotechnical and environmental drilling
environmental remediation and marine transportation serv ices
Gulf Coast Specialty
Energy Serv ices
172015 Detectent US based provider of customer intelligence solutions for electric gas
and water utility decision support in North America
Silver Spring Networks
162015 Sagebrush Pipeline
Equipment
US based provider and manufacturer of pipeline products fabricated
systems and equipment to the midstream oil and gas industry
Management Buyout
162015 JP Hydro US based provider of pipeline testing and maintenance serv ices in
North America
Rock Hill Capital Group
152015 US Hose Corporation US based provider and manufacturer of high pressure and flexible
metallic hoses for industrial end markets
Arlington Capital Partners
152015 Chemtec Energy Serv ices US based manufacturer and provider of blending injection and
metering equipment for the oil and gas industry
LB Foster
12312014 TriStar Global Energy
Solutions
US based provider of tank cleaning and related serv ices to the
downstream oil amp gas and power generation industries
Thompson Street Capital
Partners
12232014 Newalta Corporation
Industrial Div ision
CA based provider of industrial and environmental serv ices for a
variety of industrial end markets in Canada and internationally
Birch Hill Equity Partners
PAGE |
PUBLIC MARKETS
4
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Energy Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
36x
46x
46x
50x
52x
59x
63x
67x
88x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Logistics
Large Cap Service
Equipment
Distribution
21
52
70
87
107
113
185
201
329
OCTG
EampC
Land Drillers
Large Cap Service
Small Cap Service
Logistics
Equipment
Offshore Drillers
Distribution
(80)
(59)
(54)
(34)
(23)
(13)
(08)
(02)
28
OCTG
Large Cap Services
Land Drillers
Distribution
Equipment
Offshore Drillers
EampC
Small Cap Service
Logistics
36x
42x
47x
48x
52x
57x
62x
67x
84x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Large Cap Service
Logistics
Equipment
Distribution
67
115
189
205
208
229
319
338
424
Distribution
EampC
OCTG
Equipment
Large Cap Service
Small Cap Service
Land Drillers
Logistics
Offshore Drillers
63
101
178
183
203
204
305
335
413
Distribution
EampC
Small Cap Service
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
PAGE |
PUBLIC MARKETS CONT
5
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Power Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015E)
92x
99x
102x
Large Cap
EE and Cleantech
Mid and Small-Cap
102x
108x
110x
Large Cap
EE and Cleantech
Mid and Small-Cap
37
91
214
Large Cap
Mid and Small-Cap
EE and Cleantech
(50)
66
119
Large Cap
Mid and Small-Cap
EE and Cleantech
(134)
160
168
EE and Cleantech
Large Cap
Mid and Small-Cap
(89)
157
172
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS CONT
6
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Infrastructure Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
58x
72x
73x
79x
101x
Large Cap
Industrial
Services
Utility Services
Mid and Small-
Cap
Engineering Svc
69x
73x
78x
80x
94x
Utility Services
Mid and Small-
Cap
Large Cap
Industrial Services
Engineering Svc
64
73
83
93
102
Mid and Small-Cap
Large Cap
Industrial Services
Utility Services
Engineering Svc
72
78
79
100
106
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Engineering Svc
110
126
141
197
201
Large Cap
Mid and Small-
Cap
Industrial Services
Engineering Svc
Utility Services
22
77
89
104
152
Large Cap
Mid and Small-
Cap
Utility Services
Industrial Services
Engineering Svc
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
PUBLIC MARKETS
4
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Energy Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
36x
46x
46x
50x
52x
59x
63x
67x
88x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Logistics
Large Cap Service
Equipment
Distribution
21
52
70
87
107
113
185
201
329
OCTG
EampC
Land Drillers
Large Cap Service
Small Cap Service
Logistics
Equipment
Offshore Drillers
Distribution
(80)
(59)
(54)
(34)
(23)
(13)
(08)
(02)
28
OCTG
Large Cap Services
Land Drillers
Distribution
Equipment
Offshore Drillers
EampC
Small Cap Service
Logistics
36x
42x
47x
