energy services and equipment - harris williams

`-

Page | 1

Energy & Power Industry Update | February 2014 Harris Williams & Co.

SUMMARY

M&A | Select Recent Activity

GE Oil & Gas has agreed to acquire Cameron’s Reciprocating Compression division for $550 million.

The segment provides reciprocating compression equipment and aftermarket parts & services for the

oil and gas production, processing, and distribution industries. Source | Instapaper

Zachry Holdings has signed an agreement to acquire Commonwealth Engineering. Commonwealth is

a provider of engineering and procurement services, primarily to the refining and petrochemical

sectors. Source | Instapaper

Varel International Energy Services has agreed to be acquired by Sandvik for approximately $740

million. Varel is a leading provider of oil & gas drill bits, mining & industrial tools, and other

downhole products. Source | Instapaper

Littelfuse has completed the acquisition of SymCom. The Company is a provider of overload relays

and pump controllers primarily to the industrial market. Source | Instapaper

Public Markets | Key Trading Statistics

Stock Price % Change TEV / EBITDA

1 Month 12 Month Jan-13 Aug-13 Current 2013E 2014E

Energy Services and Equipment

Large Cap Service (3.1%) 16.3% 7.1x 8.3x 8.0x 6.7x 5.6x

Equipment (6.7%) 2.8% 11.7x 12.1x 11.3x 10.0x 8.5x

Small-Cap Service (2.8%) 9.2% 5.7x 8.0x 8.4x 7.1x 5.6x

OCTG (6.3%) (7.5%) 8.8x 9.0x 7.7x 7.7x 6.6x

Distribution (13.5%) (9.1%) 9.2x 7.4x 8.9x 9.7x 8.3x

Logistics (9.7%) 19.1% 8.4x 11.4x 10.3x 8.7x 7.0x

Offshore Drillers (12.4%) (23.4%) 10.0x 9.0x 7.2x 6.5x 5.0x

Land Drillers 1.5% 10.6% 4.5x 4.8x 4.9x 5.4x 4.9x

E&C (7.1%) (20.8%) 7.0x 9.0x 8.1x 6.7x 6.2x

Power Services and Equipment

Large Cap PS&E (5.7%) 15.5% 9.8x 10.1x 10.9x 9.8x 9.0x

Small-Cap PS&E (3.7%) 11.9% 10.1x 11.8x 12.7x 11.6x 10.1x

EE and Cleantech 12.4% 45.0% 13.5x 18.0x 15.0x 13.4x 12.1x

Industrial & Infrastructure Services

Large Cap (5.3%) 21.0% 8.4x 9.6x 9.9x 7.7x 7.4x

Small-Cap (8.0%) 28.2% 8.0x 8.6x 10.5x 9.6x 7.1x

Utility Services (0.2%) 9.6% 6.8x 7.9x 8.0x 8.1x 6.7x

Industrial Services 6.3% 15.7% 8.9x 9.3x 11.9x 9.4x 8.1x

Engineering Services (2.6%) 12.1% 8.8x 9.2x 8.9x 8.2x 7.4x

TEV / LTM EBITDA as of

CONTENTS

WHAT WE’RE READING

M&A TRANSACTIONS

PUBLIC MARKETS

INDUSTRY STATISTICS

PUBLIC COMPARABLES

CONTACTS

United States

Andrew Spitzer | Managing Director

[email protected]

+1 (804) 915-0174

Tiff Armstrong | Managing Director

[email protected]

+1 (804) 915-0176

Brian Lucas | Managing Director

[email protected]

+1 (804) 932-1323

Matthew White | Director

[email protected]

+1 (804) 915-0131

Luke Semple | Vice President

[email protected]

+1 (804) 915-0158

Chris Burnham | Vice President

[email protected]

+1 (804) 915-0142

Europe

Julien Darmon | Managing Director

[email protected] +44 (0) 20 7518 8900

Jeffery Perkins | Managing Director

[email protected] +49 (69) 3650638 00

http://www.genewscenter.com/Press-Releases/GE-to-Acquire-Cameron-s-Reciprocating-Compression-Division-44d0.aspx

http://www.instapaper.com/hello2?url=http://www.genewscenter.com/Press-Releases/GE-to-Acquire-Cameron-s-Reciprocating-Compression-Division-44d0.aspx

http://www.zhi.com/2014/01/zachry-holdings-acquires-commonwealth-engineering/

http://www.instapaper.com/hello2?url=http://www.zhi.com/2014/01/zachry-holdings-acquires-commonwealth-engineering/

http://www.varelintl.com/Mining-and-Industrial-Home/News-and-Events-Mining/Press-Releases/2014/January-7-2014/

http://www.instapaper.com/hello2?url=http://www.varelintl.com/Mining-and-Industrial-Home/News-and-Events-Mining/Press-Releases/2014/January-7-2014/

http://www.littelfuse.com/about-us/press-releases/2014/littelfuse-announces-acquisition-of-symcom.aspx

http://www.instapaper.com/hello2?url=http://www.littelfuse.com/about-us/press-releases/2014/littelfuse-announces-acquisition-of-symcom.aspx

mailto:[email protected]

`-

Page | 2


WHAT WE’RE READING

A summary of interesting industry articles we have come across in the past month.

Energy | BP Energy Outlook 2035

BP recently released its 2014 edition of the BP Energy Outlook. The annual publication describes a trajectory of the global

energy system based on likely economic and population growth, as well as developments in policy and technology. BP | Instapaper

Coal | Ten Reasons Why Coal is Here to Stay

Fuel Fix suggests ten reasons for coal’s persistence in the global energy industry. Coal has historically been, and is currently the

leading fuel in the U.S. power generation mix. Fuel Fix | Instapaper

Oil & Gas | Days of Easy Money End

The Wall Street Journal reports on decreasing foreign investment in upstream activity, resulting in reduced spending by oil and

gas exploration companies. The diminished spending signals the end of easy money for U.S. drillers. The Wall Street Journal | Instapaper

Renewable Energy | What to Expect in 2014

Breaking Energy suggests large scale growth of the renewable energy markets in 2014 as wind and solar power move from

adolescence to maturity. 2014 will be marked by expansion of rooftop and utility-scale solar use, as well as the update of utility

business models. Breaking Energy | Instapaper

Oil & Gas | 20 Years of Stable Natural Gas Prices

IHS predicts the price of U.S. produced natural gas will remain stable and relatively low for at least the next two decades,

boosting opportunities for exploiting the fuel’s economic and environmental benefits. The report expects natural gas to sell for

an average of $4 – $5 per thousand cubic feet. IHS | Instapaper

Renewable Energy | Booming Solar Jobs Market

Greentech Media reports that over 24,000 solar related jobs were created in 2013. The industry is growing at roughly ten times

the rate of the broader economy. The jump in jobs is driven by growth in installations and more academic & research jobs. Greentech Media | Instapaper

Coal | The Future of Coal

The Wall Street Journal reports that despite the recent North American natural gas boom, coal production will stay constant for

the next three decades. Two thirds of the resource’s growth will be driven by exploding demand for electricity in China. The Wall Street Journal | Instapaper

Midstream | Keystone XL Environmental Study

The Oil & Gas Journal examines the findings of the U.S. Department of State’s study of the Keystone XL pipeline. According

to the DOS, construction of the proposed 1,700-mile project would not have any significant environmental impact. The Oil & Gas Journal | Instapaper

Oil & Gas | America’s Crude Oil Export Ban

Forbes argues that the ban on exportation of American crude oil must be lifted. Much of the U.S. refining capacity is designed

for heavy, “sour” crude, however, a significant portion of current production is light, and “sweet.” Growth of light, sweet crude

production is causing increased competition for available refining capacity and weakening domestic prices. Forbes | Instapaper

