Energy Svcs 2014 09 PDF

Sector Update
Fall 2014
Energy Investment Banking

North America
Energy Services &

Equipment Sector Report
In this Issue:
Sector Trends and Insights
M&A Activity
Valuation Analysis
About William Blair

Investment Banking
William Blairs investment banking group combines signiicant transaction experience,

rich industry knowledge, and deep relationships to deliver successful advisory and
inancing solutions to our global base of corporate clients. We serve both publicly traded
and privately held companies, executing mergers and acquisitions, growth inancing,
inancial restructuring, and general advisory projects. This comprehensive suite of
services allows us to be a long-term partner to our clients as they grow and evolve.
From 2010-2014, the investment banking group completed more than 330 merger-andacquisition transactions worth $73 billion in value, involving parties in 36 countries and
ive continents, was an underwriter on more than 20% of all U.S. initial public offerings,
and raised nearly $100 billion in public and private inancing.
Joseph M. Niemiec
Head of Energy Banking
jniemiec@williamblair.com
+1 312 364 5315
Andrew M. Jessen
Managing Director
ajessen@williamblair.com
+1 312 364 5390
Europe
Matthew B. Gooch
Head of European Banking
mgooch@williamblair.com
+44 20 7868 4478
Matthew M. Zimmer
Managing Director
mzimmer@williamblair.com
+44 20 7868 4502
William Blair
William Blairs Energy Services & Equipment Contacts

North America
Andrew M. Jessen
Joseph M. Niemiec
Managing Director
Education:
Chicago (MBA), Illinois (BS)
Education:
Chicago (MBA), Middlebury (AB)
Contact Info:
jniemiec@williamblair.com
+1 312 364 5315
Contact Info:
ajessen@williamblair.com
+1 312 364 5390
Joined Blair:
2004
Joined Blair:
2004
Europe
Matthew B. Gooch
Matthew M. Zimmer
Head of European Banking
Managing Director
Education:
Chicago (MBA), Emory (BA), CFA
Education:
Columbia (MBA), Notre Dame (BA)
Contact Info:
mgooch@williamblair.com
+44 20 7868 4478
Contact Info:
mzimmer@williamblair.com
+44 20 7868 4502
Joined Blair:
2000
Joined Blair:
2007
Energy Services & Equipment Segment Focus

Oilfield Services & Equipment
Midstream / Downstream
Alternative / Other
Drilling Products & Services
Engineered Systems
Alternative Energy Services
Oil & Gas Equipment
Engineering & Construction
Energy Efficiency
Infrastructure Installation
Pumps, Valves & Pipes
Ethanol & Biodiesel
Production & Well Maintenance
Testing & Inspection
Smart Grid Technology
Geophysical Services
Transportation, Logistics &

Distribution
Solar & Wind Equipment
Energy Services & Equipment

William Blairs Energy Services & Equipment Contacts
William Blair
William Blair Spotlight Recent Energy Services & Equipment Transactions

Not Disclosed
has been acquired by
Norwest Equity
Partners
August 2014
$383,720,581
Follow-on Offerings
August 2014 &

April 2014
$401,452,368
Follow-on Offering
June 2014
Not Disclosed
June 2014
William Blair represented Uintah Engineering & Land Surveying (UELS), a portfolio company of
Moelis Capital Partners, in connection with its sale to Norwest Equity Partners
Uintah Engineering & Land Surveying is the market-leading provider of information services including
surveying, drafting and engineering specializing in the energy industry
Norwest Equity Partners is a leading private equity firm with nearly $5 billion in capital under
management that invests in profitable and growing middle market companies
William Blair acted as a co-manager in the offerings

Hi-Crush Partners is a pure play, low-cost, domestic producer and supplier of premium
monocrystalline sand used as a proppant to enhance the recovery rates of hydrocarbons from oil and
natural gas wells
Hi-Crush Partners produces a range of frac sand sizes for use in all major U.S. shale basins and is one of
the few Northern White sand producers with onsite rail capacity for unit trains
William Blair acted as a co-manager in the offering

Emerge Energy Services is a diversified energy services company that operates in two key segments of
the energy industry: Sand Production and Fuel Processing and Distribution
Emerge Energy Services Sand Production subsidiary produces silica sand that is a key input for the
hydraulic fracturing of oil and gas wells and Emerge Energy Services Fuel Processing and Distribution
segment is primarily focused on acquiring, re-refining and selling transportation mixture
William Blair represented Hobr Instruments B.V., a portfolio company of Parcom Capital Management,
in connection with its sale to AAC Capital Benelux
Hobr Instruments is a leading provider of online analyzers, sample systems, and complete turnkey
systems and solutions to the oil and gas and process industries
AAC is a leading Benelux mid-market buy-out firm, which has to date completed 27 management
buyouts, of which 20 have been realized
$155,000,000
William Blair represented MEGTEC Holdings, Inc., a portfolio company of Hamilton Robinson Capital
Partners and Stephens Capital Partners, in conjunction with its sale to The Babcock & Wilcox Company
for $155 million
MEGTEC designs, engineers, manufactures and services sophisticated capital equipment for energy
efficiency and carbon abatement, as well as for solar panel film and and electric car battery production
June 2014
Not Disclosed
December 2013
Babcock & Wilcox Company is a $3.0 billion market cap leader in clean energy technology and services,
primarily for the nuclear, fossil, and renewable power markets
William Blair represented Dixie Electric, a portfolio company of One Rock Capital Partners, in
connection with its sale to First Reserve
Dixie Electric is the market-leading provider of electrical infrastructure materials and services to the
energy industry
First Reserve is a premier global energy-focused private equity and infrastructure investment firm
with over $24 billion of raised capital since 1983

William Blair Spotlight Recent Energy Services & Equipment Transactions
William Blair
Selected Energy Services & Equipment Transactions

$383,388,215
$383,720,581
Not Disclosed
Not Disclosed
Not Disclosed
$155,000,000
Norwest Equity
Partners
AAC Capital
The Babcock &

Wilcox Company
Follow-on Offering
Follow-on Offerings
August 2014
June 2014
June 2014
June 2014
April 2014
Surveying, Drafting &

Engineering Services
O&G Analyzers
Capital Equipment
Frac Sand / Midstream

Logistics
Frac Sand
Electrification Services
Not Disclosed
Not Disclosed
Not Disclosed
$207,300,000
$485,530,000
Not Disclosed

First Reserve
December 2013
Wellspring Capital
Management
Wabtec Corporation
Kelso & Company
CECO Environmental
Corporation
Follow-on Offerings
September 2013
September 2013
August 2013
Mar. 13 & Jun. 13
Staffing Services
Swellable Packers
Mobile Onsite Refueling
Capital Equipment
Frac Sand
Energy-Efficiency Motors
$1,723,872,733
$380,800,000
Not Disclosed
$130,000,000
Not Disclosed
$795,000,000
has been
recapitalized by
Charterhouse Capital
Partners LLP
Sterling Investment
Partners
KRG Capital
Indorama Ventures PLC
September 2012
September 2012
August 2012
Heat Tracing
Explosion Proof Equipment
Energy-Efficiency Services
Security Integration Services
Petrochemicals
Not Disclosed
$251,000,000
Not Disclosed
Not Disclosed
$349,563,000
October 2013
Initial Public &

Follow-on Offerings
Nov. 12 & Mar. 13
PVF Distribution
$47,840,000
Initial Public &

Follow-on Offering
May 11 & Sept. 12
C O N S
U T IL IT Y

Sumitomo Corporation
March 2013
March 2012
L ID A T E D
S E R V IC E S , IN C .
Follow-on Offerings
Convertible
US Infrastructure
Follow-on Offering
Convertible Notes
DuPont
Aggreko plc
July 2011
November 2010
December 2010
December 2010
Petrochemical Equipment
Utility Services
Solar Products
Capital Equipment
Equipment Rental
Process Optimization
Software
$269,107,000
Not Disclosed
$74,997,000
Not Disclosed
Not Disclosed
$778,000,000

ValueAct Capital
Follow-on Offering
February 2012
GEN ERAC
Initial Public Offering
February 2010
Generators
363 sale to
Valero Renewable
Fuels Co.
Follow-on Offering
CST Industries
Nikkiso Co., Ltd.
February 2010
September 2009
September 2009
August 2009
Ethanol Production
Heat Exchangers
O&G Pumps
September 2010
2009
Seismic Services

Selected Energy Services & Equipment Transactions
William Blair
William Blair Energy Services & Equipment Equity Research Coverage

Brandon Dobell Energy Services
+1 312 364 8773

bdobell@williamblair.com
Chase Jacobson Engineering & Construction and Engineered Equipment
+1 212 237 2748

cjacobson@williamblair.com
Nick Heyman Diversified Industrials
+1 212 237 2740

nheymann@williamblair.com
To receive research materials on any of the companies or sectors above please contact Jenny Romero (jromero@williamblair.com).

