Quanta Services, Inc. · NYSE:PWR
Quanta Services — Investor Day (May 2010)
46 slides from Quanta Services's investor day presentation, May 18, 2010
Slide 1: Investor & Analyst Meeting May 18, 2010
Investor & Analyst Meeting May 18, 2010
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer This presentation (and oral statements regarding the subjects of this presentation) will include forward- looking statements intended to qualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forw
Slide 3: Agenda
Agenda • Welcome and Introduction John Colson • Electric Power Infrastructure Services • Transmission and Distribution • Energized Services John Wilson • Renewables – Wind •Telecommunications Services •FTTx and Outside Plant Ken Trawick •Dark Fiber • Renewables – Solar • Natural Gas & Pipeline Servi
Slide 4: Electric Power Industry and Operational Assessment
Electric Power Industry and Operational Assessment John Wilson, President Electric Power Operations
Slide 5: Key Accomplishments and Trends
Key Accomplishments and Trends Landmark projects complete – Tehachapi, OG&E, AEP, NU, NextEra Transmission Key projects progressing on schedule – LCRA, Allegheny, National Grid, NU Robust project pipeline Recession drove maintenance spending down Indications of stabilization Distribution
Slide 6: Electric Power Infrastructure
Electric Power Infrastructure 6
Slide 7: The Big Transmission Picture
The Big Transmission Picture Source: Quanta Analysis 7
Slide 8: Transmission Project Pipeline
Transmission Project Pipeline • PSE&G • CREZ – Susquehanna to – NextEra Roseland – LCRA • Southern California Edison – Oncor – Tehachapi Segments – AEP 4-11 – ETT – Devers • OG&E • Maine Power • LS Power & NV Energy – Reliability Project – Las Vegas to Ely • BCTC 8
Slide 9: Top Concerns of U.S. Utility Executives
Top 10 Concerns of U.S. Utility Executives 1. Reliability 2. Regulation 3. Long-term Investment 4. Environment 5. Aging Work Force 6. Technology 7. Aging Infrastructure 8. Security 9. Market Structure 10. Fuel Policy Areas in which Quanta operates Source: Black & Veatch survey of 329 electric power
Slide 10: Competitive Strengths
Competitive Strengths
Slide 11: Exclusive Offerings
Exclusive Offerings • Energized Services – Exclusive robotic arm – Proprietary methodologies – Proven success 11
Slide 12: RPS Standards by State
RPS Standards www.dsireusa.org / April 2010 ME: 30% x 2000 Vi: (1) RE meets any increase x MN: 25% x 2025 in retail sales x 2012; NEW REZIO3eX2017) IMT: 15% x 2015} (Xcel: 30% x 2020) (2) 20% RE & CHP x 2017 NH: 23.8% x 2025 OR: 25% x 2025 (large utilities)* YW: 10% x 2015 MI: 10% + 1,100 MW MA: 22.
Slide 13: Wind Projects Pipeline
Wind Projects Pipeline Wind Facilities Under Construction at 12/31/09 As reported by AWEA member companies Source: AWEA Annual Market Report 13
Slide 14: International Strategies
International Strategies 14
Slide 15: Discussion
Discussion
Slide 16: Telecommunications Industry and Operational Assessment
Telecommunications Industry and Operational Assessment Ken Trawick, President Telecommunications Operations
Slide 17: Key Accomplishments and Trends
Key Accomplishments and Trends Landmark initiatives – Verizon & AT&T FTTx and OSP Stimulus opportunities Long-term MSAs in place 3G, 4G upgrades driving opportunities Fiber to the cell site emerging Wireless Bandwidth-intensive services continue to grow Stimulus opportunities Histori
Slide 18: FTTH Market Penetration
FTTH Market Penetration 3 Source: FTTH Council c/o Lightsource
Slide 19: Micro-trenching Market Entry
Micro-trenching Market Entry Sept. 2009 Soft market launch 2010 – 2011 and beyond 1Q -3Q 2009 Oct. 2009 1Q 2010 Expansion to R&D Full market Quanta becomes address ongoing introduction 4Q 2009 Solidify exclusive first to market convergences Publicity, Development of agreements exclusive Post-award R
Slide 20: Turnkey Source For Service Providers
Turnkey Source For Service Providers Market Penetration, Full Fiber Deployment End User Acquisition Content Acquisition CO Installation Infrastructure Installation Project Management Engineering 5 & Design
Slide 21: Page 6
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Slide 22: Fiber Licensing Opportunities
Fiber Licensing Opportunities • Cost effective strategy for multiple markets • Education • Carrier • Enterprise – Healthcare – Banking • Strategic approach – Role of the anchor tenant – Unique business model – Synergies with other Quanta operations 7
