EP Reader March 2012

8/2/2019 EP Reader March 2012

1/16

www.harriswilliams.com

Member FINRA/SIPC

Energy & Power Industry UpdatMarch 201


2/16

Energy & Power Industry UpdateMarch 2012

What Weve Been Reading

page 1

In The Oil Drum, Arthur Berman relies on his well-by-well analysis of production trends

suggest that U.S. natural gas resources may be overstated in After The Gold Rush:

Perspective on Future U.S. Natural Gas Supply and Price. As he puts simply, The U

does not have 100 years of natural gas supply. There is a difference between resources an

reserves that many outside the energy industry fail to grasp. A resource refers to the gas

oil in-place that can be produced, while a reserve must be commercially producible. B

his current estimates, the oft-quoted 100 years becomes just 23 years. For Berman, tdata does not point to an end to shale gas extraction (it is necessary to offset require

reserves). In fact, the data further supports the long-term services and equipment sto

Well life appears to be shorter than initial expectations. This means that an increasin

number of wells must be drilled in order to maintain supply. What it most likely means

higher prices and the more judicious use of the word abundance. This point was echo

in Jeremy Granthams most recent missive, The Longest Quarterly Letter Ever. Notin

that natural gas is at just 14% BTU equivalency relative to oil, the lowest in almost 5

years, Grantham writes, Everyone who has a brain should be thinking of how to mak

money on this in the longer term.

Juliet EilperinsWhy the Clean Tech Boom Went Bust in Wiredoffers a detailed revie

of the last several years in the clean tech sector and sets the stage early for why the boo

went bust. Eilperin, the national environmental reporter for The Washington Post, write

In 2005, VC investment in clean tech measured in the hundreds of millions of dolla

The following year, it ballooned to $1.75 billion, according to the National Venture Capit

Association. By 2008, it had leaped to $4.1 billion. And the federal government followe

Through a mix of loans, subsidies, and tax breaks, it directed roughly $44.5 billion into th

sector between late 2009 and late 2011. Avarice, altruism, and policy had aligned to fue

spectacular boom.

President Obamas budget garnered headlines this past month, and Greentech Media does

nice job summarizing the highlights of the energy portion of the budget. For those seekin

to comparison shop, GTM also provides an overview of energy plans currently on off

from Rick Santorum, Mitt Romney, and Newt Gingrich, respectively.
http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.greentechmedia.com/articles/read/presidents-2013-budget-extends-1603-eliminates-4b-in-tax-subsidies-to-fossi/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/What-Are-the-Santorum-Romney-and-Gingrich-Plans-for-Energy-in-the-US/http://www.greentechmedia.com/articles/read/presidents-2013-budget-extends-1603-eliminates-4b-in-tax-subsidies-to-fossi/http://www.greentechmedia.com/articles/read/presidents-2013-budget-extends-1603-eliminates-4b-in-tax-subsidies-to-fossi/http://www.greentechmedia.com/articles/read/presidents-2013-budget-extends-1603-eliminates-4b-in-tax-subsidies-to-fossi/http://www.greentechmedia.com/articles/read/presidents-2013-budget-extends-1603-eliminates-4b-in-tax-subsidies-to-fossi/http://www.greentechmedia.com/articles/read/presidents-2013-budget-extends-1603-eliminates-4b-in-tax-subsidies-to-fossi/http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.wired.com/magazine/2012/01/ff_solyndra/all/1http://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.gmo.com/websitecontent/JGLetter_LongestLetterEver_4Q11.pdfhttp://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914http://www.theoildrum.com/node/8914


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LTM EBITDA Multiples1

Industry Observations

LTM Indexed Stock Performance1

Indexed LTM EBITDA Multiples1

Equity markets have performed strongly during the first two months of 2012.

Over the past 12 months, the S&P outperformed the Energy, Power, and Infrastructure andIndustrial Services indices.

The North American rig count increased by 4.5% in February, supported by a ramp up in oil

prices near $110 per barrel and stable natural gas prices near $2.70 per MMBtu.

Electricity prices are down 32.0% compared with February 2011.

Gasoline prices have increased nearly 15% in the past month and are 31.1% above the

February 2011 price.

60

65

70

75

80

85

90

95

100

105

110

Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb

S&P 500 Energy Power Industrial & Infrastructure Services

0

50

100

150

200

250

300

350

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar

Energy Power Industria l & Infra structure Services

page 2

Index

%

Change

&P 3.04

Energy (5.21)

Power (10.68)

& IS (5.64)

Index

%

Change

Energy 78.94

Power 11.92

& IS 133.79


4/16


Key Trading Statistics1

Current Valuations Versus Historical 5-Year Average1

Note: Based upon current EV / LTM EBITDA versus 5-year historical average. For Cleantech and Renewables, valuation is based upon EVLTM Sales.

5-Y

Ave

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

200.0%

Storagean d

Transportation

IndependentPower

Producers

Industrial &Infrastructure

Services

Engineeringand

Construction

ElectricUtilities

Mid-CapPower

Explorationan d

Production

I ntegra teds EnergyServices a nd

Equipment

Ref ining Divers if iedPower

CoalProducers

Cleantech Renewable

page 3

.

.

.

.

.

.

.

.

.

.