William Blair Energy Services & Equipment Equity Research Coverage
William Blair
Table of Contents
Energy Services & Equipment Update .................................................................................................................................................................................................. 1
Rig Count & Key Economic Data .............................................................................................................................................................................................................. 3
Selected M&A Activity .................................................................................................................................................................................................................................. 8
M&A Trends.................................................................................................................................................................................................................................................... 13
Public Comps.................................................................................................................................................................................................................................................. 17
Quarterly Market Update All Industries........................................................................................................................................................................................ 27
Notes .................................................................................................................................................................................................................................................................. 31
Disclosures ...................................................................................................................................................................................................................................................... 32

Table of Contents
Energy Services
& Equipment
Update
William Blair
Energy Services & Equipment Update

The M&A market for energy services & equipment transactions has been robust in 2014. The year-to-date transaction value of
approximately $62 billion represents a 35% increase from the corresponding period in 2013; there have been 331 transactions in
the sector thus far this year, which is an increase of 35% over the same period in 2013. The surge in M&A activity is attributable to
several factors, including: i) accelerated growth in the energy sector, particularly in North America; ii) increased appetite for energy
exposure from buyers; iii) strong access to liquidity; and iv) a continuing economic recovery. The energy sectors accelerated growth
has created what we view as a fundamental change in how buyers are viewing the opportunity to deploy capital in a higher growth
and relatively more stable market environment.
The favorable energy services & equipment market backdrop has resulted in a larger universe of strategic buyers and private equity
funds pursuing energy exposure. For example, several recent, notable deals have been completed in the testing & inspection segment
by ALS, Bureau Veritas, Mistras, and TV SD, who are all looking for increased energy-related revenue. This trend is also
accentuated by B/E Aerospaces leap into the market with five completed energy services transactions since 2013. Additionally, we
have seen accelerated activity across generalist private equity funds in the sector such as Norwest Equity Partners acquisition of
UELS and AAC Capitals acquisition of Hobr Instruments. These funds have had impressive returns and will look to replicate their
success in the highly attractive energy market.
The trend of generalist private equity funds pursuing energy exposure has resulted in a record number of financial sponsor
transactions, which represent 15% of all energy services & equipment transactions year to date, compared to only 6% in 2010. We
expect a continued increase in financial sponsor transactions based on: i) a large number of private equity funds that have
aggressively pursued energy services & equipment deals, but have not yet completed a transaction; ii) an increase in the number of
funds looking for energy exposure; and iii) a significant amount of capital overhang across private equity funds. Additionally, several
strategic buyers have been divesting assets to focus on core operations rather than expanding their service offerings, which bodes
well for financial buyers to compete in sale processes. For example, Cameron recently agreed to divest its Centrifugal Compression
and Reciprocating Compression business divisions, which were viewed as non-core. Additionally, Weatherford has been shedding
non-core assets while selectively pursuing M&A opportunities.
While the M&A market has seen strong growth in 2014, valuations have remained in line with historical levels. For the year-to-date
period the average EV/LTM revenue multiple is 1.52 times, while the average EV/LTM EBITDA multiple is 8.9 times. Despite a
robust M&A market, valuations in the energy services & equipment sector have not ballooned as to stymie deal activity. We believe
that current valuations are at a level that will continue to attract strong interest from buyers and will see business owners actively
considering or pursuing sale processes.
Multiples for publicly traded energy services & equipment companies are above the long-term median levels and are currently
trading at 9.0 times EV/LTM EBITDA. Public company valuations have continued to increase from a trough in Q3 2012 of 7.4 times
EV/LTM EBITDA, which is largely attributable to improving operating performance and an increasingly favorable growth outlook.
Public comparables have collectively lagged the S&P 500 both recently and in the longer term. However, there have been certain
segments of the market that have performed extraordinarily well, such as small cap services companies that have materially
outperformed the broader market.
Joe Niemiec

Energy Services & Equipment Update 1
William Blair
The following is a summary of public company valuation trends for the energy services & equipment sector over the past 5 years and
the last 12 months. The energy services & equipment composite (ES&E) represents the public companies highlighted on pages 16 to
25 of this report.
5-Year ES&E Composite vs. S&P 500

ES&E +61.4%
(Indexed Price)
200%
12-Month ES&E Composite vs. S&P 500
S&P 500 +94.1%
ES&E +13.0%
130%
150%
115%
100%
100%
50%
85%
0%
Aug-09
S&P 500 +22.1%
(Indexed Price)
Aug-10
Aug-11
Aug-12
Aug-13
Aug-14
Source: FactSet Research Systems as of August 28, 2014.
70%
Aug-13
Nov-13
Jan-14
Apr-14
Jun-14
Aug-14
5-Year EV/LTM EBITDA Over Time ES&E Composite

Median: 8.5x
15.0x
10.0x
7.7x
8.1x
Q2
Q3
9.3x
10.4x
9.9x
8.5x
7.8x
8.5x
Q3
Q4
Q1
7.6x
7.4x
7.8x
8.5x
8.5x
Q2
Q3
Q4
Q1
Q2
9.1x
9.3x
8.9x
9.3x
9.0x
Q3
Q4
Q1
Q2
Current
7.1x
5.0x
0.0x
Q1
Q4
2010
Q1
Q2
2011
2012
2013
2014
Median EV/EBITDA Trading Multiples

Current
6 Months
1 Year
3 Years
5 Years
Oil & Gas Equipment
9.8x
10.2x
9.9x
8.6x
5.6x
4.3x
7.3x
5.4x
6.4x
5.6x
Land Drilling
6.7x
6.6x
6.2x
6.8x
5.1x
Offshore Drilling
6.9x
7.2x
9.0x
8.2x
4.2x
Well Services
9.5x
8.2x
7.5x
7.4x
5.1x
Offshore Services
8.6x
9.0x
10.2x
9.3x
4.9x
Large Cap Services
10.7x
9.6x
8.6x
8.8x
7.2x
Small Cap Services
13.9x
14.5x
11.3x
7.4x
6.2x
9.4x
9.7x
8.9x
7.5x
6.0x
Engineered Equipment
12.4x
12.7x
11.1x
8.3x
5.4x
S&P 500
11.0x
10.8x
10.1x
8.3x
8.6x
Source: Capital IQ as of August 28, 2014.

2 Energy Services & Equipment Update
Rig Count & Key

Economic Data
William Blair
Rig Count & Key Economic Data

Oil & gas activity stands at a near record high with rig counts close to levels experienced prior to the recession in 2008. Year-to-date
rig count in the U.S. has increased over 9%. Oil prices remain at attractive levels, which have resulted in a large growth in oil rigs of
over 14% in 2014. Gas prices, however, have remained at levels that have not encouraged drilling activity and, as such, gas-related
rigs have decreased nearly 9% in 2014. Rig count growth has been skewed to oil rich areas, such as the Permian, Williston, and DJNiobrara basins, which collectively have seen over 100 rig additions. We believe that ongoing global conflict will continue to put
pressure on oil prices, which will result in continued oil-related drilling activity. We do not foresee a near-term reversal of gasrelated activity, but we do have a bullish view in the longer term as capital investment in petrochemicals and natural-gas-fueled
infrastructure help to absorb excess gas supply.
U.S. Rig Count Data

U.S. Rig Count
2,500
2,000
1,500
1,000
500
0
2000
2001
2002
2003
2004
2005
2006
U.S. Rig Oil / Gas Split

2,500
2007
2008
2009
2010
2011
2012
2013
2014
U.S. Rig Drilling Type

Oil
Gas
1,500
2,000
1,200
1,500
900
1,000
600
500
300
Directional
Horizontal
Vertical
Source: All U.S. and International rig count data provided by Baker Hughes.

Rig Count & Key Economic Data 3
William Blair
U.S. Rig Count Data (contd)

YTD Change in Major U.S. Basins
+4%
+16%
(11%)
+24%
+4%
0%
(8%)
+60%
+29%
+19%
(40%)
(24%)
5%
(12%)
U.S. Basin Count Detail

Basin
Current(1)
YTD Change
YoY Change
Ardmore Woodford
14
10
(40%)
(57%)
Arkoma Woodford
60%
300%
Barnett
26
30
34
(24%)
(13%)
Cana Woodford
33
28
36
(8%)
18%
DJ-Niobrara
62
49
50
24%
27%
Eagle Ford
200
234
228
(12%)
(15%)
11
0%
(18%)
Granite Wash
67
72
52
29%
(7%)
Haynesville
45
44
43
5%
2%
Marcellus
76
87
85
(11%)
(13%)
Mississippian
78
70
75
4%
11%
555
466
468
19%
19%
44
35
38
16%
26%
192
182
185
4%
5%
Fayetteville
Permian
Utica
Williston
Prior Year(2)
(1): Data as of 8/25/2014.

