Quanta Services (PWR) 10 May 202020 Q1 Earnings call transcript

Greetings. And welcome to Quanta Services First Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions]. call recorded. conference this note, is being Please

I to Vice your like to President conference over turn the host, sir. Investor Thank would Relations. now of you, Mr. Kip Rupp,

may You begin.

our website call. a the Thank and first outlook earnings this section issued XXXX first announcing welcome Relations press to quarter summary can our This you in Quanta results the we morning. morning, we Investor at which everyone commentary quarter with will Services XXXX release of quantaservices.com, our along a conference and be of found discuss

we this is our Additionally, will webcast on to use the of through Relations presentation a and which website. morning the remarks, Investor also Services available slide the prepared call's is accompany viewable section Quanta

on as may information replay of information speaks and of call XXXX, X, this that as of May longer you're remember advised any only therefore, call. any be accurate Please reported that today, no time-sensitive this

Safe qualify facts. do will include Act These call This reflecting that Securities include future Litigation assumptions beliefs relate events all or the historical Quanta's of to about the forward-looking liability performance or Reform XXXX. or statements solely intended current to established by intentions, Private expectations, not under or Harbor statements from

expressed Forward-looking implied. to and control, those statements differ involve Quanta's assumptions certain risks, difficult or or predict may from uncertainties materially beyond that are and results actual

which refer on to documents with and language or information additional are Commission cautionary the risks, other reports concerning uncertainties For SEC's the periodic website. Quanta's the filed and some please of in available Securities the assumptions, release company's today's and Exchange included with press along these

the disclaims forward-looking any statements to obligations update Quanta not regarding oral by subject should does and place or and matter of You call. statements, written made this third-party undue statements on any such not reliance any undertake

Reconciliations of forecasted and financial release. our adjusted these GAAP earnings note measures comparable in also flow. that most their backlog, free diluted today's EBITDA EPS, and to measures will historical including directly certain in cash we financial non-GAAP included Please present call, are measures

would releases please if Investor up through be of to when notified information, alerts for other the publishes email news Lastly, quantaservices.com. sign you Relations like Quanta section and

investors and to Services interested our on company also the Quanta in encourage channels IR our listed website. Quanta social follow others and media We on

With and that, I CEO. now the Quanta's call Mr. Austin, would President like to turn Duke? to Duke over

morning, Thanks, and call. welcome Services the quarter Kip. everyone, to Quanta first XXXX earnings Good conference

model. before remarks review Derrick to resiliency Financial I I first and will expectations. quarter our questions. the today, will call we a the navigate operational our will are turn provide Officer, the XXXX Jensen, steps current quarter Chief results Quanta's it On environment about and results, and financial we successfully of commentary sustainability and your Quanta's first taking to provide customers And then, provide business of additional

operations core is our Quanta we or in us the no weeks been nothing the tenacity are health has witnessed short guide very operating who X:XX:XX] environment [indiscernible people our The unprecedented past through. inspiring. process predeveloped have playbook over is an when and This of instincts with throughout and economic Quanta. of to several

We challenging a our in safely believe core to our is ability environment. execute competency

and harsh other economic have every through and work history. managed conditions in day, Our people throughout we cycles challenges our

the is circumstance occasion While to nothing to each different, new people rising our is Quanta.

the to unforeseen adapted pandemic. of have and vigilant remained nature this have We

are side us position the experiencing come to and to of to objective. business operating committed but the model and strong uncertainty, better not our only with resilient currently, through to execution like financial and our provides We of believe other navigate out opportunity the business model have times our remained We positioned. successful we

COVID-XX our focused policies we First existing initiated February in employees. protect implemented appropriate. of to subsequently safety where field in and response We work-from-home health to the and remain our employees our in the on foremost, pandemic and plan

it are pandemic be and comprehensive been has We effective. to developed plan our confident

ease with general forward in work continue density collaborated orders move have of the our We customers and our and public plan as proximity to to our the areas shelter-in-place as enhance increase. we

of end meaningful of and, the impacts workforce personnel a the quarter, we availability At the XX,XXX on first not have approximately or experienced key had as date, COVID-XX. to our any employees health result of

continue critical and customers of restriction during periods all we per considered states are end needed our adhered Quanta, guidelines localities and infrastructure are most community markets which to address and to government have to. the work

but the to employees, have proactive of and allowed health protected provide safety have Our of to not us our continuity service steps only customers. our

more perhaps millions in working ever, heating tens electricity, sheltering cooling reliable services. from needed, place require and home people are services now and Internet, as of and Our communications, than are and

first Our us quarter ended We the solid pre-pandemic were put have near would meet results track levels. record to quarter and outlook. XXXX on our backlog with

demonstrates various which service master Quanta's resiliency We additional and forward. and expect favorable during going renew the projects, we business secure agreements year record positioning the our of backlog as

our experience in for COVID-XX later lines impacts most of in some the the Demand part high from March challenges in and services industrial remained energy service we tough and the quarter during market. began to

that segment. particularly This in our in of is Shelter-in-place broader experiencing, markets, impacted meaningfully compounded those dynamic which been metro portions COVID-XX. has that by have challenges restrictions market Industrial also energy our is created areas the major disruptions some affecting and Pipeline have of to especially portions operations,

April challenging to month shelter-in-place be operations of and our We impacts America to most throughout North year the some our declarations prove due on their believe will in areas.

we And for disruptions moderate. ease work customers to our as to to beginning the restrictions. are our states and result, a with cities are planning However, community

our been we permitting to collaborate and some experiencing have minor delays. customers, communicate are continue while We with closely,

significant workforce We are do not experiencing expect or disruptions to experience and not availability issues. supply chain

certain implemented have macroenvironment. uncertain steps given to We manage costs, the proactively

capital deferral Some suspension operations, of hiring have expenditures. non-essential include various travel spending, steps cost of management and we non-essential of at the taken raises discretionary and

headcount current environment. and the under necessary, taken facing also tough, at manage have challenges that We actions uncertainty to are but operations

we believe given actions remain will Quanta's and the we going for continue circumstances. resilient to business prudent opportunity flexible, and these see While forward, profitable growth believe we

diligently create a worked several business We model. repeatable more over have and sustainable the years past to

