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 & INFRASTRUCTURE INDUSTRY UPDATE │ MAY 2016
23
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ENERGY, POWER & INFRASTRUCTURE · Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co.
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wwwharriswilliamscom
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised andregulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
Brian LucasManaging Directorblucasharriswilliamscom +1 (804) 932-1323
Matt WhiteManaging Director mwhiteharriswilliamscom+1 (804) 915-0131
Luke SempleDirectorlsempleharriswilliamscom+1 (804) 915-0158
Chris BurnhamVice Presidentcburnhamharriswilliamscom +1 (804) 915-0142
Ian ThomasVice Presidentithomasharriswilliamscom+1 (804) 932-1384
EUROPE
Jeff PerkinsManaging Director jperkinsharriswilliamscom+49 (0) 69 3650638 00
MampA | SELECT RECENT ACTIVITY
Oracle (NYSEORCL) has entered into a definite agreement to acquire Opower
(NYSEOPWR) in a transaction valued at approximately $532 million Opower is a
leading provider of customer engagement and energy efficiency cloud services
to the $23 trillion utilities industry Opower serves over 100 global utilities 60 million
utility end customers and has stored and analyzed over 600 billion meter reads
into its big data platformSource | Instapaper
Tercel Oilfield Products a portfolio company of Lime Rock Partners has been
acquired by Warburg Pincus-backed Rubicon Oilfield International Tercel is a
global provider of drilling and completion tools and technologies Rubicon was
founded in partnership with Warburg Pincus in 2015 to create a global enterprise in
the upstream oilfield technology sectorSource | Instapaper
The Integrated Demand Resources (iDR) business of Johnson Controls (NYSEJCI) has been acquired by CPower CPower is an energy management company that creates strategies to help businesses streamline energy usage offset costs through Demand Response participation and reach sustainability goalsSource | Instapaper
Technip (EuronextTEC) and FMC Technologies (NYSEFTI) have entered into a definitive merger agreement that will create a global oilfield and subsea engineering and technology company with an approximate market capitalization of $13 billion The transaction is estimated to deliver at least $400 million in annual pretax cost synergies by 2019 FMC is the global leader in subsea system engineering services and technologies Technip is a world leader in project management engineering and construction for the energy industrySource | Instapaper
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
PUBLIC MARKETS | KEY TRADING STATISTICS
Stock Price Change TEV EBITDA
1 Month 12 Month May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service (42) (249) 78x 89x 144x 125x 254x
Equipment (24) (310) 75x 65x 79x 69x 111x
Small-Cap Service (116) (679) 83x 88x 110x 75x 110x
OCTG (52) (306) 65x 78x 116x 88x 121x
Distribution (55) (224) 132x 76x 97x 74x NM
Logistics (205) (659) 62x 66x 67x 54x 82x
Offshore Drillers (45) (522) 57x 44x 35x 35x 56x
Land Drillers (67) (392) 45x 43x 50x 50x 128x
EampC (50) (185) 89x 48x 47x 46x 45x
Power Services and Equipment
Large Cap PSampE (24) (71) 121x 102x 105x 107x 104x
Small-Cap PSampE (16) 08 122x 117x 108x 110x 108x
EE and Cleantech (51) (311) 103x 143x 117x 112x 95x
ldquoI explained how [YieldCos] (which own solar farms wind farms and similar assets) could grow their dividends atdouble-digit rates despite no internal growth or retained earnings This ldquoweird trickrdquo can work so long as the YieldCorsquosstock price is rising allowing it to sell stock at higher valuations and increase the amount of money invested per shareAs long as investors expected dividends to continue to rise rapidly they fed this virtuous cycle by bidding the stockprice up which in turn increased the expected dividend growth Many YieldCos increased their dividend increaseprojections in 2014 and early 2015 when the bubble was at its height Then the YieldCos got greedyrdquo
Greentech Media | Instapaper
2
RENEWABLES | THE YIELDCO BOOM AND BUST