(2): Data as of 8/23/2013.
(3): January '14 data as of 1/3/2014.

4 Rig Count & Key Economic Data
Jan 14(3)
William Blair
International Rig Count Data

YTD Change Globally, by Region
+21%
+12%
+7%
(1%)
(1%)
+1%
0%
Global Rig Count Detail

Region
Land
Offshore
North America
2,220
61
1,799
479
2,281
12%
9%
339
68
354
51
407
1%
(3%)
Latin America
Europe
Middle East
Africa
Asia
Australia
Oil
Gas
Total
YTD Change
YoY Change
98
55
90
42
153
21%
10%
378
54
349
81
432
7%
14%
91
46
105
21
137
(1%)
7%
126
106
174
56
232
(1%)
3%
14
13
21
0%
31%

William Blair
Key Economic Data

Commodity Inputs
WTI and Brent
Natural Gas Prices

WTI
Brent
$160.00
$6.00
$120.00
$4.50
$80.00
$3.00
$40.00
$0.00
Current WTI Price: $94.55

Current Brent Price: $102.42
Current: $4.02
$1.50
$0.00
Source: The Wall Street Journal / Haver Analytics.
Source: The Wall Street Journal / Haver Analytics.
Steel Prices
U.S. Dollar Exchange Rate and Dollar Index

Current: $440
$/
Dollar Index
$1,000
$1.50
90.0
$750
$1.40
85.0
$500
$1.30
80.0
$250
$1.20
$0
Source: Bloomberg.

6 Rig Count & Key Economic Data
$1.10
Source: Federal Reserve.
Current $/: $1.35

Current Dollar Index: 85.0
75.0
70.0
William Blair
Recent U.S. Economic Data

U.S. GDP Growth Rate
10.0%
U.S. Unemployment Rate

Current: 4.2%
12.0%
Current: 6.2%
10.0%
5.0%
0.0%
8.0%
(5.0%)
6.0%
(10.0%)
4.0%
Source: Bureau of Economic Analysis.
Source: Bureau of Labor Statistics.
U.S. Average Hours Worked
10-Year U.S. Treasuries Yield and CPI

Current: 38.6
40.0
39.0
38.0
Yield
3.0%
1.0%
37.0
(1.0%)
36.0
(3.0%)
Source: U.S. Federal Reserve.
Inflation
5.0%
Current Yield: 2.5%

Current Inflation: 2.0%
Source: Bureau of Economic Analysis.

Selected M&A
Activity
William Blair
Selected M&A Activity

Energy Services & Equipment Transactions
($ in millions)
Date
Announced
08/28/14
Enterprise
Value
-
Target (Unit Sold) / Business Description

Target Nation
The NACHER Corporation
United States
Provides maintenance services to oil, gas, and petrochemical
industries
Buyer
Mistras Group
08/26/14
Uintah Engineering & Land Surveying (UELS)

Provider of information services specializing in the energy
industry
United States
Norwest Equity Partners
08/22/14
HDB
Provides construction, fabrication, and turnaround services
to energy companies in central California
United States
Matrix Service
08/20/14
RCI Consultants
Provides project management and project support services
to the energy and petrochemical industry
United States
08/18/14
Enterprise Value/LTM
Revenue
-
EBITDA
-
$10
0.50x
TV SD
Analysts
United States
Provides industrial diagnostic evaluations and maintenance
solutions
Bureau Veritas
08/18/14
Cameron International (Centrifugal Compression

Manufacturing Business)
Flow equipment products, systems, and services
United States
Ingersoll-Rand
$850
2.15x
08/18/14
Recapture Solutions
Provides solutions for power and flare needs of oil and gas
production companies
United States
Intervale Capital
07/20/14
Compressor Systems
United States
Fabricates, sells, rents, and services natural gas compressors
Compressco Partners
$919
2.96x
11.2x
07/16/14
Cadre Services
Produces fracsand proppants for oil and natural gas
applications
United States
U.S. Silica Holdings
$98
8.8x
07/01/14
Hobr Instruments
Designs, manufactures, markets, and maintains on-line
analyzers
Netherlands
AAC Capital
06/26/14
Petrofac FPSO Holding (80% Stake)

Acquires and holds floating production storage units
United Kingdom First Reserve
$530
06/25/14
EV Offshore
United Kingdom Dunedin
Designs and develops cameras for the oil and gas industry in
the United Kingdom and internationally
$117
3.45x
06/25/14
Nabors Industries (Completion & Production Services

Businesses)
Creates completion and production services operations
$2,919
1.41x
9.1x
06/01/14
Axip Energy Services

United States
Contract compression, processing and after-market services
business
Enerflex
$430
3.36x
7.5x
05/28/14
PetroLogistics
Operator of a dehydrogenation facility that produces
polymer grade and chemical grade propylene
United States
Flint Hills Resources
$2,098
2.73x
8.8x
05/23/14
KUDU Industries
Manufactures progressing cavity pump solutions for the oil
and gas industry
Canada
Schlumberger
$239
05/13/14
MEGTEC Systems
Manufactures capital equipment for process and renewable
industries
United States
The Babcock & Wilcox

Company
$155
05/08/14
Desert NDT
Provides nondestructive testing solutions
United States
ShawCor
$260
7.9x
04/08/14
Hi-Crush Augusta
Engaged in processing frac sand
United States
Hi-Crush Partners
$224
7.5x
Bermuda
C&J Energy Services
Sources: Capital IQ and Merger Market.

Selected M&A Activity 8
William Blair
Energy Services & Equipment Transactions (contd)

($ in millions)
Date
Announced
03/31/14

Vision Oil Tools
Provider of fishing services and oilfield rental tools
Target Nation
United States
Buyer
B/E Aerospace
03/24/14
Weatherford International (Pipeline and Specialty

Services Business)
Oil and gas pipeline pigs manufacturing and pipeline
cleaning, inspection, and maintenance business
United States
Baker Hughes
03/18/14
Anchor Drilling Fluids USA

Provides integrated fluids management and customized
drilling fluids, and related services solutions
United States
03/14/14
PPI Technology Services

Provides upstream, midstream, and downstream oilfield
services in the United States and internationally
02/18/14
Enterprise
Value
$180
Revenue
-
EBITDA
-
$241
Calumet Lubricants
$337
1.09x
10.1x
United States
Cardno Limited
$145
1.09x
6.7x
SeaMex (50% Stake)

Owns and manages jack-up drillings units in Mexico, and
formed as an equally joint venture between Seadrill and
Fintech Advisory
Mexico
Fintech Advisory
$976
01/20/14
Cameron International (Reciprocating Compression

Business Division)
Flow equipment products, systems, and services
United States
General Electric Company
$550
1.82x
11.0x
01/13/14
Foster Wheeler
Operates in engineering and construction, as well as power
generating equipment businesses worldwide
United Kingdom AMEC
$2,752
0.83x
10.6x
01/07/14
Varel International Energy Services

Manufactures oilfield tools
United States
Sandvik AB
$740
2.18x
01/06/14
Wildcat Wireline
Provides cased hole electric wireline services to the oil and
gas industry
United States
B/E Aerospace
$152
12/23/13
Hoover Energy Partners

United States
Engaged in the construction, acquisition, and optimization of
midstream pipelines and plant assets located in the Permian
Regency Energy Partners
$290
12/18/13
Dixie Electric
Oilfield electrification services
United States
First Reserve
12/10/13
Innovative Mag-Drive
Designs and manufactures sealless magnetic drive
centrifugal pumps
United States
Flowserve
$79
4.71x
11.7x
12/09/13
Stream
Provides solutions in the field of valves, piping, electrical,
and instrumentation
Norway
MRC Global
$260
12/09/13
Valerus Compression Services (Field Solutions Business)

An integrated oil and gas surface facility solutions provider
United States
Kentz
$435
0.88x
8.4x
11/22/13
Aker Well Service and Extreme Trading & Mechanical

Norway
Equipment
Supplies wireline, tractor, and cased hole logging services to
the oil and gas industries
EQT Partners
$658
9.0x
11/12/13
Carmagen Engineering
Provides engineering consulting and project management
services to the oil and gas industry
United States
Mistras Group
11/11/13
Elkhorn Holdings
Operates in industrial construction and fabrication
businesses
United States
John Wood Group
$217
0.87x
11/04/13
Swift Technical Services

Provides manpower to the oil and gas industry globally
United Kingdom Wellspring Capital

Management
10/07/13
Outrigger Energy
Engaged in providing range of midstream services to crude
oil and natural gas producers
United States
$200

9 Selected M&A Activity
Kayne Anderson Energy
William Blair

($ in millions)
Date
Announced
09/19/13

Wildcat Permian Services
Engaged in oil and gas infrastructure development
Target Nation
United States
Enterprise
Value
$213
Buyer
JP Energy Development
Revenue
-
EBITDA
-
$855
0.60x
7.1x
$1,041
6.00x
19.1x
08/19/13
Kentz
Channel Islands AMEC
Provides engineering, procurement, and construction (EPC)
services, as well as construction and technical support
services
07/27/13
Sevan Drilling (69.5% Stake)