Our estimate focus business. business portfolio on and communications pipeline be geographic resilient industrial environment. services to the revenues our base in that and in XX% services We and growing believe resiliency from our of us we even gives companies, today's utility, XX% of diversity and derived confidence will of are our certain infrastructure

year, our returns. in multiyear of less his pressure, commentary growth details opportunities remaining of additional believe we are portion currently the this will our stabilize The provide in regarding revenues, which could of resilient second and provide half reasonable Derrick outlook. and under some

continue Demand actively needs. we to services utility deploy systems seen meaningful and harden, into their have our and reductions capital remain power for future electric the budgets. expand adapt current solid, Utilities in CapEx modernize, and to to not

of our Long-time service term. create investing tens billions for over are systems the sustainable offerings of utility modernize medium customers to Quanta across and dollars end users

and Line by Work in not on date and project to proceeding is our transmission Watay Canada electric Tie impacted COVID-XX. East-West is meaningfully

of have electric some for and of we final Additionally, progress larger made continue throughout which construction. recently our service to actively permitting its dollars incremental of transmission projects, pursue territories, billions

are we well confident many these are positioned of projects. We for

good profitability. Power in which are and with services included a communications infrastructure operation, had segment, solid Electric quarter first double-digit Our growth revenue

to see stages demand strong with homes moving are and for disruption, forward densification and to we the XG deployment. and continue projects reach fiber minimal of overall Our businesses early

Utilities their them collaborating actively also on continue for and cooperatives with XG to and opportunities capacity, solution. electric fiber evaluate in involvement and we're

the In distribution weakest reliability the year. Industrial well and segment. to the meet utility requirements programs stages first at Pipeline are of safety. of Turning gas quarter multi-decade modernization regulatory our to the aimed performed operations our is gas aging infrastructure what Utilities replace seasonally in improving and quarter, to early in

in in However, as restrictions markets were continues orders of the impacted metro that operations March our America, to North last date. implemented week community certain shelter-in-place beginning across

a As rates. markets managed in those reduced have match we to utilization result, meaningfully headcount

increasing get these utilizations are activity employees and we work. to to rehire our and However, are restrictions as beginning gradually lift back and

for driven services, by broad demand primarily and industrial refinery our had record from services first a customers. Our operations quarter,

efficiently core are critical services necessary customers path Our product. catalyst to refine our for a and

catalyst As for solid. remains we entered our the second quarter, services demand

challenging projects began for maintenance and onsite However, deferred certain restricting our services, activity and to overall customers later turnaround this due energy markets, COVID-XX year and other to XXXX. or

impacted We significantly believe be to services quarter and we in operations second the to the factors, current our implementing been manage costs initiatives will these due industrial have to environment.

market are and the this work future economic that that we cautiously opportunity of there and return stability in confident is conditions as we're However, year. this second improve, in will half for the delayed optimistic

to have in of challenging began the amplified quarter. operations our Certain the the the by continuing in quarter services market primarily second first and due midstream experience we portions which United to conditions, of into part COVID-XX later softness are States and energy Canada ancillary

oil-focused exposure the of Quanta has point, areas at impacted some, to through this we expect least areas. be oil-focused services midstream activities but year. to in balance At not significant, midstream this

management and we operations. implementing at actively cost As initiatives a result, reduced have impacted headcount are

long-term billions producers dollars projects in prices. natural needed of plus resilient to the larger commodity by short-term to larger for be commercial hydrocarbons, actively tend project which most agreements pipeline of These long-term for opportunities, the transportation. transportation with continue On gas side, are we pursue pipeline underpinned to are and of of are fluctuations

when these gating larger However, permitting and pipeline regulatory projects the approvals forward. for move remain factor

we years, our have strong in strategy risk and our through prepare a to maintaining five executed inherent diversification for the on Over business profile. events unexpected past mitigate and financial

diverse of have services. diverse, high-quality expanding We customer and low and a presence with base customer diverse broad a and line concentration, a geographic

to will and benefit times favorable investments stakeholders. believe the dynamics, to made we to Quanta We us continue and favorable serve will and our challenging have allow and strategy, during our diversification industry strategic all resilient continue

now his XXXX Derrick? our and our results the to over expectations. CFO, turn will call first for Derrick review Jensen, quarter I of

prepared of everyone. And spend about briefly Duke. the and remarks financial going and our expectations. first Thanks, financial more to environment good my quarter the highlights forward-looking talk of current morning, discussing I'm

per Net common first adjusted per share $X.XX. or diluted a quarter XXXX measure attributable $X.X Today, was earnings of share income non-GAAP – we and revenues stock announced – million $XX was to billion. $X.XX diluted

perspective, an quarter largely first expectations. results the From operational met our

COVID-related revenues, when first of quarter continued XXXX, billion, an the to were compared strength prior increase Power X% Latin reflecting to business base Electric Our excluding America, disruption. $X.X

were of hardening operations, commentary and previous the were toward X.X%, American activities anticipated XQ due Latin in segment well as Electric X.X%, being second our in half seasonality as which year. margins with lower to the line margins weighted excluding fire

activities in absorption these the XXXX level that first and cost substantial of some resulted throughout back hardening half in fire Recall were year last every pressure the levels quarter of at weighting quarter. running in

mid-single digits. compared Electric which our grew of margins almost Our revenues quarter in operating segment, the included XXXX first are communications delivered operations, the XX% in and to

Industrial Our increased than were Partially and lower pipeline offsetting due reduction in contribution an decline this XXXX. which were from approximately to companies. XQ from million XQ billion, levels $XXX XX% from Pipeline XXXX million expected the revenues revenues base was $X activity, acquired of business including larger than less projects, $XXX

XXXX, P&I XQ pipeline expectations having Canadian range operations. by the Operating than were margins across impacted weather but lower for within been segment our our despite the X.X%, quarter of adverse for

the orderly during quarter. exit progressed The of operations our American Latin first

of However, costs million the by the certain associated loss early orders quarter, exacerbated losses stay-at-home to projects in expectations. with region, operating losses The in termination on in necessitating a projects exceeded stringent closeout primarily COVID-XX our second XQ. recognition $XX.X the and relate

$XX Latin in $X.XX, million We anticipated. by no losses than received had for America, in what originally approximately we losses more quarter so approximately impacted benefit $X.XX the the tax

at Our higher year-end, approximately billion XQ $XXX $X higher billion XQ quarter, than the $X.X XXXX. below at million XXXX. than billion end is slightly first the total was backlog backlog but $XX.X XX-month of

see to continue We backlog growth. opportunities for

certain the be environment. timing awards However, in for customers current of delayed could

million, non-GAAP call. $XXX project two quarter insurance our as with For generated a the pipeline of million last cash the XXXX, of first which included flow, settlement we quarter's of claims, free proceeds $XX associated we measure, on of mentioned

to due retainage year-end. XX or slightly a days, compared the projects, higher the X levels but was outstanding, balances days sales of first days DSO, quarter the of quarter to lower decrease larger XXXX of XX with associated Days than for at

has We various the some second had administrative into due quarter the to impacts continued business which the experienced throughout of dynamics. March, stay-at-home at end