Oil & Gas | Petrochemical Opportunity

The Wall Street Journal sits down with a European investor, Jim Ratcliffe, CEO of the Ineos Group. Mr. Ratcliffe predicts

unprecedented petrochemicals exports in the near future, fueled by an abundance of cheap natural gas. The Wall Street Journal | Instapaper

http://www.bp.com/content/dam/bp/pdf/Energy-economics/Energy-Outlook/Energy_Outlook_2035_booklet.pdf

http://www.instapaper.com/hello2?url=http://www.bp.com/content/dam/bp/pdf/Energy-economics/Energy-Outlook/Energy_Outlook_2035_booklet.pdf

http://fuelfix.com/blog/2014/01/14/ten-reasons-why-coal-is-here-to-stay/

http://www.instapaper.com/hello2?url=http://fuelfix.com/blog/2014/01/14/ten-reasons-why-coal-is-here-to-stay/

http://online.wsj.com/news/articles/SB10001424052702304753504579282983108494214

http://www.instapaper.com/hello2?url=http://online.wsj.com/news/articles/SB10001424052702304753504579282983108494214

http://breakingenergy.com/2014/01/09/what-can-investors-expect-from-2014-us-renewable-energy-markets/

http://www.instapaper.com/hello2?url=http://breakingenergy.com/2014/01/09/what-can-investors-expect-from-2014-us-renewable-energy-markets/

http://press.ihs.com/press-release/energy-power-media/ihs-natural-gas-price-advantage-creates-opportunities-greater-use-a

http://www.instapaper.com/hello2?url=http://press.ihs.com/press-release/energy-power-media/ihs-natural-gas-price-advantage-creates-opportunities-greater-use-a

http://www.greentechmedia.com/articles/read/five-facts-you-should-know-about-americas-solar-jobs-market

http://www.instapaper.com/hello2?url=http://www.greentechmedia.com/articles/read/five-facts-you-should-know-about-americas-solar-jobs-market

http://online.wsj.com/news/articles/SB10001424052702303332904579228160256043626?KEYWORDS=future+of+coal

http://www.instapaper.com/hello2?url=http://online.wsj.com/news/articles/SB10001424052702303332904579228160256043626?KEYWORDS=future+of+coal

http://www.ogj.com/articles/2014/02/no-major-environmental-impact-from-keystone-xl-dos-says.html

http://www.instapaper.com/hello2?url=http://www.ogj.com/articles/2014/02/no-major-environmental-impact-from-keystone-xl-dos-says.html

http://www.forbes.com/sites/christopherhelman/2014/01/31/why-americas-crude-oil-export-ban-should-be-lifted/

http://www.instapaper.com/hello2?url=http://www.forbes.com/sites/christopherhelman/2014/01/31/why-americas-crude-oil-export-ban-should-be-lifted/

http://online.wsj.com/news/articles/SB10001424052702304367204579268124177018840

http://www.instapaper.com/hello2?url=http://online.wsj.com/news/articles/SB10001424052702304367204579268124177018840

`-

Page | 3


M&A TRANSACTIONS

Recent M&A Transactions1,2

Date Target Business Description Acquirer

1/30/2014 CMC Machine Works US based provider of manufacturing and machining services for oil and gas equipment. Packers Plus Energy Services

1/30/2014 Eagle Downhole Solutions US based provider of downhole tools and product development solutions to the oil and gas

industry.

Packers Plus Energy Services

1/30/2014 Commonwealth Engineering &

Construction

US based provider of engineering, procurement, and construction management services

for the energy industry.

Zachry Holdings

1/23/2014 Reservoir Imaging, Select Assets US based provider of geospace equipment, wire line units, and equipment for downhole

microseismic data acquisition services.

MicroSeismic

1/22/2014 American Wellhead US based provider of installation, frac-stack rental, field service, and repair on valves and

wellheads.

Canary

1/20/2014 Cameron, Reciprocating

Compression Segment

US based provider of reciprocating compression equipment and services. GE Oil & Gas

1/14/2014 Green Light Energy Services Us based provider of oilfield services and equipment rental services. IronGate Energy Services

1/13/2014 Offshore Solutions US based provider of marine risk management solutions. Gate, Inc.

1/7/2014 Varel International Energy

Services

US based provider of oilfield tools and oil drilling products. Sandvik AB

1/6/2014 ARITAS Turkey based provider of LNG & cryogenic technology. Worthington Industries

1/6/2014 EMCOR Energy Services US based provider of a range of energy services to utilities and energy service

companies.

TRC Companies, Inc.

1/6/2014 Flare Ignitors Holdings US based provider of flaring and equipment rental services to the oil, natural gas, petro-

chemical, and pipeline industries.

Total Safety U.S., Inc.

1/6/2014 LT Energy Services US based provider of surface equipment rental and oilfield services in the Eagle Ford. B/E Aerospace

1/6/2014 Wildcat Wireline US based provider of cased hole electric wireline services to the oil and gas industry. B/E Aerospace

1/6/2014 SyCom US based designer and manufacturer of electronic control and protection equipment. Littelfuse

1/3/2014 Stabiltec Downhole Tools US based provider of downhole & specialized tools to locate oil and gas resources

internationally.

ESCO Corporation

`-

Page | 4


PUBLIC MARKETS

Energy Equipment and Services

TEV / LTM EBITDA TEV / 2013E EBITDA

4.9x

7.2x

7.7x

8.0x

8.1x

8.4x

8.9x

10.3x

11.3x

Land Drillers

Offshore Drillers

OCTG

Large Cap Service

E&C

Small Cap Service

Distribution

Logistics

Equipment

5.4x

6.5x

6.7x

6.7x

7.1x

7.7x

8.7x

9.7x

10.0x

Land Drillers

Offshore Drillers

Large Cap Service

E&C

Small Cap Service

OCTG

Logistics

Distribution

Equipment

Average Revenue Growth (2010 – 2012) Average Revenue Growth (2012 – 2014E)

5.8%

12.0%

15.1%

20.4%

23.8%

24.2%

26.1%

30.6%

38.9%

Logistics

OCTG

Offshore Drillers

Distribution

Large Cap Service

Equipment

E&C

Land Drillers

Small Cap Service

0.2%

1.3%

3.4%

4.5%

4.6%

6.8%

9.3%

15.4%

18.1%

Distribution

Land Drillers

E&C

OCTG

Small Cap Service

Large Cap Service

Equipment

Logistics

Offshore Drillers

Average EBITDA Margin (2010 – 2012) Average EBITDA Margin (2012 – 2014E)

5.9%

14.7%

19.4%

19.5%

21.6%

24.4%

31.8%

31.9%

43.2%

Distribution

E&C

OCTG

Equipment

Large Cap Service

Small Cap Service

Logistics

Land Drillers

Offshore Drillers

8.1%

13.6%

19.3%

20.1%

21.5%

21.7%

31.2%

33.8%

42.9%

Distribution

E&C

OCTG

Equipment

Large Cap Service

Small Cap Service

Land Drillers

Logistics

Offshore Drillers

`-

Page | 5


PUBLIC MARKETS (continued)

Power Equipment and Services


10.9x

12.7x

15.0x

Large Cap

Mid and Small-Cap

EE and Cleantech

9.8x

11.6x

13.4x

Large Cap

Mid and Small-Cap

EE and Cleantech


6.7%

9.6%

29.3%

Large Cap

Mid and Small-Cap

EE and Cleantech

8.6%

9.2%

18.5%

Mid and Small-Cap

Large Cap

EE and Cleantech


7.4%

15.9%

16.9%

EE and Cleantech

Large Cap

Mid and Small-Cap

9.5%

15.9%

17.3%

EE and Cleantech

Large Cap

Mid and Small-Cap

`-

Page | 6


PUBLIC MARKETS (continued)

Infrastructure Services


8.0x

8.9x

9.9x

10.5x

11.9x

Utility Services

Engineering Svc

Large Cap

Mid and Small-Cap

Industrial Services

7.7x

8.1x

8.2x

9.4x

9.6x

Large Cap

Utility Services

Engineering Svc

Industrial Services

Mid and Small-Cap


8.0%

10.0%

13.4%

13.9%

20.3%

Large Cap

Mid and Small-Cap

Engineering Svc

Industrial Services

Utility Services

3.0%

9.3%

10.8%

13.7%

14.1%

Engineering Svc

Mid and Small-Cap

Utility Services

Industrial Services

Large Cap


6.4%

7.2%

8.0%

8.7%

9.0%

Large Cap

Mid and Small-Cap

Industrial Services

Engineering Svc

Utility Services

6.9%

7.5%

8.3%

8.8%

10.3%

Large Cap

Mid and Small-Cap

Industrial Services

Engineering Svc

Utility Services

`-

Page | 7


INDUSTRY STATISTICS

Commodity Prices

Price Change From

Current Prior Month Prior Year Prior Month Prior Year

Natural Gas ($ per MMBtu) $4.94 $4.19 $3.34 17.9% 48.0%

Crude Oil ($ per bbl) 97.49 98.42 97.49 (0.9%) 0.0%

Coal (CAPP) ($ per ton) 56.85 58.04 58.63 (2.1%) (3.0%)

Commodity Prices – Trailing Twelve Months

(Indexed to 100%)

25%

50%

75%

100%

125%

150%

175%

1/31/13 4/30/13 7/31/13 10/31/13 1/31/14

Natural Gas (NYMEX:^NG) Crude Oil (NYMEX:^CL) Coal (NYMEX:^QL)

`-

Page | 8


INDUSTRY STATISTICS (continued)

Rig Counts3

U.S. Rig Counts International Rig Counts

0

500

1,000

1,500

2,000

2,500

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

International Rig Count by Country

31

36

39

109

46

76

-

102

87

140

266

341

North Sea

Africa

Europe

Asia Pacific

Middle East

Latin America

Offshore Land

U.S. Oil vs. Gas Rig Count U.S. Horizontal/Directional vs. Vertical Rig Count

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Oil

Gas

0

200

400

600

800

1,000

1,200

1,400

1,600

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Horizontal / Directional

Vertical

`-

Page | 9



Rig Counts3 (continued)