Engaged in offshore ultra deepwater drilling contract
Norway
07/16/13
Reservoir Group
Provides drilling, completion, and production technologies
and services to the oil and gas industry
United Kingdom ALS Limited
$533
2.39x
9.7x
05/22/13
IronGate Energy Services

Provides equipment and services to exploration and
production operators for land and offshore markets
United States
Clearlake Capital Group
$244
2.44x
5.4x
05/14/13
D&I Silica
United States
Provides rail-based bulk materials handling, transportation,
warehouse, and distribution services
Hi-Crush Partners
$124
1.18x
05/14/13
Troms Offshore Supply

Owns and operates offshore service vessels and other
special vessels related to research and sub sea activities
worldwide
Norway
Tidewater
$395
7.3x
04/08/13
Lufkin Industries
Manufactures and supplies oilfield and power transmission
products for use in energy infrastructure and industrial
applications
United States
GE Oil & Gas
$3,323
2.52x
17.0x
02/20/13
Bergen Group Rosenberg

Operates as a contractor in the oil and gas industry,
marketing the Norwegian continental shelf
Norway
WorleyParsons
$160
0.60x
5.0x
02/11/13
Seadrill (Tender rigs business in Asia)

Offshore drilling services
Singapore
SapuraKencana Petroleum
Berhad
$2,900
02/06/13
Gulfstar One (49% Stake)

United States
Constructing a floating platform to be set into production in
the Gulf of Mexico
Marubeni
$1,001
01/29/13
Enovate Systems Limited

Designs, develops, and manufactures well completion and
well intervention systems
$118
5.01x
15.0x
12/20/12
Mathena
United States
Manufactures mud-gas pressure solutions for the oil and gas
industry
The Weir Group
$385
11/16/12
Songa Eclipse
Ultra-deepwater semi-submersible rig
Norway
Seadrill
$590
11/12/12
GustoMSC
Manufactures and supplies mobile units/vessels for the
offshore industry
Netherlands
Parcom Capital
Management
$185
10/01/12
Thomas Russell
Develops skid-mounted modular plant systems to clients in
the processing industry
United States
UOP
$593
09/30/12
Acteon Group Limited (52% Stake)

Provides project management, engineering design,
equipment and service personnel
United Kingdom Kohlberg Kravis Roberts &

Co.; White Deer Energy
$788
09/25/12
Union Drilling
Provider of contract drilling services for energy industry
companies
United States
Sidewinder Drilling
$244
0.97x
4.9x
09/24/12
Fugro Geoscience Division

Provides seismic services and geophysical and geological
services
Netherlands
CGG
$1,549
1.56x
9.7x
09/16/12
R3 Treatment
Provides non-hazardous oilfield waste treatment, recovery,
and disposal services to oil and gas producers in the United
States
United States
Waste Connections
$1,441
8.83x
21.2x
Seadrill
United Kingdom Aker Solutions

William Blair

($ in millions)
Date
Announced
08/20/12
Target (Unit Sold) / Target Business Description

Target Nation
Pure Energy Services
Canada
Provides well completion and production related services to
oil and natural gas companies
Buyer
FMC Technologies
08/14/12
Ulterra Drilling Technologies

Provides PDC drill bits for drilling markets worldwide
United States
ESCO
08/09/12
Robbins & Myers

Manufacturer and supplier of engineered equipment and
systems for the pharmaceutical, energy, chemical and
industrial markets
United States
07/30/12
The Shaw Group

Provides services to multinational and national oil
companies, industrial corporations, regulated utilities, and
the United States government agencies worldwide
United States
06/29/12
Energy, Safety and Risk Consultants

Provides consulting and project solutions to the civil and
defense nuclear markets
United Kingdom AMEC
06/06/12
Casedhole Holdings
United States
Provides various well-site services to oil and gas drilling and
producing companies in the United States
05/30/12
CE Franklin
Engages in the distribution of pipes, valves, flanges, fittings,
production equipment, tubular products, and other general
industrial supplies primarily to the oil and gas industry in
Canada
05/21/12
Enterprise
Value
$310
Revenue
1.09x
EBITDA
5.4x
$325
1.73x
National Oilwell Varco
$2,439
2.39x
9.4x
Chicago Bridge & Iron

Company
$3,382
0.56x
20.4x
$218
1.99x
C&J Spec-Rent Services
$324
2.52x
10.0x
Canada
$221
0.40x
8.1x
NPS Energy DMCC

Provides oilfield services
United Arab
Emirates
Aker Solutions
$460
3.96x
11.4x
05/21/12
The Shaw Group (Energy & Chemicals Business)

Provides project-related services, including design,
engineering, construction, procurement, and technology to
chemical and refining industry
United States
Technip SA
$298
1.05x
04/30/12
Bifold Fluidpower
Oil and gas valve manufacturer
United Kingdom LDC
$138
3.38x
15.2x
04/18/12
TTS Group (drilling equipment business)

Norway
Designs, develops, and supplies equipment solutions for the
marine and offshore industries worldwide
Cameron International
$270
04/10/12
Wilson International
Distributes pipes, valve and valve automation, fittings, mill
and tool supplies, safety products, and artificial lift systems
United States
$800
0.38x
04/05/12
Production Control Services

Designs, engineers, and manufactures well deliquification
and production optimization products for oil and gas
producers
United States
Dover Artificial Lift
$222
2.47x
03/20/12
Expro International (connectors and measurements

division)
Designs, engineers, and manufactures well deliquification
and production optimization products for oil and gas
producers
United Kingdom Siemens
$610
5.32x
13.1x
03/19/12
Seajacks International
Owner and manager of self-propelled jack-up vessels
United Kingdom Marubeni; Innovation

Network
$850
02/29/12
Tebodin
Provides consulting and engineering services in the
Netherlands and internationally
Netherlands
Bilfinger
$194
0.64x
02/29/12
Transocean Pacific Drilling (50% Stake)

Engaged in operating deepwater drillships
United States
Transocean
$1,843

11 Selected M&A Activity
William Blair

($ in millions)
Date
Announced
02/27/12
Target (Unit Sold) / Target Business Description

Zenith Oilfield Technology
Developer of monitoring and completion technologies
Target Nation Buyer

United Kingdom Lufkin Industries
02/23/12
Exterran Holdings (compression and processing assets)

Compression and processing assets of Exterran Holdings
United States
Exterran Partners
02/20/12
Flint Energy Services

Provider of integrated products and services for the oil and
gas industry
Canada
URS
02/03/12
NKT Flexibles
Engaged in designing and manufacturing flexible pipe
products and systems for the offshore oil and gas industry
Denmark
Enterprise
Value
$135
Revenue
-
EBITDA
-
$183
$1,489
0.89x
11.0x
$670
2.53x
12.6x

M&A Trends
William Blair
M&A Trends
Annual M&A Trends
Energy Services & Equipment Industry Transaction Volume Last 10 Years
(# of deals)
Median: 404 deals

564
600
510
484
500
368
400
300
386
420
449
388
331
285
245
186
200
100
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2013 YTD 2014 YTD
Data as of August 28, 2014.

Sources: Capital IQ, Merger Market and William Blair.
Energy Services & Equipment Industry Total Disclosed Transaction Value Last 10 Years
($ in billions)
$160
Median: $82 billion

$136
$140
$138
$110
$120
$100
$60
$40
$88
$77
$80
$87
$62
$62
$61
$46
$39
$15
$20
$0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2013 YTD 2014 YTD


M&A Trends 13
William Blair
Quarterly M&A Trends

Quarterly Transaction Volume
Median: 104 deals
(# of deals)
200
150
86
109
100
93
98
Q3
Q4
104
101
108
107
Q2
Q3
Q4
126
104
95
Q2
Q3
124
144
96
99
83
110
105
82
50
0
Q1
2010
Q2
Q1
2011
Q1
2012
Q4
Q1
2013
Q2
Q3
Q4
Q1
2014
Q2
Current

Quarterly Transaction Value

($ in billions)
$45
$37
Median: $21
$33
$30
$34
$28
$20
$21
$21
$20
$14
$15
$35
$27
$24
$12
$21
$18
$14
$8
$12
$10
$0
Q1
2010
Q2
Q3
Q4
Q1
2011


14 M&A Trends
Q2
Q3
Q4
Q1
2012
Q2
Q3
Q4
Q1
2013
Q2
Q3
Q4
Q1
2014
Q2
Current
William Blair
Participant Trends
Breakdown of Acquirers by Type
Percent of Deals
Sponsor
Strategic
Percent of Deals
100%
80%
60%
40%
100%
80%
60%
40%
20%
0%
20%
0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Sponsor
6%
6%
5%
7%
9%
5%
6%
8%
12%
12%
2014 YTD
15%
Strategic
94%
94%
95%
93%
91%
95%
94%
92%
88%
88%
85%