far. on terms However, any payment thus pressure significant we haven't seen extending

to $XXX conditions volatile had revolving borrowed cash we and to market Due to was access in a as operations March, credit ensure our rapidly unpredictable fund measure, our facility cautionary changing environment. in what a we million against adequate to capital

of As at a of result, approximately quarter. we $XXX had million the cash end the

to and, our in quarter. higher the was the this lesser the a deployment for to slightly of the due of $XXX expense million first repurchase shares interest common stock net quarter X of extent, Our drawdown during to due million

and with borrowings reduced our and revolver daily capital markets the risk funding substantially paying we April daily by moderated, off outstanding of the cash improved liquidity As requirements. associated requirements end of resumed our routine position at on cash

liquidity handle environment. to we From perspective, and we the market with associated our operations disruptions well believe to sheet and balance a energy positioned challenging are the COVID-XX

of $X.X total billion. of As liquidity approximately March XXXX, XX, had we

maximum do facilities And XXXX. debt XX, within approximately to range had times and X our provided for mature preferred times, of in of Our credit not well October our XX, below a agreement, facility. X.X times calculated our senior debt-to-EBITDA we X.X until March as XXXX, secured ratio, X as credit under the of

covenants in credit with we financial quarter, were in At of all the our the first end the comfortably facility. of compliance

challenging The represents and combination the market the economic an modern COVID-XX era. unprecedented environment in energy of impact

navigated the positioned these of through of crisis and company. In generated XXXX of through and balance a market a and circumstances, strong cash profitable, better solid periods challenging and came the out and stronger successfully both remained XXXX. competitively and sheet, Quanta solidly maintained XXXX flow, operating energy financial XXXX However, conditions Quanta

certainty Turning provide to debate. financial internal guidance. the environment. decision uncertain I'll meaningful of to of that concluded to much and expectations outweighed risk We value so by start the level that commentary saying community very developed investment a was doing and approach that our our our the a providing through in implies guidance

outlook our as helpful to of considered nature what be understand we and be circumstances, see Given directional the should meant commentary is today. the to

Electric expectations intact. our for largely the Currently, Power remain segment

operating million million. and X.X%, between Latin expect segment and We $X.X $XX margins revenues between $XX this to and of billion for with X% contributing operating billion America $X.X losses

range Excluding are to between expected X.X%. Latin America and losses, X.X% margins

operations and our margin in level and largely in seen annual the expected quarter, quarter. slight is guidance in have second and reduction COVID-XX in markets the some to of electric Certain impact our both services operation, communications occur to revenue second

impacted in see year. the in in target Latin the the than Having this fourth also of by opportunity are to industrial higher America and at be electrical our and for quarters. somewhat facilities previously XQ margins or by we said in segment and third margins expected Annual reductions rest certain the work near slightly costs double-digit that,

Pipeline Industrial expectations Our and is change largest in within our segment.

segment, where being had and as material the As is opposed our P&I and from Seattle, certain where orders, to down impact. for limited essential, the restricting segment, impacts Electric services impacted our creating Power markets which has we've COVID-XX local governments stay-at-home metro work such are deemed Detroit New a despite shutting York,

second industrial energy The reduction revenue the in exacerbating is all effect resulting almost services in a market our on COVID-XX meaningful challenged the of and pipeline of quarter. in

this Revenues second lower quarter. loss expected for for $XXX are XX% as operating resulting in segment be as in the second a roughly quarter million, low to than to original expectations, likely $XXX our small million the

expected of continue impact impacts pressuring in true reducing activities as maintenance segment quarter. energy fourth our a deferring negatively the challenged are services as products particularly third customers to industrial refined our operations combined their COVID-XX and This scheduled and market for to regularly and budget. is demand is and of are lack for turnaround margins The

these of remainder year, For substantial the a pullback assumed in we areas. have the

capital on our from energy revenue projects expect industrial and margins current smaller from on to reduced budget. prolonged we customers' capital expect experience Also, throughout segment market its we pipeline XXXX a the weigh and impact to as effect

of to revenues between year, range in the for $X segment we exceed X% X%. each quarters the to and margins and opportunity third the For our fourth and billion the see of remainder for

$X for revenues, margins full for annual are expectations billion not likely Our XXXX. of exceeding of X% operating with approximately the year

remainder normal for levels for currently we activities year. of the the by occur, it to the in assumes normal third continue to metro orders However, markets activity the quarter this have within early stay-at-home impacted ramped and

landscape that specifically. complexity and the Pipeline to aware the adds that of assessing and only investors repeatable We segment, difficulty the times sustainable nature the current difficulty. are at believe of had We Industrial have

As is such, the Quanta's Investor this and viewable of is and on Relations webcast in aid we've service slide providing attempted release detail available website. by through also level additional segment which the our earnings investors to within section presentation,

and as larger We've distribution, defined these service pipeline maintenance areas and integrity, gas and other pipeline projects, infrastructure services. industrial

range meant but provide segment, Importantly, performed precise the is provide area revenue associated deeper of and expectations category. revenue view within with activities directional by is each understanding of a not to to the this intended the a

are integrity related, gas revenues or services not for sustainable and in the COVID-XX Our fuel the of are revenues of demand. maintenance consider resilient in stay-at-home expectations These We distribution the business represent our portions previously changed and reduced either work the segment. most revenues and their orders these component segment confidence the contribution. reduced as of activity base reduced and largest for highly component by discussed repeatable largest multiyear our have and our

We services dynamic think commodity maintenance to provider during is although and we the exist valuable the our it did integrity largest XXXX COVID-XX at they time, today. collapse are and and the price XXXX not that consider industrial own of not did Stronghold

despite that and compound double-digit the within energy year annual at rate able revenues challenging period, a achieved grow was market. growth their During to each margins historical Stronghold ranges

project approximately remain expectations XXXX. with We of in larger $XXX comfortable pipeline our million to revenue generate

have us The these awards are potential in discussed. currently not several project to discussions be anticipated of achieve are that and additional on opportunities we we the to award customers impacted expectations, with is visibility. economic provide timing projects needed advanced Although with these factors by good

the represents is therefore, certain impacted projects, capital midstream maintenance would of Pipeline prices, most segment we be industrial work. lower and and resilient. by oil less critical This work other and that consider Our includes to portion least the the Industrial revenues

Turning to cash flow.

