harris williams & co. e&c (2.2%) (19.4%) 7.9x 8.3x 8.8x 7.3x 6.6x … · 2014-01-07 ·...

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Page | 1

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

SUMMARY

M&A | Select Recent Activity

First Reserve Corporation has acquired Dixie Electric from One Rock Capital Partners. Dixie is a

leading U.S. provider of electrical infrastructure materials and services to the upstream oil and gas

sector. Source | Instapaper

GE Oil & Gas has signed an agreement to acquire Allen Gearing Solutions. The Company is a

privately held designer, manufacturer, and service provider of gears for industrial and marine

applications. Source | Instapaper

Arsenal Capital Partners has agreed to acquire Flowchem. The Company is a leading provider of drag

reducing additives to improve pipeline flow in onshore and offshore pipeline applications.

Source | Instapaper

Stantec has acquired both Williamsburg Environmental Group and Cambria Gordon in an effort to

expand its environmental services. Both companies provide environmental consulting and engineering

services. Source | Instapaper

Public Markets | Key Trading Statistics

Stock Price % Change TEV / EBITDA

1 Month 12 Month Dec-12 Jul-13 Current 2013E 2014E

Energy Services and Equipment

Large Cap Service (2.0%) 36.9% 6.4x 7.8x 8.7x 7.7x 6.3x

Equipment 3.4% 19.1% 10.4x 12.0x 12.0x 11.1x 9.5x

Small-Cap Service 0.5% 22.3% 5.4x 7.5x 8.4x 7.9x 5.8x

OCTG (3.0%) 4.7% 8.6x 8.3x 8.2x 8.0x 6.9x

Distribution 5.5% 16.1% 8.5x 8.3x 9.9x 10.8x 9.3x

Logistics (4.3%) 36.8% 8.0x 10.7x 10.7x 9.4x 7.4x

Offshore Drillers (1.7%) 7.6% 9.1x 8.3x 8.3x 7.1x 5.9x

Land Drillers 8.6% 17.6% 4.2x 4.9x 5.1x 5.4x 4.9x

E&C (2.2%) (19.4%) 7.9x 8.3x 8.8x 7.3x 6.6x

Power Services and Equipment

Large Cap PS&E 3.3% 30.6% 9.5x 9.4x 11.9x 10.4x 9.7x

Small-Cap PS&E 0.6% 27.1% 9.5x 10.9x 13.2x 11.9x 10.5x

EE and Cleantech 0.3% (1.5%) 13.4x 17.2x 14.0x 13.4x 11.4x

Industrial & Infrastructure Services

Large Cap 3.2% 36.7% 7.5x 8.5x 10.1x 8.3x 7.5x

Small-Cap 7.4% 50.1% 7.6x 8.1x 10.9x 10.1x 7.6x

Utility Services 0.6% 14.2% 6.6x 7.7x 7.7x 7.8x 6.5x

Industrial Services 3.8% 19.8% 8.5x 8.8x 11.0x 8.9x 7.7x

Engineering Services (2.1%) 23.7% 8.0x 8.6x 10.3x 7.9x 7.1x

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

https://www.firstreserve.com/go.asp?Go=!SiteStation&x=TPLGen&ResType=Page&ResID=3518&TPL=TopNewsPageTemplate.htm

http://www.instapaper.com/hello2?url=https://www.firstreserve.com/go.asp?Go=!SiteStation&x=TPLGen&ResType=Page&ResID=3518&TPL=TopNewsPageTemplate.htm

http://www.genewscenter.com/Press-Releases/GE-Oil-Gas-Acquires-Remainder-of-UK-s-Allen-Gears-444b.aspx

http://www.instapaper.com/hello2?url=http://www.genewscenter.com/Press-Releases/GE-Oil-Gas-Acquires-Remainder-of-UK-s-Allen-Gears-444b.aspx

http://www.arsenalcapital.com/news/2013-12-09-a/index.cfm

http://www.instapaper.com/hello2?url=http://www.arsenalcapital.com/news/2013-12-09-a/index.cfm

http://www.stantec.com/about-us/news/2013/stantec-expand-environmental-services-two-acquisitions.html#.UsX67LTG5mU

http://www.instapaper.com/hello2?url=http://www.stantec.com/about-us/news/2013/stantec-expand-environmental-services-two-acquisitions.html#.UsX67LTG5mU

mailto:[email protected]

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Page | 2


WHAT WE’RE READING

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

Energy | The Outlook for Energy

ExxonMobil recently published its annual global view of energy supply and demand, “The Outlook for Energy: A View to

2040.” The report looks at major issues shaping the word’s energy future. ExxonMobil | Instapaper

Utilities | Transmission Investment Boost

Greentech Media examines how advancements in renewable energy are driving increased investment in grid modernization and

transmission upgrades in North America. The spending is driven by many factors, including large T&D projects and

interconnection of renewable sources such as utility-scale solar projects and wind farms. Greentech Media | Instapaper