Breakdown of Acquirers by Location

Percent of Deals
Domestic
Cross-Border
100%
Percent of Deals
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Domestic
63%
68%
67%
64%
59%
57%
58%
57%
57%
57%
2014 YTD
61%
Cross-Border
37%
32%
33%
36%
41%
43%
42%
43%
43%
43%
39%


M&A Trends 15
William Blair
Valuation Trends
Average Revenue Multiples
EV/Revenue Multiple
2.00x
1.86x
1.86x
1.69x
1.78x
1.71x
1.74x
1.73x
1.54x
1.60x
1.40x
1.47x
1.52x
2014 YTD
1.20x
0.80x
0.40x
0.00x
Number of Disclosed Deals
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
26
66
80
105
98
38
76
73
76
57
9.2x
9.0x
43
Average EBITDA Multiples
EV/EBITDA Multiple
12.0x
10.0x
11.0x
11.0x
9.7x
10.1x
10.2x
9.8x
9.8x
8.9x
7.5x
8.0x
6.0x
4.0x
2.0x
0.0x
Number of Disclosed Deals
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
17
35
51
59
44
17
38
47
39
29
Note: Data represents global transactions announced in the respective sectors.

Note: Transactions with multiples that are not meaningful are categorized as undisclosed.

16 M&A Trends
2014 YTD
25
Public Comps
William Blair
Public Comps
Oil & Gas Equipment
($ in millions,
except share price data) 52-Week
Company
Current
Stock Price
LTM Metrics
Equity
Value
Valuation
Enterprise
Value (EV)
High
$95.70
$78.60
$116.80
$26,035
$30,469
$45,741
$3,154
6.9%
9.6x
16.5x
6.5x
12.5x
Cameron International
Corporation
74.36
52.50
74.53
15,088
17,975
10,640
1,562
14.7%
11.5x
17.9x
9.3x
14.4x
CIRCOR International, Inc.
71.00
56.88
83.37
1,255
1,182
848
110
12.9%
10.8x
19.3x
8.9x
16.0x
Dril-Quip, Inc.
EBITDA
EV/ EBITDA
P/E
2015 EV/
EBITDA
Low
Aker Solutions ASA
Revenue
EBITDA
Margin
2015 P/E
100.75
94.99
121.07
4,028
3,685
892
273
30.6%
13.5x
20.1x
10.1x
16.7x
FMC Technologies, Inc.
61.59
47.58
63.92
14,465
15,412
7,582
1,167
15.4%
13.2x
21.9x
10.2x
17.9x
Forum Energy Technologies, Inc.
33.43
24.32
37.03
3,138
3,543
1,616
290
17.9%
11.5x
18.4x
8.5x
14.5x
Hunting plc
9.10
7.19
9.20
1,342
1,495
1,366
244
17.9%
10.5x
15.5x
8.4x
14.1x
National Oilwell Varco, Inc.
85.42
72.67
86.41
36,751
36,100
23,957
4,509
18.8%
7.9x
14.2x
7.2x
12.7x
Oceaneering International, Inc.
69.08
66.00
87.64
7,461
7,438
3,516
796
22.6%
9.3x
17.2x
7.5x
14.9x
Schoeller-Bleckmann Oilfield
Equipment AG
80.00
70.53
96.57
1,273
1,305
453
133
29.3%
9.8x
19.3x
7.9x
16.1x
Tenaris SA
16.63
14.78
18.45
19,632
18,803
10,330
2,756
26.7%
9.2x
16.3x
7.8x
14.4x
Tesco Corporation
21.03
15.45
22.50
843
737
536
100
18.6%
7.4x
17.4x
4.9x
12.6x
Vallourec SA
33.32
31.25
51.01
4,248
6,360
5,683
922
16.2%
6.9x
18.5x
6.8x
14.4x
$69.08
$52.50
$74.53
$4,248
$6,360
$3,516
$796
17.9%
9.8x
17.9x
7.9x
14.4x
Median
Indexed Stock Performance Last 5 Years
Indexed Stock Performance Last 12 Months
(Indexed Price)
Oil & Gas Equipment +85.0%
(Indexed Price)
Oil & Gas Equipment +8.7%
250%
S&P 500 +94.1%
130%
S&P 500 +22.1%
200%
120%
150%
110%
100%
100%
50%
90%

Public Comps 17
William Blair
($ in millions,
Company
Current
Stock Price
LTM Metrics
Low
High
Equity
Value
Valuation
Enterprise
Value (EV)
Revenue
EBITDA
Margin
EBITDA
EV/ EBITDA
2015 EV/
EBITDA
P/E
2015 P/E
CGG
$6.79
$6.43
$19.30
$1,197
$3,126
$3,359
$1,146
34.1%
3.9x
NM
3.7x
11.4x
Fugro NV
27.57
26.82
49.72
2,273
3,148
2,443
389
15.9%
8.2x
16.6x
6.5x
11.4x
Geospace Technologies
Corporation
40.73
34.01
107.93
535
476
279
92
33.0%
5.2x
12.1x
NM
NM
ION Geophysical Corporation
3.39
2.81
5.52
556
596
565
173
30.6%
4.5x
39.9x
3.0x
13.0x
Petroleum Geo Services ASA
46.70
46.57
83.80
9,999
17,250
1,355
727
53.7%
4.0x
8.3x
3.2x
6.6x
TGS Nopec Geophysical Co. ASA
173.70
138.90
210.70
17,702
16,397
889
747
84.0%
3.6x
11.1x
3.5x
11.3x
Median
$34.15
$30.41
$66.76
$1,735
$3,137
$1,122
$558
33.6%
4.3x
12.1x
3.5x
11.4x
(Indexed Price)
Geophysical Services (15.0%)
(Indexed Price)
Geophysical Services (41.1%)
200%
S&P 500 +94.1%
150%
S&P 500 +22.1
150%
125%
100%
100%
50%
75%
0%
50%

18 Public Comps
William Blair
Land Drilling
($ in millions,
Company
Archer Limited
CanElson Drilling Inc.
LTM Metrics
Current
Stock Price
Low
High
$10.80
$4.48
$12.40
Equity
Value
Valuation
Enterprise
Value (EV)
$6,255
$10,913
Revenue
$2,001
EBITDA
Margin
EBITDA
EV/ EBITDA
2015 EV/
EBITDA
P/E
2015 P/E
$188
9.4%
9.6x
NM
5.7x
16.1x
7.40
5.91
8.78
685
747
306
95
31.0%
7.6x
13.2x
5.2x
10.3x
16.26
15.42
18.44
2,493
3,100
2,215
493
22.3%
6.3x
16.4x
4.8x
12.4x
Helmerich & Payne, Inc.
103.07
62.39
118.95
11,155
10,800
3,599
1,510
42.0%
7.2x
15.9x
5.6x
13.4x
Nabors Industries Ltd.
26.26
15.21
30.24
7,871
11,352
6,365
1,706
26.8%
6.7x
21.5x
5.2x
12.0x
6.22
5.54
8.67
757
1,294
965
270
28.0%
4.8x
15.3x
3.7x
8.6x
Patterson-UTI Energy Inc.
33.54
18.83
38.43
4,901
5,468
2,825
920
32.6%
5.9x
21.4x
4.5x
14.1x
Pioneer Energy Services Corp.
15.34
6.72
18.40
969
1,440
981
243
24.7%
5.9x
34.4x
4.6x
20.1x
Precision Drilling Corporation
13.61
9.20
15.65
3,984
5,124
2,203
675
30.7%
7.6x
16.8x
5.1x
11.1x
$15.34
$9.20
$18.40
$3,984
$5,124
$2,203
$493
28.0%
6.7x
16.6x
5.1x
12.4x
Ensign Energy Services Inc.
Parker Drilling Co.
Median
(Indexed Price)
Land Drilling +91.6%
(Indexed Price)
Land Drilling +49.4%
250%
S&P 500 +94.1%
175%
S&P 500 +22.1%
200%
150%
150%
125%
100%
100%
50%
75%

Public Comps 19
William Blair
Offshore Drilling
($ in millions,
Company
Current
Stock Price
LTM Metrics
Equity
Value
Low
High
$48.88
$44.88
$58.46
Diamond Offshore Drilling, Inc.
43.78
43.04
65.62
Ensco plc
49.75
47.85
62.44
147.70
138.30
300.40
9,787
Atwood Oceanics, Inc.
Fred Olsen Energy ASA