U.S. Oil Rig Count by Region U.S. Gas Rig Count by Region

359

0

0

0

0

8

14

18

29

37

41

51

68

179

185

474

Others

Arkoma Woodford

Fayetteville

Marcellus

Haynesville

Ardmore Woodford

Barnett

Utica

Cana Woodford

DJ-Niobrara

Gulf of Mexico

Granite Wash

Mississippian

Williston

Eagle Ford

Permian

100

0

0

5

6

7

7

9

11

16

18

20

22

28

43

86

Others

Williston

Ardmore Woodford

Arkoma Woodford

Granite Wash

Mississippian

Permian

Fayetteville

Cana Woodford

Barnett

DJ-Niobrara

Gulf of Mexico

Utica

Eagle Ford

Haynesville

Marcellus

% YTD Change in U.S. Oil Rig Count by Region % YTD Change in U.S. Gas Rig Count by Region

12%

(100%)

(20%)

(13%)

(9%)

(3%)

0%

0%

0%

3%

3%

6%

6%

19%

38%

41%

Others

Haynesville

Ardmore Woodford

Barnett

Eagle Ford

Williston

Arkoma Woodford

Fayetteville

Marcellus

Mississippian

Permian

Utica

Granite Wash

DJ-Niobrara

Cana Woodford

Gulf of Mexico

(10%)

(27%)

(22%)

(22%)

(11%)

(5%)

0%

0%

0%

0%

1%

2%

5%

5%

12%

50%

Others

Cana Woodford

Mississippian

Permian

Barnett

DJ-Niobrara

Williston

Ardmore Woodford

Arkoma Woodford

Fayetteville

Marcellus

Haynesville

Utica

Gulf of Mexico

Eagle Ford

Granite Wash

`-

Page | 10



Well Counts3

U.S. Land Wells U.S. Land Wells per Rig

8,658

8,534

9,011 9,075 9,056

Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

4.7

5.0

5.1

4.9

5.0

5.35.3

5.3

Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13

Well Count Change from Prior Quarter Well Count Change from Prior Year

(67)

(29)

(22)

(14)

(9)

(8)

(7)

(4)

2

8

12

21

23

75

Others

Fayetteville

Granite Wash

Williston

Haynesville

Barnett

DJ-Niobrara

Ardmore Woodford

Permian

Utica

Cana Woodford

Arkoma Woodford

Marcellus

Mississippian

Eagle Ford

(194)

(78)

(53)

(32)

(20)

(6)

2

6

18

19

69

141

155

174

197

Others

Barnett

DJ-Niobrara

Fayetteville

Granite Wash

Utica

Haynesville

Arkoma Woodford

Ardmore Woodford

Cana Woodford

Mississippian

Marcellus

Permian

Williston

Eagle Ford

`-

Page | 11


OUR GROUP

Harris Williams & Co. is a leading advisor to the energy and power M&A market. Our Energy & Power Group has

experience across a broad range of sectors, including services, products, and technologies that support or enhance energy and

power infrastructure.

Energy

Oil and Gas Equipment and Services Coal Products and Services

Select Relevant Experience

Power

Power Products and Technology

Electric and Natural Gas Transmission and

Distribution

Energy Efficiency and Clean Technology

Renewable Energy Services and Equipment


Infrastructure

Industrial and Infrastructure Services

Engineering and Construction

Environmental Services


has been acquired by


a portfolio company of

Tanglewood

Investments, Inc.has been acquired by







a subsidiary of


has acquired









http://www.harriswilliams.com/industries/energy-and-power

`-

Page | 12


OUR GROUP (continued)

Key Contacts

United States Europe

Energy & Power

Andrew Spitzer | Managing Director

[email protected] +1 (804) 915-0174

Tiff Armstrong | Managing Director




Matthew White | Director


Luke Semple | Vice President


Chris Burnham | Vice President


Environmental Services

Patrick Hanraty | Managing Director


Bob Baltimore | Managing Director




Energy Technology

Tyler Dewing | Director

[email protected]

+1 (617) 482-7501

Julien Darmon | Managing Director

[email protected]

+44 (0) 20 7518 8900

Jeffery Perkins | Managing Director

[email protected]

+49 (69) 3650638 00

Harris Williams & Co. Office Locations

United States Europe

Boston Two International Place

24th Floor

Boston, Massachusetts 02110 Phone: +1 (617) 482-7501

Fax: +1 (617) 482-7503

Cleveland

1900 East 9th Street

20th Floor Cleveland, Ohio 44114

Phone: +1 (216) 689-2400

Fax: +1 (216) 689-2401

Minneapolis

222 South 9th Street Suite 3350

Minneapolis, Minnesota 55402

Phone: +1 (612) 359-2700 Fax: +1 (612) 359-2701

Philadelphia 1600 Market Street

21st Floor

Philadelphia, Pennsylvania 19103 Phone: +1 (267) 675-5900

Fax: +1 (267) 675-5901

Richmond (U.S. Headquarters)

1001 Haxall Point

9th Floor Richmond, Virginia 23219

Phone: +1 (804) 648-0072

Fax: +1 (804) 648-0073

San Francisco

575 Market Street 31st Floor

San Francisco, California 94105, USA

Phone: +1 (415) 288-4260 Fax: +1 (415) 288-4269

Frankfurt Bockenheimer Landstrasse 33-35

60325 Frankfurt

Germany Phone: +49 069 3650638 00

Fax: +49 069 3650638 01

London

63 Brook Street

London W1K 4HS, England Phone: +44 (0) 20 7518 8900

Fax: +44 (0) 20 7526 2187

Network Offices

Beijing

Hong Kong

Mumbai

New Delhi

Perth

Shanghai

Sydney



Page | 13

Harris Williams & Co. Energy & Power Industry Update | February 2014

PUBLIC COMPARABLES

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

TEV Jan-14 Dec-13 Prior Month Prior Year High % of High Jan-13 Aug-13 Current 2013E 2014E


Large Cap Service

Schlumberger Limited $119,289 $87.57 $90.11 (2.8%) 12.2% $94.91 92.3% 9.9x 10.1x 9.9x 8.6x 7.6x

Halliburton Company 46,827 49.01 50.75 (3.4%) 20.5% 56.52 86.7% 6.5x 8.2x 7.6x 6.4x 5.4x

Baker Hughes Incorporated 28,086 56.64 55.26 2.5% 26.7% 58.83 96.3% 6.2x 7.2x 7.7x 6.0x 5.2x

Weatherford International Ltd. 19,438 13.54 15.49 (12.6%) 1.4% 17.38 77.9% 7.7x 8.4x 8.3x 7.0x 5.8x

Median (3.1% ) 16.3% 89.5% 7.1x 8.3x 8.0x 6.7x 5.6x

Equipment

National Oilwell Varco, Inc. $31,926 $75.01 $79.53 (5.7%) 1.2% $84.71 88.6% 7.5x 8.2x 7.7x 6.8x 6.0x

Cameron International Corporation 16,335 59.97 59.53 0.7% (5.3%) 67.42 89.0% 12.1x 11.1x 11.2x 10.0x 8.6x

FMC Technologies, Inc. 12,930 49.44 52.21 (5.3%) 4.4% 59.79 82.7% 15.4x 17.0x 14.4x 13.8x 10.8x

Dresser-Rand Group Inc. 5,520 57.00 59.63 (4.4%) (6.6%) 67.38 84.6% 13.1x 12.5x 11.9x 11.1x 9.9x

Oil States International Inc. 5,415 93.95 101.72 (7.6%) 21.1% 113.64 82.7% 5.8x 7.1x 6.3x 6.6x 6.4x

Dril-Quip, Inc. 3,711 100.56 109.93 (8.5%) 24.0% 121.07 83.1% 16.0x 17.4x 16.1x 14.7x 11.4x

Forum Energy Technologies, Inc. 2,831 25.12 28.26 (11.1%) (1.5%) 32.52 77.2% 8.7x 11.7x 11.4x 10.0x 7.9x

Oceaneering International, Inc. 7,311 68.15 78.88 (13.6%) 7.8% 87.64 77.8% 11.3x 13.1x 10.0x 9.8x 8.4x

Median (6.7% ) 2.8% 82.9% 11.7x 12.1x 11.3x 10.0x 8.5x

Mid and Small-Cap Service

Superior Energy Services, Inc. $5,363 $23.64 $26.61 (11.2%) (5.3%) $29.22 80.9% 4.7x 5.1x 4.7x 4.8x 4.4x

Trican Well Service Ltd. 2,245 11.45 11.66 (1.8%) (6.6%) 14.58 78.6% 10.8x 15.7x 13.6x 12.7x 7.2x

Ensign Energy Services Inc. 2,754 14.78 15.03 (1.7%) (3.5%) 16.56 89.2% 5.5x 6.3x 6.2x 6.1x 5.5x

Key Energy Services Inc. 1,879 7.29 7.90 (7.7%) (10.3%) 9.55 76.3% 5.0x 5.5x 6.3x 7.0x 5.2x