Oil & Gas | Oil Boom

Fuel Fix reports the 2013 oil boom to be the biggest ever. The United States’ average daily oil production is on track to surge

by 1 million barrels per day this year, the biggest one-year jump in the nation’s history, according to federal data. Fuel Fix | Instapaper

Oil & Gas | Eliminating Flaring in the Bakken

The New York Times studies how drillers in the Bakken are searching for creative ways to curtail flaring, the burning of excess

natural gas from oil-producing wells. Flaring typically occurs in isolated areas with few gathering lines and limited drilling

regulation. The New York Times | Instapaper

Solar | Residential Solar Panel Installation

The largest number of American homes in history had solar panels installed on their rooftops in the third quarter of 2013,

according to the Solar Energy Industry Association and GTM Research. The record quarter delivered 31,000 new solar panel

home installations; the amount of solar panels installed on residential homes rose by 49 percent from the previous year. GigaOM Media | Instapaper

Utilities | Important Trends in Energy Efficiency

Greentech Media reached out to leading industry executives to get their thoughts and ideas on the most important technology or

market developments for increased energy efficiency in 2013. Greentech Media | Instapaper

Solar | Utilities Feeling Rooftop Solar Heat

Bloomberg reviews how homeowners in Hawaii and Arizona are battling public utilities and state legislation for the right to

install rooftop solar. Hawaii utility rates are currently triple the national average. Bloomberg | Instapaper

Utilities | Decrease in US Home Electricity Consumption

Energy-efficient housing, appliances, and gadgets are driving a decline in power usage for the third year in a row, to levels last

seen more than a decade ago. The drop has occurred even though our lives are more electrified than ever. Fuel Fix | Instapaper

Oil & Gas | Fire Fuels Keystone XL Debate

Bloomberg analyzes how the recent derailment and fire that led to evacuation of a North Dakota town has renewed the debate

over whether it’s safer to ship oil by rail or pipeline in the U.S. Bloomberg | Instapaper

Oil & Gas | Mexican Energy Reforms

Oil & Gas Journal reports that Mexico’s Congress has passed historic constitutional reforms opening the energy industry,

including oil and gas, to private investment. The Mexican government targets production of 3 million barrels / day by 2018. Oil & Gas Journal | Instapaper

http://corporate.exxonmobil.com/en/energy/energy-outlook

http://www.instapaper.com/hello2?url=http://corporate.exxonmobil.com/en/energy/energy-outlook

http://www.greentechmedia.com/articles/read/transmission-investment-sees-its-largest-boost-since-2000

http://www.instapaper.com/hello2?url=http://www.greentechmedia.com/articles/read/transmission-investment-sees-its-largest-boost-since-2000

http://fuelfix.com/blog/2013/12/26/2013-oil-boom-is-biggest-ever-data-shows/

http://www.instapaper.com/hello2?url=http://fuelfix.com/blog/2013/12/26/2013-oil-boom-is-biggest-ever-data-shows/

http://www.nytimes.com/2013/12/18/business/energy-environment/applying-creativity-to-a-byproduct-of-oil-drilling-in-north-dakota.html?pagewanted=all&_r=0

http://www.instapaper.com/hello2?url=http://www.nytimes.com/2013/12/18/business/energy-environment/applying-creativity-to-a-byproduct-of-oil-drilling-in-north-dakota.html?pagewanted=all&_r=0

http://gigaom.com/2013/12/09/a-record-number-of-u-s-homes-went-solar-in-the-third-quarter/

http://www.instapaper.com/hello2?url=http://gigaom.com/2013/12/09/a-record-number-of-u-s-homes-went-solar-in-the-third-quarter/

http://www.greentechmedia.com/articles/read/what-will-2014-bring-for-energy-efficiency?utm_campaign=Feed%3A+greentechmedia%2Fnews+%28Greentech+Media%3A+News%29&utm_medium=feed&utm_source=feedburner

http://www.instapaper.com/hello2?url=http://www.greentechmedia.com/articles/read/what-will-2014-bring-for-energy-efficiency?utm_campaign=Feed%3A+greentechmedia%2Fnews+%28Greentech+Media%3A+News%29&utm_medium=feed&utm_source=feedburner

http://www.bloomberg.com/news/2013-12-26/utilities-feeling-rooftop-solar-heat-start-fighting-back.html

http://www.instapaper.com/hello2?url=http://www.bloomberg.com/news/2013-12-26/utilities-feeling-rooftop-solar-heat-start-fighting-back.html

http://fuelfix.com/blog/2013/12/31/home-electricity-use-in-us-falling-to-2001-levels/

http://www.instapaper.com/hello2?url=http://fuelfix.com/blog/2013/12/31/home-electricity-use-in-us-falling-to-2001-levels/

http://www.bloomberg.com/news/2013-12-31/north-dakota-train-fire-adds-fuel-to-keystone-xl-debate.html

http://www.instapaper.com/hello2?url=http://www.bloomberg.com/news/2013-12-31/north-dakota-train-fire-adds-fuel-to-keystone-xl-debate.html

http://www.ogj.com/articles/2013/12/mexican-congress-approves-energy-reforms.html

http://www.instapaper.com/hello2?url=http://www.ogj.com/articles/2013/12/mexican-congress-approves-energy-reforms.html

`

Page | 3


M&A TRANSACTIONS

Recent M&A Transactions1,2

Date Target Business Description Acquirer

12/20/2013 LaPrairie US based provider of electrical and industrial products, construction materials, and

advanced logistics services.