.

Enegy Power Industrial & Infrastructure Services

Stock Price % Change TEV / 2011 P/E Ratio

Industry Segment 1 Month 12 Month 2/28/11 8/31/11 Current EBITDA Current 2009

Energy

Integrateds (0.6%) (7.3%) 5.4x 4.1x 3.8x 3.7x 8.7x 8.4

Energy Services and Equipment (0.7%) (16.9%) 11.1x 8.2x 8.0x 5.2x 19.0x 9.4

Exploration and Production (2.7%) (23.2%) 8.9x 7.8x 6.4x 4.9x 23.2x 11.5

Coal Producers (3.8%) (52.4%) 10.2x 8.3x 7.3x 5.3x 13.1x 9.3

Refining (0.5%) 1.5% 10.5x 5.3x 4.7x 3.5x NM 7.6

Storage & Transportation 0.7% 13.3% 14.8x 13.3x 14.1x 10.7x 20.7x 18.1

Power

Diversified Power (1.2%) (14.2%) 10.9x 8.5x 8.3x 7.4x 15.4x 11.6Mid-Cap Power 0.9% 2.9% 9.8x 9.0x 9.9x 6.9x 19.3x 15.1

Independent Power Producers (0.6%) (15.5%) 6.9x 9.7x 10.0x 8.4x 19.1x 19.1

Electric Utilities (0.0%) 10.3% 8.2x 9.0x 9.1x 8.0x 13.8x 13.7

Renewables (2.1%) (45.7%) 2.1x 1.4x 1.0x 0.9x 14.8x 5.8

Cleantech 0.3% (36.2%) 1.2x 0.9x 0.9x 0.9x 15.3x 14.9

Industrial & Infrastructure Services

Engineering & Construction (0.8%) (11.3%) 10.5x 8.4x 8.3x 6.4x 17.6x 14.1

Industrial & Infrastructure Services 0.2% 6.2% 9.7x 8.0x 7.6x 7.1x 16.5x 13.6

2011 Revenue

TEV /

TEV / LTM EBITDA Multiple as of

LTM Revenue


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Gasoline and Ethanol1

Oil1 Natural Gas1

North American Rig Counts3

Electricity Prices1Coal1

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

($perbbl)

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

($perMMBtu)

0.00

0.75

1.50

2.25

3.00

3.75

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

J a n - 1 2

($perg

allon)

Gasoline Ethanol

0

500

1,000

1,500

2,000

2,500

3,000

Dec-10

Jan-11

Feb-11

ar-11

pr-11

ay-11

Jun-11

Jul-11

Aug-11

Sep-11

ct-11

ov-11

ec-11

Jan-12

Feb-12

(#rigs)

0.0

40.0

80.0

120.0

160.0

0.0

20.0

40.0

60.0

80.0

100.0

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12 ($

perton-Rotterdam)

($perton-Central

Appalachian)

Central Appalachian Rotterdam

0.00

20.00

40.00

60.00

80.00

100.00

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Fb12

($perMWg)

$109.48 per bbl

$34.99 per MWg

page 4

$2.71 per MMBtu

$2.26 per gallon

$3.30 per gallon

CAPP:$62.28 per ton

Rotterdam:

$100.75 per ton

2,697 rigs


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Quarterly United States E&P M&A Activity1

Select Recently Announced Energy & Power Transactions1,2

page 5

Date Target Business Description Acquirer

2/27/2012 Zenith Oilfield Technology Ltd. Scotland based provider of technology and products

used to monitor and analyze down-hole data

Lufkin Indus tries, Inc.

2/20/2012 Flin t Energy Serv ices Ltd. Canada based p rovider of in tegrated p roducts and

services for the oil and gas industry

URS Corporation

2/13/2012 Directional Rentals, Inc. US based provider of tool rental services primarily to

directional drilling companies

Hicks Equity Partners LLC

2/13/2012 AmerCable Holdings Inc. US based provider of industria l cables for the mining,

oil and gas, and marine industries

Nexans SA

2/8/2012 National Response Corporation US based provider of oil spill emergency response,environmental, and industrial services

J.F. Lehman & Company

2/7/2012 W arren and Chris tian US bas ed provider of drilling, completion, and

production services to the oil and gas industry

Reservoir Group Ltd.

2/3/2012 NKT Flexibles I/S Denmark bas ed provider of flexible pipe products and

sys tems for the offshore oil and gas industry

National Oilwell Varco Inc

2/2/2012 Complete Production - Canadian

Wireline Business

Canada based provider of specialized completion and

production services

SCF Partners LP

2/1/2012 ThermaSys Corporat ion US based provider o f heat exchan gers and heat

exchange equipment

Wellspring Capital Management

1/31/2012 Dura-Line Holdings US bas ed provider of communication and energy

infrastructure products and sys tems

CHS Capital

1/30/2012 RuggedCom Inc. Canada bas ed provider of rugged communications

networking solutions for harsh environments

Siemens AG

1/23/2012 NRG Manufacturing, Inc. US based provider of drilling system componen ts ,

pressure vessels, s ubstructures, and FRAC equipment

Not Disclosed

1/30/2012 Aquilex Hold ings LLC US based provider o f main tenance, repair, overhau l, and

industrial cleaning services

Centerbridge Partners

1/30/2012 Thomas & Bet ts Co rp . US based provider o f elect rical co mpo nent s for t he

indust rial, construction, and u tility markets

ABB Ltd.

