ENERGY & POWER INDUSTRY UPDATE NOVEMBER

Transcription

1 wwwharriswilliamscom 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

2 SUMMARY M&A SELECT RECENT ACTIVITY Apollo Global Management has agreed to acquire Express Energy Services Express is a provider of casing and tubular, completion, and production services for oil & gas exploration and production operators Source Instapaper Riverstone Holdings has signed an agreement to acquire Proserv Group, a portfolio company of Intervale Capital Proserv is a provider of engineered products and services and offshore and subsea solutions for the oil and gas industry Source Instapaper AmQuip Crane Rental, a portfolio company of Altpoint Capital Partners, has agreed to be acquired by Clearlake Capital Group AmQuip is a leading provider of rental lifting solutions to the North American energy and industrial end markets Source Instapaper Innospec has acquired Independence Oilfield Chemicals, a portfolio company of CSL Capital Management, for approximately $228 million Independence is a provider of completion, stimulation, and production chemicals to the oil and gas industry Source Instapaper PUBLIC MARKETS KEY TRADING STATISTICS Stock Price % Change TEV / LTM EBITDA as of TEV / EBITDA 1 Month 12 Month Oct-13 May-14 Current 2014E 2015P Energy Services and Equipment Service (166%) 19% 90x 104x 84x 70x 60x Equipment (21%) (86%) 126x 115x 95x 91x 82x Small-Cap Service (235%) (249%) 89x 115x 70x 63x 44x OCTG (141%) (384%) 86x 81x 70x 70x 64x Distribution (55%) (248%) 89x 116x 111x 104x 85x Logistics (19%) (388%) 118x 92x 71x 77x 72x Offshore Drillers (59%) (366%) 82x 68x 57x 58x 51x Land Drillers (230%) 21% 53x 72x 52x 50x 42x E&C (247%) (333%) 96x 89x 63x 60x 49x Power Services and Equipment PS&E 21% (55%) 116x 113x 107x 99x 92x Small-Cap PS&E 66% 48% 121x 113x 113x 113x 104x EE and Cleantech (07%) (112%) 156x 153x 138x 107x 101x Industrial & Infrastructure Services (17%) (166%) 105x 107x 72x 81x 66x Small-Cap 66% 20% 94x 107x 91x 79x 61x Utility Services 04% 59% 72x 82x 84x 82x 71x Industrial Services 39% (102%) 103x 107x 79x 77x 67x Engineering Services (42%) 25% 113x 120x 111x 103x 72x CONTENTS WHAT WE RE READING M&A TRANSACTIONS PUBLIC MARKETS INDUSTRY PUBLIC COMPARABLES CONTACTS UNITED STATES Andrew Spitzer Managing Director aspitzer@harriswilliamscom +1 (804) Brian Lucas Managing Director blucas@harriswilliamscom +1 (804) Matthew White Director mwhite@harriswilliamscom +1 (804) Luke Semple Director lsemple@harriswilliamscom +1 (804) Chris Burnham Vice President cburnham@harriswilliamscom +1 (804) Ian Thomas Vice President ithomas@harriswilliamscom +1 (804) EUROPE Julien Darmon Managing Director jdarmon@harriswilliamscom +44 (0) Jeffery Perkins Managing Director jperkins@harriswilliamscom +49 (0) wwwharriswilliamscom PAGE 1

3 WHAT WE RE READING A summary of interesting industry articles we have come across in the past month OIL & GAS ENERGY BOOM CAN WITHSTAND STEEPER DROP The Wall Street Journal reports that oil prices would need to fall at least another $20 per barrel to choke off the US energy boom Small and midsize companies not global giants are behind the surge in US oil output, which hit 897 million barrels a day earlier this month, according to federal statistics The Wall Street Journal Instapaper RENEWABLE ENERGY WALMART DOMINATING SOLAR POWER ADOPTION Slate reports that Walmart has been installing solar panels on its stores rooftops to improve its corporate image while controlling energy costs According to the Solar Energy Industries Association, Walmart has installed 105 megawatts of solar capacity Slate Instapaper NUCLEAR LOCKHEED FUSION BREAKTHROUGH Yahoo Finance reports that Lockheed Martin Corporation has made a technological breakthrough in developing a power source based on nuclear fusion, and the first reactors, small enough to fit on the back of a truck, could be ready for use in a decade Yahoo Finance Instapaper OIL & GAS THE OIL PATCH PRINCE Forbes writes that six years ago Midland resident Bryan Sheffield had no energy industry experience Today he s on track to become a billionaire before his 40th birthday Forbes Instapaper UTILITIES UNLOCKING THE UTILITY GRID The Economist reports that microgrids, with their own electricity-generating capacity, are a better alternative to smart grids Most of these local grids are operated by private organizations such as military bases, industrial plants and universities, which need more dependable power than the national grid can offer The Economist Instapaper OIL & GAS NO END IN SIGHT FOR PRODUCTION BOOM The New York Times writes that although falling oil and gasoline prices have sent oil company stocks tumbling, the boom in American energy production shows no signs of slowing down, keeping the market flush with low crude and gasoline prices The New York Times Instapaper SOLAR SOLAR DEBT FINANCING HIGHEST SINCE 2010 Bloomberg New Energy Finance reports that global debt financing to solar companies is on pace this year to reach the highest level since 2010 Solar companies borrowed about $184 billion through the third quarter, almost triple the $62 billion last year and $68 billion in 2012 Bloomberg New Energy Finance Instapaper MANAGEMENT LESSONS FROM A RYDER CUP FEUD The New Yorker writes that after Team USA suffered a heavy defeat at the Ryder Cup, there was a nasty spat between two of its members, Phil Mickelson, the team s star player, and Tom Watson, its captain, over the management of the team s energy and talent The New Yorker Instapaper PAGE 2