Hercules Offshore, Inc.
$3,145
Valuation
Enterprise
Value (EV)
Revenue
EBITDA
Margin
EBITDA
EV/ EBITDA
P/E
2015 EV/
EBITDA
2015 P/E
$4,494
$1,078
$532
49.4%
8.4x
9.4x
5.6x
6.6x
6,004
7,168
2,734
1,045
38.2%
6.9x
14.4x
5.5x
11.5x
11,659
16,218
5,082
2,400
47.2%
6.8x
8.6x
6.8x
8.6x
17,458
1,107
455
41.2%
6.3x
10.4x
4.3x
6.0x
3.33
3.10
7.85
535
1,554
960
347
36.1%
4.5x
17.2x
4.4x
9.7x
Noble Corp.
27.94
26.04
40.66
7,104
13,703
4,607
2,306
50.1%
5.9x
8.9x
7.7x
10.1x
Ocean Rig UDW Inc.
18.47
16.12
20.97
2,436
6,413
1,476
730
49.4%
8.8x
10.5x
6.6x
8.1x
Pacific Drilling S.A.
9.85
9.23
12.25
2,141
4,788
880
436
49.5%
11.0x
12.0x
6.3x
8.4x
Rowan Companies plc
29.87
28.43
38.65
3,719
5,280
1,577
549
34.8%
9.6x
14.5x
5.0x
7.6x
SeaDrill Limited
36.90
32.40
48.09
18,195
30,910
4,805
2,416
50.3%
13.5x
11.4x
9.3x
10.1x
Transocean Ltd.
Median
38.41
37.33
55.74
13,912
22,267
9,603
3,897
40.6%
5.7x
8.4x
7.0x
11.9x
$36.90
$32.40
$48.09
$6,004
$7,168
$1,577
$730
47.2%
6.9x
10.5x
6.3x
8.6x
(Indexed Price)
Offshore Drilling (9.5%)
(Indexed Price)
Offshore Drilling (18.3%)
200%
S&P 500 +94.1%
140%
S&P 500 +22.1%
150%
120%
100%
100%
50%
80%
0%
60%

20 Public Comps
William Blair
Well Services
($ in millions,
Company
Current
Stock Price
LTM Metrics
Equity
Value
Valuation
Enterprise
Value (EV)
High
$23.82
$11.29
$29.84
$1,029
$1,809
$1,329
$265
19.9%
6.8x
43.4x
4.5x
15.6x
C&J Energy Services, Inc.
28.57
19.88
34.93
1,581
1,864
1,212
168
13.8%
11.1x
24.6x
5.8x
13.5x
Calfrac Well Services Ltd.
20.44
14.29
22.57
1,937
2,593
1,902
218
11.5%
11.9x
28.5x
5.9x
11.8x
Canyon Services Group, Inc.
16.43
10.43
20.05
1,125
1,140
384
40
10.3%
28.7x
25.2x
5.9x
11.2x
Frank's International N.V.
19.98
19.89
32.70
3,067
2,872
1,090
382
35.1%
7.5x
18.0x
6.0x
15.2x
Key Energy Services Inc.
6.12
5.96
10.52
940
1,635
1,459
211
14.4%
7.8x
NM
5.0x
28.8x
Mullen Group Ltd.
28.85
24.30
31.34
2,643
2,974
1,467
300
20.5%
9.9x
18.4x
8.7x
16.7x
RPC Inc.
22.32
14.22
25.15
4,884
4,994
2,063
547
26.5%
9.1x
19.4x
5.6x
13.0x
Superior Energy Services, Inc.
35.64
22.85
37.05
5,513
6,967
4,603
1,045
22.7%
6.7x
19.6x
4.9x
13.8x
Trican Well Service Ltd.
15.62
11.97
18.19
2,337
2,965
2,278
138
6.0%
21.5x
NM
6.3x
15.5x
$21.38
$14.26
$27.50
$2,137
$2,732
$1,463
$242
17.2%
9.5x
22.1x
5.8x
14.5x
Median
EBITDA
EV/ EBITDA
2015 EV/
EBITDA
Low
Basic Energy Services, Inc.
Revenue
EBITDA
Margin
P/E
2015 P/E
(Indexed Price)
Well Services +119.4%
(Indexed Price)
Well Services +18.2%
400%
S&P 500 +94.1%
145%
S&P 500 +22.1%
300%
130%
200%
115%
100%
100%
0%
85%

Public Comps 21
William Blair
Offshore Services
($ in millions,
Company
Current
Stock Price
LTM Metrics
Equity
Value
Valuation
Enterprise
Value (EV)
High
$22.35
$17.95
$24.36
$1,600
$3,461
$1,312
$411
31.3%
8.4x
22.6x
8.3x
15.2x
73.56
64.10
85.70
2,616
3,446
1,594
313
19.6%
10.9x
14.0x
8.5x
12.6x
6.92
5.88
10.25
563
1,851
1,765
210
11.9%
8.5x
NM
3.4x
NM
Gulfmark Offshore, Inc.
40.00
37.35
53.89
1,055
1,575
497
193
38.9%
8.1x
12.4x
6.6x
9.4x
Helix Energy Solutions Group, Inc.
26.97
19.44
28.00
2,846
2,905
1,006
321
31.9%
9.0x
15.4x
6.9x
13.9x
Hornbeck Offshore Services, Inc.
43.42
37.44
59.93
1,577
2,381
585
265
45.3%
9.0x
15.8x
5.6x
10.4x
PHI Inc.
41.52
33.50
42.70
652
994
891
161
18.1%
6.1x
7.9x
NM
8.3x
SEACOR Holdings Inc.
81.01
75.25
99.00
1,606
2,089
1,303
240
18.5%
8.6x
36.8x
7.5x
25.1x
Tidewater Inc.
50.45
45.51
63.22
2,508
3,973
1,487
442
29.7%
8.7x
12.7x
7.2x
10.7x
$41.52
$37.35
$53.89
$1,600
$2,381
$1,303
$265
29.7%
8.6x
14.7x
7.0x
11.6x
Bristow Group, Inc.

CHC Group Ltd.
Median
EBITDA
EV/ EBITDA
2015 EV/
EBITDA
Low
Bourbon
Revenue
EBITDA
Margin
P/E
2015 P/E
(Indexed Price)
Offshore Services +42.2%
(Indexed Price)
Offshore Services (4.2%)
250%
S&P 500 +94.1%
160%
S&P 500 +22.1%
200%
140%
150%
120%
100%
100%
50%
80%

22 Public Comps
William Blair
Large Cap Services

($ in millions,
Company
Current
Stock Price
LTM Metrics
Low
High
$69.21
$46.33
$75.64
Halliburton Company
67.38
47.46
74.33
Schlumberger Limited
110.16
80.68
118.76
23.34
13.07
24.88
$68.30
$46.90
$74.99
Baker Hughes Incorporated
Weatherford International plc

Median
Equity
Value
$30,109
Valuation
Enterprise
Value (EV)
Revenue
$33,717
$23,313
57,309
62,665
142,815
149,527
18,052
$43,709
EBITDA
EBITDA
Margin
$4,082
17.5%
30,510
6,428
46,808
12,707
26,979
14,865
$48,191
$26,912
EV/ EBITDA
P/E
2015 EV/
EBITDA
2015 P/E
8.3x
16.5x
5.8x
12.4x
21.1%
9.7x
16.6x
6.9x
12.6x
27.1%
11.6x
19.3x
9.3x
16.1x
2,138
14.4%
12.6x
20.3x
6.9x
13.2x
$5,255
19.3%
10.7x
18.0x
6.9x
12.9x
(Indexed Price)
Large Cap Energy Services +95.0%
(Indexed Price)
Large Cap Energy Services +37.2%
250%
S&P 500 +94.1%
160%
S&P 500 +22.1%
200%
140%
150%
120%
100%
100%
50%
80%

Public Comps 23
William Blair
Small Cap Services

($ in millions,
Company
Current
Stock Price
LTM Metrics
Low
High
Equity
Value
Valuation
Enterprise
Value (EV)
Revenue
EBITDA
Margin
EBITDA
EV/ EBITDA
2015 EV/
EBITDA
P/E
2015 P/E
CARBO Ceramics Inc.
$108.59
$81.01
$156.00
$2,509
$2,463
$691
$185
26.7%
13.3x
26.3x
9.7x
19.4x
Core Laboratories NV
156.38
143.14
221.00
6,947
7,256
1,080
366
33.9%
19.8x
26.7x
17.2x
23.7x
Emerge Energy Services LP
140.46
27.63
140.49
3,332
3,496
1,040
99
9.5%
35.4x
39.3x
15.4x
19.4x
Exterran Holdings, Inc.
44.89
26.50
45.90
3,008
4,989
2,897
601
20.8%
8.0x
55.0x
6.5x
28.3x
Hi-Crush Partners LP
65.94
23.08
69.25
2,437
2,605
233
92
39.2%
28.5x
20.8x
13.1x
15.3x
Oil States International Inc.
63.98
59.66
113.64
3,460
3,584
2,765
803
29.0%
4.5x
17.5x
7.5x
15.1x
Pason Systems Inc.
35.04
21.01
35.51
2,897
2,753
438
173
39.4%
15.9x
23.7x
9.3x
19.5x
RigNet, Inc.
46.83
34.24
59.06
825
850
272
61
22.5%
13.9x
34.2x
8.8x
23.7x
ShawCor Ltd.
58.69
37.01
60.63
3,535
3,887
1,856
373
20.1%
10.6x
NM
8.3x
NM
TETRA Technologies, Inc.
11.61
9.25
13.43
924
1,344
935
96
10.3%
13.9x
23.5x
4.6x
12.5x
U.S. Silica Holdings, Inc.