the million. maintaining million are $XXX flow cash expectations between to We our expecting free $XXX year, for and generate

of result lower offset would working capital in converting earnings by that of the normally to as COVID-XX. cash primarily cash dynamic capital expenditures, to While reduction revenue reduction being increased levels as a well due to flow of due is expected

to the of Additionally, expectations cautious the a economy, year. our we're given taking markets the capital end approach remainder for and the across uncertainty broader working

early prolonged ramp are guidance ability and our perform my with and our the EBITDA based belabored close point Those normal restrictions within reinstituted may not are in metro markets that to could expectations levels restrictions for factors today and on even project control or of I'll our and to third on sites new the develop of expectations. commentary quarter. or are to other that at the our ability as services negatively COVID-XX our implementation other adjusted EBITDA hotspots impact or in

As quantify of COVID-XX our on had our described prices impact the pressure incremental to the applied commentary, to oil the it already combination outlook. has we revised and factors these of each makes difficult distinct throughout unstable that's

at That related operations. low that COVID-XX losses the can being our capital attributable the to said, expectations residual XX% attributed extent, to we prices change our the would with on and, lesser disruptions, budget associated oil be effects XX% least customers' increased of the and a in pipeline American our largely Latin to remaining with industrial estimate have

remains principle uncertain for Overall, a balance market strategies dynamics. maintaining a navigate we us as strong our execute operational foundational and sheet

now capital growth, supported challenging for will upon times. deployments through resilience our and of relied sheet strong Our has balance be opportunistic these

to and sheet generation and long-term maintain strong strength, for current cash see value. periods to to employees and and balance in manage ensure provide We we our capital future prudently deployment continue we our opportunity customers, to stability shareholder and will deliver now the

Duke to back it for comments. turn closing I'll

disruptions quarter are quarter and visibility reopen. results Thanks, to will expect experiencing reflect the will as will challenging activity community that restrictions we economy we the year, Derrick. the the are near-term of optimistic and Though most levels and begins improve the ease second we be near-term our

our taken know we outlook on discussed, for year the As based Derrick what approach prudent have to today. we a

about are not couple However, for. we into we were well on incorporated XXXX and we Quanta's that And positive just we confident today months as are believe we in multiyear the opportunities our year-end positioned but that our are pursuing ago. marketplace call as opportunities are a just expectations, of

business we perform best operating We and are believe will environment. the current the leadership that the employees continue through in and to successfully our

be our through on focused remain – the execution and we adjacent utility, value-creating line objectives, communications growth where improve and industrial in and which craft-skilled to is leader critical Importantly, expansions a platforms business; safety craft-skilled capital in margins; training labor; and manner. solutions; base industries labor industries disciplined the in five key and successful of create in providing deploy industry focus finally, certain investing service and the by grow cost are

we operations the effects trend adjusted on expectations repeatable several Latin and that When to $X and our the of believe level COVID-XX about operations, sustainable last considering the EBITDA about towards we nature continue our commentary our the billion have our America XXXX before spoken of years.

long Quanta and was built has sustainability generating for are and this, challenges, as repeatable Quanta times strategic business on confident our the of earnings initiatives. the of a sustainable we in for we resiliency model. and us execute we ahead like believe near-term runway Despite

flow Quanta to our growth generate has time. levers acquisitions opportunities strategic and to dividends, stock the into meaningful the stockholder in as us investments Considering to cash believe opportunity we available generation allocate opportunities organic over value-creating such value future and repurchases,

our and discussed work the will investor results have years be their success many of of heart produced to it going people that communications, hard forward. times dedication we several and As are Quanta, and record is our critical prior in has

hard thank dedication again their recognize and and time. I during to challenging this work want them for

business We and operating the on to the ourselves term through long to expect best-in-class field continue for execution focused distinguish safe and are leadership.

position and leadership customers. to innovative solutions the our and business provide base Quanta's enhance in to opportunities pursue will We industry

diversity, value the allow stakeholders. continue believe us and for will long-term model form of generate to to all operating entrepreneurial unique We mindset that Quanta's foundation our

questions. your With that, take to happy we're Operator?

Thank you. [Operator Instructions].

with proceed of first your Our question. Citigroup. question Please line Kaplowitz comes the Andy from with

businesses given breakdown now than that you, these the from integrity more distribution it maintenance XXXX, gas the are them and for Duke, half of relatively for come a expected big little your being and resilient. revenue expected hit we despite of is revenue look appears to if at businesses

So, and could my its some and actually the it you be revenue get critical lost of is it pushing work, this question should this relatively nature into of high-margin for just you of this really or guys? revenue given type is, back XXXX

Yeah. Good question. for morning, Andy. Thanks the

I piece think when you you we effect is, well at look what at in look year that guidance, and you quarter our business, in the as of business in our the switch of had cities as had the light closing.

the with that, customer the with gas there. And with York type customer about relatively think we that that New about shut when work We so, take just clients you when you're think with dealing the it, because of you're you worked XX% when – worked had COVID-related in the business, that and off impacts. business, you shut to of And our work. That like governor, things our area deal interfacing. of down

down. type So, would that shut

back. seen work come have What come we that is start and back to

ramp say, Let's goes be will off It won't it It really back. and and start quick off. back. ramping you like on

not the that's see New So, in coming It back in all was others. It Seattle, York. you'll what cities. Detroit, was only

impact the in the that's there quarter. So,

not is that of going into some year. the And

there. majority about quarter you you when when at it's is the impact the look of total, So, think the that second

So you had that.

what so also in outer had the side had And pricing of oil. more well, we're quarters. lower demand on that's seeing which then that You you as fuel

XX% well COVID-related looking the it's in going the for So, is what the as demand, at light the quarter and our about we're impact of which of it's quarter, forward is majority the and as a original switch effect. guidance

provide numbers the some Derrick it in Derrick? on more guidance. can

Andy, to high as necessarily margin quite light the cost structure the the not to that also contribution on recognize rapidly. switch part you on event I to Yeah. of a these change important it's margins. doesn't I the want margin relatively profile a think very back of have, the Actually, the so When type question, come revenue type side, overall are mentioned, Duke work. dynamics,

become high at margins stage. So, the contribution because it's incremental right quite the

work turning in going As costs, deal basis you back you on dealing to your XXXX. recurring you're to around. costs to with with holding be because and ramping point, more a And up think on

recognize work. to necessarily the overall important contribution not So, the it's of margin, margin the

more it Derrick, right? It's a that and just something really this They do inspection an right? can't or it, stuff, deferred defer can push, than canceled, or not just they can cancel like they like right?

about and business gas – of that, It in guidance you billion. well our our business, given gas very will When which Yeah. feel, distribution – quarters. be LDC over think outer business is $X our on resilient. we was level we've some That

decides that fact the shut you just was down down city. many shut when it's This the York, Cuomo you Governor understand to there, New of are

to the in I PPE, that New will business of crews things We I stay things see staff. And all, keep like put future. so, that did in But the place even and certain those believe – cities, piece throughout some all would we adhere We in those say, in policy. forward. you resilient York. won't that going

So, yes, deferral.

backlog Duke, lower that oil means despite it. you mentioned you and And Got pandemic. record helpful. visibility grow the That's the still have you this then, Yeah. year, expect backlog which price to still

you conviction where talk maybe the coming is So, could about from.