4 M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Target Business Description Acquirer 10/30/2014 TRI-COUNTY Engineering US based provider of an advanced engineering and environmental services company for the natural gas exploration, extraction, and distribution markets in North America 10/24/2014 Basin Tools US based manufacturer of rotors and stators that are used in mud motor power sections Enercon Services Abaco Energy Technologies 10/24/2014 Express Energy Services US based provider of completion and production services in the North America and the Gulf of Mexico Apollo Global Management 10/23/2014 Proserv Group US based provider of drilling and production technology products for the oil and gas industry Riverstone Holdings 10/20/2014 Geospace Technologies Corporation US based designer and manufacturer of instruments and equipment used in the acquisition and processing of seismic data Lemelson Capital Management 10/20/2014 WesTower Communications US based manufacturer and provider of communication towers MasTec, Inc 10/16/2014 Sun Tubular Services US based provider of rental and tubular services to oil and natural gas exploration and production operators IronGate Energy Services 10/16/2014 SBM Offshore US based provider of floating production solutions to the offshore energy industry UBS AG 10/7/2014 AmQuip Crane Rental US based provider of rental lifting services to the energy, industrial, and other markets Clearlake Capital Group 10/2/2014 Accelerated Companies US based provider of artificial lift systems, including electric submersible pumps, gas lifts, and other fluid handling equipment Dover Corporation 10/1/2014 Independence Oilfield Chemicals US based provider of completion, stimulation, and production chemicals to the oil and gas industry Innospec 10/1/2014 Miller Environmental Services US based provider of industrial and environmental cleaning services to the energy end markets Trinity Hunt Partners 10/1/2014 Houston Offshore Engineering US based provider of expert engineering services to support offshore oil and gas developments WS Atkins 9/25/2014 Dresser-Rand US based provider and manufacturer of rotating equipment solutions to the upstream, midstream, and downstream energy markets Siemens 9/17/2014 Pioneer Fishing & Rental Services US based provider of well site services to oil and natural gas drilling and production companies in the US Basic Energy Services 9/16/2014 Pure Energies US based provider of design, installation, finance, and operational services for residential rooftop solar systems NRG Energy 9/11/2014 UTEC Survey US based provider of onshore survey and geotechnical services for the onshore and off shore oil & gas industry Acteon Group 9/9/2014 Ferguson Group UK based provider of specialty containers to the oil and gas sector internationally Brambles PAGE 3

5 PUBLIC MARKETS Energy Equipment and Services TEV / LTM EBITDA TEV / 2014E EBITDA Distribution 111x Distribution 104x Equipment 95x Equipment 91x Service 84x Logistics 77x Logistics 71x OCTG 70x Small Cap Service 70x Service 70x OCTG 70x Small Cap Service 63x E&C 63x E&C 60x Offshore Drillers 57x Offshore Drillers 58x Land Drillers 52x Land Drillers 50x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) Distribution 329% Small Cap Service 155% Offshore Drillers 201% Land Drillers 125% Equipment 185% Logistics 84% Logistics Small Cap Service Service Land Drillers E&C OCTG 113% 107% 87% 70% 52% 21% Services Distribution Offshore Drillers Equipment E&C OCTG 70% 59% 52% 46% 40% 08% AVERAGE EBITDA MARGIN ( ) AVERAGE EBITDA MARGIN ( P) Offshore Drillers 424% Offshore Drillers 420% Logistics 338% Logistics 342% Land Drillers 319% Land Drillers 319% Small Cap Service 229% Service 218% Service 208% Equipment 209% Equipment 205% Small Cap Service 200% OCTG 189% OCTG 188% E&C 115% E&C 108% Distribution 67% Distribution 67% PAGE 4

6 PUBLIC MARKETS CONT Power Equipment and Services TEV / LTM EBITDA TEV / 2014P EBITDA EE and Cleantech 138x Mid and Small-Cap 113x Mid and Small-Cap 113x EE and Cleantech 107x 107x 99x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) EE and Cleantech 214% EE and Cleantech 149% Mid and Small-Cap 94% Mid and Small-Cap 74% 39% 32% AVERAGE EBITDA MARGIN ( ) AVERAGE EBITDA MARGIN ( E) Mid and Small-Cap 168% Mid and Small-Cap 174% 160% 159% EE and Cleantech (134%) EE and Cleantech (83%) PAGE 5

7 PUBLIC MARKETS CONT Infrastructure Services TEV / LTM EBITDA TEV / 2014E EBITDA Engineering Svc 111x Engineering Svc 103x Mid and Small- Cap 91x Utility Services 82x Utility Services 84x 81x Industrial Services 79x Mid and Small- Cap 79x 72x Industrial Services 77x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) Utility Services 210% Engineering Svc 184% Engineering Svc 191% Industrial Services 118% Industrial Services 141% Mid and Small- Cap 79% 110% Utility Services 71% Mid and Small- Cap 89% 51% AVERAGE EBITDA MARGIN ( ) AVERAGE EBITDA MARGIN ( P) Engineering Svc 99% Engineering Svc 104% Utility Services 95% Utility Services 101% Industrial Services 83% 80% 73% Industrial Services 80% Mid and Small-Cap 62% Mid and Small-Cap 76% PAGE 6

8 INDUSTRY STATISTICS Commodity Prices Price Change From Current Prior Month Prior Year Prior Month Prior Year Natural Gas ($ per MMBtu) $396 $412 $366 (39%) 81% Crude Oil ($ per bbl) (116%) (164%) Coal (CAPP) ($ per ton) (07%) (46%) TRAILING TWELVE MONTHS (Indexed to 100%) 175% 150% 125% 100% 75% 50% 25% 11/1/13 2/1/14 5/1/14 8/1/14 11/1/14 Natural Gas (NYMEX:^NG) Crude Oil (NYMEX:^CL) Coal (NYMEX:^QL) PAGE 7

9 INDUSTRY STATISTICS Rig Counts 3 US RIG COUNTS INTERNATIONAL RIG COUNTS 2,500 2,000 1,500 1, ,400 1,200 1, '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 ' '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 US OIL VS GAS RIG COUNT US HORIZONTAL/DIRECTIONAL VS VERTICAL RIG COUNT 1,800 1,600 1,400 1,200 1, Oil Gas '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 1,800 1,600 1,400 1,200 1, Horizontal / Directional Vertical '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 INTERNATIONAL RIG COUNT BY COUNTRY Latin America Middle East Asia Pacific Europe Africa North Sea 36- Offshore Land PAGE 8