WESCO

12/19/2013 Dixie Electric US based provider of oil field electrical construction & maintenance. First Reserve Corporation

12/17/2013 Duracoatings Holdings US based provider of chrome reworking and coating of downhole motor-related tools. Rock Hill Capital Group

12/16/2013 Kaselco US based manufacturer and provider of water treatment solution systems. BakerCorp

12/16/2013 Williamsburg Environmental

Group

US based provider of environmental consulting and engineering services. Stantec

12/9/2013 Allen Gearing Solutions UK based manufacturer and provider of gears and gearboxes for power generation, oil &

gas, marine, and industrial markets.

GE Oil & Gas

12/9/2013 Flowchem US based provider of specialty chemicals and chemical management services to the

pipeline industry.

Arsenal Capital Partners

12/9/2013 Kvaerner - North American

Onshore Assets

Norway based provider of engineering, procurement, and construction services. Matrix Service Company

12/9/2013 Stream AS Norway based provider of products, solutions, and services for the oil and gas industries

in Norway and Germany.

MRC Global

12/9/2013 Valerus Field Solutions US based provider of oil and gas handling equipment, operations, and services in the

United States.

Kentz Corporation

12/4/2013 Powervar US based provider of power management systems and uninterruptible power supply

systems.

Ametek

12/2/2013 Quality Connector Systems US based provider of deep & shallow water pipeline connectors for subsea pipeline

construction.

Oil States International

11/28/2013 Cambia Gordon Canada based provider of environmental consulting services. Stantec

11/26/2013 MARMAC Field Services, Select

Assets

US based provider of pipeline engineering and design services. Jacobs Engineering Group

11/20/2013 Drew Marine US based manufacturer of advanced performance chemicals and safety solutions for the

maritime and offshore markets.

The Jordan Company

11/20/2013 Oilfield Tubular Inspection US based provider of mobile, on-site inspection, testing, and cleaning services. Inspection Oilfield Services

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Page | 4


PUBLIC MARKETS

Energy Equipment and Services

TEV / LTM EBITDA TEV / 2013E EBITDA

5.1x

8.2x

8.3x

8.4x

8.7x

8.8x

9.9x

10.7x

12.0x

Land Drillers

OCTG

Offshore Drillers

Small Cap Service

Large Cap Service

E&C

Distribution

Logistics

Equipment

5.4x

7.1x

7.3x

7.7x

7.9x

8.0x

9.4x

10.8x

11.1x

Land Drillers

Offshore Drillers

E&C

Large Cap Service

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

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Page | 5


PUBLIC MARKETS (continued)

Power Equipment and Services


11.9x

13.2x

14.0x

Large Cap

Mid and Small-Cap

EE and Cleantech

10.4x

11.9x

13.4x

Large Cap

Mid and Small-Cap

EE and Cleantech


6.1%

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

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Page | 6


PUBLIC MARKETS (continued)

Infrastructure Services


7.7x

10.1x

10.3x

10.9x

11.0x

Utility Services

Large Cap

Engineering Svc

Mid and Small-Cap

Industrial Services

7.8x

7.9x

8.3x

8.9x

10.1x

Utility Services

Engineering Svc

Large Cap

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

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Page | 7


INDUSTRY STATISTICS

Commodity Prices

Price Change From

Current Prior Month Prior Year Prior Month Prior Year

Natural Gas ($ per MMBtu) $4.19 $3.86 $3.37 8.5% 24.6%

Crude Oil ($ per bbl) 98.42 93.68 91.82 5.1% 7.2%

Coal (CAPP) ($ per ton) 58.04 54.93 62.17 5.7% (6.6%)

Commodity Prices – Trailing Twelve Months

(Indexed to 100%)

25%

50%

75%

100%

125%

150%

Jan-13 Apr-13 Jul-13 Oct-13 Jan-14

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

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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

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

39

35

48

102

42

89

-

100

89

138

254

322

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

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

Horizontal / Directional

Vertical

`

Page | 9



Rig Counts3 (continued)

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

324

0

0

0

1

10

15

17

22

30

39

47

71

183

202

460

Others

Arkoma Woodford

Fayetteville

Marcellus

Haynesville

Ardmore Woodford

Barnett

Utica

Cana Woodford

DJ-Niobrara

Gulf of Mexico

Granite Wash

Mississippian

Williston

Eagle Ford

Permian

114

0

0

5

6

8

9

9

14

18

19

20

21

26

40

85

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

11%

(37%)

(15%)

(6%)

0%

0%

0%

0%

0%

9%

22%

34%

43%

47%

50%

67%

Others

Utica

Mississippian

Williston

Arkoma Woodford

Fayetteville

Marcellus

Haynesville

Permian

Granite Wash

Eagle Ford

Gulf of Mexico

Ardmore Woodford

Cana Woodford

DJ-Niobrara

Barnett

6%

(100%)