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
ldquoThe final regulations unveiled Thursday will add an estimated $530 million in additional costs per year by 2025according to the Environmental Protection Agency Thatrsquos at least 25 percent higher than the preliminary versionreleased in August and it comes as low oil prices force the industry to pare spending on new explorationrdquo
Bloomberg New Energy Finance | Instapaper
OIL amp GAS | HEIGHTENED METHANE REGULATIONS
ldquoThis summer if all goes according to plan the second reactor at Watts Bar Nuclear Power Plant will begin supplyingpower to the US electrical grid Construction on the reactor in Spring City Tennessee has proceeded in fits and startssince the project began in 1973 It will be the first new nuclear reactor to come online in the US since the first WattsBar reactor was completed 20 years ago
Quartz | Instapaper
NUCLEAR | BETTER LATE THAN NEVER
COAL | REQUIEM FOR KING COAL
ldquoAs crude prices have fallen about 60 percent since their most recent peak in June 2014 investors have seen $1trillion in value vanish More than 40 oil-related companies have sought bankruptcy protection and more filings areexpected Lenders are setting aside billions of dollars to cover losses But over the last seven calendar years Pioneerrsquosstock has risen an average of 34 percent annually more than 10 times the rate of Exxon and Shell In 2016 its sharesare up 29 percentrdquo
Bloomberg | Instapaper
OIL amp GAS | PIONEER ndash A RARE BRIGHT SPOT
OIL amp GAS | NOT-SO-BIG OIL
ldquoAmericarsquos coal industry is hurting In the past year thousands of workers have been laid off and a majority of thecountryrsquos major coal companies have filed for bankruptcy Coal production is at a 30-year lowBut what does itsound likerdquo
Inside Energy | Instapaper
ldquoNot only do the supermajors need to brace for the possibility of a renewed slide in oil prices in the short term theymust also prepare for a future in which oil demand is increasingly uncertain because of climate change pollution andthe emergence of alternative sources of energyhellipin the meantime companies need to develop a new businessmodel built around a quest for returns rather than for reservesldquo
The Economist | Instapaper
INFRASTRUCTURE | SYSTEM OVERLOAD
ldquoFrom the crumbling bridges of California to the overflowing sewage drains of Houston and the rusting railroad tracksin the Northeast Corridor decaying infrastructure is all around us and the consequences are so familiar that webarely notice themmdashlike urban traffic congestion slow-moving trains and flights that are often disrupted thanks to anoutdated air-traffic-control system The costs are significant once you reckon wasted time lost productivity poorpublic-health outcomes and increased carbon emissionsrdquo
The New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
Brian LucasManaging Directorblucasharriswilliamscom +1 (804) 932-1323
Matt WhiteManaging Director mwhiteharriswilliamscom+1 (804) 915-0131
Luke SempleDirectorlsempleharriswilliamscom+1 (804) 915-0158
Chris BurnhamVice Presidentcburnhamharriswilliamscom +1 (804) 915-0142
Ian ThomasVice Presidentithomasharriswilliamscom+1 (804) 932-1384
EUROPE
Jeff PerkinsManaging Director jperkinsharriswilliamscom+49 (0) 69 3650638 00
MampA | SELECT RECENT ACTIVITY
Oracle (NYSEORCL) has entered into a definite agreement to acquire Opower
(NYSEOPWR) in a transaction valued at approximately $532 million Opower is a
leading provider of customer engagement and energy efficiency cloud services
to the $23 trillion utilities industry Opower serves over 100 global utilities 60 million
utility end customers and has stored and analyzed over 600 billion meter reads
into its big data platformSource | Instapaper
Tercel Oilfield Products a portfolio company of Lime Rock Partners has been
acquired by Warburg Pincus-backed Rubicon Oilfield International Tercel is a
global provider of drilling and completion tools and technologies Rubicon was
founded in partnership with Warburg Pincus in 2015 to create a global enterprise in