10 INDUSTRY STATISTICS Rig Counts 3 cont US OIL RIG COUNT BY REGION US GAS RIG COUNT BY REGION Permian Eagle Ford Williston Mississippian DJ-Niobrara Granite Wash Gulf of Mexico Cana Woodford Utica Barnett Ardmore Woodford Haynesville Marcellus Fayetteville Arkoma Woodford Others Marcellus Haynesville Utica Granite Wash DJ-Niobrara Eagle Ford Barnett Gulf of Mexico Fayetteville Permian Cana Woodford Arkoma Woodford Mississippian Ardmore Woodford Williston Others % YTD CHANGE IN US OIL RIG COUNT BY REGION % YTD CHANGE IN US GAS RIG COUNT BY REGION (100%) (31%) (40%) (17%) 57% 48% 34% 21% 18% 11% 4% 1% 0% 0% 0% 25% Cana Woodford DJ-Niobrara Gulf of Mexico Permian Utica Mississippian Williston Eagle Ford Marcellus Fayetteville Arkoma Woodford Granite Wash Barnett Ardmore Woodford Haynesville Others (1%) (5%) (16%) (22%) (33%) (37%) (44%) (52%) (67%) (5%) 24% 0% 0% 0% 0% 375% Granite Wash Utica Fayetteville Arkoma Woodford Ardmore Woodford Williston Marcellus Haynesville DJ-Niobrara Permian Barnett Gulf of Mexico Mississippian Eagle Ford Cana Woodford Others PAGE 9

11 INDUSTRY STATISTICS CONT Well Counts 3 US LAND WELLS US LAND WELLS PER RIG 9,456 9, ,011 9,075 9,083 8, Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 WELL COUNT CHANGE FROM PRIOR QUARTER WELL COUNT CHANGE FROM PRIOR YEAR 45 Williston 350 Permian 30 DJ-Niobrara 72 Eagle Ford 20 Permian 54 DJ-Niobrara 18 Cana Woodford 24 Arkoma Woodford 16 Granite Wash 23 Haynesville 8 Haynesville 14 Cana Woodford 7 Utica 12 Granite Wash 5 Arkoma Woodford Mississippian Barnett (8) Utica (2) Fayetteville (22) Fayetteville (3) Marcellus (30) Marcellus (12) Mississippian (38) Williston (18) Ardmore Woodford (52) Ardmore Woodford (27) Eagle Ford (118) Barnett 23 Others 210 Others PAGE 10

12 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 SELECT RELEVANT EXPERIENCE Oil & Gas Equipment and Services Coal Products and Services a portfolio company of Tanglewood Investments, Inc a portfolio company of Power SELECT RELEVANT EXPERIENCE Power Products and Technology Electric and Natural Gas Transmission and Distribution Energy Efficiency and Clean Technology Renewable Energy Services and Equipment a portfolio company of a portfolio company of a portfolio company of a subsidiary of Infrastructure SELECT RELEVANT EXPERIENCE Industrial and Infrastructure Services Engineering and Construction Environmental Services a portfolio company of a portfolio company of a portfolio company of a portfolio company of PAGE 11

13 INDUSTRY LEADING EXPERTISE Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Industrials Energy & Power Healthcare & Lifesciences Specialty Distribution Technology, Media & Telecom Transportation & Logistics KEY CONTACTS UNITED STATES EUROPE Energy & Power Andrew Spitzer Managing Director +1 (804) Brian Lucas Managing Director +1 (804) Matthew White Director +1 (804) Luke Semple Director +1 (804) Chris Burnham Vice President +1 (804) Ian Thomas Vice President +1 (804) Environmental Services Derek Lewis Managing Director +1 (804) Bob Baltimore Managing Director +1 (804) Brian Lucas Managing Director +1 (804) Energy Technology Tyler Dewing Director +1 (617) Julien Darmon Managing Director +44 (0) Jeffery Perkins Managing Director +49 (69) PAGE 12

14 HW&CO OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts Phone: +1 (617) Fax: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Fax: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) Fax: +1 (612) UNITED STATES Philadelphia 1600 Market Street 21st Floor Philadelphia, Pennsylvania Phone: +1 (267) Fax: +1 (267) Richmond (US Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) Fax: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California 94105, USA Phone: +1 (415) Fax: +1 (415) EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: Fax: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) Fax: +44 (0) Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 13

15 PUBLIC COMPARABLES Energy Services and Equipment Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA TEV Oct-14 Sep-14 Prior Month Prior Year High % of High Oct-13 May-14 Current 2014E 2015P Service Schlumberger Limited $133,470 $9866 $10169 (30%) 53% $ % 109x 111x 103x 97x 88x Halliburton Company 52, (145%) 40% % 88x 96x 77x 72x 62x Baker Hughes Incorporated 26, (186%) (88%) % 81x 89x 62x 56x 50x Weatherford International plc 20, (211%) (01%) % 92x 126x 90x 67x 58x Median (166%) 19% 721% 90x 104x 84x 70x 60x Equipment National Oilwell Varco, Inc $30,428 $7264 $7610 (45%) (105%) $ % 90x 78x 66x 67x 62x Cameron International Corporation 14, (103%) 85% % 104x 111x 89x 91x 81x FMC Technologies, Inc 13, % 109% % 147x 135x 108x 106x 94x Dresser-Rand Group Inc 7, (07%) 344% % 125x 135x 179x 157x 138x Oceaneering International, Inc 7, % (182%) % 127x 102x 93x 90x 83x Dril-Quip, Inc 3, % (234%) % 193x 162x 110x 102x 92x Oil States International Inc 3, (35%) (450%) % 96x 69x 85x 71x 70x Forum Energy Technologies, Inc 2, (108%) (67%) % 129x 118x 97x 84x 71x Median (21%) (86%) 802% 126x 115x 95x 91x 82x Mid and Small-Cap Service Superior Energy Services, Inc $5,221 $2515 $3287 (235%) (63%) $ % 50x 64x 48x 43x 38x US Silica Holdings, Inc 2, (282%) 289% % 139x 175x 128x 106x 75x Ensign Energy Services Inc 2, (143%) (340%) % 65x 65x 49x 48x 44x Trican Well Service Ltd 1, (236%) (363%) % 150x 239x 147x 86x 51x Calfrac Well Services Ltd 1, (230%) (232%) % 112x 126x 84x 62x 48x C&J Energy Services, Inc 1, (368%) (162%) % 56x 105x 67x 58x 45x Basic Energy Services, Inc 1, (405%) (121%) % 66x 77x 48x 44x 38x Key Energy Services Inc 1, (372%) (611%) % 67x 86x 68x 65x 37x CARBO Ceramics Inc 1, (128%) (588%) % 165x 179x 71x 73x 68x TETRA Technologies, Inc 1, (119%) (265%) % 143x 157x 122x 63x 41x Median (235%) (249%) 577% 89x 115x 70x 63x 44x OCTG Tenaris SA $22,177 $1967 $2291 (141%) (163%) $ % 100x 91x 80x 79x 71x Vallourec SA 7, (201%) (384%) % 86x 81x 58x 70x 64x OAO TMK 5, (140%) (394%) % 72x 65x 70x 64x 54x Median (141%) (384%) 652% 86x 81x 70x 70x 64x Distribution MRC Global Inc $3,507 $2103 $2332 (98%) (248%) $ % 89x 116x 98x 85x 74x NOW Inc 2, (12%) NM % NM NM 125x 124x 96x Median (55%) (248%) 721% 89x 116x 111x 104x 85x PAGE 14

