Quanta Services, Inc. · NYSE:PWR
Quanta Services — Merger or Acquisition (September 2009)
18 slides from Quanta Services's merger presentation, Sep 3, 2009
Slide 1: Investor Conference Call September 3, 2009
Investor Conference Call September 3, 2009
Slide 2: Forward-Looking Statement Disclaimer
FORWARD-LOOKING STATEMENT DISCLAIMER This presentation includes statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended as "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. You can identify these
Slide 3: Introduction
John R. Colson Chairman & Chief Executive Officer Quanta Services INTRODUCTION James H. Haddox Chief Financial Officer Quanta Services Jim O'Neil President & Chief Operating OfficerQuanta Services
Slide 4: Acquisition Overview
ACQUISITION OVERVIEW Quanta is acquiring Price Gregory - a leading U.S. natural gas transmission infrastructure service provider - for approximately $350 million (~$100 million in cash and ~11.1 million shares of common stock valued at $250 million)Expected to result in increased cash flow and subst
Slide 5: Price Gregory Overview
A privately owned company formed through the combination of H.C. Price Company and Gregory & Cook Construction, Inc. in January 2008. A leader in construction of large diameter, natural gas and oil transmission pipelines and related facilitiesOperations in the Lower 48, Alaska and CanadaHeadquarters
Slide 6: Price Gregory Service Offerings
PRICE GREGORY SERVICE OFFERINGS Large diameter transmission pipeline construction servicesCompressor and pumping stationsMetering and regulator stationsMaintenance and upgrade servicesAutomatic pipeline welding
Slide 7: Price Gregory Customers
PRICE GREGORY CUSTOMERS PRICE GREGORY CUSTOMERS
Slide 8: Compelling Financial Rationale
COMPELLING FINANCIAL RATIONALE The transaction is expected to result in substantial EPS accretion for QuantaProjected to be accretive to Quanta's EPS before amortization by $0.13 to $0.21 in 2010(1)Expected to generate significant free cash flow to fund other business opportunitiesPositive impact on
Slide 9: Natural Gas Market Poised for Significant Expansion
NATURAL GAS MARKET POISED FOR SIGNIFICANT EXPANSION Global energy consumption is projected to increase by 44% from 2006 to 2030Unconventional natural gas is the largest contributor to growth in energy production Energy policy is expected to mandate energy independence and a cleaner environmentNatura
Slide 10: Natural Gas Price History and Forward Curves
NATURAL GAS PRICE HISTORY AND FORWARD CURVES $ / Mmbtu Source: Bloomberg as of 9/1/09 Date HHUB HHUB Strip (current) HHUB Strip (3 months ago) First Call JPM NBP Strip (current) NBP Strip (3 months ago) Line 5 Line 6 Line 7 Line 8 Line 9 Line 10 Line 11 Line 12 Line 13 Line 14 Line 15 Line 16 Annota
Slide 11: U.S. Shale Basins and Pipeline Grid
U.S. SHALE BASINS AND PIPELINE GRID U.S. is estimated to have 100 years of natural gas resources at today's rate of consumption versus 30 years worth only three years ago Increased exploration, including shale discoveries, and new drilling technologies have significantly increased U.S. natural gas r
Slide 12: Major Pipeline Projects on Horizon
MAJOR PIPELINE PROJECTS ON HORIZON (MMcf/d) Source: FERC, Office of Energy Projects August 2009
Slide 13: Analysts Expect Natural Gas Infrastructure Market Will Expand
"Current pipeline projects have slowed.... However, our longer-term outlook beyond 2010 is still encouraging given that we believe structurally challenged oil supply and improving demand will lead natural gas prices higher."-Goldman Sachs, July 14, 2009 ANALYSTS EXPECT NATURAL GAS INFRASTRUCTURE MAR
Slide 14: Summary
SUMMARY Very complementary acquisition at an attractive valuation; highly accretive on key metricsExpected to close Q4 2009 subject to customary regulatory and closing conditionsEstablishes Quanta as a leader in the energy transmission infrastructure markets - electric power and natural gasTimely op
Slide 15: Questions
Questions
Slide 16: Investor Conference Call September 3, 2009
Investor Conference Call September 3, 2009
Slide 17: Appendix: Reconciliation of Non-GAAP Measures
AppendixReconciliation of Non-GAAP Measures
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures
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