(74%)

(62%)

(40%)

(31%)

(31%)

(11%)

0%

0%

0%

3%

5%

25%

250%

300%

Others

Ardmore Woodford

Granite Wash

Eagle Ford

Barnett

Permian

Fayetteville

Marcellus

Williston

Cana Woodford

DJ-Niobrara

Haynesville

Gulf of Mexico

Arkoma Woodford

Utica

Mississippian

`

Page | 10



Well Counts3

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

9173

9582

9411

86588534

9011

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

4.7

5.0

5.1

4.9

5.0

5.3

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

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

11

(35)

(23)

(14)

(6)

(5)

(1)

1

10

18

20

24

44

54

66

Others

Fayetteville

Barnett

Marcellus

Utica

Cana Woodford

Haynesville

Arkoma Woodford

DJ-Niobrara

Ardmore Woodford

Mississippian

Granite Wash

Eagle Ford

Williston

Permian

(511)

(107)

(76)

(75)

(15)

7

13

13

18

19

25

81

109

119

144

Others

Barnett

Permian

DJ-Niobrara

Arkoma Woodford

Cana Woodford

Fayetteville

Haynesville

Utica

Granite Wash

Ardmore Woodford

Mississippian

Eagle Ford

Marcellus

Williston

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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 | Vice President

[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 | January 2014

PUBLIC COMPARABLES

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

TEV Dec-13 Nov-13 Prior Month Prior Year High % of High Dec-12 Jul-13 Current 2013E 2014E


Large Cap Service

Schlumberger Limited $124,796 $90.11 $88.42 1.9% 30.0% $94.91 94.9% 8.9x 8.9x 10.4x 10.0x 8.7x

Halliburton Company 49,262 50.75 52.68 (3.7%) 46.3% 56.52 89.8% 5.8x 7.6x 8.5x 8.0x 6.5x

Baker Hughes Incorporated 27,897 55.26 56.96 (3.0%) 35.3% 58.83 93.9% 5.8x 7.1x 7.7x 7.2x 5.8x

Weatherford International Ltd. 20,938 15.49 15.66 (1.1%) 38.4% 17.38 89.1% 7.0x 8.1x 8.9x 7.5x 6.1x

Median (2.0% ) 36.9% 91.9% 6.4x 7.8x 8.7x 7.7x 6.3x

Equipment

National Oilwell Varco, Inc. $35,153 $79.53 $81.50 (2.4%) 16.4% $84.71 93.9% 7.0x 8.0x 8.6x 8.5x 7.4x

Cameron International Corporation 15,569 59.53 55.39 7.5% 5.4% 67.42 88.3% 11.1x 11.4x 11.2x 10.9x 9.3x

FMC Technologies, Inc. 13,586 52.21 48.10 8.5% 21.9% 59.79 87.3% 14.1x 17.6x 15.1x 14.4x 11.2x

Dresser-Rand Group Inc. 5,720 59.63 56.44 5.7% 6.2% 67.38 88.5% 12.2x 12.7x 12.3x 11.5x 10.2x

Oil States International Inc. 5,843 101.72 102.35 (0.6%) 42.2% 113.64 89.5% 5.4x 7.0x 6.8x 7.1x 7.1x

Dril-Quip, Inc. 4,092 109.93 108.56 1.3% 50.5% 121.07 90.8% 14.3x 15.8x 17.8x 16.2x 12.5x

Forum Energy Technologies, Inc. 3,121 28.26 27.01 4.6% 14.2% 32.52 86.9% 8.4x 12.3x 12.5x 10.9x 8.6x

Oceaneering International, Inc. 8,472 78.88 77.19 2.2% 46.6% 87.64 90.0% 9.6x 11.8x 11.6x 11.4x 9.7x

Median 3.4% 19.1% 89.0% 10.4x 12.0x 12.0x 11.1x 9.5x

Mid and Small-Cap Service

Superior Energy Services, Inc. $5,837 $26.61 $25.48 4.4% 28.4% $29.22 91.1% 4.1x 5.2x 5.1x 5.2x 4.8x

Trican Well Service Ltd. 2,385 12.22 11.90 2.7% (7.2%) 15.28 80.0% 10.3x 15.4x 13.4x 12.8x 6.9x

Ensign Energy Services Inc. 2,927 15.75 15.32 2.8% 2.1% 17.36 90.7% 5.1x 6.0x 6.1x 6.2x 5.5x

Key Energy Services Inc. 1,971 7.90 7.84 0.8% 13.7% 9.55 82.7% 4.6x 5.6x 6.6x 7.3x 5.3x

Calfrac Well Services Ltd. 1,734 29.18 29.82 (2.1%) 16.1% 33.79 86.4% 5.7x 9.4x 10.3x 9.5x 5.7x

U.S. Silica Holdings, Inc. 2,046 34.11 34.51 (1.2%) 103.9% 37.14 91.8% 7.5x 9.1x 13.3x 12.4x 9.4x

