Quanta Services, Inc. · NYSE:PWR
Quanta Services — Investor Presentation (July 2020)
17 slides from Quanta Services's investor presentation, Jul 16, 2020
Slide 1: Puerto Rico Electric T&D System Operating & Maintenance Agreement Overview
Through its ownership in Puerto Rico Electric Transmission & Distribution System Operating & Maintenance Agreement Overview J u l y 1 6 , 2 0 2 0
Slide 2: Notice to Investors
Notice to Investors This presentation (and oral statements regarding the subject matter of this presentation) includes forward-looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking stat
Slide 3: Opportunity Highlights
Opportunity Highlights • LUMA Energy, LLC (LUMA), 50% owned by Quanta and 50% owned by ATCO, has been selected for this historic opportunity – the transformation and modernization of the Puerto Rico electric transmission and distribution (T&D) system, in order to provide significant benefits to the
Slide 4: Puerto Rico Electric T&D System Operation & Maintenance Agreement
Puerto Rico Electric T&D System Operation & Maintenance Agreement Summary In response to the devastation of the island and its electric power system caused by hurricanes in 2017, as well as other challenges faced by PREPA, in June 2018, Puerto Rico began a historic process intended to transform and
Slide 5: LUMA's Expected Benefits to the People of Puerto Rico
LUMA’s Expected Benefits to the People of Puerto Rico LUMA is a purpose-built company that has been designed to help provide the people and communities of Puerto Rico with a resilient, reliable and sustainable electric T&D system, while also delivering outstanding customer service. Over the contract
Slide 6: LUMA Consortium
LUMA Consortium • 50% owner of LUMA Energy, LLC • North America’s largest and industry- leading electric power infrastructure solutions provider with world-class skilled workforce training ✓ Purpose-built company • 2019 revenues = $12.1 billion ✓ Best-in-class operational and customer service expert
Slide 7: Positive Reception In Puerto Rico
Positive Reception In Puerto Rico LUMA has Already Received Hundreds of Messages from Puerto Rico Residents and PREPA Employees that are Excited About Opportunities with LUMA and the Expected Benefits for Puerto Rico “Hi, welcome to PR. We have been “Good afternoon! I worked with PREPA “I have worke
Slide 8: Key Contract Terms and Objectives
Key Contract Terms and Objectives Operation and Maintenance Agreement to Leverage Quanta’s and ATCO’s Best-In-Class Capabilities to Deliver Significant Benefits to the People of Puerto Rico • Significant planned capital program to rebuild and modernize the T&D system to be managed by LUMA with fundi
Slide 9: Key Contract Terms and Objectives
Key Contract Terms and Objectives Front-End O&M Services Period Transition Period (2021 – 2035) (2020 – 2021) • Preparatory work to • LUMA assumes responsibility for all in-scope operational matters enable full transition of operations to LUMA in • Fixed fee for service paid monthly process • Additi
Slide 10: Key Contract Terms and Objectives
Key Contract Terms and Objectives Note: All financial information below is at the LUMA level. Quanta owns 50% of LUMA. Front-End Transition Period Compensation Front-End • Fixed Front-End Transition Service Fee of $60M Transition Service Fee • Reimbursement of actual costs to provide Front-End Trans
Slide 11: Opportunity for Quanta to Further Participate in Puerto Rico's Grid Modernization
Opportunity for Quanta to Further Participate in Puerto Rico’s Grid Modernization PREPA T&D Annual CAPEX Forecast $3,000 $2,500 ~$18.4B Total $2,000 Capex 2019-2028 $1,500 $1,000 $500 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Transmission & Substation Distribution Technology Distributed E
Slide 12: Top Investor Concerns vs. Mitigating Factors
Top Investor Concerns vs. Mitigating Factors Poor Experiences by Others PREPA Credit Worthiness / Execution Risk – Is This Concerns in Puerto Rico Title 3 Risk Really Core? • Others had one-off contracts with • PREPA generates ~$3 billion in annual • LUMA leverages respective PREPA for storm respons
Slide 13: Top Investor Concerns vs. Mitigating Factors
Top Investor Concerns vs. Mitigating Factors Risk / Timing of Achieving LUMA Risk With Another Concerns Full-Transition Hurricane • LUMA selected, in part, due to its • Quanta, ATCO and IEM’s industry well designed and thorough leading emergency response transition plan capabilities were a significa
Slide 14: Summary
Summary • LUMA has been selected for this historic opportunity – the transformation and modernization of the Puerto Rico electric T&D system, in order to provide significant benefits to the people of Puerto Rico through an O&M Agreement with PREPA and the P3 • LUMA is a purpose-built company that le
Slide 15: Connect With Quanta Services Investor Relations
Connect With Quanta Services Investor Relations @QuantaIR QuantaServicesIR Investor Contact Corporate Office Kip Rupp, CFA 2800 Post Oak Blvd., Suite 2600 Vice President – Investor Relations Houston, TX 77056 713-341-7260 713-629-7600 investors@quantaservices.com www.quantaservices.com 15
Slide 16: Forward Looking Statements
Forward Looking Statements This presentation (and oral statements regarding the subject matter of this presentation) contains forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking state
Slide 17: Forward Looking Statements
Forward Looking Statements • The potential adverse impact resulting from uncertainty surrounding Quanta’s investment in and operation of LUMA, including potential disagreements with respect to management or failure of parties to perform obligations required; • The impact of a unionized workforce on