Calfrac Well Services Ltd. 1,606 26.79 27.85 (3.8%) 16.3% 32.25 83.1% 5.8x 10.7x 10.3x 9.4x 5.8x

U.S. Silica Holdings, Inc. 1,806 29.62 34.11 (13.2%) 47.6% 37.14 79.7% 8.7x 9.7x 11.7x 8.8x 6.9x

TETRA Technologies, Inc. 1,180 10.32 12.36 (16.5%) 21.4% 13.41 77.0% 9.2x 13.0x 13.2x 7.3x 5.4x

C&J Energy Services, Inc. 1,374 23.38 23.10 1.2% 2.1% 25.35 92.2% 4.2x 4.8x 6.1x 7.0x 6.0x

Basic Energy Services, Inc. 1,470 17.13 15.78 8.6% 32.5% 17.99 95.2% 4.1x 5.4x 6.6x 6.4x 5.3x

CARBO Ceramics Inc. 2,562 115.12 116.53 (1.2%) 43.7% 132.55 86.9% 8.6x 12.2x 14.9x 12.2x 9.9x

Median (2.8% ) 9.2% 82.0% 5.7x 8.0x 8.4x 7.1x 5.6x

OCTG

Tenaris SA $25,880 $22.43 $21.43 4.7% 7.6% $24.90 90.1% 8.8x 9.4x 9.3x 9.3x 8.4x

Vallourec SA 9,299 50.00 53.45 (6.5%) (7.5%) 68.85 72.6% 9.0x 9.0x 7.7x 7.7x 6.6x

OAO TMK 6,186 11.05 11.79 (6.3%) (27.3%) 15.80 69.9% 7.0x 7.2x 6.8x 6.3x 5.6x

Median (6.3% ) (7.5% ) 72.6% 8.8x 9.0x 7.7x 7.7x 6.6x

Distribution

MRC Global Inc. $3,851 $27.92 $32.26 (13.5%) (9.1%) $34.14 81.8% 9.2x 7.4x 8.9x 9.7x 8.3x

Median (13.5% ) (9.1% ) 81.8% 9.2x 7.4x 8.9x 9.7x 8.3x


Page | 14


PUBLIC COMPARABLES (continued)

Revenue Revenue Growth EBITDA EBITDA Margin Avg. Margin

2010 2011 2012 2013E 2014E '10-12 '12-14E 2010 2011 2012 2013E 2014E 2010 2011 2012 2013E 2014E '10-12 '12-14E


Large Cap Service

Schlumberger Limited $26,672 $36,959 $42,149 $45,463 $50,193 25.7% 9.1% $7,255 $9,854 $11,020 $12,356 $14,301 27.2% 26.7% 26.1% 27.2% 28.5% 26.7% 27.3%

Halliburton Company 17,973 24,829 28,503 29,329 32,261 25.9% 6.4% 4,128 6,096 6,087 6,180 7,550 23.0% 24.6% 21.4% 21.1% 23.4% 23.0% 21.9%

Baker Hughes Incorporated 14,414 19,831 21,361 22,275 24,306 21.7% 6.7% 2,620 4,236 3,823 3,882 4,828 18.2% 21.4% 17.9% 17.4% 19.9% 19.1% 18.4%

Weatherford International Ltd. 10,221 12,988 15,215 15,538 16,726 22.0% 4.8% 1,809 2,443 2,445 2,841 3,436 17.7% 18.8% 16.1% 18.3% 20.5% 17.5% 18.3%

Total $69,280 $94,607 $107,228 $112,605 $123,485 23.8% 6.8% $15,812 $22,629 $23,375 $25,259 $30,115 22.8% 23.9% 21.8% 22.4% 24.4% 21.6% 21.5%

Equipment

National Oilwell Varco, Inc. $12,156 $14,658 $20,041 $22,465 $24,576 28.4% 10.7% $2,954 $3,492 $4,185 $4,134 $4,734 24.3% 23.8% 20.9% 18.4% 19.3% 23.0% 19.5%

Cameron International Corporation 6,135 6,959 8,502 9,665 10,903 17.7% 13.2% 1,060 1,119 1,317 1,441 1,664 17.3% 16.1% 15.5% 14.9% 15.3% 16.3% 15.2%

FMC Technologies, Inc. 4,126 5,099 6,151 6,958 7,780 22.1% 12.5% 653 670 794 928 1,212 15.8% 13.1% 12.9% 13.3% 15.6% 14.0% 13.9%

Dresser-Rand Group Inc. 1,954 2,312 2,736 3,406 3,503 18.4% 13.1% 315 365 427 497 560 16.1% 15.8% 15.6% 14.6% 16.0% 15.8% 15.4%

Oil States International Inc. 2,412 3,479 4,413 3,491 2,883 35.3% (19.2%) 381 697 916 828 850 15.8% 20.0% 20.8% 23.7% 29.5% 18.9% 24.6%

Dril-Quip, Inc. 566 601 733 872 1,032 13.8% 18.6% 174 157 188 253 329 30.8% 26.2% 25.6% 29.0% 31.9% 27.5% 28.8%

Forum Energy Technologies, Inc. 747 1,128 1,415 1,533 1,720 37.6% 10.3% 106 216 290 285 369 14.2% 19.2% 20.5% 18.6% 21.5% 17.9% 20.2%

Oceaneering International, Inc. 1,917 2,193 2,783 3,218 3,691 20.5% 15.2% 463 486 605 746 876 24.2% 22.2% 21.7% 23.2% 23.7% 22.7% 22.9%

Total $30,013 $36,429 $46,775 $51,608 $56,088 24.2% 9.3% $6,106 $7,203 $8,721 $9,112 $10,594 20.3% 19.8% 18.6% 17.7% 18.9% 19.5% 20.1%

Mid and Small-Cap Service

Superior Energy Services, Inc. $1,563 $1,964 $4,568 $4,643 $4,990 71.0% 4.5% $417 $546 $1,245 $1,116 $1,216 26.7% 27.8% 27.2% 24.0% 24.4% 27.2% 25.2%

Trican Well Service Ltd. 1,486 2,272 2,221 1,945 2,217 22.2% (0.1%) 335 606 243 189 340 22.5% 26.7% 10.9% 9.7% 15.3% 20.1% 12.0%

Ensign Energy Services Inc. 1,363 1,860 2,204 2,000 2,221 27.2% 0.4% 315 483 566 474 536 23.1% 26.0% 25.7% 23.7% 24.1% 24.9% 24.5%

Key Energy Services Inc. 1,063 1,729 1,960 1,598 1,721 35.8% (6.3%) 130 420 421 271 371 12.2% 24.3% 21.5% 16.9% 21.6% 19.3% 20.0%

Calfrac Well Services Ltd. 941 1,512 1,600 1,437 1,817 30.4% 6.6% 186 406 258 179 310 19.8% 26.9% 16.1% 12.4% 17.1% 20.9% 15.2%

U.S. Silica Holdings, Inc. 245 296 442 545 670 34.3% 23.1% 66 80 141 165 216 27.0% 27.0% 32.0% 30.2% 32.2% 28.6% 31.5%

TETRA Technologies, Inc. 873 845 881 921 1,060 0.5% 9.7% 153 87 114 166 218 17.5% 10.3% 13.0% 18.0% 20.5% 13.6% 17.2%

C&J Energy Services, Inc. 244 758 1,112 1,070 1,179 113.4% 3.0% 83 285 336 195 236 33.8% 37.6% 30.2% 18.2% 20.0% 33.9% 22.8%

Basic Energy Services, Inc. 728 1,243 1,375 1,256 1,336 37.4% (1.4%) 114 335 299 228 281 15.6% 26.9% 21.7% 18.2% 21.0% 21.4% 20.3%

CARBO Ceramics Inc. 473 626 646 664 737 16.8% 6.9% 149 235 204 168 206 31.5% 37.6% 31.6% 25.4% 28.0% 33.6% 28.3%

Total $8,979 $13,106 $17,008 $16,079 $17,948 38.9% 4.6% $1,946 $3,483 $3,828 $3,150 $3,929 21.7% 26.6% 22.5% 19.6% 21.9% 24.4% 21.7%

OCTG

Tenaris SA $7,712 $9,972 $10,834 $10,685 $11,597 18.5% 3.5% $1,952 $2,363 $2,874 $2,788 $3,087 25.3% 23.7% 26.5% 26.1% 26.6% 25.2% 26.4%

Vallourec SA 6,022 6,880 7,022 $7,497 $8,212 8.0% 8.1% 1,240 1,222 1,029 1,244 1,439 20.6% 17.8% 14.7% 16.6% 17.5% 17.7% 16.3%

OAO TMK 5,579 6,754 6,688 $6,628 $6,944 9.5% 1.9% 904 1,017 1,010 981 1,121 16.2% 15.1% 15.1% 14.8% 16.1% 15.5% 15.3%

Total $19,313 $23,606 $24,544 $24,810 $26,753 12.0% 4.5% $4,096 $4,602 $4,914 $5,013 $5,646 21.2% 19.5% 20.0% 20.2% 21.1% 19.4% 19.3%