Median
70.72
22.88
71.29
3,808
4,000
680
170
25.1%
23.5x
32.1x
12.5x
21.5x
$63.98
$27.63
$69.25
$3,008
$3,496
$935
$173
25.1%
13.9x
26.5x
9.3x
19.4x
(Indexed Price)
Small Cap Energy Services +245.2%
(Indexed Price)
Small Cap Energy Services +49.2%
400%
S&P 500 +94.1%
175%
S&P 500 +22.1%
300%
150%
200%
125%
100%
100%
0%
75%

24 Public Comps
William Blair

($ in millions,
LTM Metrics
Low
High
$11.38
$9.95
$12.71
$3,395
$3,369
$3,841
$302
7.9%
10.5x
13.8x
8.0x
12.1x
Bilfinger SE
57.91
52.00
92.86
2,557
2,807
8,476
425
5.0%
6.3x
12.8x
5.3x
10.5x
Chicago Bridge & Iron Company

N.V.
63.75
57.54
89.22
6,897
8,976
12,215
1,046
8.6%
8.4x
12.5x
7.1x
10.8x
Fluor Corporation
74.48
63.17
83.93
11,732
10,058
23,612
1,336
5.7%
7.5x
17.5x
6.6x
14.6x
Foster Wheeler AG
32.54
22.92
34.95
3,257
2,891
3,238
237
7.3%
12.0x
18.0x
7.8x
14.8x
Jacobs Engineering Group Inc.
54.31
49.57
66.88
7,226
7,316
12,619
707
5.6%
10.3x
15.9x
7.6x
13.5x
7.82
6.10
8.39
2,842
3,111
6,815
559
8.2%
9.4x
12.9x
8.0x
11.7x
KBR, Inc.
22.24
20.42
36.70
3,230
2,335
6,727
149
2.2%
15.7x
NM
5.5x
14.9x
Matrix Service Company
28.00
15.52
38.71
740
726
1,154
76
6.6%
9.6x
17.6x
6.7x
14.4x
7.35
6.58
9.36
1,747
1,976
2,284
(222)
(9.7%)
NM
NM
8.0x
37.8x
Petrofac Limited
11.23
10.57
15.25
3,821
4,526
6,070
968
15.9%
8.0x
10.9x
5.9x
9.0x
Saipem SpA
17.79
14.81
21.00
7,818
13,026
12,976
1,209
9.3%
10.6x
24.7x
7.1x
12.8x
SBM Offshore N.V.
11.57
9.10
16.18
2,426
6,121
5,436
817
15.0%
9.8x
6.6x
8.3x
6.7x
Subsea 7 SA
103.30
101.50
132.50
34,043
34,624
6,723
1,198
17.8%
4.4x
8.3x
4.0x
8.9x
Technip SA
70.01
60.20
92.49
7,885
7,277
10,009
1,011
10.1%
7.2x
15.5x
5.3x
11.4x
Tecnicas Reunidas, S.A.
41.69
33.00
46.62
2,240
1,572
2,930
160
5.4%
10.1x
16.4x
8.2x
14.4x
Willbros Group Inc.
10.71
7.66
13.69
541
776
2,149
100
4.7%
7.7x
16.8x
5.7x
10.2x
Company
AMEC plc
John Wood Group PLC
McDermott International Inc.
WorleyParsons Limited
Median
Equity
Value
Valuation
Current
Stock Price
Enterprise
Value (EV)
Revenue
EBITDA
Margin
EBITDA
EV/ EBITDA
2015 EV/
EBITDA
P/E
2015 P/E
17.08
14.72
24.54
4,216
4,730
9,561
503
5.3%
9.1x
14.6x
8.1x
13.6x
$25.12
$17.97
$35.83
$3,326
$3,947
$6,725
$531
6.9%
9.4x
15.5x
7.1x
12.5x
(Indexed Price)
Engineering & Construction +22.3%
(Indexed Price)
Engineering & Construction (4.6%)
250%
S&P 500 +94.1%
145%
S&P 500 +22.1%
200%
130%
150%
115%
100%
100%
50%
85%

Public Comps 25
William Blair
Engineered Equipment
($ in millions,
Company
Current
Stock Price
LTM Metrics
Equity
Value
Valuation
Enterprise
Value (EV)
High
$66.34
$64.05
$130.85
$2,022
$2,159
$1,179
$178
15.1%
12.1x
22.9x
9.9x
18.1x
Flowserve Corp.
75.99
55.64
82.24
10,396
11,449
4,911
859
17.5%
13.2x
19.6x
11.1x
17.2x
Global Power Equipment Group

Inc.
16.37
14.54
20.98
280
296
471
33
7.0%
9.0x
28.7x
7.1x
14.6x
Graham Corporation
30.24
26.20
41.94
306
245
102
15
14.5%
16.5x
27.9x
8.5x
19.0x
The Babcock & Wilcox Company
29.16
27.52
36.00
3,134
3,198
2,926
516
17.7%
5.5x
16.5x
7.3x
12.1x
The Weir Group PLC

Median
EBITDA
EV/ EBITDA
P/E
2015 EV/
EBITDA
Low
Chart Industries Inc.
Revenue
EBITDA
Margin
2015 P/E
26.50
20.36
28.48
5,654
6,412
2,375
497
20.9%
12.7x
18.7x
11.1x
16.7x
$29.70
$26.86
$38.97
$2,578
$2,678
$1,777
$337
16.3%
12.4x
21.2x
9.2x
16.9x
(Indexed Price)
Engineered Equipment +181.6%
(Indexed Price)
Engineered Equipment +13.5%
400%
S&P 500 +94.1%
130%
S&P 500 +22.1%
300%
120%
200%
110%
100%
100%
0%
90%

26 Public Comps
Quarterly Market
Update All
Industries
William Blair
Quarterly Market Update All Industries

Domestic M&A Market Summary
U.S. Activity Trends
M&A Activity
Number of Deals
18,000
12,000
6,000
0
12,420
13,340
11,488
12,749
13,397
14,634
12,089
Deal Value
($ in billions)
12,170
$1,800
8,792
9,934
10,087
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
LTM
147
233
281
362
460
228
156
287
262
312
312
347
Middle Market
4,239
4,527
4,453
4,548
4,537
4,766
4,144
6,224
5,360
5,155
4,203
4,051
Undisclosed
4,406
5,174
5,353
7,510
8,343
6,494
5,075
6,238
7,775
9,167
7,574
7,772
Deal Value
$688
$992
$1,297
$1,647
$1,750
$1,075
$886
$1,048
$1,174
$1,104
$1,294
$1,712
9,375
$1,200
$600
$0
Number of Deals
>$750M
Middle-Market M&A Activity

Deal Value
($ in millions)
Number of Deals
4,537
10,000
5,000
4,239
4,527
4,453
4,766
4,548
4,144
6,224
5,360
5,155
4,203
4,051
$600
$400
$200
$0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
LTM
Number of Deals
$250M-$750M
314
402
424
536
627
417
269
457
475
467
512
563
$50M-$250M
1,065
1,218
1,265
1,294
1,333
1,195
791
1,138
1,148
1,151
1,095
1,096
<$50M
2,860
2,907
2,764
2,718
2,577
3,154
3,084
4,629
3,737
3,537
2,596
2,392
Deal Value
$292
$351
$364
$421
$466
$355
$239
$370
$383
$380
$387
$406
2,316
1,821
1,749
Deal Value
($ in billions)
$800
1,979
Private-Equity Activity
Number of Deals
$3,000
$2,000
1,200
1,646
1,812
2,247
1,462
1,976
2,035
2,091
$400
$1,000
$0
$0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
LTM
106
Number of Deals
>$750M
33
61
84
106
149
64
34
94
88
95
88
Middle Market
626
906
859
998
826
788
742
869
698
660
507
564
Undisclosed
541
679
869
1,143
1,341
969
686
1,013
1,249
1,336
1,154
1309
Deal Value
$120.4
$224.6
$287.6
$523.7
$644.3
$243.7
$149.3
$272.3
$268.6
$264.5
$282.6
$319.0
Note: Year-to-date as of June 30, 2014.

Sources: Dealogic and William Blairs mergers-and-acquisitions market analysis. Data represents announced deals only.