48x
52x
57x
62x
67x
84x
Land Drillers
Small Cap Service
EampC
Offshore Drillers
OCTG
Large Cap Service
Logistics
Equipment
Distribution
67
115
189
205
208
229
319
338
424
Distribution
EampC
OCTG
Equipment
Large Cap Service
Small Cap Service
Land Drillers
Logistics
Offshore Drillers
63
101
178
183
203
204
305
335
413
Distribution
EampC
Small Cap Service
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
PAGE |
PUBLIC MARKETS CONT
5
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Power Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015E)
92x
99x
102x
Large Cap
EE and Cleantech
Mid and Small-Cap
102x
108x
110x
Large Cap
EE and Cleantech
Mid and Small-Cap
37
91
214
Large Cap
Mid and Small-Cap
EE and Cleantech
(50)
66
119
Large Cap
Mid and Small-Cap
EE and Cleantech
(134)
160
168
EE and Cleantech
Large Cap
Mid and Small-Cap
(89)
157
172
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS CONT
6
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Infrastructure Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
58x
72x
73x
79x
101x
Large Cap
Industrial
Services
Utility Services
Mid and Small-
Cap
Engineering Svc
69x
73x
78x
80x
94x
Utility Services
Mid and Small-
Cap
Large Cap
Industrial Services
Engineering Svc
64
73
83
93
102
Mid and Small-Cap
Large Cap
Industrial Services
Utility Services
Engineering Svc
72
78
79
100
106
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Engineering Svc
110
126
141
197
201
Large Cap
Mid and Small-
Cap
Industrial Services
Engineering Svc
Utility Services
22
77
89
104
152
Large Cap
Mid and Small-
Cap
Utility Services
Industrial Services
Engineering Svc
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
PUBLIC MARKETS CONT
5
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Power Equipment and Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015E)
92x
99x
102x
Large Cap
EE and Cleantech
Mid and Small-Cap
102x
108x
110x
Large Cap
EE and Cleantech
Mid and Small-Cap
37
91
214
Large Cap
Mid and Small-Cap
EE and Cleantech
(50)
66
119
Large Cap
Mid and Small-Cap
EE and Cleantech
(134)
160
168
EE and Cleantech
Large Cap
Mid and Small-Cap
(89)
157
172
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS CONT
6
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Infrastructure Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
58x
72x
73x
79x
101x
Large Cap
Industrial
Services
Utility Services
Mid and Small-
Cap
Engineering Svc
69x
73x
78x
80x
94x
Utility Services
Mid and Small-
Cap
Large Cap
Industrial Services
Engineering Svc
64
73
83
93
102
Mid and Small-Cap
Large Cap
Industrial Services
Utility Services
Engineering Svc
72
78
79
100
106
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Engineering Svc
110
126
141
197
201
Large Cap
Mid and Small-
Cap
Industrial Services
Engineering Svc
Utility Services
22
77
89
104
152
Large Cap
Mid and Small-
Cap
Utility Services
Industrial Services
Engineering Svc
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
PUBLIC MARKETS CONT
6
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Infrastructure Services
TEV LTM EBITDA TEV 2014E EBITDA
AVERAGE REVENUE GROWTH (2011 ndash 2013) AVERAGE REVENUE GROWTH (2013 ndash 2015P)
AVERAGE EBITDA MARGIN (2011 ndash 2013) AVERAGE EBITDA MARGIN (2013 ndash 2015P)
58x
72x
73x
79x
101x
Large Cap
Industrial
Services
Utility Services
Mid and Small-
Cap
Engineering Svc
69x
73x
78x
80x
94x
Utility Services
Mid and Small-
Cap
Large Cap
Industrial Services
Engineering Svc
64
73
83
93
102
Mid and Small-Cap
Large Cap
Industrial Services
Utility Services
Engineering Svc
72
78
79
100
106
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Engineering Svc
110
126
141
197
201
Large Cap
Mid and Small-
Cap
Industrial Services
Engineering Svc
Utility Services
22
77
89
104
152
Large Cap
Mid and Small-
Cap
Utility Services
Industrial Services
Engineering Svc
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
INDUSTRY STATISTICS
7
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
2214 5214 8214 11214 2215
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) $268 $300 $494 (106) (458)
Crude Oil ($ per bbl) 4957 5269 9749 (59) (492)