Distribution

MRC Global Inc. $3,846 $4,832 $5,571 $5,224 $5,591 20.4% 0.2% $138 $263 $475 $398 $456 3.6% 5.4% 8.5% 7.6% 8.2% 5.9% 8.1%

Total $3,846 $4,832 $5,571 $5,224 $5,591 20.4% 0.2% $138 $263 $475 $398 $456 3.6% 5.4% 8.5% 7.6% 8.2% 5.9% 8.1%

Page | 15



Stock Performance




Logistics

Tidewater Inc. $3,950 $51.85 $59.27 (12.5%) 5.5% $63.22 82.0% 9.8x 11.5x 10.6x 8.7x 6.9x

Hornbeck Offshore Services, Inc. 2,053 42.71 49.23 (13.2%) 16.0% 59.93 71.3% 8.4x 11.4x 8.1x 7.6x 5.3x

Gulfmark Offshore, Inc. 1,592 42.56 47.13 (9.7%) 22.4% 53.89 79.0% 11.3x 17.2x 12.8x 10.0x 7.0x

ATCO Ltd. 12,573 44.79 41.91 6.9% 19.1% 46.79 95.7% 7.4x 7.8x 8.0x 8.0x 7.5x

Bristow Group, Inc. 3,155 71.79 75.06 (4.4%) 26.0% 85.70 83.8% 8.3x 10.6x 10.3x 8.9x 7.8x

Median (9.7% ) 19.1% 82.0% 8.4x 11.4x 10.3x 8.7x 7.0x

Offshore Drillers

Transocean Ltd. $22,760 $43.28 $49.42 (12.4%) (23.7%) 59.50 72.7% 10.3x 9.0x 8.1x 6.5x 5.5x

Diamond Offshore Drilling, Inc. 7,006 48.54 56.92 (14.7%) (35.4%) 76.85 63.2% 7.8x 7.1x 5.6x 5.7x 4.9x

Rowan Companies plc 4,897 31.37 35.36 (11.3%) (9.0%) 38.65 81.2% 10.3x 9.4x 8.2x 8.2x 6.1x

Hercules Offshore, Inc. 1,655 4.98 6.52 (23.6%) (24.4%) 7.96 62.6% 9.7x 8.3x 6.1x 5.6x 3.5x

Atwood Oceanics, Inc. 4,227 47.40 53.39 (11.2%) (10.2%) 59.49 79.7% 10.7x 9.2x 7.7x 6.6x 5.0x

Noble Corp. 14,032 31.03 37.47 (17.2%) (23.4%) 42.34 73.3% 10.0x 9.6x 7.1x 5.8x 4.9x

Ensco plc 16,241 50.37 57.18 (11.9%) (20.8%) 65.82 76.5% 9.3x 8.0x 7.2x 6.8x 6.3x

Median (12.4% ) (23.4% ) 73.3% 10.0x 9.0x 7.2x 6.5x 5.0x

Land Drillers

Nabors Industries Ltd. $8,678 $17.08 $16.99 0.5% 2.5% 18.33 93.2% 4.5x 4.8x 5.2x 5.4x 4.9x

Helmerich & Payne, Inc. 9,243 88.04 84.08 4.7% 36.8% 88.58 99.4% 5.2x 4.9x 4.9x 6.1x 5.8x

Patterson-UTI Energy Inc. 4,156 25.69 25.32 1.5% 26.3% 26.09 98.5% 3.6x 3.9x 4.4x 4.8x 4.7x

Precision Drilling Corporation 3,549 8.96 8.93 0.3% 9.1% 10.36 86.5% 7.4x 9.5x 9.3x 6.3x 5.3x

Pioneer Energy Services Corp. 1,036 8.38 8.01 4.6% 10.6% 9.91 84.6% 3.9x 4.0x 4.3x 4.5x 4.5x

Median 1.5% 10.6% 93.2% 4.5x 4.8x 4.9x 5.4x 4.9x

Engineering & Construction

Technip $9,617 $85.37 $94.30 (9.5%) (20.8%) 124.84 68.4% 8.6x 9.0x 6.6x 6.6x 6.3x

Saipem SpA 17,298 23.49 21.00 11.8% (16.7%) 33.57 70.0% 6.2x 12.1x 16.4x 17.8x 8.0x

Subsea 7 SA 6,238 17.18 18.50 (7.1%) (18.5%) 22.95 74.9% 7.0x 7.7x 8.1x 5.9x 4.1x

Petrofac Limited 6,889 19.00 20.14 (5.6%) (29.5%) 27.75 68.5% 10.0x 8.3x 8.2x 6.8x 6.0x

McDermott International Inc. 1,849 8.34 9.16 (9.0%) (31.5%) 13.48 61.9% 5.6x 10.8x NM NM NM

Median (7.1% ) (20.8% ) 68.5% 7.0x 9.0x 8.1x 6.7x 6.2x


Page | 16




2010 2011 2012 2013E 2014E '10-12 '12-14E 2010 2011 2012 2013E 2014E 2010 2011 2012 2013E 2014E '10-12 '12-14E


Logistics

Tidewater Inc. $1,138 $1,051 $1,060 $1,231 $1,457 (3.5%) 17.2% $358 $271 $265 $339 $454 31.5% 25.8% 25.0% 27.5% 31.2% 27.4% 27.9%

Hornbeck Offshore Services, Inc. 421 382 513 581 763 10.4% 22.0% 187 135 209 275 394 44.5% 35.4% 40.7% 47.4% 51.6% 40.2% 46.6%

Gulfmark Offshore, Inc. 360 382 389 453 552 4.0% 19.1% 123 138 103 160 233 34.2% 36.1% 26.5% 35.4% 42.3% 32.3% 34.7%

ATCO Ltd. 3,505 3,926 4,376 4,266 4,416 11.7% 0.4% 1,288 1,495 1,652 1,665 1,774 36.7% 38.1% 37.8% 39.0% 40.2% 37.5% 39.0%

Bristow Group, Inc. 1,061 1,115 1,199 1,501 1,676 6.3% 18.2% 222 247 261 314 343 21.0% 22.1% 21.8% 20.9% 20.4% 21.6% 21.0%

Total $6,485 $6,855 $7,538 $8,032 $8,864 5.8% 15.4% $2,179 $2,286 $2,490 $2,753 $3,198 33.6% 33.3% 33.0% 34.3% 36.1% 31.8% 33.8%

Offshore Drillers

Transocean Ltd. $7,698 $7,407 $8,773 $9,526 $10,093 6.8% 7.3% $3,386 $2,537 $2,766 $3,497 $4,206 44.0% 34.3% 31.5% 36.7% 41.7% 36.6% 36.6%

Diamond Offshore Drilling, Inc. 3,230 3,254 2,936 2,925 3,465 (4.7%) 8.6% 1,784 1,649 1,337 1,202 1,527 55.2% 50.7% 45.5% 41.1% 44.1% 50.5% 43.6%

Rowan Companies plc 1,018 939 1,393 1,577 1,940 17.0% 18.0% 522 343 519 599 825 51.3% 36.5% 37.3% 38.0% 42.5% 41.7% 39.3%

Hercules Offshore, Inc. 625 655 710 876 1,134 6.6% 26.4% 151 142 171 298 483 24.2% 21.6% 24.1% 34.0% 42.6% 23.3% 33.6%

Atwood Oceanics, Inc. 651 637 756 1,061 1,275 7.8% 29.9% 358 377 390 543 657 55.0% 59.2% 51.6% 51.2% 51.5% 55.3% 51.4%

Noble Corp. 2,728 2,616 3,431 4,227 5,230 12.2% 23.5% 1,456 1,128 1,530 1,959 2,563 53.4% 43.1% 44.6% 46.3% 49.0% 47.0% 46.6%

Ensco plc 1,674 2,798 4,301 4,950 5,479 60.3% 12.9% 878 1,174 2,097 2,404 2,715 52.4% 42.0% 48.8% 48.6% 49.6% 47.7% 49.0%

Total $17,623 $18,307 $22,299 $25,143 $28,616 15.1% 18.1% $8,535 $7,350 $8,809 $10,502 $12,976 48.4% 40.2% 39.5% 41.8% 45.3% 43.2% 42.9%

Land Drillers

Nabors Industries Ltd. $4,134 $6,060 $6,990 $6,165 $6,471 30.0% (3.8%) $1,428 $1,842 $1,976 $1,596 $1,761 34.5% 30.4% 28.3% 25.9% 27.2% 31.1% 27.1%

Helmerich & Payne, Inc. 1,862 2,529 3,138 3,373 3,499 29.8% 5.6% 709 1,004 1,278 1,393 1,462 38.1% 39.7% 40.7% 41.3% 41.8% 39.5% 41.3%

Patterson-UTI Energy Inc. 1,463 2,566 2,723 2,652 2,772 36.4% 0.9% 514 958 990 842 888 35.1% 37.3% 36.4% 31.8% 32.0% 36.3% 33.4%