TETRA Technologies, Inc. 1,340 12.36 12.34 0.2% 62.8% 13.41 92.2% 8.6x 13.0x 15.0x 8.5x 6.1x

C&J Energy Services, Inc. 1,359 23.10 23.70 (2.5%) 7.7% 25.35 91.1% 3.9x 4.4x 6.1x 6.9x 5.8x

Basic Energy Services, Inc. 1,416 15.78 14.19 11.2% 38.3% 17.40 90.7% 3.9x 5.5x 6.3x 6.2x 5.0x

CARBO Ceramics Inc. 2,616 116.53 123.03 (5.3%) 48.7% 132.55 87.9% 8.6x 9.1x 15.3x 15.5x 12.6x

Median 0.5% 22.3% 90.7% 5.4x 7.5x 8.4x 7.9x 5.8x

OCTG

Tenaris SA $25,200 $21.87 $22.54 (3.0%) 6.5% $25.41 86.1% 8.6x 8.5x 9.0x 9.1x 8.1x

Vallourec SA 9,934 54.53 56.90 (4.2%) 4.7% 70.25 77.6% 8.9x 8.3x 8.2x 8.0x 6.9x

OAO TMK 6,346 11.79 11.40 3.4% (23.0%) 15.99 73.7% 7.0x 6.5x 7.0x 6.4x 5.7x

Median (3.0% ) 4.7% 77.6% 8.6x 8.3x 8.2x 8.0x 6.9x

Distribution

MRC Global Inc. $4,293 $32.26 $30.59 5.5% 16.1% $34.14 94.5% 8.5x 8.3x 9.9x 10.8x 9.3x

Median 5.5% 16.1% 94.5% 8.5x 8.3x 9.9x 10.8x 9.3x


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. $4,315 $59.27 $57.04 3.9% 32.7% $63.22 93.8% 9.1x 11.0x 11.6x 9.4x 7.4x

Hornbeck Offshore Services, Inc. 2,288 49.23 50.63 (2.8%) 43.4% 59.93 82.1% 8.0x 10.7x 9.0x 8.4x 5.8x

Gulfmark Offshore, Inc. 1,713 47.13 49.36 (4.5%) 36.8% 53.89 87.5% 11.2x 15.8x 13.8x 10.7x 7.4x

ATCO Ltd. 12,837 43.92 45.89 (4.3%) 8.5% 49.03 89.6% 7.3x 7.4x 7.6x 7.7x 7.3x

Bristow Group, Inc. 3,275 75.06 80.20 (6.4%) 39.9% 85.70 87.6% 7.9x 10.2x 10.7x 9.6x 8.1x

Median (4.3% ) 36.8% 87.6% 8.0x 10.7x 10.7x 9.4x 7.4x

Offshore Drillers

Transocean Ltd. $24,974 $49.42 $50.38 (1.9%) 10.7% 59.50 83.1% 8.7x 8.9x 8.9x 7.1x 5.9x

Diamond Offshore Drilling, Inc. 8,171 56.92 60.05 (5.2%) (16.2%) 76.85 74.1% 7.1x 7.0x 6.5x 6.7x 5.4x

Rowan Companies plc 5,393 35.36 34.62 2.1% 13.1% 38.65 91.5% 9.5x 9.2x 9.0x 9.0x 6.5x

Hercules Offshore, Inc. 1,901 6.52 6.39 2.1% 5.7% 7.96 81.9% 9.3x 7.7x 7.0x 6.4x 4.0x

Atwood Oceanics, Inc. 4,604 53.39 52.56 1.6% 16.6% 59.49 89.7% 9.1x 8.3x 8.4x 7.0x 5.3x

Noble Corp. 15,373 37.47 38.12 (1.7%) 7.6% 42.34 88.5% 9.1x 8.8x 8.3x 7.8x 6.0x

Ensco plc 17,832 57.18 59.08 (3.2%) (3.5%) 65.82 86.9% 8.8x 7.9x 7.9x 7.4x 6.6x

Median (1.7% ) 7.6% 86.9% 9.1x 8.3x 8.3x 7.1x 5.9x

Land Drillers

Nabors Industries Ltd. $8,651 $16.99 $16.55 2.7% 17.6% 18.33 92.7% 4.2x 4.9x 5.1x 5.4x 4.9x

Helmerich & Payne, Inc. 8,756 84.08 77.00 9.2% 50.1% 84.87 99.1% 4.6x 5.0x 6.3x 6.0x 5.7x

Patterson-UTI Energy Inc. 4,103 25.32 23.31 8.6% 35.9% 26.09 97.0% 3.3x 3.9x 4.4x 4.8x 4.6x

Precision Drilling Corporation 3,711 9.36 9.31 0.5% 13.5% 10.85 86.2% 6.8x 8.4x 9.0x 6.3x 5.3x

Pioneer Energy Services Corp. 1,013 8.01 7.22 10.9% 10.3% 9.91 80.8% 3.8x 4.1x 4.2x 4.4x 4.4x