the upstream oilfield technology sectorSource | Instapaper
The Integrated Demand Resources (iDR) business of Johnson Controls (NYSEJCI) has been acquired by CPower CPower is an energy management company that creates strategies to help businesses streamline energy usage offset costs through Demand Response participation and reach sustainability goalsSource | Instapaper
Technip (EuronextTEC) and FMC Technologies (NYSEFTI) have entered into a definitive merger agreement that will create a global oilfield and subsea engineering and technology company with an approximate market capitalization of $13 billion The transaction is estimated to deliver at least $400 million in annual pretax cost synergies by 2019 FMC is the global leader in subsea system engineering services and technologies Technip is a world leader in project management engineering and construction for the energy industrySource | Instapaper
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
PUBLIC MARKETS | KEY TRADING STATISTICS
Stock Price Change TEV EBITDA
1 Month 12 Month May-15 Nov-15 Current 2015 2016E
Energy Services and Equipment
Large Cap Service (42) (249) 78x 89x 144x 125x 254x
Equipment (24) (310) 75x 65x 79x 69x 111x
Small-Cap Service (116) (679) 83x 88x 110x 75x 110x
OCTG (52) (306) 65x 78x 116x 88x 121x
Distribution (55) (224) 132x 76x 97x 74x NM
Logistics (205) (659) 62x 66x 67x 54x 82x
Offshore Drillers (45) (522) 57x 44x 35x 35x 56x
Land Drillers (67) (392) 45x 43x 50x 50x 128x
EampC (50) (185) 89x 48x 47x 46x 45x
Power Services and Equipment
Large Cap PSampE (24) (71) 121x 102x 105x 107x 104x
Small-Cap PSampE (16) 08 122x 117x 108x 110x 108x
EE and Cleantech (51) (311) 103x 143x 117x 112x 95x
ldquoI explained how [YieldCos] (which own solar farms wind farms and similar assets) could grow their dividends atdouble-digit rates despite no internal growth or retained earnings This ldquoweird trickrdquo can work so long as the YieldCorsquosstock price is rising allowing it to sell stock at higher valuations and increase the amount of money invested per shareAs long as investors expected dividends to continue to rise rapidly they fed this virtuous cycle by bidding the stockprice up which in turn increased the expected dividend growth Many YieldCos increased their dividend increaseprojections in 2014 and early 2015 when the bubble was at its height Then the YieldCos got greedyrdquo
Greentech Media | Instapaper
2
RENEWABLES | THE YIELDCO BOOM AND BUST
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
ldquoThe final regulations unveiled Thursday will add an estimated $530 million in additional costs per year by 2025according to the Environmental Protection Agency Thatrsquos at least 25 percent higher than the preliminary versionreleased in August and it comes as low oil prices force the industry to pare spending on new explorationrdquo
Bloomberg New Energy Finance | Instapaper
OIL amp GAS | HEIGHTENED METHANE REGULATIONS
ldquoThis summer if all goes according to plan the second reactor at Watts Bar Nuclear Power Plant will begin supplyingpower to the US electrical grid Construction on the reactor in Spring City Tennessee has proceeded in fits and startssince the project began in 1973 It will be the first new nuclear reactor to come online in the US since the first WattsBar reactor was completed 20 years ago
Quartz | Instapaper
NUCLEAR | BETTER LATE THAN NEVER
COAL | REQUIEM FOR KING COAL
ldquoAs crude prices have fallen about 60 percent since their most recent peak in June 2014 investors have seen $1trillion in value vanish More than 40 oil-related companies have sought bankruptcy protection and more filings areexpected Lenders are setting aside billions of dollars to cover losses But over the last seven calendar years Pioneerrsquosstock has risen an average of 34 percent annually more than 10 times the rate of Exxon and Shell In 2016 its sharesare up 29 percentrdquo
Bloomberg | Instapaper
OIL amp GAS | PIONEER ndash A RARE BRIGHT SPOT
OIL amp GAS | NOT-SO-BIG OIL