-

10

20

30

40

50

60

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

NumberofTransactions


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ber FINRA/SIPC

Energy & Power Industry UpMarch 2

Stock Performance Ne

Current Price Change from Change from % of TEV / 2011 P/ERatio E

TEV 1/31/12 Prior Month Prior Year LTM High 1/31/11 7/31/11 Current EBITDA Current 2011 7/


Energy

IntegratedsExxon Mobil Corporation $421,784.4 $83.85 (2.3%) (2.0%) 95.0% 8.0x 5.7x 6.1x 4.5x 10.3x 9.6x

Chevron Corporation $196,132.4 $103.12 (0.8%) (0.6%) 92.9% 5.3x 4.2x 3.8x 3.4x 7.7x 8.2x

ConocoPhillips $113,378.2 $68.21 (1.7%) (12.4%) 83.4% 4.8x 4.0x 3.6x 3.9x 7.7x 8.5x

Occidental Petroleum Corporation $82,701.4 $99.81 (0.4%) (2.1%) 84.7% 8.1x 5.9x 5.8x 5.0x 12.2x 10.9x

Hess Corporation $24,172.6 $56.31 1.9% (35.3%) 64.4% 5.4x 3.5x 3.7x 3.2x 0.0x 8.4x

Marathon Oil Corporation $21,982.2 $31.44 0.6% (36.6%) 57.9% 5.2x 2.3x 3.2x 2.7x 9.8x 8.1x

Median (0.6% ) (7.3% ) 84.0% 5.4x 4.1x 3.8x 3.7x 8.7x 8.4x

Energy Services and EquipmentLarge Cap Diversified

Schlumberger Limited $107,470.0 $75.18 (1.9%) (19.5%) 78.6% 17.9x 12.8x 10.8x 7.8x 21.7x 13.7x

Halliburton Company $35,732.5 $36.82 (0.8%) (21.6%) 63.7% 10.8x 8.6x 5.9x 4.4x 11.2x 8.3x

National Oilwell Varco, Inc. $28,726.0 $74.06 (4.3%) (6.9%) 85.4% 10.6x 8.2x 8.2x 6.7x 17.1x 12.2x

Baker Hughes Incorporated $24,589.1 $49.13 (0.4%) (30.9%) 92.8% 12.7x 8.3x 5.8x 4.3x 12.4x 8.6x

Weatherford International Ltd. $20,139.0 $16.76 (0.3%) (30.7%) 59.6% 13.3x 9.6x 8.6x 4.9x 47.8x 8.4x

Median (0.8% ) (21.6% ) 78.6% 12.7x 8.6x 8.2x 4.9x 17.1x 8.6x

Mid and Small Cap Equipment an d Service Providers

Cameron International Corporation $13,107.7 $53.23 (0.4%) (10.0%) 84.3% 13.1x 12.0x 11.7x 8.7x 22.7x 12.7x

Oil States International Inc. $4,999.7 $79.59 (1.0%) 9.3% 91.5% 11.9x 8.5x 7.2x 5.7x 15.8x 10.5x

Complete Production Services, Inc. $3,013.0 $33.76 7,582.2% 13,929.3% 79.2% NM NM NM 0.0x 12.0x 0.0x

Key Energy Services Inc. $2,938.6 $14.50 (2.3%) (6.5%) 69.8% 20.3x 10.8x 7.0x 4.3x 40.7x 8.5x

Exterran Holdings, Inc. $2,547.1 $9.29 (3.2%) (59.1%) 36.5% 7.8x 7.1x 6.7x 5.4x NM NM

RPC Inc. $2,482.9 $15.25 0.1% (22.1%) 52.5% 8.2x 7.5x 3.8x 3.6x 7.6x 8.0x

Dril-Quip, Inc. $2,402.7 $66.03 (2.1%) (13.9%) 78.8% 16.2x 15.0x 15.3x 9.5x 30.3x 16.9x

Basic Energy Services, Inc. $1,444.5 $18.02 1.8% (6.0%) 47.7% 10.6x 6.9x 4.3x 3.4x 33.5x 7.1x

Median (0.7% ) (8.2% ) 74.3% 11.9x 8.5x 7.0x 4.9x 2 2.7x 8.5x


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ber FINRA/SIPC






Construction and Equipment ContractorsTransocean Ltd. $24,999.6 $47.25 (1.8%) (44.2%) 55.0% 8.4x 7.9x 13.5x 6.4x NM 11.3x

Noble Corp. $13,594.6 $34.85 (1.5%) (22.1%) 74.6% 10.3x 14.1x 12.1x 6.2x 23.8x 9.2x

Nabors Industries Ltd. $9,386.0 $18.63 3.9% (34.6%) 57.4% 8.4x 5.6x 5.8x 4.2x 18.9x 7.9x

Diamond Offshore Drilling Inc. $8,936.1 $62.32 (0.7%) (20.3%) 76.8% 6.3x 5.5x 5.4x 6.6x 8.5x 13.2x