Slide 23: Southern California Territory - 2009
Southern California Territory - 2009
Slide 24: Case Study: Delaware Valley
Case Study: Delaware Valley 9
Slide 25: Solar Developments
Solar Developments
Slide 26: Solar Operations Accomplishments and Trends
Solar Operations Accomplishments and Trends Completed appx. 20MW of utility-scale and distributed solar projects in 2009 Project DIA – Phase I & II complete Successes Mendota - 5MW Duke - 4MW SunEdison – Ontario, Canada Project Pipeline Teanaway – Washington State Others in progress
Slide 27: Recent Projects
Recent Projects
Slide 28: Utility-Scale Solar Will Fuel Growth
Utility-Scale Solar Will Fuel Growth Market Outlook by Customer Type 3,500 Residential 3,000 Commercial 2,500 Utility 2,000 MW 1,500 1,000 500 0 2008 2009 2010 2011 2012 2013 Note: QRES Estimation of Projected Industry Growth 13
Slide 29: PV Demand Increasing
PV Demand Increasing Source: Greentech Media Research 14
Slide 30: Discussion
Discussion
Slide 31: Natural Gas & Pipeline Industry and Operational Assessment
Natural Gas & Pipeline Industry and Operational Assessment Duke Austin, President Natural Gas & Pipeline Operations
Slide 32: Key Accomplishments and Trends
Key Accomplishments and Trends Unprecedented gas reserves create tremendous opportunity Transmission 7 large diameter spreads under construction by Quanta 35+ spreads completed in past 3 years Pipeline and facilities opportunities increasing related to Facilities unconventional exploration
Slide 33: Shale gas provides largest source of growth in U.S. natural gas supply
Shale gas provides largest source of growth in U.S. natural gas supply Natural gas production by source, 1990-2035 (trillion cubic feet) Source: Energy Information Administration 3
Slide 34: U.S. Shale Basins
U.S. Shale Basins Shale Gas Plays, Lower 48 States listen Basin \@zmmon Devonian (Ohio Excellio- Mulhy Treronte Pater fangoga {Joncmatasn dec Waina/| J” / / gobasnfS fa-Conasausa, (Floyd. Valley and Texas) Neal—-22” Ridge Province Louisiana: Worth 7 Messissippi Salt Basin ~S9"' Haynesville- + Mavenc
Slide 35: Canadian Pipelines
Canadian Pipelines Source: Canadian Centre for Energy 5
Slide 36: Spreads by Category
Lower 48 Spread Forecast vs. Resource Comparison 80 Industry Spread Availability, Mainline Spreads 70 60 50 Spreads by Category 40 30 20 10 0 Green- Currently Under Contract Yellow - Bids Submitted, In House, or about to be bid. Red - Projects less defined, not as certain, some which compete against
Slide 37: Competitive Advantages
Competitive Advantages • Size, geographic diversity • Reputation, history of success • Arctic expertise • Turnkey resource • Pipeline integrity • Automated welding process 7
Slide 38: Natural Gas & Pipeline
Natural Gas & Pipeline 8
Slide 39: Smart Grid Evolution
J Smart Grid Evolution Fuses, Breakers, Protective Relays Load Tap Changer Today’s Distribution System Reclosers, Sectionalizers Switched Cap Banks
Slide 40: SG Business Drivers
Greenhouse Gases “ Service "a Quality Renewable Resources ope ISE Serevon: 1g Choices Cs %, Energy ieee aS Management Utility Planning &Operation 4 Tt tT Aging ; Infrastructure eR aplty Eficiency
Slide 41: CenterPoint Smart Meter
CenterPoint Smart Meter Source: CenterPoint Energy 11
Slide 42: CenterPoint Deployment Timeline
CenterPoint Deployment Timeline Dec. 31, 2009 145,000 meters to be deployed with supporting communications infrastructure and computing systems Jan. 31, 2010 Scheduled availability of usage data to consumers through Smart Meter Texas common portal and data repository Mar. 19, 2010 Intelligent Grid p
Slide 43: Discussion
Discussion
Slide 44: Analyst Day May 18, 2010
Analyst Day May 18, 2010
Slide 45: Forward-Looking Statement Disclaimer
FORWARD-LOOKING STATEMENT DISCLAIMER This presentation (and oral statements regarding the subjects of this presentation) includes forward-looking statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended to qualify for the “safe harbor”
Slide 46: Forward-Looking Statement Disclaimer
FORWARD-LOOKING STATEMENT DISCLAIMER Our ability to successfully identify, complete and integrate acquisitions, including Price The cost of borrowing, availability of credit, debt covenant compliance, interest Gregory; rate fluctuations and other factors affecting our financing, leasing and Th