You mentioned renewables. some MSA bigger

color some there. You do still for in But large more opportunity give you transmission can see us XXXX? good bookings

And given of gas low to and that to sensitivity hit record levels? it that Is your is really the would a oil you don't expect backlog. reason stand backlog, oil do the at now, expect backlog big you because

Electric segment remain we and segment And on that strategy around gas you or P&I is as our convicted resiliency and the highly them, you programmatic backdrop the XX% the the long-term segment, still strategy. intact. well We're to of at budgets utility And business, all in or budgets almost three-year intact have the of see When the remained capital of relatively Electric there. segment. that We've the optimistic longer-term about shows oil the MSAs our as clients, look talked the spends business. which within their capital you

has opportunities the push We to But see that the being fire You've opportunities the in strong. one, we pullback year any work and ramping year hardening piece been we're see programs that seen our There's projects. so to very electric there. Continue great business transmission little. signs robust, see on starting year, maybe two in talked bidding, versus project about half have larger The the of of had business larger out now. later for of there. the we to not programs some the

So, it's intact. all

call means One our let's of not. kind that of of that to is to when about that you that other that roughly very post our the kind we had think $X impacted that, to that unlikely go business – XX% zero. we we was of year-end perspective, think business commodity-related. that roughly, throughout talked way say, majority component from is it this levels might oil, about billion said would saw that headwind vast And And top-down commodity-related get of because that found of we

think substantial out revenues you but laid can there still amount think a laid still that here those in there's now. ongoing. effect, out kind of are headwind a see we've I of is numbers some we the of yet We've that

So, of revenue muted somewhat a there's kind effect.

our represent quickly so component say From a and book that is backlog. of burn, significant and is of a overall it backlog perspective, that portion the reasonably doesn't what we'd business

more resilient. So relates are to our that perspectives longer-term much of those backlog

So that how feel I as backlog think of the about we we move forward. colors to maybe the continue strength

Cook line question. the Our your Please Suisse. Jamie proceed with next question of comes with Credit from

of to hear you bad Like, short first achieve the term. could what assuming was. there are you're guess expecting to well. understand To and of shelter-in-place? is terms just Glad talk to my cadence you how of easing and Good everyone April just healthy is your I'm guidance, question Hi. if morning. I what trying in

then more $X.XX throw it's case is a one-time, talking or the to think isn't too, trying I you, about COVID just and back Quanta. easy you're related term and to $X, so second I there, is add with then back toward today about from Derrick, guide what then add backlog LatAm my number I EPS Even crazy headwind I'm I that out question guess. that for normalized a which to it's is if paint at the longer Derrick. And directed and EPS, think the normalized was I to look

Thanks. am or base I So, any off way comments there?

comment I'll in too, generalities.

you think business adjusted resilient rate talked a standpoint. on it billion we the kind like the script about that of at feel we've an from we in business, run Jamie, I $X when EBITDA look built

I that. see think you

I convicted to numbers. of those think kind we're

COVID Derrick the effect did talked about the and to quarter P&I. margins it on what second

you So, COVID the and XX% about which some in effect, the it about think of get think it, one-time if the guidance. you second year, is, and of at look half you whole revision call that you

XX% second-quarter that it's one-time the of And then, the and a is in effect. majority

rate So, normalized look right, gets that, at when and to you're back run going a forward. have you the basis you base rate a more

effect switch ways. in light many a one-time it's So, type

on demand. some There's impact

So, to goes there's a when oil negative. have there demand impact you out

this, how advantage business that know You will management back, in just opportunities out take a some and through ramps mind. don't industrial have fast business but my even good that really of team grow that we there there

in record it quarter. did They a concerned. not the I'm had past. And So, they

have that's We base. business critical there path our a

So, I'm rest. come comment Derrick, where sit, the and with you on stronger. extremely out But, can we'll we pleased

you And as I The everything has of out multi-year. really with Latin benefits. as no explicitly, very said. your called we take well as, agree America, Jamie, tax with the don't kind perspective exception I

things component look those fairly repeatable, clearly of So, as We our business. a that sustainable are don't at pronounced. being

America. our midpoint of of by go as you definition, guidance, level would the some forward, add-back for have So, Latin

our our you to effort XX% that being about. second total, operations start that it, much that, you COVID, and at the as regular how back When add and quarter ramp fact, that roughly non-recurring the of very and out, XXXX we're looking When into talk very XXXX we number. EBITDA, expectations best in looking go into April, through adjusted would and start that did call quantify much exactly you in about we the being component talking numbers at really to up called

we the is think shown ability that. consider the through our side. up And otherwise we're kind execute dealing largely of in to would We right headwind we've with past the oil now on

your with math. take don't I So, exception

Great. Thank you. well. Stay

Thanks.

the your with Stifel. proceed Noelle of question. comes question next Our from line Dilts Please with

Hi. Thanks. morning. Good

morning, Good Noelle.

Good morning.

on the could of And first three challenges then, under my you was smaller of some pressure. the on in oil that market competitors you might some at the the particularly of the difficult look question, I acquisitions with in would hoping conditions, quarter. think the I if market kind expand For side business, be

expand. moving curious, was for I potential So, as interesting about you the in and as M&A industry, kind the think you might where view forward you some and Thanks. markets look consolidation of the to that most

I to of felt underground think in One And other there. that Yeah. could a industrial telecom Two some the was of that small acquisitions. less $XX side Noelle. business. business two was combined, the business the stuff million. regionally in It value the catalyst ones, was the than side add Thanks, support we

and believe So, synergies they two strategy. our kind that the of support small that we ones

I that's other part that. it? was of think What the

some under If smaller going the a think I market, of you at oil, on strain. may that's and of look COVID everything in in lot your competitors be the – would market

might your if you do under come see smaller So, pressure? to some expand of look competitors where you potentially acquire or

Noelle. we we Yeah. impact. grow industrial I the was of you Thanks, kind business Yeah. at to last time think able this it, saw about talked When the look that

be So, would have organically say to measured there think opportunity we I areas. grow in I approach. good we'll that a

We have it. and are seeing nice a start people things around, about watch nature. real get we'll all of that But nervous business, and jobs you to their so

virus. M&A. like backdrop given selective We'll sheet to we'll opportunities past, be have a our what use for demand in side balance opportunities of Obviously, organically the be from the There'll we see the So, we'll smart. grow. and of we have

I stronger, we'll there as always we opportunities And businesses. but said. and be are, out the we'll look come So, will when measured we as think we at conservative be

our I doing. like like I we're chances. what

is Our collaborating We're things a capital and job at their quite on balance really We've sheets that. customer looking a bit budget. nice big done base of nature. protecting that

of don't and like of impacts that. thing know The have I companies some things taken perplexing the is one the that. loans that smaller And is

a little So, it's bit of imbalance from that standpoint.

know effects call it the will the understand you dynamics how normally, the what I some or But, the loans stuff. would So, you long will at be of of of capitulation may this I don't that smaller whatever that see point. in and don't grants, last.