Technip $8,444.1 $93.82 0.4% (5.0%) 91.8% 8.4x 7.8x 7.4x NA 17.3x NA

Subsea 7 SA $7,163.7 $20.26 (1.8%) (21.1%) 80.2% 17.3x 16.3x 14.2x NA 16.5x NA

Helmerich & Payne Inc. $6,474.2 $61.75 1.9% (5.0%) 84.1% 9.0x 6.6x 6.0x 4.6x 13.9x 10.8x

Oceaneering International, Inc. $5,086.6 $48.62 0.2% 16.3% 98.7% 9.2x 9.9x 10.5x 8.6x 23.5x 17.3x

Rowan Companies Inc. $4,523.5 $34.02 (3.1%) (20.3%) 75.9% 10.6x 12.0x 11.9x 7.6x 28.7x 12.7x

Patterson-UTI Energy Inc. $3,310.8 $18.87 0.6% (31.0%) 55.4% 8.9x 5.3x 3.5x 3.0x 10.2x 8.0x

Hercules Offshore, Inc. $1,361.4 $4.50 (5.7%) (8.9%) 64.4% 7.7x 7.5x 8.8x 5.9x NM NM

Pioneer Drilling Co. $703.6 $8.94 (1.2%) (21.0%) 49.7% 8.4x 6.2x 3.7x 3.1x NM 10.5x

Cal Dive International Inc $452.9 $3.02 (0.5%) (56.2%) 36.8% 13.2x 7.1x 15.0x 4.4x NM 13.9x

Median (0.7% ) (21.0% ) 7 4.6% 8.9x 7.5x 8.8x 5.9x 17.3x 11.1x

Exploration and ProductionLarge Cap

Anadarko Petroleum Corporation $51,176.7 $80.77 1.8% (1.3%) 94.5% 8.0x 7.5x 6.4x 5.4x NM 18.3x

Apache Corp. $45,811.1 $98.95 1.0% (20.6%) 73.8% 6.4x 4.4x 3.7x 3.4x 9.6x 7.9x

EOG Resources, Inc. $32,158.7 $106.25 2.0% (5.4%) 87.5% 12.3x 9.2x 6.6x 5.0x 27.0x 17.2x

Chesapeake Energy Corporation $28,658.9 $21.14 (4.1%) (40.6%) 58.8% 8.1x 9.8x 6.4x 4.2x 10.9x 7.8x

Devon Energy Corporation $28,475.0 $63.83 (1.8%) (30.2%) 68.2% 7.0x 5.2x 4.1x 4.3x 13.1x 9.8x

Noble Energy, Inc. $20,381.6 $100.70 0.2% 8.7% 97.6% 9.1x 9.3x 8.9x 5.0x 22.8x 12.2x

Pioneer Natural Resources Co. $14,399.7 $99.42 2.1% (2.9%) 93.7% 10.4x 10.5x 7.0x 5.5x 21.8x 14.8x

Southwestern Energy Co. $12,364.6 $31.13 (2.8%) (21.1%) 63.2% 9.2x 8.5x 6.9x 7.4x 17.8x 21.0x

Murphy Oil Corporation $11,143.2 $59.64 (2.9%) (18.9%) 76.3% 4.9x 3.7x 3.5x 3.2x 15.7x 9.4x

Newfield Exploration Co. $8,072.4 $37.81 (5.0%) (48.1%) 48.5% 7.5x 6.8x 4.8x 4.2x 10.6x 8.4x

Ultra Petroleum Corp. $5,634.5 $24.06 (3.6%) (46.9%) 47.0% 8.2x 7.4x 5.0x 6.5x 10.7x 14.5x

Quicksilver Resources Inc. $2,965.8 $5.03 (4.9%) (67.5%) 31.5% 7.9x 6.9x 5.9x 7.6x 2.4x NM

Median (2.3% ) (20.9% ) 7 1.0% 8.0x 7.4x 6.2x 5.0x 13.1x 12.2x


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ber FINRA/SIPC






Mid and Small Cap

Plains Exploration & Production Company $9,116.4 $37.72 (0.4%) (3.7%) 89.9% 9.8x 8.3x 6.7x 4.5x 61.8x 10.7x

Cabot Oil & Gas Corporation $7,925.8 $31.88 (3.0%) 39.6% 70.8% 10.8x 16.6x 13.5x 7.0x 47.4x 24.9x

SandRidge Energy, Inc. $6,747.8 $7.78 (4.9%) (28.0%) 58.3% 20.2x 23.6x 8.4x 4.8x 13.9x 19.3x

Forest Oil Corp. $3,115.0 $13.01 (6.1%) (63.3%) 32.3% 8.8x 6.2x 5.5x 4.8x 13.3x 9.8x

Swift Energy Co. $1,873.7 $33.14 (3.1%) (22.8%) 68.8% 8.0x 5.2x 4.7x 3.1x 19.2x 10.6x

PetroQuest Energy Inc. $535.2 $6.42 (2.2%) (25.6%) 65.8% 5.4x 5.2x 5.2x 4.8x 86.7x 26.4x

Delta Petroleum Corp. $383.6 $0.25 (10.4%) (97.9%) 1.9% 23.1x 18.5x 12.4x NA NM 0.0x