Median 8.6% 17.6% 92.7% 4.2x 4.9x 5.1x 5.4x 4.9x

Engineering & Construction

Technip $10,828 $96.21 $100.27 (4.0%) (16.0%) 127.37 75.5% 9.4x 8.3x 7.4x 7.3x 6.8x

Saipem SpA 16,535 21.43 22.48 (4.7%) (44.5%) 44.65 48.0% 7.9x 11.4x 15.7x 16.6x 7.4x

Subsea 7 SA 6,910 19.11 19.50 (2.0%) (19.4%) 23.71 80.6% 7.9x 7.7x 9.0x 6.7x 4.5x

Petrofac Limited 7,326 20.28 20.74 (2.2%) (23.1%) 29.02 69.9% 9.8x 7.0x 8.7x 7.3x 6.5x

McDermott International Inc. 2,043 9.16 8.15 12.4% (16.9%) 13.48 68.0% 5.0x 10.2x NM NM NM

Median (2.2% ) (19.4% ) 69.9% 7.9x 8.3x 8.8x 7.3x 6.6x


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 $667,836 $28.03 $26.66 5.1% 33.5% $28.09 99.8% 22.5x 21.4x 23.1x 22.7x 21.1x

Siemens Aktiengesellschaft 129,474 137.02 132.48 3.4% 26.6% 138.31 99.1% 8.2x 9.3x 12.6x 9.0x 8.2x

ABB Ltd. 64,563 26.37 25.65 2.8% 28.7% 26.45 99.7% 9.8x 9.5x 11.3x 10.3x 9.4x

Schneider Electric S.A. 55,620 87.31 84.79 3.0% 20.8% 92.25 94.6% 9.1x 9.0x 10.9x NA NA

Honeywell International Inc. 74,431 91.37 88.51 3.2% 44.0% 91.56 99.8% 10.3x 12.0x 13.5x 10.6x 9.9x

Emerson Electric Co. 51,985 70.18 66.99 4.8% 32.5% 70.66 99.3% 8.4x 8.9x 10.7x 10.1x 9.5x

Eaton Corporation plc 44,560 76.12 72.66 4.8% 40.5% 77.00 98.9% 13.2x 15.4x 15.3x 13.5x 11.6x

Alstom SA 16,361 36.46 36.78 (0.9%) (8.2%) 49.27 74.0% 6.6x 5.9x 6.6x NA NA

Median 3.3% 30.6% 99.2% 9.5x 9.4x 11.9x 10.4x 9.7x

Mid and Small-Cap Equipment and Services

Ametek Inc. $13,936 $52.67 $49.22 7.0% 40.2% $62.05 84.9% 12.1x 13.1x 15.3x 15.2x 14.0x

Hubbell Inc. 6,323 108.90 107.91 0.9% 28.7% 113.09 96.3% 9.3x 10.9x 11.2x 10.9x 10.2x

Valmont Industries, Inc. 3,994 149.12 144.71 3.0% 9.2% 164.93 90.4% 8.3x 7.4x 7.1x 7.1x 7.1x

Littelfuse Inc. 2,009 92.93 86.95 6.9% 50.6% 94.83 98.0% 9.5x 11.1x 13.2x 12.1x 10.5x

AZZ incorporated 1,656 48.86 48.88 (0.0%) 27.1% 49.64 98.4% 9.0x 9.5x 11.5x 10.3x 8.7x

ESCO Technologies Inc. 1,037 34.26 34.06 0.6% (8.4%) 42.42 80.8% 12.9x 11.0x 14.2x 11.9x 11.0x

Thermon Group Holdings, Inc. 938 27.33 28.80 (5.1%) 21.3% 29.06 94.0% 10.8x 10.5x 13.9x 12.7x 11.5x

Badger Meter Inc. 844 54.50 54.93 (0.8%) 15.0% 56.36 96.7% 13.2x 13.8x 16.6x 16.4x 14.4x

Powell Industries, Inc. 698 66.99 68.59 (2.3%) 61.3% 69.33 96.6% 5.6x 8.3x 11.0x 9.3x 7.7x

Global Power Equipment Group Inc. 341 19.57 19.53 0.2% 14.1% 20.98 93.3% 9.0x 8.4x 12.3x 19.2x 9.5x

Median 0.6% 27.1% 96.3% 9.5x 10.9x 13.2x 11.9x 10.5x


SolarCity Corporation $5,063 $56.82 $52.28 8.7% NA $65.30 87.0% NM NM NM NM NM

Itron, Inc. 1,922 41.43 42.35 (2.2%) (7.0%) 48.42 85.6% 7.9x 10.2x 11.4x 12.0x 8.2x

Silver Spring Networks, Inc. 848 21.00 20.69 1.5% NA 33.82 62.1% NM NM NM NM 15.5x

Ameresco, Inc. 595 9.66 9.18 5.2% (1.5%) 10.88 88.8% 13.4x 18.1x 19.0x 14.7x 13.6x

EnerNOC, Inc. 364 17.21 17.15 0.3% 46.5% 19.08 90.2% NM NM 7.2x 5.2x NM

PowerSecure International, Inc. 346 17.17 17.57 (2.3%) 119.8% 20.57 83.5% 13.4x 17.2x 16.6x 16.9x 9.2x