Coal (CAPP) ($ per ton) 4708 5110 5685 (79) (172)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
INDUSTRY STATISTICS
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
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
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
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
36
45
45
102
43
79
-
87
83
130
312
272
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
INDUSTRY STATISTICS
9
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
cont
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
262
0
0
1
1
6
10
18
20
30
40
43
53
135
151
413
Others
Fayetteville
Marcellus
Arkoma Woodford
Haynesville
Ardmore Woodford
Barnett
Utica
Granite Wash
DJ-Niobrara
Cana Woodford
Gulf of Mexico
Mississippian
Williston
Eagle Ford
Permian
(29)
(50)
(33)
(31)
(26)
(25)
(25)
(22)
(21)
(19)
0
0
0
0
2
3
Others
Haynesville
Barnett
Granite Wash
Mississippian
DJ-Niobrara
Williston
Utica
Permian
Eagle Ford
Arkoma Woodford
Fayetteville
Marcellus
Ardmore Woodford
Gulf of Mexico
Cana Woodford
91
0
0
2
3
4
6
9
9
10
17
18
19
23
42
71
Others
Mississippian
Ardmore Woodford
Williston
Cana Woodford
Permian
Arkoma Woodford
Fayetteville
Barnett
Gulf of Mexico
Eagle Ford
DJ-Niobrara
Granite Wash
Utica
Haynesville
Marcellus
(6)
(50)
(43)
(17)
(17)
(12)
(8)
0
0
0
0
0
11
13
20
21
Others
Cana Woodford
Permian
Granite Wash
Gulf of Mexico
Utica
Marcellus
Mississippian
Williston
Ardmore Woodford
DJ-Niobrara
Barnett
Haynesville
Fayetteville
Arkoma Woodford
Eagle Ford
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
INDUSTRY STATISTICS CONT
10
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
US LAND WELLS US LAND WELLS PER RIG
Well Counts3
WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR
18
(30)
(21)
(12)
(6)
(5)
(4)
1
1
5
10
11
12
22
Others
Granite Wash
Barnett
Haynesville
Mississippian
Arkoma Woodford
Williston
Eagle Ford
DJ-Niobrara
Fayetteville
Ardmore Woodford
Permian
Marcellus
Utica
Cana Woodford
229
(131)
(42)
(40)
(29)
(28)
(3)
2
4
7
8
20
28
62
374
Others
Barnett
Ardmore Woodford
Marcellus
Mississippian
Williston
Eagle Ford
Utica
Granite Wash
Arkoma Woodford
Fayetteville
Haynesville
Cana Woodford
DJ-Niobrara
Permian
9075 9083
8966
9456
9542 9544
Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
47
50
51
49
50
5353
54
5253
5251
Q112
Q212
Q312
Q412
Q113
Q213
Q313
Q413
Q114
Q214
Q314
Q414
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy and power MampA market Our Energy amp Power Group hasexperience across a broad range of sectors including services products and technologies that support or enhanceenergy and power infrastructure
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
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
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
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
OUR FIRM
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
12
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
PUBLIC COMPARABLES
13
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
PUBLIC COMPARABLES CONT
15
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
PUBLIC COMPARABLES CONT
17
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Aug-14 Current 2014E 2015P
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $597608 $2389 $2527 (55) (49) $2753 868 216x 220x 203x 242x 224x
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 2015 Harris Williams amp Co all rights reserved
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
PUBLIC COMPARABLES CONT
19
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV Jan-15 Dec-14 Prior Month Prior Year High of High Jan-14 Jul-14 Current 2014E 2015P
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 2015 Harris Williams amp Co all rights reserved
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 2015 Harris Williams amp Co all rights reserved
DISCLOSURES
01 - EampP Monthly Reader (215)_V3
02 - EampP Monthly Reader_Support (215)
PAGE |
ENERGY amp POWER
21
SOURCES
ENERGY amp POWER
INDUSTRY UPDATE FEBRUARY 2015
1 Capital IQ
2 MergerMarket
3 Baker Hughes
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 2015 Harris Williams amp Co all rights reserved