Okay.

how down, at Okay, comment that you – any thanks. of represented if markets you look the a on has And when much the could there. that how just workforce then shut percentage sales? been chance those completely flexible as were markets have And you then,

that's market folks for If How holding down, of anticipation those coming on shut that those you you a on to the market element are quickly? – we your think some example, about shutdowns? could markets in sort underutilization some in do comment are of completely back of of

portfolio on you backwards close Yeah. think our we I and I'll a aspect, very it. people we're companies. long-time – our the run and you in officials. this we employees how see clients to have as our go see And very, really government The field, as and well decentralized,

say our So, that of that start it very to allow go right we pace and back. We is can self-perform self-perform to We we'll We quickly. that's I continue the allows the us just ramp to at vigilant. to customers strength us XX% And XX%. think back ramp down that. stay fairly Quanta, go capabilities. can I

in a my of seasonality somewhat It's mind. effect,

kind And you we stayed The LDC when shut COVID, If certain in in you the ramping seasonality we're as industrial people certain said, and to see similar not approaches. where business. to some It it the Electric took a that the But back areas. business different the off a majority gradual ramp is winter. some mainly you where quickly we're intact. of of take cities, It's step out for back starting piece, only in affected would the pandemic.

our we in other major areas are little more. the Detroit, Seattle, Pennsylvania, the areas, impact places, New As news, And just in concentration major where quarter. see states you've seen opening had the that's affected how few you us majority metro a the on York, a it the things impact, like that, of

do And, there. because Seattle, those percentage do a electric of we business. as do Noelle, in quantify of A great other example, work a We electric that difficult lot in to of Midwest. in sales work we what the up to activities it's lot

very that is like difficult. quantifying So,

at is that, you gas would of maintenance, kind pullback information tell as distribution and see you that the where that's look market impact. provided the I What we supplemental there, on you'd

that [indiscernible let's saw it our say, of So, and you if segment. supplemental probably of the markets revenue-wise you'd clearly. saw it maintenance numbers just expectation those what in be, in X:XX:XX] our move, And gas you comparable distribution expectations see changed to some could the in

question. the comes Thielman Brent Our your D. proceed Davidson. A. next from line question Please with with of

anything equipment in Duke, can term? Great. the I'm this Thank have around of short-term that executive And, wondering that? a long use you. is a question. I the had certain sort more Good vendors actually grid. if morning. to might blacklist either for non-COVID the just they utilities And contingency mean Do Quanta for order for or

government the a seen transformers and the from We equipment has that to work of it. the blacklist, areas the it some major on put not clients that way. within with communication I come have systems the lot – your deemed on of it's –

type at we've understand move seen and those point. to what I the part, ability most overcome this orders I forward. the think saying for of kind they're

they're American what actual I in to on about not that In relying We're forward the how the I so the system It's things workforce. back and talking of my really guess, is nature. than would communicates our front mind, an really that -- we're it, equipment the company. side hardware say progress the more of

in we're So, it shape today. as sits good

Got it.

areas. look that tighten belts Is in Okay. is the And outsourcing the just of then, company that these thoughts there. movement? of financial potentially something your looking at curious out days, every accelerate saw wondering probably utilities if as I to crisis? least kind I'm Does coming some profile you at Just guess, cost the

your mark. just city pendulum every depends It and you're on different is different. is on utility Every at where

looked a do think going with it. it really have forward had I yes, we're to demand. capital In past, go the to lot with at budgets their of most and said,

issues that for not for some seeing lot won't say part for has do the on modernization a But the that us. a we're I and What the side create to demand we It's doesn't lot with business the most nature. contingent move part, most I demand. this on that to show things things of going do of forward. All demand. is vehicles talking depressed see stop. really even that type we've shifting We're and doing somewhat been the to not going and we're about don't to things changes. time in is up continue renewables. think doing in that technology to Electric frame been of

about. feel good feel and I everything talked we about it, I about So, good

talk the and their to about capital nature continue that's customers us. of long-term Our programs,

trying to to right so, And it collaborate get there them, with we're moving.

Okay, thank you.

Our with with question. Baird. proceed next from Wittmann Please comes the your question of Andrew line

Thanks. Great.

customers capital about pretty Derrick. than of consumed business wanted to the to I end. Obviously, business. other think this Industrial degraded my a today get credit what has you're the those back and businesses doing receivables, make and has I you working wondering in I And, that Derrick, don't significantly. more first ask particularly of sure that burned some quality the on was the Pipeline probably of management is for is question historically

how in you protect And terms managing in be terms collections? I'd that. curious as that the to are nature prepayments? putting contract, you're expecting of shortening you're things shareholders, that Are you to to Anything on

Sure.

And – a honestly, of that is your with profile. we reality is much still yet this substantial like. the larger is of that things we the the the I environment, think question in of is do exposure MLPs credit do have that majority customers to like major how with oil-related So, portion things and

are that. So, the anything We're higher on go it monitor our fairly is and with again dynamics. the credit customers we as quality back really associated of of because do kind of seeing through nature today, that customers more exposure, minimal with quality stands lower

see of any based really quality we concerned before the in incrementally of customers. upon than the we right don't pipeline now. those backdrop not So, were more We're anything

But the now, contract we and at significant always new continue we'll quality. terms, no We're have of mindful right looking our of mindful concern. work about, as credit be incremental comes to

much I capital helpful. How That's much to out from left to of guys of extended to kind is how Peru. there I more my get to guess, Okay. remaining maybe question, follow-up And then, you steps needs this be more, wanted just do backlog finish at the up? And point? about ask to

it think in I the we've we When look sped Yeah. at it, up quarter.

nature. to driving really trying and of we'll get desire there move faster, that would of quarter But of our I largely, to be that areas quicker. divest still some have still and legal things it slower. LatAm, complete move took and some year steps It's out largely some not matter. We'll we're year, opportunistically for this be this We're the So, to out concerns. say in to that ongoing that