16 PUBLIC COMPARABLES CONT Energy Services and Equipment Service Revenue Revenue Growth EBITDA EBITDA Margin Avg Margin E 2015P '11-13 '13-15P E 2015P E 2015P '11-13 '13-15P Schlumberger Limited $36,579 $41,731 $45,266 $48,962 $52, % 74% $9,633 $10,788 $12,011 $13,820 $15, % 259% 265% 282% 291% 262% 280% Halliburton Company 24,829 28,503 29,402 33,056 35,577 88% 100% 6,096 6,087 6,038 7,262 8, % 214% 205% 220% 237% 221% 221% Baker Hughes Incorporated 19,831 21,361 22,364 24,435 25,813 62% 74% 4,236 3,823 3,647 4,716 5, % 179% 163% 193% 207% 185% 188% Weatherford International plc 12,988 15,215 15,263 15,189 16,261 84% 32% 2,443 2,445 2,054 3,083 3, % 161% 135% 203% 218% 161% 185% Total $94,227 $106,810 $112,295 $121,642 $129,868 87% 70% $22,408 $23,143 $23,750 $28,881 $32, % 217% 211% 237% 251% 208% 218% Equipment National Oilwell Varco, Inc $14,658 $20,041 $22,869 $21,518 $22, % (12%) $3,492 $4,185 $4,178 $4,567 $4, % 209% 183% 212% 218% 210% 204% Cameron International Corporation 6,959 8,502 9,838 10,600 10, % 56% 1,119 1,317 1,460 1,641 1, % 155% 148% 155% 166% 155% 156% FMC Technologies, Inc 5,099 6,151 7,126 7,897 8, % 98% ,296 1, % 129% 138% 164% 173% 133% 158% Dresser-Rand Group Inc 2,312 2,736 3,033 3,000 3, % 24% % 156% 149% 157% 165% 153% 157% Oceaneering International, Inc 2,193 2,783 3,287 3,698 3, % 102% % 217% 227% 232% 235% 222% 232% Dril-Quip, Inc , % 110% % 256% 290% 337% 323% 269% 317% Oil States International Inc 2,104 2,631 2,670 1,824 1, % (142%) % 320% 296% 236% 241% 306% 258% Forum Energy Technologies, Inc 1,128 1,415 1,525 1,766 1, % 134% % 205% 175% 197% 206% 190% 192% Total $35,054 $44,993 $51,221 $51,229 $54, % 46% $7,129 $8,647 $9,134 $9,924 $10, % 192% 178% 194% 201% 205% 209% Mid and Small-Cap Service Superior Energy Services, Inc $1,964 $4,568 $4,612 $4,588 $4, % 35% $554 $1,250 $1,076 $1,220 $1, % 274% 233% 266% 276% 263% 258% US Silica Holdings, Inc , % 432% % 320% 280% 286% 304% 289% 290% Ensign Energy Services Inc 1,860 2,204 1,975 2,088 2,267 31% 71% % 257% 231% 227% 237% 249% 232% Trican Well Service Ltd 2,272 2,221 1,991 2,364 2,593 (64%) 141% % 109% 78% 93% 144% 151% 105% Calfrac Well Services Ltd 1,512 1,600 1,472 2,027 2,258 (13%) 239% % 161% 120% 134% 157% 183% 137% C&J Energy Services, Inc 758 1,112 1,070 1,581 1, % 318% % 302% 177% 153% 176% 285% 169% Basic Energy Services, Inc 1,243 1,375 1,263 1,483 1,604 08% 127% % 216% 183% 217% 238% 222% 213% Key Energy Services Inc 1,729 1,960 1,592 1,445 1,577 (41%) (05%) % 215% 169% 124% 190% 209% 161% CARBO Ceramics Inc % (03%) % 316% 258% 253% 265% 317% 259% TETRA Technologies, Inc ,068 1,294 37% 193% % 139% 100% 188% 240% 120% 176% Total $13,106 $17,008 $16,098 $18,144 $20, % 155% $3,504 $3,839 $2,970 $3,539 $4, % 226% 184% 195% 221% 229% 200% OCTG Tenaris SA $9,972 $10,834 $10,597 $10,481 $11,514 31% 42% $2,400 $2,847 $2,764 $2,798 $3, % 263% 261% 267% 265% 255% 264% Vallourec SA 6,880 7,022 7,682 $6,885 $7,242 57% (29%) 1,222 1,088 1,215 1,041 1, % 155% 158% 151% 159% 164% 156% OAO TMK 6,754 6,688 6,432 $6,241 $6,575 (24%) 11% 1,017 1, % 150% 144% 137% 151% 148% 144% Total $23,606 $24,544 $24,711 $23,606 $25,331 21% 08% $4,639 $4,941 $4,908 $4,695 $5, % 201% 199% 199% 205% 189% 188% Distribution MRC Global Inc $4,832 $5,571 $5,231 $5,828 $6,214 40% 90% $262 $475 $388 $413 $470 54% 85% 74% 71% 76% 71% 74% NOW Inc 1,641 3,414 4,296 $4,210 $4, % 29% % 53% 56% 58% 69% 63% 61% Total $6,473 $8,985 $9,527 $10,038 $10, % 59% $396 $655 $629 $657 $783 61% 73% 66% 65% 73% 67% 67% PAGE 15

