Report Volume XXIX, Number 16 April 15, 2018

April 13, 2018

INDUSTRY NEWS (Dallas, TX) – Primoris Services said it will buy the Houston engineering and construction firm Willbros Group just a week after Willbros said it was putting it up for sale and even considering bankruptcy.

The Primoris construction company said it will pay about $38 million to acquire Willbros, which has seen its value plummet in recent months and years amid its financial struggles. Primoris also will pay up to $20 million to keep Willbros afloat financially until the sale closes by the end of June.

Willbros, which is in the midst of selling its pipeline construction business, has labored to turn a profit for years, but its stock value has traded below the dreaded $1 per share threshold since early February. Before announcing its potential sale and bankruptcy, Willbros was hovering just above 80 cents a share and sunk all the way down to 15.5 cents a share Tuesday.

 

 

INDUSTRY NEWS (Houston, TX) – Targa Resources Corp. announced recently that it has entered into long-term fee-based agreements with an investment grade energy company for natural gas gathering and processing services in the Delaware Basin and for downstream transportation, fractionation and other related services. The agreements with Targa are underpinned by the customer’s dedication of significant acreage within a large, well-defined area in the Delaware Basin.

The Company also announced an extension of its new common carrier natural gas liquids (“NGL”) pipeline currently under construction (“Grand Prix”) into southern Oklahoma. The pipeline expansion is underpinned by significant long-term commitments for both transportation and fractionation services from Targa’s existing and future processing plants in the Arkoma area in its SouthOK system and from third party commitments, including a significant long-term commitment for transportation and fractionation with Valiant Midstream, LLC (“Valiant”).

“We are very pleased to have entered into agreements to provide services across our integrated platform supported by a large acreage position held by a major Delaware Basin customer. This is a significant extension of our multi-plant, multi-system Delaware footprint, adding infrastructure through the core of the Delaware Basin. Also, the expansion of our Grand Prix NGL Pipeline into Oklahoma is an attractive extension of a highly strategic asset for Targa, enhancing the capabilities we can offer our existing and potential customers in southern Oklahoma,” said Joe Bob Perkins, Chief Executive Officer of the Company. “The investments are aligned with our strategic objectives of leveraging existing Targa infrastructure to further strengthen our competitive position from gathering and processing through transportation, fractionation and other related services to meet the infrastructure needs of our customers.”

Delaware Basin Processing Expansions
In the Delaware Basin, supported by the significant near-term volume growth expected on the dedicated acreage, Targa will construct approximately 220 miles of 12 to 24 inch high pressure rich gas gathering pipelines across some of the most prolific parts of the Delaware Basin, a new 250 million cubic feet per day (“MMcf/d”) cryogenic natural gas processing plant (the “Falcon Plant”) in the Delaware that is expected to begin operations in the fourth quarter of 2019, and a second 250 MMcf/d cryogenic natural gas processing plant (the “Peregrine Plant”) in the Delaware that is expected to begin operations in the second quarter of 2020. Total net growth capex related to the plants and high-pressure pipeline system is approximately $500 million, with approximately $200 million expected to be spent in 2018.

Targa will also provide NGL transportation services on Grand Prix and fractionation services at its Mont Belvieu complex for a majority of the NGLs from the Falcon and Peregrine plants.

 

 

INDUSTRY NEWS (Broussard, LA) – WHC Energy Services announced that its Board of Directors unanimously elected Kevin Fox to the position of CEO effective today. Mr. Fox will be relocating to the Company’s headquarters in Broussard, Louisiana.

In regard to Mr. Fox’s appointment, the Board issued a statement; “The Board is delighted that Kevin will lead WHC into its next stage of growth. Kevin is a proven leader with an exceptional track record and long-standing customer relationships. His skill set is well-suited for WHC’s strategic objectives and we are confident that he will position the Company for future success and deliver the highest quality product for our customers.”

Mr. Fox has decades of experience in the engineering, procurement and pipeline construction industry. Most recently, he was President of QPS Professional Services for Quanta Pipeline Services and his career also includes executive positions with Laney Directional Drilling and Willbros Group. As CEO of Laney Directional Drilling, Mr. Fox executed numerous operational initiatives that resulted in significant profitability improvements and a successful outcome for its stakeholders. At Quanta, his focus was integrating several professional services businesses and combining them with construction businesses to pursue and execute engineer, procure, construct (EPC) contracts.

“WHC has a rich history in the pipeline construction industry and has a track record of delivering exceptional results for its impressive roster of blue chip clients,” said Mr. Fox. “I am excited for the opportunity to work with a very talented group of industry veterans and lead the Company into its next chapter of growth and development. As it has been throughout my career, my focus will be on delivering the reliable and consistently high-quality results that our customers expect and deserve.”

 

 

INDUSTRY NEWS (Tulsa, OK) – Sawyer Mfg. was honored to receive the 2018 Governor’s Award for Excellence in Exporting at the 2018 Oklahoma World Trade Conference held at the Renaissance Hotel & Convention Center in Tulsa, OK.

The Governor’s Award for Excellence in Exporting annually recognizes an Oklahoma company that has shown achievement in exporting through increasing export sales, breaking through in a particular competitive market, introducing a new product into export trade, or successfully responding to a foreign market challenge. Their commitment to international growth, creative sales strategies and overcoming global trade complications to bring their product to a competitive world market earned Sawyer Mfg. Company the nomination for this year’s award.

Sawyer Mfg. was established in 1948 to fulfill the equipment needs of pipeliners, and in the time since its founding, the company has risen from a local manufacturer to a global distributor of welding and pipeline equipment. All of Sawyer’s equipment is designed, drafted and manufactured in its Tulsa, OK facility.

Dave Hembree, President, said Sawyer Manufacturing has long been focused on getting its products to the people who need them, wherever they are in the world, but said the 2018 Governor’s Award for Excellence in Exporting is about more than that.

“As long as Sawyer has been in business, we have been exporting our products throughout the country and world, and you can find our equipment at jobsites all around the globe. Obviously, this award is a testament to our exporting expertise, but more than anything, this award is the result of the hard work and dedication exhibited by our 57 remarkable employees,” Hembree said.

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