Median (3.1% ) (25.6% ) 65.8% 9.8x 8.3x 6.7x 4.8x 33.3x 10.7x

Coal Producers

Peabody Energy Corp. $15,460.9 $34.12 (5.6%) (47.9%) 46.1% 11.0x 7.6x 7.5x 5.5x 9.4x 7.6x

CONSOL Energy Inc. $11,044.1 $35.76 (1.9%) (29.5%) 63.5% 12.1x 9.0x 6.7x 5.8x 13.1x 11.2x

Alpha Natural Resources, Inc. $6,828.4 $20.14 (7.0%) (62.9%) 32.1% 8.3x 10.2x 7.8x 4.3x 45.2x 12.2x

Arch Coal Inc. $6,809.7 $14.42 (0.6%) (57.0%) 39.0% 10.2x 10.1x 7.4x 5.6x 19.9x 9.3x

Alliance Resource Partners LP $3,029.7 $79.37 1.4% 2.8% 94.4% 5.8x 5.1x 5.3x 4.2x 9.5x 9.1x

Patriot Coal Corporation $963.0 $7.59 (11.1%) (67.8%) 26.0% NM 19.7x 13.7x 4.3x NM NM

James River Coal Co. $602.2 $6.29 (8.6%) (70.0%) 24.6% 4.3x 5.6x 4.6x 5.3x 13.7x NM

Farmacol SA $201.2 $8.20 (0.8%) (36.4%) 67.1% 10.3x 7.3x 7.2x NA 9.4x NA

Median (3.8% ) (52.4% ) 42.6% 10.2x 8.3x 7.3x 5.3x 13.1x 9.3x

Refining

Valero Energy Corporation $18,425.2 $23.99 (0.5%) (14.9%) 77.1% 6.4x 4.1x 3.5x 3.7x 6.6x 5.9x

Sunoco, Inc. $6,896.1 $38.37 0.0% (8.3%) 81.7% 5.9x 7.1x 9.6x 10.1x NM 25.2x

Tesoro Corporation $4,410.5 $25.05 (1.6%) 5.3% 84.6% 12.0x 4.4x 3.2x 3.5x 5.4x 7.6x

Hochschild Mining PLC $2,419.7 $7.79 (2.0%) (18.9%) 71.8% 9.7x 5.0x 4.7x NA 11.8x NA

Western Refining Inc. $2,160.6 $16.51 0.9% 1.5% 75.9% 9.0x 5.3x 3.6x 3.2x 8.6x 6.3x

CVR Energy, Inc. $1,995.1 $24.95 0.3% 32.0% 84.3% 11.2x 5.2x 13.2x 3.0x 7.7x 7.7x

Alon USA Energy, Inc. $1,469.1 $9.66 (2.0%) (12.8%) 62.0% NM 9.2x 5.5x 4.1x 19.1x 5.4x

Delek US Holdings Inc. $944.3 $12.57 4.5% 11.7% 71.8% 15.9x 6.5x 2.6x 3.5x 7.3x 7.9x

Fortune Oil plc $379.8 $0.17 (2.8%) 4.0% 74.6% 11.5x 12.7x 12.3x NA 10.8x NA

Median (0.5% ) 1.5% 75.9% 10.5x 5.3x 4.7x 3.5x NM 7.6x


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Storage & TransportationKinder Morgan Energy Partners LP $41,732.8 $85.07 (0.4%) 15.5% 94.5% 14.2x 13.7x 15.4x 9.8x NM 33.6x

El Paso Corp. $35,737.5 $26.85 1.2% 44.4% 99.0% 10.0x 12.1x 12.5x 11.2x NM 23.9x

Plains All American Pipeline, L.P. $17,770.0 $77.95 1.7% 19.1% 100.5% 15.3x 12.8x 11.4x 9.8x 18.3x 17.3x

Enbridge Energy Partners LP $15,335.5 $32.41 (2.8%) (3.3%) 93.7% 31.8x 27.4x 17.6x 11.9x 32.9x 21.4x

Magellan Midstream Partners LP $9,511.0 $67.09 0.2% 11.0% 96.4% 17.1x 15.8x 14.9x 14.0x 19.3x 17.6x

Buckeye Partners LP $8,550.2 $62.25 (0.5%) (4.0%) 90.3% 20.7x 19.8x 18.3x 12.6x 86.0x 16.6x

Sunoco Logistics Partners L.P. $5,720.3 $37.28 2.4% 26.4% 93.2% 12.6x 10.7x 10.4x 10.2x 14.5x 16.4x

Holly Energy Partners L.P $1,880.5 $55.35 1.8% (7.2%) 90.7% 13.8x 11.3x 13.2x 9.9x 22.1x 18.5x

Median 0.7% 13.3% 94.1% 14.8x 13.3x 14.1x 10.7x 20.7x 18.1x

Power

Diversified Power

General Electric Company $522,733.9 $18.72 (1.6%) (10.5%) 86.5% 23.2x 17.4x 18.5x 15.4x 15.4x 10.9x

Siemens AG $89,835.3 $94.34 (1.8%) (29.9%) 72.6% 9.2x 6.2x 7.2x 6.3x 10.0x 10.2x

ABB Ltd. $47,393.3 $20.89 (1.5%) (14.5%) 80.2% 10.9x 9.1x 8.1x 6.9x 16.1x 12.3x

Emerson Electric Co. $41,329.5 $51.39 (0.5%) (13.9%) 82.6% 10.9x 7.9x 8.4x 7.6x 16.0x 12.8x