ldquoAmericarsquos coal industry is hurting In the past year thousands of workers have been laid off and a majority of thecountryrsquos major coal companies have filed for bankruptcy Coal production is at a 30-year lowBut what does itsound likerdquo
Inside Energy | Instapaper
ldquoNot only do the supermajors need to brace for the possibility of a renewed slide in oil prices in the short term theymust also prepare for a future in which oil demand is increasingly uncertain because of climate change pollution andthe emergence of alternative sources of energyhellipin the meantime companies need to develop a new businessmodel built around a quest for returns rather than for reservesldquo
The Economist | Instapaper
INFRASTRUCTURE | SYSTEM OVERLOAD
ldquoFrom the crumbling bridges of California to the overflowing sewage drains of Houston and the rusting railroad tracksin the Northeast Corridor decaying infrastructure is all around us and the consequences are so familiar that webarely notice themmdashlike urban traffic congestion slow-moving trains and flights that are often disrupted thanks to anoutdated air-traffic-control system The costs are significant once you reckon wasted time lost productivity poorpublic-health outcomes and increased carbon emissionsrdquo
The New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
wwwharriswilliamscom
WHAT WErsquoRE READING
ldquoI explained how [YieldCos] (which own solar farms wind farms and similar assets) could grow their dividends atdouble-digit rates despite no internal growth or retained earnings This ldquoweird trickrdquo can work so long as the YieldCorsquosstock price is rising allowing it to sell stock at higher valuations and increase the amount of money invested per shareAs long as investors expected dividends to continue to rise rapidly they fed this virtuous cycle by bidding the stockprice up which in turn increased the expected dividend growth Many YieldCos increased their dividend increaseprojections in 2014 and early 2015 when the bubble was at its height Then the YieldCos got greedyrdquo
Greentech Media | Instapaper
2
RENEWABLES | THE YIELDCO BOOM AND BUST
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
ldquoThe final regulations unveiled Thursday will add an estimated $530 million in additional costs per year by 2025according to the Environmental Protection Agency Thatrsquos at least 25 percent higher than the preliminary versionreleased in August and it comes as low oil prices force the industry to pare spending on new explorationrdquo
Bloomberg New Energy Finance | Instapaper
OIL amp GAS | HEIGHTENED METHANE REGULATIONS
ldquoThis summer if all goes according to plan the second reactor at Watts Bar Nuclear Power Plant will begin supplyingpower to the US electrical grid Construction on the reactor in Spring City Tennessee has proceeded in fits and startssince the project began in 1973 It will be the first new nuclear reactor to come online in the US since the first WattsBar reactor was completed 20 years ago
Quartz | Instapaper
NUCLEAR | BETTER LATE THAN NEVER
COAL | REQUIEM FOR KING COAL
ldquoAs crude prices have fallen about 60 percent since their most recent peak in June 2014 investors have seen $1trillion in value vanish More than 40 oil-related companies have sought bankruptcy protection and more filings areexpected Lenders are setting aside billions of dollars to cover losses But over the last seven calendar years Pioneerrsquosstock has risen an average of 34 percent annually more than 10 times the rate of Exxon and Shell In 2016 its sharesare up 29 percentrdquo
Bloomberg | Instapaper
OIL amp GAS | PIONEER ndash A RARE BRIGHT SPOT
OIL amp GAS | NOT-SO-BIG OIL
ldquoAmericarsquos coal industry is hurting In the past year thousands of workers have been laid off and a majority of thecountryrsquos major coal companies have filed for bankruptcy Coal production is at a 30-year lowBut what does itsound likerdquo
Inside Energy | Instapaper