Quarterly Market Update All Industries 27
William Blair
U.S. Valuation Trends

Median EV/EBITDA Multiples
Middle Market
Overall Market
15.0x
12.0x
9.0x
6.0x
3.0x
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
LTM
Middle Market
7.5x
7.4x
8.7x
10.1x
10.0x
9.5x
7.9x
6.4x
9.3x
10.0x
9.1x
9.9x
9.7x
Overall Market
7.9x
8.0x
9.1x
10.3x
11.0x
11.2x
9.0x
7.4x
9.9x
10.8x
9.6x
10.0x
10.1x
LTM
Median EV/EBITDA Middle-Market Multiples

< $50M
16.0x
$50M-$250M
$250M-$750M
12.0x
8.0x
4.0x
0.0x
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
< $50M
4.1x
7.1x
6.4x
7.2x
10.2x
7.8x
4.9x
3.9x
8.8x
9.0x
6.8x
8.1x
8.0x
$50M-$250M
7.5x
6.9x
8.7x
11.3x
9.5x
10.4x
9.1x
7.1x
9.3x
10.0x
9.2x
11.3x
11.3x
$250M-$750M
9.7x
9.2x
9.1x
10.0x
11.0x
9.4x
8.3x
7.9x
9.7x
10.7x
10.2x
12.9x
12.5x
Average Acquisition Premiums

1-Week Premium
4-Week Premium
50%
40%
30%
20%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
LTM
1-Week Premium
36%
32%
28%
26%
26%
27%
36%
38%
34%
36%
36%
23%
24%
4-Week Premium
38%
40%
32%
31%
31%
29%
37%
41%
38%
39%
39%
30%
31%
Notes: Data limited to a range of 1 to 100 and LTM is as of June 30, 2014.
Sources: Dealogic and William Blairs mergers-and-acquisitions market analysis. Data represents announced deals only.

28 Quarterly Market Update All Industries
William Blair
U.S. Equity Capital Markets Summary

Historical IPO Issuance
200
175
139
150
133
95
100
105
71
54
50
28
35
13
19
39
50
25
21
20
48
56
63
70
21
0
2009 2010 2011 2012 2013 2013 2014
YTD YTD
1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Historical Follow-On Issuance

700
600
657
564
500
506
470
394
400
380
292
300
135
200
128
50
100
86
130
98
152
127
115
140
173
193
198
182
0
2009 2010 2011 2012 2013 2013 2014
YTD YTD
1Q 11 2Q 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14
Note: Excludes follow-on offerings for CLEFs, REITs, and SPACs.
IPO Pricings by Sector Last 4 Quarters:

237 Total Deals
19
59
Follow-on Pricings by Sector Last 4 Quarters:

746 Total Deals
Business Services
24
146
Consumer
21
77
Business Services
58
67
Financial
Industrial
85
Technology
Financial
Healthcare
Healthcare
29
Consumer
207
Industrial
191
Technology
Sources: Dealogic and William Blairs mergers-and-acquisitions market analysis.

Quarterly Market Update All Industries 29
William Blair
Debt Capital Markets Summary

Average Equity Contribution
Less than $50 million EBITDA
60%
More than $50 million EBITDA
50%
41%
40%
40%
38%
37% 38%
36%
35%
34%
32%
32%
32%
31%
30%
30%
29%
40%
30%
46%47% 45%
40% 41%
46%
43%
41%
37%
37%
34%
33%
20%
10%
0%
7.0x
6.0x 3.8x2001 4.0x2002
5.0x
4.0x
3.0x
2.0x
1999
2000
3.2x
3.1x
3.6x
2003
2004
3.5x
2001
3.0x
3.3x
2002
2005
3.9x
4.4x
2007
3.9x
2005
2006
4.1x
2003
3.4x
2004
2.4x
5.0x
2008
4.9x
2009
4.4x
2006
4.8x
5.3x
2010
20114.4x3.4x
2012
4.6x
2008
2007
3.1x
2010
2009
3.3x
4.1x
7.0x
6.0x
2013
2014 YTD
5.0x
4.0x
3.0x
2.0x
2011
3.4x
(1)
Quarterly LBO Debt Multiples Less Than $50 Million EBITDA

Total Debt/EBITDA
Senior Debt/EBITDA
7.0x
7.0x
6.0x
5.0x
4.0x
3.6x
3.8x
3.7x
4.2x
4.0x
4.0x
3.8x
3.7x
3.0x
3.0x
2.0x
2001
7.0x
6.0x 3.8x
5.0x
4.0x
3.0x
2.0x
1999
3.1x
4.2x
4.9x
6.0x
4.8x
5.0x
4.4x
4.5x
4.8x
2000
3.2x
2003
3.6x
2001
3.0x
4.4x
5.1x
5.0x
3.3x
3.7x
3.1x
3.0x
3.2x
2.0x
2004
2005
2006
2007
2008
2009
2010
2011
2012
5.0x
5.3x
4.9x
4.4x
4.4x3.4x
3.5x
4.1x
3.9x
4.8x
3.9x
3.3x
4.4x
4.6x
2002
2003
2004
2005
2006
2007
2008
2009
3.4x
3.3x
2.4x
2013
3.1x
2010
2014
4.1x
2011
3.4x
Total Debt/EBITDA
Senior Debt/EBITDA
6.8x
7.0x
7.0x
6.6x
6.0x
4.1x
4.5x
4.8x
5.3x
5.7x
4.9x
4.8x
5.0x
4.4x
4.4x
3.1x
3.0x
2.0x
2001
5.3x
2.6x
4.3x
2.6x
2002
2003
2004
5.5x
4.9x
3.9x
3.5x
2.9x
5.5x
6.0x
5.1x
4.0x
4.0x
Sources: Dealogic and Standard & Poors as of June 30, 2014.

30 Quarterly Market Update All Industries
5.0x
4.0x
4.0x
3.0x
3.1x
2.9x
2005
7.0x
6.0x
5.0x
4.0x
3.0x
2.0x
(1)
Quarterly LBO Debt Multiples Greater Than $50 Million EBITDA
5.0x
5.0x
4.0x
3.4x
3.8x
2.2x
2002
4.0x
3.8x
5.1x
2.0x
2006
2007
2008
2009
2010
2011
2012
2013
2014
William Blair
Notes

Notes 31
William Blair
Disclosures
William Blair is a trade name for William Blair & Company, L.L.C., William Blair Investment Management, LLC and William Blair International, Ltd. William Blair & Company, L.L.C. and William Blair
Investment Management, LLC are each a Delaware company and regulated by the Securities and Exchange Commission. William Blair & Company, L.L.C. is also regulated by The Financial Industry
Regulatory Authority and other principal exchanges. William Blair International, Ltd is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. William Blair only
offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated in the United States and are not offered to persons or
institutions outside the United States.
This material has been approved for distribution in the United Kingdom by William Blair International, Ltd. Regulated by the Financial Conduct Authority (FCA), and is directed only at, and is only made
available to, persons falling within COB 3.5 and 3.6 of the FCA Handbook (being Eligible Counterparties and Professional Clients). This Document is not to be distributed or passed on at any Retail
Clients. No persons other than persons to whom this document is directed should rely on it or its contents or use it as the basis to make an investment decision.
William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com
September 9, 2014

32 Disclosures

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Sector Update

Energy Investment Banking

Energy Services &

About William Blair

William Blairs investment banking group combines signiicant transaction experience,

William Blairs Energy Services & Equipment Contacts

Chicago (MBA), Illinois (BS)

Chicago (MBA), Middlebury (AB)

Head of European Banking

Chicago (MBA), Emory (BA), CFA

Columbia (MBA), Notre Dame (BA)

Energy Services & Equipment Segment Focus

Drilling Products & Services

Alternative Energy Services

Oil & Gas Equipment

Engineering & Construction

Pumps, Valves & Pipes

Ethanol & Biodiesel

Production & Well Maintenance

Testing & Inspection

Smart Grid Technology

Transportation, Logistics &

Solar & Wind Equipment

Energy Services & Equipment

William Blair Spotlight Recent Energy Services & Equipment Transactions

August 2014 &

William Blair acted as a co-manager in the offerings

William Blair acted as a co-manager in the offering

has been acquired by

Energy Services & Equipment

Selected Energy Services & Equipment Transactions

has been acquired by

has been acquired by

has been acquired by

The Babcock &

Surveying, Drafting &

Frac Sand / Midstream

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

Kelso & Company

Mar. 13 & Jun. 13

Mobile Onsite Refueling

has been acquired by

has been acquired by

has been acquired by

Indorama Ventures PLC

Explosion Proof Equipment

Security Integration Services

has been acquired by

has been acquired by

Initial Public &

Initial Public &

May 11 & Sept. 12

has been acquired by

has been acquired by

has been acquired by

has been acquired by

has been acquired by

Nikkiso Co., Ltd.