Precision Drilling Corporation 1,437 1,919 2,047 1,896 2,136 19.3% 2.1% 437 569 478 584 708 30.4% 29.7% 23.4% 30.8% 33.2% 27.8% 29.1%

Pioneer Energy Services Corp. 487 716 919 950 951 37.4% 1.7% 102 191 248 231 230 21.0% 26.6% 26.9% 24.3% 24.2% 24.9% 25.2%

Total $9,384 $13,790 $15,817 $15,036 $15,828 30.6% 1.3% $3,191 $4,564 $4,970 $4,646 $5,050 34.0% 33.1% 31.4% 30.9% 31.9% 31.9% 31.2%

Engineering & Construction

Technip $8,155 $8,851 $10,817 $12,863 $14,007 15.2% 13.8% $1,041 $1,101 $1,326 $1,470 $1,538 12.8% 12.4% 12.3% 11.4% 11.0% 12.5% 11.6%

Saipem SpA 14,965 16,360 17,627 17,071 16,909 8.5% (2.1%) 2,449 2,766 2,902 987 2,246 16.4% 16.9% 16.5% 5.8% 13.3% 16.6% 11.8%

Subsea 7 SA 2,369 5,055 6,297 6,417 7,212 63.0% 7.0% 478 825 1,044 1,039 1,504 20.2% 16.3% 16.6% 16.2% 20.9% 17.7% 17.9%

Petrofac Limited 4,354 5,801 6,324 6,532 6,840 20.5% 4.0% 635 759 849 1,011 1,130 14.6% 13.1% 13.4% 15.5% 16.5% 13.7% 15.1%

McDermott International Inc. 2,404 3,445 3,642 2,961 3,218 23.1% (6.0%) 421 335 422 NM NM 17.5% 9.7% 11.6% NM NM 12.9% 11.6%

Total $32,247 $39,512 $44,706 $45,843 $48,186 26.1% 3.4% $5,023 $5,786 $6,543 $4,507 $6,418 15.6% 14.6% 14.6% 9.8% 13.3% 14.7% 13.6%

Page | 17



Stock Performance




Large Cap Equipment and Services

General Electric Company $629,449 $25.13 $28.03 (10.3%) 12.8% $28.09 89.5% 22.1x 21.7x 22.3x 23.0x 21.8x

Siemens Aktiengesellschaft 118,946 126.48 134.30 (5.8%) 16.1% 136.65 92.6% 8.1x 9.9x 11.3x 8.5x 7.7x

ABB Ltd. 61,330 24.99 25.94 (3.7%) 15.9% 27.40 91.2% 10.3x 10.2x 10.7x 10.0x 9.0x

Schneider Electric S.A. 53,368 80.84 85.58 (5.5%) 6.8% 90.42 89.4% 9.3x 10.0x 10.1x NA NA

Honeywell International Inc. 72,489 91.23 91.37 (0.2%) 33.7% 92.15 99.0% 11.0x 13.0x 11.2x 9.6x 8.8x

Emerson Electric Co. 48,995 65.94 70.18 (6.0%) 15.2% 70.66 93.3% 9.0x 9.9x 10.1x 9.5x 8.9x

Eaton Corporation plc 43,122 73.09 76.12 (4.0%) 28.3% 78.19 93.5% 13.8x 15.3x 14.8x 13.1x 11.4x

Alstom SA 13,778 28.41 35.74 (20.5%) (35.6%) 48.30 58.8% 7.0x 5.8x 5.6x NA NA

Median (5.7% ) 15.5% 91.9% 9.8x 10.1x 10.9x 9.8x 9.0x

Mid and Small-Cap Equipment and Services

Ametek Inc. $13,216 $49.42 $52.67 (6.2%) 20.6% $62.05 79.6% 13.2x 14.4x 14.2x 13.1x 12.2x

Hubbell Inc. 6,681 116.73 108.90 7.2% 28.2% 119.81 97.4% 9.9x 11.8x 11.6x 10.7x 9.9x

Valmont Industries, Inc. 3,921 146.38 149.12 (1.8%) 0.5% 164.93 88.8% 8.9x 7.3x 7.0x 6.9x 6.9x

Littelfuse Inc. 1,932 89.50 92.93 (3.7%) 39.8% 94.83 94.4% 9.9x 12.2x 12.7x 11.6x 10.1x

AZZ incorporated 1,453 41.81 48.86 (14.4%) (2.3%) 49.64 84.2% 10.1x 10.1x 9.9x 9.9x 8.6x

ESCO Technologies Inc. 1,054 34.90 34.26 1.9% (15.2%) 42.31 82.5% 14.1x 11.8x 14.4x 12.1x 11.2x

Thermon Group Holdings, Inc. 930 27.08 27.33 (0.9%) 11.9% 29.06 93.2% 11.5x 10.3x 13.8x 12.6x 11.4x

Badger Meter Inc. 793 50.94 54.50 (6.5%) 2.9% 56.36 90.4% 13.7x 15.0x 15.6x 16.1x 14.2x

Powell Industries, Inc. 632 61.41 66.99 (8.3%) 35.7% 69.33 88.6% 6.3x 8.1x 10.0x 8.6x 7.1x

Global Power Equipment Group Inc. 311 17.81 19.57 (9.0%) 8.5% 20.98 84.9% 8.6x 9.6x 11.3x 17.5x 8.7x

Median (3.7% ) 11.9% 88.8% 10.1x 11.8x 12.7x 11.6x 10.1x


SolarCity Corporation $6,498 $74.09 $56.82 30.4% NA $79.86 92.8% NM NM NM NM NM

Itron, Inc. 1,880 40.38 41.43 (2.5%) (13.0%) 48.42 83.4% 8.2x 10.0x 11.1x 11.8x 8.1x

Silver Spring Networks, Inc. 662 17.05 21.00 (18.8%) NA 33.82 50.4% NM NM NM NM 26.0x

Ameresco, Inc. 604 9.86 9.66 2.1% 0.2% 10.88 90.6% 13.5x 18.0x 19.3x 14.9x 13.8x

EnerNOC, Inc. 507 22.40 17.21 30.2% 45.0% 23.45 95.5% NM NM 10.1x 7.2x NM

PowerSecure International, Inc. 392 19.30 17.17 12.4% 122.1% 20.57 93.8% 15.1x 18.2x 18.9x 19.1x 10.5x

Echelon Corporation 139 4.06 2.15 88.8% 67.8% 4.18 97.1% NM NM NM NM NM

Median 12.4% 45.0% 92.8% 13.5x 18.0x 15.0x 13.4x 12.1x


Page | 18




2010 2011 2012 2013E 2014E '10-12 '12-14E 2010 2011 2012 2013E 2014E 2010 2011 2012 2013E 2014E '10-12 '12-14E


Large Cap Equipment and Services

General Electric Company $100,436 $94,523 $100,149 $146,086 $149,625 (0.1%) 22.2% $26,438 $28,349 $28,846 $28,528 $29,287 26.3% 30.0% 28.8% 19.5% 19.6% 28.4% 22.6%

Siemens Aktiengesellschaft 92,904 97,896 104,468 103,388 104,025 6.0% (0.2%) 13,085 13,456 12,042 11,247 14,246 14.1% 13.7% 11.5% 10.9% 13.7% 13.1% 12.0%

ABB Ltd. 31,589 37,990 39,336 41,886 42,985 11.6% 4.5% 4,573 5,551 5,224 6,182 6,827 14.5% 14.6% 13.3% 14.8% 15.9% 14.1% 14.6%

Schneider Electric S.A. 26,429 30,161 32,322 31,952 35,431 10.6% 4.7% 4,687 4,915 5,356 5,176 5,799 17.7% 16.3% 16.6% 16.2% 16.4% 16.9% 16.4%

Honeywell International Inc. 32,350 36,529 37,665 38,848 40,834 7.9% 4.1% 3,998 3,531 5,082 7,177 7,510 12.4% 9.7% 13.5% 18.5% 18.4% 11.8% 16.8%

Emerson Electric Co. 21,039 24,222 24,412 24,607 24,786 7.7% 0.8% 3,965 4,797 4,828 4,786 5,086 18.8% 19.8% 19.8% 19.4% 20.5% 19.5% 19.9%

Eaton Corporation plc 13,715 16,049 16,311 22,058 23,247 9.1% 19.4% 1,722 2,189 2,140 3,310 3,786 12.6% 13.6% 13.1% 15.0% 16.3% 13.1% 14.8%

Alstom SA 26,524 28,242 26,907 27,806 27,138 0.7% 0.4% 2,805 2,864 2,566 2,671 2,421 10.6% 10.1% 9.5% -- -- 10.1% 9.5%

Total $344,986 $365,612 $381,570 $436,631 $448,070 6.7% 7.0% $61,272 $65,652 $66,084 $69,077 $74,961 17.8% 18.0% 17.3% 15.8% 16.7% 15.9% 15.8%