ldquoNot only do the supermajors need to brace for the possibility of a renewed slide in oil prices in the short term theymust also prepare for a future in which oil demand is increasingly uncertain because of climate change pollution andthe emergence of alternative sources of energyhellipin the meantime companies need to develop a new businessmodel built around a quest for returns rather than for reservesldquo
The Economist | Instapaper
INFRASTRUCTURE | SYSTEM OVERLOAD
ldquoFrom the crumbling bridges of California to the overflowing sewage drains of Houston and the rusting railroad tracksin the Northeast Corridor decaying infrastructure is all around us and the consequences are so familiar that webarely notice themmdashlike urban traffic congestion slow-moving trains and flights that are often disrupted thanks to anoutdated air-traffic-control system The costs are significant once you reckon wasted time lost productivity poorpublic-health outcomes and increased carbon emissionsrdquo
The New Yorker | Instapaper
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
MampA TRANSACTIONS
3
RECENT MampA TRANSACTIONS12
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Date Target Business Description Acquirer
5192016 FMC Technologies US based global serv ice provider and designer of technological
systems and products for the energy industry
Technip
5162016 Chesapeake Testing
Serv ices
US based provider of environmental simulation and NDT and ballistic
experimentation
National Technical Systems
5122016 LSB Industries Climate
Control Business
US based climate control business of LSB Industries the manufacturer
of various chemical products and water source and geothermal heat
pumps
NIBE
5112016 US Refueling US based supplier of diesel fuels propane and exhaust fluids for
commercial and industrial customers in the US
RelaDyne
5102016 Green Charge Networks US based manufacturer of energy storage systems for commercial
retail and industrial customres
ENGIE SA
5102016 Tercel Oilfield Products US based manufacturer of oilfield products for drilling completion and
production projects in the upstream oil and gas industry
Rubicon Oilfield
International
542016 Stevenson amp Associates US based provider of civ il structural and mechanical engineering
serv ices for special performance facilities
JENSEN HUGHES
522016 Johnson Controls
Integrated DR Business
US based integrated demand resources (iDR) business of Johnson
Controls a global energy technology and diversified industrial
company
CPower
522016 WEDGE Energy Serv ices US based provider of engineering construction and investment in oil
and gas properties
Legacy Measurement
Solutions
512016 Opower US based provider of cloud-based software to the utility industry Oracle
4282016 Team Oil Tools Completion
Packer Business
US based completion packer business of Team Oil Tools a
manufacturer and supplier of a wide range of oil and gas industry
equipment
Forum Energy Technologies
4272016 Colmar Belting US based distributor of conveyor belts and belting serv ices primarily for
the power transmission industry
Motion Industries
4262016 Summit Casing Equipment US based provider of casing equipment and related products to the oil
and gas industry
Renovo Capital
4252016 Global Resource Options US based provider of engineering procurement construction and
other serv ices for solar PV projects
EDF Renewable Energy
4212016 SunEdison Rooftop Solar
Business
US based Rooftop Solar div ision of SunEdison the global prov ider of
renewable power to residential commercial government and utility
clients
Ecotricity Group
4132016 Dexter Field Serv ices US based provider of leak detection and repair and monitoring
serv ices
ATC Group Serv ices
4122016 The Van Dyke Technology
Group
US based information systems engineering company providing
information-sharing solutions for the federal government
Jacobs Engineering
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
PUBLIC MARKETS OVERVIEW
4
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Energy Equipment and Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
35x
47x
50x
67x
79x
97x
110x
116x
144x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
(30)
(28)
46
54
64
73
82
110
122
EampC
OCTG