Schneider Electric S.A. $39,490.6 $62.11 (1.3%) (24.9%) 76.8% 10.4x 8.2x 8.2x NA 14.3x NA

Eaton Corporation $19,308.4 $49.04 (1.1%) (11.5%) 86.8% 12.3x 8.8x 8.8x 7.2x 12.6x 10.2x

Alstom SA $15,484.6 $38.12 (1.0%) (36.1%) 64.3% 7.2x 5.6x 6.0x NA 20.4x NA

Cooper Industries plc $10,207.0 $59.13 (0.2%) (8.1%) 84.5% 13.1x 9.6x 11.5x 9.1x 15.5x 12.5x

Median (1.2% ) (14.2% ) 81.4% 10.9x 8.5x 8.3x 7.4x 15.4x 11.6x

Mid-Cap Power

Ametek Inc. $8,628.2 $46.97 0.9% 12.0% 98.4% 14.0x 11.2x 11.9x 9.9x 19.9x 15.8x

Thomas & Betts Corp. $3,734.2 $71.43 23.3% 29.0% 100.1% 9.8x 7.1x 9.9x 8.1x 19.8x 15.1x

Valmont Industries, Inc. $3,010.2 $105.00 1.2% 2.9% 90.5% 11.5x 9.0x 9.0x 6.8x 18.8x 13.2x

Littelfuse Inc. $1,091.1 $50.73 (1.2%) (4.0%) 76.4% 8.1x 6.0x 7.1x 6.9x 12.4x 12.4x

Powell Industries, Inc. $289.1 $34.71 (0.2%) (7.2%) 83.4% 5.5x 10.7x 12.1x 5.6x NM 16.5x

Median 0.9% 2.9% 90.5% 9.8x 9.0x 9.9x 6.9x 19.3x 15.1x

Independent Power ProducersNRG Energy, Inc. $12,517.5 $16.90 1.3% (15.5%) 65.8% 5.9x 6.6x 6.3x 6.7x 14.7x 19.1x

Dynegy Inc. $4,567.6 $1.86 (6.5%) (67.9%) 26.9% 7.9x 12.7x 22.8x 11.1x NM NM

GenOn Energy, Inc. $3,707.7 $2.13 (0.5%) NA 49.7% NA NA 10.0x 8.4x NM NA

Mirrabooka Investments Limited $237.8 $1.87 (0.7%) (8.3%) 87.6% NM NM NM NA 23.6x NA

Median (0.6% ) (15.5% ) 57.7% 6.9x 9.7x 10.0x 8.4x 19.1x 19.1x


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p

Electric UtilitiesSouthern Company $59,169.2 $45.52 1.1% 19.4% 97.5% 9.4x 9.7x 9.4x 9.0x 17.5x 15.8x

NextEra Energy, Inc. $47,912.6 $59.86 (0.1%) 7.9% 97.8% 8.2x 9.0x 9.1x 8.4x 13.1x 12.3x

Dominion Resources, Inc. $47,612.6 $50.05 1.0% 9.7% 93.2% 8.8x 9.0x 10.6x 9.4x 18.8x 14.9x

Duke Energy Corporation $46,194.6 $21.31 0.6% 18.5% 96.3% 8.1x 8.6x 9.3x 8.2x 15.3x 14.3x

Exelon Corporation $39,844.9 $39.74 0.5% (4.8%) 87.4% 5.7x 6.2x 5.9x 7.3x 10.6x 13.7x

American Electric Power Co., Inc. $36,256.7 $39.57 (1.0%) 10.6% 94.3% 8.0x 8.0x 8.0x 7.3x 12.4x 11.8x

FirstEnergy Corp. $34,968.8 $42.25 (0.0%) 10.3% 90.8% 8.2x 11.6x 9.6x 8.0x 16.9x 13.4x

PPL Corporation $33,301.3 $27.79 (0.0%) 9.3% 91.8% 9.4x 9.6x 7.9x 7.8x 10.6x 11.6x

Progress Energy Inc. $28,953.0 $54.37 0.6% 18.9% 96.4% 8.2x 9.3x 11.8x 9.2x 20.4x 16.2x

Edison International $26,535.0 $41.04 (0.0%) 10.6% 97.9% 6.5x 6.6x 6.8x 7.1x 13.8x 16.9x

Entergy Corporation $24,179.7 $69.37 (1.8%) (2.6%) 93.1% 6.3x 6.4x 6.8x 7.4x 9.3x 12.4x

Median (0.0% ) 10.3% 94.3% 8.2x 9.0x 9.1x 8.0x 1 3.8x 13.7x

Renewables 2 /2 8/ 11 8 /3 1/ 11 Cur re ntFirst Solar, Inc. $3,632.3 $42.31 (7.1%) (71.3%) 24.1% 4.7x 3.4x 1.3x 0.8x 7.2x 8.6x

Vestas Wind Systems A/S $3,381.0 $11.28 0.2% (67.3%) 27.6% 0.8x 0.5x 0.4x NA 28.5x NA