17 PUBLIC COMPARABLES CONT Energy Services and Equipment Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA TEV Oct-14 Sep-14 Prior Month Prior Year High % of High Oct-13 May-14 Current 2014E 2015P Logistics ATCO Ltd $13,106 $4060 $4061 (00%) (125%) $ % 83x 87x 86x 79x 72x Tidewater Inc 3, (55%) (388%) % 118x 92x 75x 78x 69x Bristow Group, Inc 3, % (82%) % 120x 114x 110x 108x 86x Hornbeck Offshore Services, Inc 1, (63%) (445%) % 115x 83x 67x 66x 53x Civeo Corporation 1, % NM % NM NM 48x 61x 71x Gulfmark Offshore, Inc 1, (38%) (394%) % 144x 98x 67x 75x 72x Median (19%) (388%) 581% 118x 92x 71x 77x 72x Offshore Drillers Transocean Ltd $19,159 $2983 $3197 (67%) (366%) % 70x 61x 49x 53x 65x Ensco plc 14, (17%) (296%) % 82x 68x 57x 60x 64x Noble Corp 10, (59%) (445%) % 83x 65x 47x 53x 64x Diamond Offshore Drilling, Inc 6, % (391%) % 71x 70x 57x 58x 51x Rowan Companies plc 4, (41%) (327%) % 92x 86x 84x 66x 45x Atwood Oceanics, Inc 3, (70%) (235%) % 83x 84x 74x 73x 51x Hercules Offshore, Inc 1, (250%) (757%) % 74x 56x 40x 52x 51x Land Drillers Median (59%) (366%) 606% 82x 68x 57x 58x 51x Nabors Industries Ltd $9,151 $1785 $2276 (216%) 21% % 53x 72x 52x 52x 44x Helmerich & Payne, Inc 9, (113%) 120% % 58x 77x 77x 58x 49x Patterson-UTI Energy Inc 4, (292%) (51%) % 43x 59x 44x 40x 33x Precision Drilling Corporation 3, (230%) (213%) % 99x 83x 55x 50x 42x Pioneer Energy Services Corp 1, (345%) 93% % 43x 67x 40x 39x 35x Engineering & Construction Median (230%) 21% 599% 53x 72x 52x 50x 42x Saipem SpA $13,368 $1566 $2125 (263%) (333%) % 168x 232x 91x 79x 62x Technip SA 7, (140%) (311%) % 83x 85x 55x 55x 44x Petrofac Limited 6, % (278%) % 91x 92x 71x 66x 55x Subsea 7 SA 3, (247%) (492%) % 96x 83x 30x 27x 28x McDermott International Inc 1, (329%) (457%) % 448x NM NM NM NM Median (247%) (333%) 595% 96x 89x 63x 60x 49x PAGE 16

18 PUBLIC COMPARABLES CONT Energy Services and Equipment Logistics Revenue Revenue Growth EBITDA EBITDA Margin Avg Margin E 2015P '11-13 '13-15P E 2015P E 2015P '11-13 '13-15P ATCO Ltd $3,926 $4,025 $4,103 $4,146 $4,334 22% 28% $1,469 $1,550 $1,594 $1,651 $1, % 385% 388% 398% 420% 383% 402% Tidewater Inc 1,051 1,060 1,230 1,426 1,584 82% 135% % 250% 286% 293% 300% 265% 293% Bristow Group, Inc 1,115 1,199 1,344 1,660 1,914 98% 193% % 220% 218% 196% 192% 220% 202% Hornbeck Offshore Services, Inc % 188% % 414% 466% 449% 474% 415% 463% Civeo Corporation 865 1,109 1, % (104%) % 444% 410% 319% 297% 421% 342% Gulfmark Offshore, Inc % 62% % 265% 349% 346% 350% 325% 348% Total $7,669 $8,246 $8,721 $9,287 $9, % 84% $2,598 $2,865 $3,080 $3,148 $3, % 347% 353% 339% 347% 338% 342% Offshore Drillers Transocean Ltd $7,407 $8,773 $9,070 $9,004 $8, % (44%) $2,515 $3,522 $3,512 $3,596 $2, % 401% 387% 399% 354% 376% 380% Ensco plc 2,798 4,301 4,920 4,846 4, % (03%) 1,150 2,097 2,348 2,362 2, % 488% 477% 488% 460% 459% 475% Noble Corp 2,616 3,431 4,122 4,141 3, % (85%) 1,128 1,537 1,980 2,016 1, % 448% 480% 487% 476% 453% 481% Diamond Offshore Drilling, Inc 3,254 2,936 2,844 2,825 3,146 (65%) 52% 1,649 1,337 1,186 1,092 1, % 455% 417% 387% 394% 460% 399% Rowan Companies plc 939 1,393 1,579 1,801 2, % 222% , % 370% 372% 382% 429% 376% 394% Atwood Oceanics, Inc ,018 1,172 1, % 213% % 516% 537% 460% 514% 548% 504% Hercules Offshore, Inc % 08% % 278% 341% 270% 298% 296% 303% Total $18,226 $22,208 $24,411 $24,696 $24, % 52% $7,338 $9,569 $10,453 $10,539 $10, % 431% 428% 427% 413% 424% 420% Land Drillers Nabors Industries Ltd $6,013 $6,843 $6,152 $6,853 $7,476 11% 102% $1,841 $1,966 $1,680 $1,779 $2, % 287% 273% 260% 283% 289% 272% Helmerich & Payne, Inc 2,529 3,138 3,374 3,711 4, % 130% 1,004 1,278 1,393 1,569 1, % 407% 413% 423% 426% 406% 421% Patterson-UTI Energy Inc 2,566 2,723 2,716 3,180 3,951 29% 206% , % 364% 337% 312% 307% 358% 319% Precision Drilling Corporation 1,919 2,047 1,911 2,100 2,384 (02%) 117% % 234% 314% 337% 344% 281% 332% Pioneer Energy Services Corp ,040 1, % 69% % 269% 246% 251% 259% 261% 252% Total $13,743 $15,671 $15,113 $16,884 $19,220 70% 125% $4,563 $4,960 $4,825 $5,310 $6, % 317% 319% 315% 327% 319% 319% Engineering & Construction Saipem SpA $16,360 $17,304 $16,878 $16,199 $15,683 16% (36%) $2,766 $2,567 $949 $1,681 $2, % 148% 56% 104% 137% 125% 99% Technip SA 8,851 10,817 12,857 13,211 14, % 53% 1,093 1,321 1,431 1,330 1, % 122% 111% 101% 116% 119% 109% Petrofac Limited 5,801 6,240 6,329 6,774 8,145 45% 134% ,014 1,030 1, % 135% 160% 152% 154% 142% 156% Subsea 7 SA 5,055 6,297 6,297 7,041 6, % 09% 816 1, ,367 1, % 166% 131% 194% 201% 153% 175% McDermott International Inc 3,445 3,642 2,659 2,580 2,874 (121%) 40% (259) % 116% (97%) 13% 80% 39% (02%) Total $39,512 $44,299 $45,020 $45,804 $47,370 52% 40% $5,769 $6,196 $3,960 $5,440 $6, % 140% 88% 119% 139% 115% 108% PAGE 17