Land Drillers
Large Cap Service
Distribution
Small Cap Service
Logistics
Offshore Drillers
Equipment
35x
46x
50x
54x
69x
74x
75x
88x
125x
Offshore Drillers
EampC
Land Drillers
Logistics
Equipment
Distribution
Small Cap Service
OCTG
Large Cap Service
64
107
187
199
204
216
311
338
454
Distribution
EampC
OCTG
Small Cap Service
Large Cap Service
Equipment
Land Drillers
Logistics
Offshore Drillers
17
73
112
120
176
179
276
294
478
Distribution
Small Cap Service
EampC
OCTG
Equipment
Large Cap Service
Land Drillers
Logistics
Offshore Drillers
(411)
(352)
(293)
(289)
(278)
(267)
(202)
(152)
(28)
Land Drillers
Small Cap Service
Large Cap Services
Equipment
Distribution
OCTG
Logistics
Offshore Drillers
EampC
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
PUBLIC MARKETS OVERVIEW
5
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Power Equipment and Services
107x
110x
112x
Large Cap
Mid and Small-Cap
EE and Cleantech
105x
108x
117x
Large Cap
Mid and Small-Cap
EE and Cleantech
25
51
125
Large Cap
Mid and Small-Cap
EE and Cleantech
(20)
22
140
Large Cap
Mid and Small-Cap
EE and Cleantech
(157)
156
174
EE and Cleantech
Large Cap
Mid and Small-Cap
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
(198)
158
167
EE and Cleantech
Large Cap
Mid and Small-Cap
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
PUBLIC MARKETS OVERVIEW
6
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Infrastructure Services
75x
79x
85x
89x
90x
Industrial Services
Utility Services
Large Cap
Mid and Small-Cap
Design Professional
Services
62x
87x
94x
94x
96x
Large Cap
Design Professional
Services
Mid and Small-Cap
Utility Services
Industrial Services
57
60
61
89
95
Industrial Services
Large Cap
Mid and Small-Cap
Design Professional
Services
Utility Services
59
61
62
90
93
Mid and Small-Cap
Industrial Services
Large Cap
Utility Services
Design Professional
Services
45
64
65
114
216
Mid and Small-Cap
Large Cap
Design Professional
Services
Utility Services
Industrial Services
(56)
44
55
68
122
Large Cap
Mid and Small-Cap
Industrial Services
Utility Services
Design Professional
Services
TEV LTM EBITDA TEV 2015 EBITDA
AVERAGE REVENUE GROWTH (2012 ndash 2014) AVERAGE REVENUE GROWTH (2014 ndash 2016E)
AVERAGE EBITDA MARGIN (2012 ndash 2014) AVERAGE EBITDA MARGIN (2014 ndash 2016E)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
INDUSTRY STATISTICS
7
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
(Indexed to 100)
TRAILING TWELVE MONTHS
Commodity Prices
25
50
75
100
125
May-15 Aug-15 Nov-15 Feb-16 May-16
Natural Gas (NYMEX^NG) Crude Oil (NYMEX^CL) Coal (NYMEX^QL)
Price Change From
Current Prior Month Prior Year Prior Month Prior Year
Natural Gas ($ per MMBtu) $221 $218 $296 12 (254)
Crude Oil ($ per bbl) 4841 4418 5898 96 (179)
Coal (CAPP) ($ per ton) 4363 4363 4618 00 (55)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
INDUSTRY STATISTICS
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US RIG COUNTS INTERNATIONAL RIG COUNTS
Rig Counts3
INTERNATIONAL RIG COUNT BY COUNTRY
US OIL VS GAS RIG COUNT
US HORIZONTALDIRECTIONAL VS VERTICAL RIG COUNT
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Oil
Gas
0
200
400
600
800
1000
1200
1400
1600
1800
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Horizontal Directional
Vertical
400
600
800
1000
1200
1400
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
29
20
36
74
54
36
-
70
54
105
287
167
North Sea
Africa
Europe
Asia Pacific
Middle East
Latin America
Offshore Land
8
0
500
1000
1500
2000
2500
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
INDUSTRY STATISTICS
9
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION
Rig Counts3
YTD CHANGE IN US OIL RIG COUNT BY REGION YTD CHANGE IN US GAS RIG COUNT BY REGION
79
-
-
-
-
-
1
2
3
4
13
18
23
27
29
137
Others
Arkoma Woodford
Fayetteville
Marcellus
Haynesville
Utica
Ardmore Woodford
Barnett
Mississippian
Granite Wash
DJ-Niobrara
Gulf of Mexico
Williston
Eagle Ford
Cana Woodford
Permian
(100)
(73)
(67)
(58)
(53)
(50)
(41)
(32)
(32)
(20)
(14)
(12)
0
0
0
0
Arkoma Woodford
Mississippian
Ardmore Woodford
Eagle Ford