Echelon Corporation 56 2.15 2.31 (6.9%) (12.2%) 2.97 72.4% NM NM NM NM NM

Median 0.3% (1.5% ) 85.6% 13.4x 17.2x 14.0x 13.4x 11.4x


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 $146,016 $149,943 (0.1%) 22.4% $26,438 $28,349 $28,846 $28,528 $30,997 26.3% 30.0% 28.8% 19.5% 20.7% 28.4% 23.0%

Siemens Aktiengesellschaft 93,510 97,527 99,396 103,668 107,087 3.1% 3.8% 13,170 13,405 11,457 11,278 14,518 14.1% 13.7% 11.5% 10.9% 13.6% 13.1% 12.0%

ABB Ltd. 31,589 37,990 39,336 41,953 43,264 11.6% 4.9% 4,573 5,551 5,224 6,289 6,892 14.5% 14.6% 13.3% 15.0% 15.9% 14.1% 14.7%

Schneider Electric S.A. 26,255 29,029 31,572 -- -- 9.7% -- 4,656 4,730 5,232 -- -- 17.7% 16.3% 16.6% -- -- 16.9% 16.6%

Honeywell International Inc. 32,350 36,529 37,665 38,848 40,798 7.9% 4.1% 3,998 3,531 5,082 6,981 7,414 12.4% 9.7% 13.5% 18.0% 18.2% 11.8% 16.5%

Emerson Electric Co. 21,039 24,222 24,412 24,607 24,792 7.7% 0.8% 3,965 4,797 4,828 4,786 5,059 18.8% 19.8% 19.8% 19.4% 20.4% 19.5% 19.9%

Eaton Corporation plc 13,715 16,049 16,311 22,063 23,271 9.1% 19.4% 1,722 2,189 2,140 3,318 3,806 12.6% 13.6% 13.1% 15.0% 16.4% 13.1% 14.8%

Alstom SA 26,570 29,672 26,573 -- -- 0.0% -- 2,810 3,009 2,534 -- -- 10.6% 10.1% 9.5% -- -- 10.1% 9.5%

Total $345,465 $365,541 $375,415 $377,155 $389,155 6.1% 9.2% $61,332 $65,562 $65,343 $61,180 $68,686 17.8% 17.9% 17.4% 16.2% 17.6% 15.9% 15.9%

Mid and Small-Cap Equipment and Services

Ametek Inc. $2,471 $2,990 $3,334 $3,560 $3,829 16.2% 7.2% $555 $722 $851 $931 $1,009 22.5% 24.2% 25.5% 26.1% 26.4% 24.1% 26.0%

Hubbell Inc. 2,541 2,872 3,044 3,193 3,377 9.5% 5.3% 432 487 535 580 625 17.0% 17.0% 17.6% 18.2% 18.5% 17.2% 18.1%

Valmont Industries, Inc. 1,976 2,661 3,030 3,315 3,386 23.8% 5.7% 251 340 451 566 562 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 357 381 469 573 794 14.6% 30.1% 84 85 99 129 162 23.4% 22.3% 21.1% 22.5% 20.4% 22.3% 21.3%

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 51 59 19.0% 14.5% 17.7% 15.4% 16.4% 17.1% 16.5%

Powell Industries, Inc. 551 562 717 662 736 14.1% 1.3% 69 28 61 54 75 12.6% 5.0% 8.6% 8.1% 10.2% 8.7% 9.0%

Global Power Equipment Group Inc. 482 457 463 480 554 (2.1%) 9.4% 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 $13,717 $14,683 9.6% 8.6% $1,770 $1,997 $2,346 $2,639 $2,879 17.6% 17.3% 18.3% 19.2% 19.6% 16.9% 17.3%


SolarCity Corporation $32 $60 $129 $160 $241 99.2% 36.9% ($34) ($49) ($48) ($80) ($77) 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. 70 237 197 360 441 67.4% 49.7% (141) (87) (82) 14 55 NM NM NM 4.0% 12.4% NM 8.2%

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 $3,775 $4,225 29.3% 18.5% $205 $251 $194 $211 $370 5.9% 6.2% 5.2% 5.6% 8.8% 7.4% 9.5%

Page | 19



Stock Performance




Large Cap Infrastructure Services

Fluor Corporation $11,093 $80.29 $77.81 3.2% 36.7% $80.45 99.8% 8.3x 7.7x 10.3x 8.3x 7.9x

Chicago Bridge & Iron Company N.V. 10,462 83.14 76.68 8.4% 79.4% 83.17 100.0% 7.5x 11.3x 12.8x 11.5x 9.2x

Jacobs Engineering Group Inc. 7,516 62.99 59.77 5.4% 48.0% 64.27 98.0% 7.1x 8.5x 9.8x 8.4x 7.5x

URS Corporation 5,798 52.99 51.97 2.0% 35.0% 55.79 95.0% 6.1x 6.6x 7.0x 6.8x 6.8x