Mid and Small-Cap Equipment and Services

Ametek Inc. $2,471 $2,990 $3,334 $3,561 $3,906 16.2% 8.2% $555 $722 $851 $931 $1,031 22.5% 24.2% 25.5% 26.1% 26.4% 24.1% 26.0%

Hubbell Inc. 2,541 2,872 3,044 3,194 3,372 9.5% 5.2% 432 487 535 580 622 17.0% 17.0% 17.6% 18.1% 18.4% 17.2% 18.1%

Valmont Industries, Inc. 1,976 2,661 3,030 3,315 3,386 23.8% 5.7% 251 340 451 566 561 12.7% 12.8% 14.9% 17.1% 16.6% 13.5% 16.2%

Littelfuse Inc. 608 665 668 749 822 4.8% 10.9% 143 153 140 167 190 23.4% 23.0% 20.9% 22.3% 23.1% 22.4% 22.1%

AZZ incorporated 357 381 469 573 763 14.6% 27.5% 84 85 99 129 147 23.4% 22.3% 21.1% 22.5% 19.3% 22.3% 20.9%

ESCO Technologies Inc. 607 451 479 562 530 (11.2%) 5.2% 94 62 65 69 85 15.5% 13.8% 13.5% 12.3% 16.1% 14.3% 14.0%

Thermon Group Holdings, Inc. 193 241 272 287 299 18.9% 4.8% 46 53 58 75 75 23.9% 21.9% 21.4% 26.2% 24.9% 22.4% 24.2%

Badger Meter Inc. 277 263 320 334 356 7.5% 5.6% 53 38 57 49 56 19.0% 14.5% 17.7% 14.8% 15.7% 17.1% 16.1%

Powell Industries, Inc. 551 562 717 662 730 14.1% 0.9% 69 28 61 54 74 12.6% 5.0% 8.6% 8.1% 10.1% 8.7% 8.9%

Global Power Equipment Group Inc. 482 457 463 480 556 (2.1%) 9.6% 43 29 29 18 37 8.9% 6.3% 6.2% 3.8% 6.7% 7.1% 5.5%

Total $10,063 $11,543 $12,796 $13,718 $14,720 9.6% 8.4% $1,770 $1,997 $2,346 $2,637 $2,877 17.6% 17.3% 18.3% 19.2% 19.5% 16.9% 17.2%


SolarCity Corporation $32 $60 $129 $160 $257 99.2% 41.4% ($34) ($49) ($48) ($80) ($59) NM NM NM NM NM NM NM

Itron, Inc. 2,259 2,434 2,178 1,952 2,090 (1.8%) (2.1%) 315 315 265 158 237 14.0% 12.9% 12.2% 8.1% 11.3% 13.0% 10.5%

Silver Spring Networks, Inc. 70 237 197 343 374 67.4% 37.9% (141) (87) (82) 4 23 NM NM NM 1.2% 6.3% NM 3.7%

Ameresco, Inc. 618 728 631 570 600 1.0% (2.5%) 57 66 49 40 44 9.3% 9.0% 7.8% 7.1% 7.3% 8.7% 7.4%

EnerNOC, Inc. 280 287 278 384 449 (0.4%) 27.1% 26 10 3 70 82 9.2% 3.6% 1.0% 18.3% 18.2% 4.6% 12.5%

PowerSecure International, Inc. 96 130 162 264 318 29.8% 40.1% 2 2 9 21 39 2.3% 1.8% 5.8% 7.8% 12.2% 3.3% 8.6%

Echelon Corporation 111 156 134 86 86 9.9% (19.8%) (22) (5) (3) (13) (9) NM NM NM NM NM NM NM

Total $3,468 $4,032 $3,709 $3,759 $4,174 29.3% 17.4% $205 $251 $194 $201 $357 5.9% 6.2% 5.2% 5.3% 8.6% 7.4% 8.6%

Page | 19



Stock Performance




Large Cap Infrastructure Services

Fluor Corporation $10,385 $75.96 $80.29 (5.4%) 17.2% $83.93 90.5% 9.4x 8.9x 9.6x 7.7x 7.4x

Chicago Bridge & Iron Company N.V. 9,586 74.99 83.14 (9.8%) 47.6% 83.42 89.9% 8.4x 11.4x 11.8x 10.5x 8.4x

Jacobs Engineering Group Inc. 8,129 60.71 62.99 (3.6%) 26.2% 66.88 90.8% 7.8x 9.6x 10.6x 9.1x 8.0x

URS Corporation 5,589 50.20 52.99 (5.3%) 21.0% 55.79 90.0% 6.3x 6.7x 6.8x 6.6x 6.5x

KBR, Inc. 3,788 31.30 31.89 (1.9%) 0.3% 36.70 85.3% 10.6x 10.8x 9.9x 5.9x 5.4x

Median (5.3% ) 21.0% 90.0% 8.4x 9.6x 9.9x 7.7x 7.4x

Mid and Small-Cap Infrastructure Services

The Babcock & Wilcox Company $3,556 $34.28 $34.19 0.3% 28.7% $35.40 96.8% 8.1x 9.6x 10.7x 8.6x 7.8x

Foster Wheeler AG 2,626 29.98 33.00 (9.2%) 14.8% 33.08 90.6% 7.9x 6.8x 9.9x 9.1x 8.1x

Tutor Perini Corporation 1,735 22.60 26.30 (14.1%) 36.2% 26.44 85.5% 6.1x 6.8x 7.0x 7.3x 5.9x

Primoris Services Corporation 1,684 31.77 31.13 2.1% 65.6% 33.42 95.1% 7.3x 7.6x 10.3x 10.1x 8.7x

Granite Construction Incorporated 1,183 33.29 34.98 (4.8%) (8.4%) 37.74 88.2% 11.1x 11.2x 21.1x 16.5x 6.1x

Great Lakes Dredge & Dock Corporation 704 7.53 9.20 (18.2%) (19.7%) 10.07 74.8% 14.1x 17.4x 13.9x 10.4x 6.5x

Willbros Group Inc. 708 8.35 9.42 (11.4%) 27.7% 10.45 79.9% 7.4x 7.2x 8.5x 9.1x 5.7x

Orion Marine Group, Inc 285 11.20 12.03 (6.9%) 43.6% 13.77 81.3% 23.4x 11.0x 12.3x 16.0x 8.9x

Median (8.0% ) 28.2% 86.8% 8.0x 8.6x 10.5x 9.6x 7.1x

Utility Services

Quanta Services, Inc. $6,349 $31.17 $31.56 (1.2%) 7.6% $32.22 96.7% 9.9x 8.3x 9.1x 9.2x 7.9x

MasTec, Inc. 3,611 35.94 32.72 9.8% 27.0% 36.58 98.3% 7.8x 9.2x 8.8x 8.1x 6.9x

Dycom Industries Inc. 1,409 27.83 27.79 0.1% 32.7% 31.75 87.7% 5.8x 7.5x 7.1x 6.9x 6.2x

Aegion Corporation 1,059 20.52 21.89 (6.3%) (12.8%) 26.10 78.6% 9.8x 10.1x 10.2x 9.2x 6.8x

Pike Corporation 552 10.54 10.57 (0.3%) 1.3% 15.95 66.1% 5.4x 5.0x 5.6x 8.0x 6.5x

MYR Group, Inc. 468 25.07 25.08 (0.0%) 11.7% 27.30 91.8% 5.6x 5.2x 5.5x 5.6x 5.3x

Median (0.2% ) 9.6% 89.7% 6.8x 7.9x 8.0x 8.1x 6.7x

Industrial Services

Bilfinger SE $5,380 $115.47 $110.05 4.9% 14.3% $119.43 96.7% 7.7x 9.3x 11.6x 7.5x 6.8x

EMCOR Group Inc. 2,828 42.51 42.44 0.2% 17.0% 44.88 94.7% 6.9x 8.4x 9.6x 9.2x 7.8x

Team, Inc. 921 42.33 42.34 (0.0%) (3.4%) 48.09 88.0% 11.8x 11.8x 13.3x 10.8x 9.1x

Mistras Group, Inc. 743 23.36 20.88 11.9% 6.1% 25.23 92.6% 10.5x 9.4x 12.2x 9.5x 8.4x

Matrix Service Company 611 26.28 24.43 7.6% 84.0% 27.89 94.2% 8.5x 7.5x 11.2x 9.3x 7.4x

Furmanite Corporation 472 11.68 10.62 10.0% 120.0% 12.70 92.0% 9.4x 9.6x 12.3x 11.4x 9.0x

Median 6.3% 15.7% 93.4% 8.9x 9.3x 11.9x 9.4x 8.1x

Engineering Services

AECOM Technology Corporation $3,463 $28.67 $29.43 (2.6%) 12.1% $35.24 81.4% 7.4x 9.1x 7.6x 7.3x 6.7x