And would certainly I'm shut move some that It's our glad have or for XX down. fast areas we of been go on impacts, will there. And it the we shut COVID certain XX, had that just impact. they legal as had as down already desire there And to more months. moved implications the

going. be will that So,

Overall, no project. left do Peru, America, some in to the shutdown on have costs we which we to individual do Latin is the of than the have. we Peru other operations demand, just additional things Relative project have sizable

next from line KeyBanc. Sean proceed Eastman Please question of Our with with question. comes your the

you'd focus seeing around tracking? kind just government High of of you this on point there? critical opportunities of be incremental Anything Any measures just out guys potential here for federal my curious to level in what seeing guys. I'm terms just Hi, questions. for you're taking start. growth one that from and opportunities stimulus reshoring are supply chains. the Thanks me we should

work. that the administration our to nature, those of – oil look liquidity of have are certainly people at on to rebound we have will When there. ability government customers with sustaining I'm capital. load. some we the would has help sure and their wants all what see wait that. and things things not And Manufacturing, done what certainly, The with pricing. on seen that we see happen We'll just kind current

create side. half once that demand and going back part a get But the of year. really, the When we it's will get later in back the going the demand airlines of COVID that

in certainly of impacts our all administration think clients base. customer I liquidity and the helps putting of just of the our So, them,

It remains robust.

much seen We change. haven't

effects we've seen them business to infrastructure jobs with those is, XX% opportunity the have think – business us. them at I XX% our self-construct the help of is get of that We things if discussed Everything our ancillary we get point. and builds, certainly some of this moving. from probably

And really here. good we where those is So, spot great are jobs. think I jobs a in sit

come So, that as out move we'll with stimulus forward packages. they

And happen recovery this the me grow sense do energy one Stronghold's Duke. in Just curious for this year? I'm What back just last for see piece to we industrial piece of what a half need bit services oil understand Thanks, revenue on for business. to little is a get a behind Okay. price next the downturn? better. trying was ability sensitivity to the trying just through the driver to

Also, you critical pieces they necessary. voltage replacement, the When are of at nature. Stronghold, the our side Yeah. that business, look high that's of catalyst of things

other So, base to a continue to allows build off there. great those do stay of to guys us services. out It and

Those can them stay. We do be a smaller guys, on can't more things into arrangements type can We We efficient. they lot tend nature. that of more to turnarounds go with programmatic things more and quicker.

of So, nature go-forward basis. that things time they at really look on and a

strength how at So, core really of their really times. chains look It's come off supply don't the it and the easy People here. we pretty in grow work. good can really

supply In times like really looking this, work. people their are at chains how

feel they efficient. a more good in really become spot can we're there. why they That's last So, We time. grew like

of of demand have it not unknown. losing approach But the there. we're see same and don't capacity we'll year. Anytime is toward year, the the prudent the as dealing to had in we of second past. money did. it's with based where all Part airlines, goes We'll things outlook nature half unknown, just a the everything. second and we it, refining of the in take you're half we that The the It's on

So, how business. it creates We'll that. when the back in refining whole quickly just to the see have economy shuts, comes that

question. question of Steven with line proceed Fisher UBS. Our comes Please the next from with your

morning. Thanks very Good much.

you to beyond you had look picking solid and spending? XXXX can any when And levels some you point, fire plans their that XXXX, hardening other things today think looking get the at that customers of thoughts this your Just on you visibility Rico? back At from out talked you pretty like the about the up. Puerto do

Yeah.

So, hey, Steve.

I recently hardening from last look year. either at we've their and in you grown customers, seen what larger think CapEx look basically what some the them out. at They've fire seen their they CapEx of the said when we've

Going forward, more become I just think has spend utility the like.

there will larger out, levelized past I the more our past, traditionally it come customers in as they of said out bankruptcy. and be our is coming west. in get on One of calls, we'll the crews

levelization So, there. And of the the that at their start future I for CapEx second that in half very got that largely to think should levels. first budgets year. We've maintain we've we'll through will foreseeable more the ramp the And quarter. done heightened

capital think over we it, year We we can work that things back like next. time. more you move to If do into this or half about can the anything have, customers in also to some if budgets want

of that. was last what part with That down had up quickly. and to very So, of lot year, a happened we're able work move to get done

things it created of and that. a overtime So, lot like

see could like back kind that the anything in happen those not You built of dynamics We've into guidance. half.

it a we're we're and The there and As that. before, maintained We've we'll maintain with is far Puerto Rico. it spot, dialogue we've Puerto said Rico, opportunity optimistic significant, our again. as highly we in say that good

there. optimistic we're So,

Quanta do and that long that of all would And with line good repeatable have. over opportunities service we fall the shows just term. breadth in have a that really we business the the It

lower of the Is work, items. And of now need the end assets to at will the can on you on just you us of where on guidance clarifications break stand a What now cash expect was that your still it of when utilization range? Thanks. or of where couple one, you upper you some that? determine million pipeline do end book $XXX the its give And LDC worst? and then, to right ground relative flow

Yeah.

ramp our with sooner starting have see talked to ramp contact hopefully, we're our now I the rather April think till We're constant see direction. later, but goes in move we will worst It on manhours it than stops, the being it, how call from, that clients. and other that about to just we'll piece. month,

and protect It's basically also and making customers cities – sure really our users. our that and employees the

safety. Derrick it at So, that's cities. And like cash concern a those gradual something look comment the thing, And as that main that ramp, we is And seasonality. be will on let I'll we'll the in move somewhat flows.

Yeah.

prudent extent there opportunities it there, of you dynamic. would are it's working greater year, see If that to whether really seeing that laid be MSA, realized a be on the would that That that utility just dynamics. flow. the at opportunities the some those time out capital. levels fire it draw and think I of half be the end of That we were whether hardening, up we that cash end on of the low be free the Duke it, put were additional the growth back

as not whatever We And our into of rate pay. third then, that of anything quarter, just factored some out happens of rate pay slow well and see as we see could extent you what the from the But for that as we've do to in. some customers, of currently. get

the us free low end that in think I flow. would our of So, cash put

of see conversion. cash a we've is bit start and start to you to less free I High the prudency that that the stays ends you of the little see tried kind rate think there, more are address same, of to flow opposite. the pressure If pace

Yeah. We're the with not concerned $XXX million.

book ramp and of from good kind that's second in from my mid think we'll standpoint, shape you'll and that. start it'll see there. I quarter, And some

Davis. line question comes Thompson next of Adam Please from with with proceed Thalhimer Our question. the your

and giving Congrats thanks QX on for Hey. guys. morning, guidance. Good

Hey. Thanks, Adam.

quarters? to side, be couple question, ask the the CapEx do think on going the first electric On are of to next budgets how resilient I wanted you

maintained much multiyear. their gave guidance all and pretty They've

that's think capital. this year. you our guidance. they on things I feed it home and is, demand-driven utilities customer the than They And different multi-year new based that base, more if give that where nature, continued previously look it's to to new – thing continue try were at was it's plants, biggest of not continue we've to power build,