Williston
Barnett
DJ-Niobrara
Others
Permian
Granite Wash
Gulf of Mexico
Cana Woodford
Fayetteville
Marcellus
Haynesville
Utica
29
-
-
-
-
-
-
-
-
-
2
4
5
10
14
26
Others
Mississippian
Williston
Ardmore Woodford
Permian
Fayetteville
Cana Woodford
DJ-Niobrara
Barnett
Granite Wash
Arkoma Woodford
Eagle Ford
Gulf of Mexico
Utica
Haynesville
Marcellus
(37)
(100)
(100)
(100)
(100)
(39)
(33)
(30)
(29)
(17)
0
0
0
0
0
100
Others
Permian
Cana Woodford
Barnett
Granite Wash
Haynesville
Eagle Ford
Marcellus
Utica
Gulf of Mexico
Mississippian
Williston
Ardmore Woodford
Fayetteville
DJ-Niobrara
Arkoma Woodford
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
INDUSTRY STATISTICS
10
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Construction Spend4
YoY CHANGE BY SECTOR MoM CHANGE BY SECTOR
NON-RESIDENTIAL US CONSTRUCTION SPEND
Seasonally Adjusted Annual Rate
($ in Millions)
$0
$100000
$200000
$300000
$400000
$500000
$600000
$700000
$800000
02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
Total Private Public
(123)
(61)
(33)
(21)
08
12
38
41
64
96
104
118
145
188
195
277
Public Safety
Water Supply
Conservation
Manufacturing
Power
Transportation
Sewage amp Waste
Healthcare
Religious
Amusement
Communication
Educational
Commercial
Highway amp Street
Office
Lodging
(78)
(42)
(32)
(21)
(16)
(13)
(10)
(06)
05
10
12
16
16
20
37
52
Public Safety
Sewage amp Waste
Power
Transportation
Water Supply
Office
Amusement
Educational
Highway amp Street
Lodging
Commercial
Conservation
Healthcare
Manufacturing
Communication
Religious
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
INDUSTRY STATISTICS
11
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
HISTORICAL ARCHITECTURAL BILLINGS INDEX (ABI) CampI AND INSTITUTIONAL ABI SCORES
Construction Indicators56
NEW DESIGN CONTRACTS DODGE MOMENTUM INDEX (DMI)
Indexed to Year 2000
50
75
100
125
150
175
200
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Billings Inquiries
20
25
30
35
40
45
50
55
60
65
70
03
04
05
06
07
08
09
10
11
12
13
14
15
16
Commercial Industrial Institutional
40
42
44
46
48
50
52
54
56
58
Ap
r-11
Oc
t-1
1
Ap
r-12
Oc
t-1
2
Ap
r-13
Oc
t-1
3
Ap
r-14
Oc
t-1
4
Ap
r-15
Oc
t-1
5
Ap
r-16
Seasonally Adjusted
Seasonally Adjusted Seasonally Adjusted
April 506 569 520 490
April 543 1165
ABI Derived from the AIArsquos monthly Work-on-the-Boards survey an index score above 50 denotes increased billing from prior month and vice versa
DMI 12-month indicator of future construction spending and demand for construction products services
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
OUR GROUP
Harris Williams amp Co is a leading advisor to the energy power and infrastructure MampA market Our Energy Power ampInfrastructure Group has experience across a broad range of sectors including services products and technologiesthat support or enhance energy and power infrastructure
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
SELECT RELEVANT EXPERIENCE
Oil amp Gas Equipment and Services
Coal Products and Services
Energy
Power Products and Technology
Electric and Natural Gas Transmission and Distribution
Energy Efficiency and Clean Technology
Renewable Energy Services and Equipment
Power SELECT RELEVANT EXPERIENCE
Industrial and Infrastructure Services
Engineering and Construction
Environmental Services
Infrastructure SELECT RELEVANT EXPERIENCE
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a subsidiary of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
Tanglewood Investments Inc
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
12
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
amp
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
holdings of
have been acquired by
and
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
Energy Poweramp Infrastructure
IndustrialsHealthcare amp Life Sciences
Transportation amp Logistics
Aerospace Defense amp Government
Services
Business Services
Building Products amp Materials
Technology Media amp Telecom
Specialty Distribution
Consumer