Suntech Power Holdings Co. Ltd. $2,537.3 $3.23 (7.5%) (66.0%) 29.8% 0.9x 0.8x 0.7x 1.0x 22.4x NM

SunPower Corporation $1,328.6 $6.84 (5.7%) NA 79.5% NA NA 0.6x 0.4x NM NM

Clean Energy Fuels Corp. $1,170.9 $14.94 (1.0%) 6.4% 83.7% 4.7x 3.9x 4.2x 5.5x NM NM

GT Advanced Technologies Inc. $712.7 $8.64 (1.3%) (19.2%) 49.4% 1.6x 1.1x 0.8x 0.8x 5.6x 5.8x

Rentech, Inc. $465.6 $1.75 2.3% 36.7% 88.4% 2.4x 1.8x 2.6x 3.1x NM 14.6x

Energy Conversion Devices, Inc. $205.6 $1.02 (94.6%) (96.1%) 20.1% NM NM NM 0.0x NM 0.0x

FuelCell Energy Inc. $156.2 $0.98 (3.0%) (44.0%) 43.9% 3.0x 1.7x 1.3x 1.4x NM NM

Ballard Power Systems Inc. $76.9 $1.17 4.1% (45.7%) 48.2% 1.9x 1.2x 1.0x 0.9x NM 0.0x

Median (2.1% ) (45.7% ) 4 6.1% 2.1x 1.4x 1.0x 0.9x 14.8x 5.8x

CleantechItron, Inc. $1,980.6 $38.79 (3.6%) (31.6%) 60.2% 1.2x 0.9x 0.8x 0.9x NM 11.0x

ESCO Technologies Inc. $886.9 $30.11 1.0% (21.4%) 69.8% 1.7x 1.3x 1.3x 1.3x 15.3x 13.6x

Ameresco, Inc. $864.2 $13.14 0.5% NA 75.2% 1.2x 1.0x 1.2x 1.1x 17.2x 14.9x

Echelon Corporation $188.8 $5.18 (3.4%) (40.9%) 48.3% 2.9x 2.3x 1.2x 1.0x NM NM

EnerNOC, Inc. $159.8 $9.18 0.0% (52.4%) 32.4% 1.2x 0.8x 0.6x 0.5x NM 86.3x

PowerSecure International, Inc. $103.2 $6.36 0.3% (14.1%) 69.6% 1.4x 0.7x 0.9x 0.7x 7.2x 24.5x

Comverge, Inc. $34.9 $1.35 0.7% (73.5%) 17.2% 0.9x 0.4x 0.3x 0.2x NM NM

Median 0.3% (36.2% ) 60.2% 1.2x 0.9x 0.9x 0.9x 1 5.3x 14.9x

Revenue

TEV / LTM Revenue Multiple as of TEV / 2011






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page 12

Harris Williams & Co. is a preeminent middle marketinvestment bank focused on the advisory needs of clients

worldwide.

Experience

Focus

arket Intelligence

Stability

Global Reach

xceptional Results

Middle market leaderclosed nearly 200 transactions in the last four years.

Execution focus with unparalleled senior-level attention.

Over 10,000 conversations with buyers and lenders each year.

Unparalleled retention of senior professionals.

Approximately 20% of our transactions are cross-border.

Best-in-class execution produces unmatched closing rate.

Locations

London, UK

Richmond, VA

Boston, MACleveland, OH

London, UK

Minneapolis, MN

Philadelphia, PA

San Francisco, CA


14/16


page 13

Harris Williams & Co.s Energy & Power Group has a broa

range of experience including products, services, an

technologies that support or enhance the overall energy an

power infrastructure.

Key Niches:

Cleantech, Energy Efficiency, and Renewables

Power Products, Services, and Technologies Oil & Gas Products, Services, and Technologies

Industrial & Infrastructure Services

Engineering & Construction

For more information on Harris Williams & Co.s Energy & Power Group as well as archived

copies of the Energy & Power Industry Update, please visit our website. Archived copies of t

Groups industry whitepapers, including Transmission & Distribution Infrastructure andESC

Enabling Energy Efficiency, can also be found on the site.
http://www.harriswilliams.com/industry-energy.htmlhttp://www.harriswilliams.com/industry-energy.html


15/16


page 14

Mr. Armstrong co-leads the Energy & Power Group and was Harris Williams & Co.s second employee, joining

firm in 1993. In 1999, Mr. Armstrong founded the San Francisco office and has over 19 years of transacti

experience focused in middle market mergers and acquisitions assignments. Having directed over 125 mergers

acquisitions transactions during his career, Mr. Armstrong has worked across industries including energy and po

consumer products, building products, business services, distribution, retailing, specialty chemicals, and technol

As Co-Head of the Energy & Power Group, Mr. Armstrong specializes on the Power segment. Prior to joining H

Williams & Co., Mr. Armstrong was with Wheat First Butcher Singer (now Wells Fargo). He earned a B.S. wi

concentration in Finance from the University of Virginia's McIntire School of Commerce and is also a Chart

Financial Analyst. Mr. Armstrong was past president and director of the San Francisco Chapter of ACG an

currently a director of the Greater Richmond YMCA.