19 PUBLIC COMPARABLES CONT Power Services and Equipment Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA TEV Oct-14 Sep-14 Prior Month Prior Year High % of High Oct-13 May-14 Current 2014E 2015P Equipment and Services General Electric Company $630,675 $2581 $ % (13%) $ % 220x 228x 223x 220x 217x Siemens Aktiengesellschaft 108, (50%) (121%) % 122x 116x 99x 88x 81x Honeywell International Inc 75, % 108% % 128x 113x 110x 101x 93x ABB Ltd 52, (26%) (145%) % 109x 107x 109x 93x 84x Schneider Electric SE 54, % (66%) % 105x 112x 105x NA NA Emerson Electric Co 48, % (43%) % 105x 104x 99x 97x 92x Eaton Corporation plc 40, % (31%) % 134x 127x 117x 117x 107x Alstom SA 15, % (66%) % 62x 72x 61x NA NA Median 21% (55%) 892% 116x 113x 107x 99x 92x Mid and Small-Cap Equipment and Services Ametek Inc $14,085 $5215 $ % 90% $ % 140x 146x 139x 136x 124x Hubbell Inc 6, (59%) 55% % 112x 118x 113x 113x 106x Valmont Industries, Inc 3, % (31%) % 67x 75x 75x 80x 78x Littelfuse Inc 2, % 147% % 120x 113x 114x 112x 101x AZZ incorporated 1, % 41% % 108x 102x 104x 106x 98x ESCO Technologies Inc 1, % 54% % 152x 125x 121x 121x 107x Thermon Group Holdings, Inc (02%) 37% % 122x 114x 112x 110x 109x Badger Meter Inc % 94% % 159x 135x 140x 145x 123x Powell Industries, Inc % (275%) % 100x 96x 78x 123x 80x Global Power Equipment Group Inc (85%) (331%) % 129x 93x 75x 88x 75x Median 66% 48% 916% 121x 113x 113x 113x 104x Energy Efficiency and Clean Technology SolarCity Corporation $6,233 $5918 $5960 (07%) NA $ % NM NM NM NM NM Itron, Inc 1, (10%) (88%) % 116x 95x 95x 107x 89x OPOWER, Inc NM NM NM % NM NM NM NM NM Ameresco, Inc % (212%) % 213x 193x 181x 136x 129x EnerNOC, Inc (129%) (112%) % 72x 113x 67x 50x 68x Silver Spring Networks, Inc (07%) NA % NM NM NM NM 105x PowerSecure International, Inc % (382%) % 196x 285x 284x NM 101x Echelon Corporation % (32%) % NM NM NM NM NM Median (07%) (112%) 638% 156x 153x 138x 107x 101x PAGE 18