HARRIS WILLIAMS amp CO OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston Massachusetts 02110Phone +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland Ohio 44114Phone +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis Minnesota 55402Phone +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond Virginia 23219Phone +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco California 94105Phone +1 (415) 288-4260
Harris Williams amp Co has a broad range of industry expertise which creates powerful opportunitiesOur clients benefit from our deep-sector experience integrated industry intelligence andcollaboration across the firm and our commitment to learning what makes them unique For moreinformation visit our website at wwwharriswilliamscomindustries
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
OUR FIRM
13
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
PUBLIC COMPARABLES
14
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
PUBLIC COMPARABLES
16
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
PUBLIC COMPARABLES
18
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month Prior Year High of High May-15 Nov-15 Current 2015 2016E
Power Services and Equipment
Large Cap Equipment and Services
General Electric Company $453285 $2956 $3115 (51) 66 $3205 922 348x 310x 295x 279x 214x
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
PUBLIC COMPARABLES
20
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
Stock Performance
Stock Price Change from 52-Week TEV EBITDA EBITDA
TEV May-16 Apr-16 Prior Month May-15 Prior Year High of High May-15 Nov-15 Current 2015 2016E
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved
DISCLOSURES
22
01 - EPampI Monthly Reader (0516)
02 - EPampI Monthly Reader_Support (0516)
01 - EPampI Monthly Reader (0516)
PAGE |
ENERGY POWER amp INFRASTRUCTURE
SOURCES
ENERGY POWER amp INFRASTRUCTURE
INDUSTRY UPDATE MAY 2016
1 Capital IQ
2 MergerMarket
3 Baker Hughes
4 US Department of Commerce
5 American Institute of Architects
6 Dodge Data amp Analytics
Harris Williams amp Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge global transaction expertise and an unwavering commitment to excellence Harris Williams amp Co provides sell-side and acquisition advisory restructuring advisory board advisory private placements and capital markets advisory services
Investment banking services are provided by Harris Williams LLC a registered broker-dealer and member of FINRA and SIPC and Harris Williams amp Co Ltd which is authorised and regulated by the Financial Conduct Authority Harris Williams amp Co is a trade name under which Harris Williams LLC and Harris Williams amp Co Ltd conduct business
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF THE SECURITIES FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS
The information and views contained in this report were prepared by Harris Williams amp Co (ldquoHarris Williamsrdquo) It is not a research report as such term is defined by applicable law and regulations and is provided for informational purposes only It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information Harris Williams andor its affiliates may be market makers or specialists in act as advisers or lenders to have positions in and effect transactions in securities of companies mentioned herein and also may provide may have provided or may seek to provide investment banking services for those companies In addition Harris Williams andor its affiliates or their respective officers directors and employees may hold long or short positions in the securities options thereon or other related financial products of companies discussed herein Opinions estimates and projections in this report constitute Harris Williamsrsquo judgment and are subject to change without notice The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives Also past performance is not necessarily indicative of future results No part of this material may be copied or duplicated in any form or by any means or redistributed without Harris Williamsrsquo prior written consent
Copyrightcopy 2016 Harris Williams amp Co all rights reserved