Mr. Spitzer founded and co-leads the Energy & Power Group at Harris Williams & Co. Over his investment ban

career, Mr. Spitzer has advised clients on a variety of merger and acquisition and strategic advisory assignment

well as corporate financings. Mr. Spitzer has advised a diverse range of manufacturing and service businesses in

energy and power industries. Key niche focus areas have included demand response solutions, power qu

equipment, infrastructure and industrial services, and oilfield products and services. Prior to focusing on energy

power companies, Mr. Spitzer developed experience in numerous industries including industrial manufactur

chemicals, automotive, aerospace and defense, business services, and consumer products. Prior to joining H

Williams & Co., Mr. Spitzer worked in the General Industrial Group at Banc of America Securities, LLC and in

Investment Banking Group at Goldman Sachs & Co. Mr. Spitzer earned an M.B.A. with Honors from Colu

Business School, where he served as the Caplan Fellow. Mr. Spitzer earned a B.A. in Economics from the Unive

of Virginia.

Mr. Lucas re-joined Harris Williams & Co. following the completion of an M.B.A. from The Wharton School a

University of Pennsylvania. Prior to business school, Mr. Lucas served as an Associate with Harris Williams &

working on mergers and acquisitions transactions in a broad range of industries, including general indus

consumer products, plastics, and waste equipment/services. Before re-joining Harris Williams & Co., Mr. L

worked as an Associate with Graham Partners, a private equity group in Philadelphia. Previous experience

includes work as an Investment Banking Analyst with JP Morgan. Mr. Lucas earned a B.S. in Commerce, w

concentration in Finance from The McIntire School of Commerce at the University of Virginia.

Prior to joining Harris Williams & Co., Mr. White worked as an Associate in the Equity Capital Markets Grou

SunTrust Robinson Humphrey. Previous experience also includes work in the Capital Finance Group at Wach

Securities (now Wells Fargo) where he focused on acquisition financing, growth capital, and workout situations.

White earned an M.B.A. from the Goizueta Business School at Emory University and a B.S. in Busi

Administration from the University of North Carolina at Chapel Hill.

Tiff B. Armstrong

Managing [email protected]

+1 (804) 648-0072

Andrew G. Spitzer

Managing [email protected]

+1 (804) 915-0174

Brian S. Lucas

[email protected]

+1 (804) 932-1323

Matthew G. White

Vice [email protected]+1 (804) 915-0131

Prior to joining Harris Williams & Co., Mr. Semple worked as a Global Banking Associate at Deutsche Bank. Wi

energy and power, Mr. Semple has advised a diverse range of businesses, including providers of energy efficie

and clean technology products and services, oilfield products and services, transmission distribution products

services, and power generation equipment. He earned an M.B.A. from the Darden School of Business at

University of Virginia and a B.A. from Trinity College in Hartford, Connecticut.

Luke R. Semple

Vice [email protected]

+1 (804) 648-1158


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Sources:

1. Capital IQ.

2. MergerMarket.

3. Baker Hughes.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, I

(NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldw

The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellen

Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, priv

placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member

FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorized and regulated by the Financial ServiAuthority (FRN #540892). Harris Williams & Co. is a trade name under which Harris Williams LLC and Ha

Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MAR

AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF T

THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHA

NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITI

FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, A

SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN T

REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTH

FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FO

MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEA

CONTACT US AT +1 804-648-0072.

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

informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to bu

sell any financial instruments or to participate in any particular trading strategy. The information contained he

is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accurac

completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in,

as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein

also may provide, may have provided, or may seek to provide investment banking services for those companies

addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold l

or short positions in the securities, options thereon or other related financial products of companies discus

herein. Opinions, estimates and projections in this report constitute Harris Williams judgment and are subjecchange without notice. The financial instruments discussed in this report may not be suitable for all investors,

investors must make their own investment decisions using their own independent advisors as they bel

necessary and based upon their specific financial situations and investment objectives. Also, past performanc

not necessarily indicative of future results. No part of this material may be copied or duplicated in any form o

any means, or redistributed, without Harris Williamsprior written consent.

Copyright 2012 Harris Williams & Co., all rights reserved.

1001 Haxall Point9thFloor

Richmond, VA 23219

Phone: +1 (804) 648-0072

Fax: +1 (804) 648-0073

www.harriswilliams.com

Two International Place

24th Floor

Boston, MA 02110

Phone: +1 (617) 482-7501

Fax: +1 (617) 482-7503

1900 East 9th Street

20th Floor

Cleveland, OH 44114

Phone: +1 (216) 689-2400

Fax: +1 (216) 689-2401

63 Brook Street

London, W1K 4HS

Phone: +44 20 7518 8900

Fax: +44 20 7526 2187

222 South Ninth Street

Suite 3350

Minneapolis, MN 55402

Phone: +1 (612) 359-2700

Fax: +1 (612) 359-2701

1600 Market Street

21st Floor

Philadelphia, PA 19103

Phone: +1 (267) 675-5900

Fax: +1 (267) 675-5901

575 Market Street

31st Floor

San Francisco, CA 94105

Phone: +1 (415) 288-4260

Fax: +1 (415) 288-4269

2012. 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 authorized and regulated by the FSA. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. L

conduct business in the U S and Europe respectively


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