20 PUBLIC COMPARABLES CONT Power Services and Equipment Equipment and Services Revenue Revenue Growth EBITDA EBITDA Margin Avg Margin E 2015P '11-13 '13-15P E 2015P E 2015P '11-13 '13-15P General Electric Company $94,522 $100,149 $100,542 $148,972 $149,693 31% 220% $27,846 $29,238 $28,875 $27,619 $27, % 292% 287% 185% 187% 291% 220% Siemens Aktiengesellschaft 97,527 99, ,703 92,397 96,854 26% (29%) 13,405 11,457 10,292 12,298 13, % 115% 100% 133% 136% 118% 123% Honeywell International Inc 36,529 37,665 39,055 40,384 42,009 34% 37% 3,531 5,082 6,490 7,500 8,104 97% 135% 166% 186% 193% 133% 182% ABB Ltd 37,990 39,336 41,848 40,330 41,283 50% (07%) 5,538 5,259 5,636 5,590 6, % 134% 135% 139% 150% 138% 141% Schneider Electric SE 29,029 31,572 32,433 31,266 32,908 57% 07% 4,656 5,186 5,199 4,885 5, % 164% 160% 156% 164% 162% 160% Emerson Electric Co 24,222 24,412 24,669 24,551 25,360 09% 14% 4,797 4,828 4,844 4,841 5, % 198% 196% 197% 206% 197% 200% Eaton Corporation plc 16,049 16,311 22,046 22,585 23, % 27% 2,203 2,350 3,307 3,543 3, % 144% 150% 157% 165% 144% 157% Alstom SA 29,672 26,573 25,971 27,575 25,172 (64%) (15%) 3,009 2,534 2,359 2,456 2, % 95% 91% % 89% Total $365,540 $375,415 $389,266 $428,061 $436,542 39% 32% $64,986 $65,934 $67,001 $68,733 $72, % 176% 172% 161% 165% 160% 159% Mid and Small-Cap Equipment and Services Ametek Inc $2,990 $3,334 $3,594 $4,031 $4,296 96% 93% $722 $851 $934 $1,038 $1, % 255% 260% 257% 262% 252% 260% Hubbell Inc 2,872 3,044 3,184 3,352 3,495 53% 48% % 176% 180% 176% 179% 175% 178% Valmont Industries, Inc 2,661 3,030 3,304 3,175 3, % (03%) % 149% 170% 146% 145% 149% 154% Littelfuse Inc % 87% % 211% 221% 223% 232% 221% 226% AZZ incorporated % 222% % 210% 226% 193% 191% 220% 203% ESCO Technologies Inc % 71% % 135% 149% 158% 162% 141% 156% Thermon Group Holdings, Inc % 13% % 214% 248% 262% 260% 227% 257% Badger Meter Inc % 87% % 177% 158% 167% 184% 158% 170% Powell Industries, Inc % 44% % 86% 94% 57% 75% 77% 75% Global Power Equipment Group Inc % 77% % 62% 60% 57% 65% 62% 61% Total $11,543 $12,796 $13,678 $14,508 $15,367 94% 74% $1,999 $2,345 $2,656 $2,711 $2, % 183% 194% 187% 190% 168% 174% Energy Efficiency and Clean Technology SolarCity Corporation $60 $127 $164 $250 $ % 687% ($49) ($70) ($106) ($242) ($213) (821%) (553%) (650%) (968%) (456%) (675%) (691%) Itron, Inc 2,434 2,178 1,949 1,940 2,017 (105%) 17% % 122% 89% 84% 101% 113% 92% OPOWER, Inc % 304% (21) (11) (12) (24) (24) (719%) (218%) (131%) (195%) (160%) (356%) (162%) Ameresco, Inc (112%) 19% % 78% 47% 66% 68% 71% 60% EnerNOC, Inc % 159% % 10% 132% 159% 176% 59% 156% Silver Spring Networks, Inc % 53% (87) (82) (35) (11) 34 (369%) (415%) (108%) (36%) 93% (297%) (17%) PowerSecure International, Inc % 114% % 58% 80% 03% 72% 52% 52% Echelon Corporation (258%) (160%) (5) (3) (6) (18) (6) (34%) (26%) (72%) (279%) (106%) (44%) (152%) Total $4,061 $3,759 $3,842 $3,955 $4, % 149% $230 $160 $113 ($19) $150 57% 43% 29% (05%) 33% (134%) (83%) PAGE 19

21 PUBLIC COMPARABLES CONT Infrastructure Services Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA TEV Oct-14 Sep-14 Prior Month Prior Year High % of High Oct-13 May-14 Current 2014E 2015P Infrastructure Services Fluor Corporation $8,489 $6634 $6679 (07%) (106%) $ % 94x 76x 62x 63x 58x Chicago Bridge & Iron Company NV 8, (55%) (263%) % 116x 108x 72x 69x 63x SNC-Lavalin Group Inc 6, (67%) 25% % 199x 196x 99x 77x 84x Jacobs Engineering Group Inc 6, (28%) (220%) % 94x 107x 91x 84x 69x The Babcock & Wilcox Company 3, % (112%) % 99x 63x 61x 101x 73x KBR, Inc 1, % (448%) % 111x 240x NM 87x 45x Median (17%) (166%) 750% 105x 107x 72x 81x 66x Mid and Small-Cap Infrastructure Services Foster Wheeler AG $2,740 $3103 $3162 (19%) 150% $ % 98x 127x 115x 84x 75x Tutor Perini Corporation 2, % 220% % 70x 79x 70x 69x 57x Primoris Services Corporation 1, % 103% % 90x 79x 84x 80x 69x Aecon Group Inc 1, (43%) (63%) % 81x 103x 109x 65x 51x Granite Construction Incorporated 1, % 141% % 208x 219x 160x 83x 64x Willbros Group Inc (295%) (399%) % 97x 88x 53x 62x 47x Great Lakes Dredge & Dock Corporatio % (140%) % 90x 110x 85x 78x 59x Orion Marine Group, Inc % (123%) % 138x 130x 98x 90x 66x Median 66% 20% 836% 94x 107x 91x 79x 61x Utility Services Quanta Services, Inc $7,220 $3408 $3629 (61%) 128% $ % 88x 103x 99x 91x 75x MasTec, Inc 3, (65%) (104%) % 80x 94x 83x 82x 66x Dycom Industries Inc 1, % 59% % 72x 82x 84x 82x 72x Pike Corporation % 105% % 57x 76x 84x 82x 71x MYR Group, Inc % (19%) % 61x 49x 58x 61x 56x Median 04% 59% 923% 72x 82x 84x 82x 71x Industrial Services Bilfinger SE $3,161 $6448 $ % (420%) $ % 105x 73x 54x 69x 54x EMCOR Group Inc 2, % 191% % 82x 98x 78x 76x 67x Aegion Corporation (177%) (106%) % 103x 107x 79x 91x 70x Team, Inc % 130% % 118x 131x 120x 119x 98x Mistras Group, Inc (192%) (102%) % 95x 121x 103x 89x 80x Matrix Service Company % 205% % 88x 100x 76x 77x 63x Furmanite Corporation % (335%) % 115x 127x 101x 75x 57x Median 39% (102%) 647% 103x 107x 79x 77x 67x Engineering Services AECOM Technology Corporation $5,543 $3255 $3375 (36%) 24% $ % 88x 87x 138x 115x 45x AMEC plc 4, (71%) (120%) % 107x 117x 95x 90x 64x Stantec Inc 3, (34%) 66% % 121x 122x 127x 118x 101x WSP Global Inc 2, (49%) 63% % 118x 171x 193x 131x 80x Tetra Tech Inc 1, % 26% % 128x 142x 88x 83x 80x RPS Group plc (115%) (195%) % 87x 91x 71x 72x 65x Median (42%) 25% 859% 113x 120x 111x 103x 72x PAGE 20