AMEC plc 5,007 16.94 17.90 (5.3%) (4.7%) 19.91 85.1% 8.9x 9.2x 8.9x 8.6x 7.8x

Stantec Inc. 2,973 60.88 59.16 2.9% 65.9% 64.98 93.7% 9.6x 10.6x 13.0x 12.4x 11.3x

Tetra Tech Inc. 1,997 29.51 27.98 5.5% 3.0% 31.49 93.7% 8.8x 13.3x 14.1x 8.2x 7.4x

Aecon Group Inc. 1,229 13.90 14.45 (3.8%) 30.3% 14.73 94.4% 8.4x 7.6x 8.9x 7.6x 6.0x

Median (2.6% ) 12.1% 93.7% 8.8x 9.2x 8.9x 8.2x 7.4x


Page | 20




2010 2011 2012 2013E 2014E '10-12 '12-14E 2010 2011 2012 2013E 2014E 2010 2011 2012 2013E 2014E '10-12 '12-14E


Large Cap Infrastructure Services

Fluor Corporation $20,849 $23,381 $27,577 $27,848 $27,991 15.0% 0.7% $740 $1,187 $946 $1,378 $1,389 3.5% 5.1% 3.4% 4.9% 5.0% 4.0% 4.4%

Chicago Bridge & Iron Company N.V. 3,642 4,551 5,485 11,172 12,963 22.7% 53.7% 372 429 517 910 1,136 10.2% 9.4% 9.4% 8.1% 8.8% 9.7% 8.8%

Jacobs Engineering Group Inc. 9,916 10,382 10,894 11,805 13,621 4.8% 11.8% 541 628 701 770 891 5.5% 6.1% 6.4% 6.5% 6.5% 6.0% 6.5%

URS Corporation 9,177 9,545 10,973 11,146 11,487 9.3% 2.3% 630 619 828 839 859 6.9% 6.5% 7.5% 7.5% 7.5% 7.0% 7.5%

KBR, Inc. 9,962 9,103 7,770 7,576 8,035 (11.7%) 1.7% 539 497 361 686 708 5.4% 5.5% 4.6% 9.1% 8.8% 5.2% 7.5%

Total $53,546 $56,962 $62,699 $69,546 $74,097 8.0% 14.1% $2,821 $3,362 $3,354 $4,583 $4,983 5.3% 5.9% 5.3% 6.6% 6.7% 6.4% 6.9%

Mid and Small-Cap Infrastructure Services

The Babcock & Wilcox Company $2,689 $2,952 $3,291 $3,288 $3,305 10.6% 0.2% $246 $87 $351 $421 $448 9.2% 2.9% 10.7% 12.8% 13.6% 7.6% 12.3%

Foster Wheeler AG 4,068 4,481 3,415 3,313 3,891 (8.4%) 6.7% 321 237 286 291 322 7.9% 5.3% 8.4% 8.8% 8.3% 7.2% 8.5%

Tutor Perini Corporation 3,199 3,716 4,111 4,259 4,652 13.4% 6.4% 202 214 214 239 297 6.3% 5.7% 5.2% 5.6% 6.4% 5.8% 5.7%

Primoris Services Corporation 942 1,460 1,542 1,958 2,161 27.9% 18.4% 82 133 136 167 192 8.7% 9.1% 8.8% 8.5% 8.9% 8.9% 8.7%

Granite Construction Incorporated 1,763 2,010 2,083 2,269 2,780 8.7% 15.5% 61 146 110 75 191 3.4% 7.3% 5.3% 3.3% 6.9% 5.3% 5.1%

Great Lakes Dredge & Dock Corporation 687 627 688 742 806 0.0% 8.2% 103 83 55 68 103 15.0% 13.3% 8.0% 9.2% 12.8% 12.1% 10.0%

Willbros Group Inc. 1,077 1,450 2,004 2,024 2,184 36.4% 4.4% 57 51 76 80 129 5.3% 3.5% 3.8% 3.9% 5.9% 4.2% 4.5%

Orion Marine Group, Inc 353 260 292 339 385 (9.1%) 14.8% 53 3 7 17 33 15.1% 1.1% 2.5% 4.9% 8.5% 6.2% 5.3%

Total $14,778 $16,956 $17,426 $18,191 $20,163 10.0% 9.3% $1,125 $954 $1,235 $1,358 $1,714 7.6% 5.6% 7.1% 7.5% 8.5% 7.2% 7.5%

Utility Services

Quanta Services, Inc. $3,629 $4,194 $5,920 $6,406 $7,104 27.7% 9.5% $383 $334 $623 $691 $809 10.6% 8.0% 10.5% 10.8% 11.4% 9.7% 10.9%

MasTec, Inc. 2,143 2,831 3,727 4,256 4,663 31.9% 11.9% 202 241 331 447 523 9.4% 8.5% 8.9% 10.5% 11.2% 8.9% 10.2%

Dycom Industries Inc. 989 1,036 1,201 1,595 1,894 10.2% 25.6% 82 105 129 171 208 8.3% 10.2% 10.8% 10.7% 11.0% 9.8% 10.8%

Aegion Corporation 915 939 1,028 1,097 1,298 6.0% 12.4% 116 87 110 114 157 12.7% 9.3% 10.7% 10.4% 12.1% 10.9% 11.1%

Pike Corporation 504 594 685 928 823 16.6% 9.6% 31 48 64 116 69 6.2% 8.1% 9.4% 12.5% 8.3% 7.9% 10.1%

MYR Group, Inc. 597 780 999 877 920 29.3% (4.1%) 40 48 80 84 87 6.8% 6.1% 8.0% 9.6% 9.5% 7.0% 9.0%

Total $8,777 $10,374 $13,560 $15,159 $16,702 20.3% 10.8% $854 $863 $1,338 $1,623 $1,853 9.7% 8.3% 9.9% 10.7% 11.1% 9.0% 10.3%

Industrial Services

Bilfinger SE $10,665 $10,664 $11,219 $11,777 $12,264 2.6% 4.6% $374 $455 $548 $732 $820 3.5% 4.3% 4.9% 6.2% 6.7% 4.2% 5.9%

EMCOR Group Inc. 4,852 5,613 6,347 6,447 6,713 14.4% 2.8% 263 272 305 310 363 5.4% 4.8% 4.8% 4.8% 5.4% 5.0% 5.0%

Team, Inc. 454 508 624 712 780 17.2% 11.8% 40 57 74 76 84 8.9% 11.2% 11.8% 10.6% 10.7% 10.6% 11.1%

Mistras Group, Inc. 272 339 437 529 591 26.7% 16.3% 35 48 60 68 76 13.0% 14.2% 13.7% 12.9% 12.9% 13.6% 13.2%

Matrix Service Company 551 627 739 884 1,000 15.8% 16.3% 35 42 43 50 64 6.3% 6.7% 5.8% 5.6% 6.4% 6.3% 6.0%

Furmanite Corporation 286 316 326 429 555 6.9% 30.4% 26 30 22 42 53 9.2% 9.5% 6.7% 9.7% 9.5% 8.5% 8.6%

Total $17,080 $18,067 $19,692 $20,778 $21,903 13.9% 13.7% $774 $904 $1,051 $1,277 $1,460 4.5% 5.0% 5.3% 6.1% 6.7% 8.0% 8.3%

Engineering Services

AECOM Technology Corporation $6,546 $8,037 $8,218 $8,131 $8,105 12.0% (0.7%) $393 $480 $438 $479 $467 6.0% 6.0% 5.3% 5.9% 5.8% 5.8% 5.7%

AMEC plc 4,608 5,076 6,758 6,690 7,094 21.1% 2.5% 408 455 533 573 629 8.8% 9.0% 7.9% 8.6% 8.9% 8.6% 8.4%

Stantec Inc. 1,233 1,356 1,561 1,733 1,913 12.5% 10.7% 181 196 224 250 277 14.6% 14.4% 14.3% 14.4% 14.5% 14.5% 14.4%

Tetra Tech Inc. 1,460 1,792 2,022 2,014 2,131 17.7% 2.7% 158 200 208 138 240 10.8% 11.2% 10.3% 6.8% 11.2% 10.8% 9.5%

Aecon Group Inc. 2,765 2,849 2,956 2,882 2,950 3.4% (0.1%) 46 133 158 169 212 1.7% 4.7% 5.4% 5.9% 7.2% 3.9% 6.1%

Total $16,611 $19,110 $21,516 $21,450 $22,192 13.4% 3.0% $1,185 $1,463 $1,561 $1,608 $1,825 7.1% 7.7% 7.3% 7.5% 8.2% 8.7% 8.8%

Page | 21


SOURCES

1. Capital IQ.

2. MergerMarket.

3. Baker Hughes.

Harris Williams & Co. (www.harriswilliams.com) 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 & 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 & 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.

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 +1 804-648-0072.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). 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 and/or 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 and/or 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 Williams’ 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 Williams’ prior written consent.

Copyright © 2014 Harris Williams & Co., all rights reserved.

http://www.harriswilliams.com/

energy services and equipment - harris williams

Documents