KBR, Inc. 3,876 31.89 33.83 (5.7%) 6.6% 36.70 86.9% 10.1x 10.5x 10.1x 6.0x 5.4x

Median 3.2% 36.7% 98.0% 7.5x 8.5x 10.1x 8.3x 7.5x

Mid and Small-Cap Infrastructure Services

The Babcock & Wilcox Company $3,546 $34.19 $32.47 5.3% 30.5% $34.67 98.6% 8.0x 9.2x 10.7x 8.5x 7.8x

Foster Wheeler AG 2,924 33.00 30.33 8.8% 35.7% 33.08 99.8% 7.2x 6.6x 11.0x 10.3x 9.0x

Tutor Perini Corporation 1,913 26.30 24.49 7.4% 92.0% 26.44 99.5% 5.5x 6.3x 7.7x 8.1x 6.5x

Primoris Services Corporation 1,651 31.13 28.76 8.2% 107.0% 31.45 99.0% 5.7x 7.0x 10.1x 9.9x 8.5x

Granite Construction Incorporated 1,248 34.98 31.25 11.9% 4.0% 37.74 92.7% 10.1x 10.1x 22.2x 17.0x 6.4x

Great Lakes Dredge & Dock Corporation 803 9.20 8.91 3.3% 3.0% 10.07 91.4% 13.6x 17.6x 15.9x 11.9x 7.4x

Willbros Group Inc. 762 9.42 8.77 7.4% 75.7% 10.45 90.1% 6.7x 6.7x 9.1x 9.8x 6.1x

Orion Marine Group, Inc 307 12.03 11.87 1.3% 64.6% 13.77 87.4% 21.6x 13.1x 13.2x 18.4x 9.6x

Median 7.4% 50.1% 95.7% 7.6x 8.1x 10.9x 10.1x 7.6x

Utility Services

Quanta Services, Inc. $6,514 $31.56 $29.61 6.6% 15.6% $31.60 99.9% 9.3x 7.6x 9.4x 9.5x 8.1x

MasTec, Inc. 3,363 32.72 31.65 3.4% 31.2% 35.31 92.7% 7.1x 8.2x 8.2x 7.6x 6.5x

Dycom Industries Inc. 1,408 27.79 28.30 (1.8%) 40.4% 31.75 87.5% 6.0x 7.7x 7.1x 6.9x 6.2x

Aegion Corporation 1,111 21.89 21.77 0.6% (1.4%) 26.10 83.9% 9.4x 10.2x 10.6x 9.6x 7.2x

Pike Corporation 553 10.57 10.51 0.6% 10.7% 15.95 66.3% 5.1x 5.0x 5.6x 8.1x 6.5x

MYR Group, Inc. 468 25.08 25.41 (1.3%) 12.7% 27.30 91.9% 5.5x 4.6x 5.5x 5.6x 5.3x

Median 0.6% 14.2% 89.7% 6.6x 7.7x 7.7x 7.8x 6.5x

Industrial Services

Bilfinger SE $5,244 $112.28 $114.53 (2.0%) 16.9% $116.03 96.8% 7.5x 8.8x 11.3x 7.1x 6.4x

EMCOR Group Inc. 2,823 42.44 39.73 6.8% 22.6% 43.98 96.5% 6.5x 8.2x 9.6x 9.2x 7.7x

Team, Inc. 933 42.34 40.92 3.5% 11.3% 46.66 90.7% 10.1x 11.4x 13.3x 11.2x 9.2x

Mistras Group, Inc. 657 20.88 20.05 4.1% (15.4%) 25.35 82.4% 11.1x 9.4x 10.6x 8.5x 7.7x

Matrix Service Company 563 24.43 22.20 10.0% 112.4% 24.74 98.7% 6.8x 7.2x 10.3x 8.6x 6.8x

Furmanite Corporation 432 10.62 11.30 (6.0%) 97.8% 11.73 90.5% 9.5x 8.7x 11.3x 10.4x 8.2x

Median 3.8% 19.8% 93.6% 8.5x 8.8x 11.0x 8.9x 7.7x

Engineering Services

AECOM Technology Corporation $3,515 $29.43 $29.06 1.3% 23.7% $35.24 83.5% 7.1x 8.4x 7.7x 7.4x 6.8x

AMEC plc 5,325 18.02 18.54 (2.8%) 10.6% 20.04 89.9% 8.3x 8.6x 10.3x 9.1x 8.3x

Stantec Inc. 3,032 61.99 64.88 (4.5%) 55.5% 68.09 91.0% 9.4x 9.6x 12.2x 12.1x 10.9x

Tetra Tech Inc. 1,876 27.98 28.59 (2.1%) 5.7% 31.49 88.9% 7.9x 12.9x 13.7x 7.8x 7.1x

Aecon Group Inc. 1,319 15.15 14.49 4.5% 41.7% 15.15 99.9% 8.0x 7.1x 8.8x 7.9x 6.4x

Median (2.1% ) 23.7% 89.9% 8.0x 8.6x 10.3x 7.9x 7.1x


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.

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