22 PUBLIC COMPARABLES CONT Infrastructure Services Infrastructure Services Revenue Revenue Growth EBITDA EBITDA Margin Avg Margin E 2015P '11-13 '13-15P E 2015P E 2015P '11-13 '13-15P Fluor Corporation $23,381 $27,577 $27,352 $21,808 $25,420 82% (36%) $1,187 $946 $1,397 $1,394 $1,480 51% 34% 51% 64% 58% 45% 58% Chicago Bridge & Iron Company NV 4,551 5,485 11,095 13,046 14, % 134% ,184 1,286 91% 94% 84% 91% 90% 90% 88% SNC-Lavalin Group Inc 6,599 7,550 6,730 7,208 9,439 10% 184% % 88% 67% 116% 78% 88% 87% Jacobs Engineering Group Inc 10,382 10,894 11,818 12,800 13,746 67% 78% % 64% 65% 61% 67% 63% 64% The Babcock & Wilcox Company 2,952 3,291 3,269 2,893 3,156 52% (18%) % 107% 177% 106% 140% 104% 141% KBR, Inc 9,103 7,770 7,214 6,630 6,675 (110%) (38%) % 46% 33% 32% 62% 45% 42% Total $56,968 $62,568 $67,477 $64,385 $72, % 51% $3,540 $3,539 $4,366 $4,718 $5,279 62% 57% 65% 73% 73% 73% 80% Mid and Small-Cap Infrastructure Services Foster Wheeler AG $4,458 $3,391 $3,306 $3,515 $4,295 (139%) 140% $230 $271 $244 $323 $375 52% 80% 74% 92% 87% 68% 84% Tutor Perini Corporation 3,716 4,111 4,176 4,554 5,106 60% 106% % 52% 62% 65% 71% 57% 66% Primoris Services Corporation 1,460 1,542 1,944 2,199 2, % 126% % 84% 91% 88% 91% 89% 90% Aecon Group Inc 2,849 2,897 2,888 2,597 2,744 07% (25%) % 42% 40% 67% 85% 43% 64% Granite Construction Incorporated 2,010 2,083 2,267 2,544 2,892 62% 129% % 53% 27% 67% 73% 51% 56% Willbros Group Inc 1,376 1,929 2,019 2,111 1, % (44%) % 36% 38% 40% 61% 34% 46% Great Lakes Dredge & Dock Corporatio % 98% % 119% 108% 108% 134% 126% 116% Orion Marine Group, Inc % 105% % 25% 60% 83% 102% 32% 82% Total $16,649 $16,833 $17,686 $18,710 $20,662 89% 79% $975 $992 $1,034 $1,361 $1,683 59% 59% 58% 73% 81% 62% 76% Utility Services Quanta Services, Inc $4,194 $5,920 $6,523 $7,729 $8, % 146% $334 $623 $689 $785 $960 80% 105% 106% 102% 112% 97% 106% MasTec, Inc 2,831 3,727 4,325 4,602 5, % 112% % 89% 99% 91% 97% 91% 96% Dycom Industries Inc 1,036 1,201 1,609 1,817 1, % 85% % 108% 109% 103% 109% 106% 107% Pike Corporation % (27%) % 93% 124% 85% 94% 99% 101% MYR Group, Inc % 41% % 80% 97% 90% 96% 79% 94% Total $9,435 $12,532 $14,278 $15,903 $17, % 71% $776 $1,227 $1,493 $1,545 $1,862 82% 98% 105% 97% 106% 95% 101% Industrial Services Bilfinger SE $10,664 $11,001 $11,588 $9,670 $9,958 42% (73%) $455 $600 $624 $476 $590 43% 55% 54% 49% 59% 50% 54% EMCOR Group Inc 5,613 6,347 6,417 6,400 6,689 69% 21% % 48% 45% 57% 61% 47% 54% Aegion Corporation 926 1,017 1,091 1,316 1,382 86% 125% % 111% 100% 78% 100% 102% 92% Team, Inc % 85% % 117% 104% 103% 112% 111% 106% Mistras Group, Inc % 173% % 137% 116% 115% 107% 132% 113% Matrix Service Company ,273 1, % 289% % 58% 56% 62% 64% 60% 60% Furmanite Corporation % 203% % 67% 85% 74% 86% 82% 81% Total $18,993 $20,490 $21,660 $20,579 $21, % 118% $992 $1,215 $1,240 $1,209 $1,454 52% 59% 57% 59% 67% 83% 80% Engineering Services AECOM Technology Corporation $8,037 $8,218 $8,153 $8,038 $19,030 07% 528% $480 $438 $441 $481 $1,227 60% 53% 54% 60% 64% 56% 59% AMEC plc 4,877 6,644 6,583 6,193 8, % 128% % 77% 80% 87% 90% 83% 86% Stantec Inc 1,356 1,559 1,725 1,854 2, % 117% % 139% 135% 145% 146% 139% 142% WSP Global Inc 641 1,262 1,898 2,058 3, % 378% % 87% 70% 108% 100% 96% 93% Tetra Tech Inc 1,792 2,022 2,025 1,875 1,832 63% (49%) % 103% 67% 112% 120% 94% 100% RPS Group plc % 00% % 126% 131% 146% 150% 125% 142% Total $17,526 $20,608 $21,324 $20,880 $35, % 184% $1,511 $1,594 $1,593 $1,847 $3,016 86% 77% 75% 88% 84% 99% 104% PAGE 21

23 SOURCES 1 Capital IQ 2 MergerMarket 3 Baker Hughes Harris Williams & Co (wwwharriswilliamscom) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence Harris Williams & 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 THE ADDRESSES OR NUMBERS LISTED ON PAGE 1 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 PAGE 22