What that things. electric on the kind been the with we've vehicles, you most interconnections do of renewables, technology, of to maintains. of backdrop confident, for is ready those with with have has And with why that – hardening, confident grid of why getting work we're

America four-year on move it. want will forward. And think their three-year it them that. outlook we outlook, that maintain every We that. very will I of see maintains and visible. It's one And

say anything as we is dynamic there's well have, would And just have quarter. I that you'll opportunities in there as business – to any see did telecom think really a ramp as service we in we Our the I nice line continue rapidly. job and

And a the wanted business, – on Okay. to on I normal downturn. isn't economic then, ask Stronghold's this

shelter-in-place the get faster? and business as orders So, wouldn't snap that miles back driven up, goes lifted why

can't basically us can bit. little push turnarounds always a fast take It's I And can measured push how to approach get it. we move, fast can't does XXXX. can just into do about being moving, does we prudent We it's a you come how how it. airlines tell They – – fast back. the demand

our or standpoint, best piece from So, can with business. the we're piece the the of we turnaround doing the shutdown

just at it fit we look you in When really Gulf of the refine refining and world. is not this It's the world. America. for And North the capacity we Coast, the where hub

So, world we to comes as sure make the have that back well.

thanks. Okay,

from with question of line your question. Our Blake comes Stephens. the next with Hirschman Please proceed

for Yeah. in me here. guys. Thanks Good morning, squeezing

flow going the looks year? this me. to The back free cash that of like stock. flow was well. primary you a one the lot kind you of expect bought real for outlook generate Is a that cash use as to Just good free of quick The strong. It be

Yeah.

be We'll I measured with think we'll at be capital. our our measured when it, with look cash. you

when and we leaned We'll it, and sure But, stock. imminent unprecedented say at felt is had times. be So, look continue we strategies I we're we M&A. grow would doing there, the deploy into want – that same there's what we patient that say with on around quarter. the do to large in things prudent but make would be comfortable M&A. we obviously, But that discipline our the nothing have in some to to nothing and also the We this We would would there. I with that to There's look past. we've trying first

don't always be we've shape. had of about that position the kind that And think economy comes fact than back make that we'll sure more that. changes So, a cash is prudent traditional it approach I to in other our and the good and

us, opportunistically, seen when move years times move definitely, You've moved sizably. opportunistically there the we've over And are buybacks. in the we'll

our we'll we into And like growth. still the we plays will ourselves the ourselves repeatable work working with extent than want measured always multiyear buying and continue But through because we said, ultimately burden manage we think sure more think As then, forward, against to that. how to back do there into capital our position that back be we are dynamics, measure the business to look stock, we'll is be – would sustainable M&A we that M&A opportunities, value be we've the of yet this. how deployment making those do to something create able buying against to

That's sense. for Thanks. make That right. All me. it

Blake. Thanks,

question. Our Michael proceed with question Vertical line Research comes next from the Dudas with Capital. Please your of

Derrick. Duke, Kip, morning, Good

little pace bit think up First anticipated XG. new situation, to question, evidence through the you seeing you really can you're COVID do normal, your we're on some elaborate going of good with success comms of more business maybe at pretty in than have or or maybe you – better see work going that seen any evidence pushing forward? expect to ramping a a

We've scale taken measured in we're a our getting cities approach it. in. that most of We're to

at certainly amount through and as some look have look think this we've we the We the data do I of it demand at larger – home. there. changed certainly at opportunities that

everybody bandwidth really think haven't of to needed of move between and I that intermittent And it. have as on calls to nature people forward. things continue you personally that's kind the the we of working trying using. I'm I right that see those to whatever conference data the quite interaction but that's things necessary. is and you're fee uses get When And you'll kind there yet, have all got and as else Zoom and we're there

go. that we've and in up across way to on continue clients end deployment build board do long our got we're And with time the a discussions the to to Certainly, all we'll that current broadband.

It's to Duke, get the you've XXst compliant. here. Zoom century got

I hear you.

look frame, still businesses, your the unemployment business as see My relatively Obviously, follow-up to folks you your to hopefully get a relative can time more the economy, a more of that to in skilled is, some going access do Thank you towards think anticipate the to positions colleges normalization you that with and XXXX craft speak levels, we your you big in view you labor change? your some playing in have in might maybe be longer-term with to you. involved do come gaining demand. How And that out? but client?

It helps us.

think I getting we're into would workforce normally the out come into that businesses. at see Typically, helps always folks oilfields our it recruiting. when young And looking stability. It the helps us. draw people they

move ours business see So, is if which that. and midstream into back you sustainable to in things some the tend more decline type businesses, they like that,

it help in that us So, should area.

But I bit quite think we've there. invested a

to continue We people there. get

our in model And be helps a that's we XX, with us areas. long-standing so, resonate People to it. companies there been really XXX localized on years. And have, logo in I'm regional They get it XX, that optimistic the workforce.

go and want to they it go this so, in environment. to And there helps us really work, to

B. Please from Our Alex final Rygiel proceed question. with question comes Riley. of the your with line

Surprisingly, think possible crews and can I to award, construction the etc.? don't as opportunities, address it Keystone. out Could of Keystone capabilities, talk timeline much your and equipment, too relates that availability I've of heard play you bid, how about

we've since XXXX. something Yeah. been it's – Alex, it's around obviously,

So, we with there bought fight with TransCanada them. to right rights

of and moving is on and have we constant obviously guidance point. And – with conversations this logistics the the time forward. not with we'll stay frames in piece are at think kind that into capacity of So, any I them. We have like things baked that we

critical life piece the are it. you want don't about that's there. as overly Keystone. in think we of to project signs Canada go So seeing projects, in it, Alberta I one certainly but some for support get I it's do a Alberta those is of optimistic saw and of

there great So, that's sign in Canada. a

kind it. seems it's frame moved have I don't I'm the media tougher So, that this have things our seen in forward or moved about wouldn't projects some move I of thought projects fast. would we've of to time that know tougher whether but have forward. that, or optimistic of And of as It because coverage

I'm So, optimistic about it.

guidance. want providing taking you helpful the for here. thank also hard to path Very I of

it. Derrick debated a Thanks, I bit Yeah. about Alex. and quite

right I think the to thing it's do.

forward in move with and we'll half the better So, it clarity of you give year. second

like to over closing Since no the to I for back queue, there the pass further management floor left in any would questions are remarks.

Yeah.

everyone call. participating employees, the together that base we collaborating. to have tough. in you'll our do that through And other that. our I been are it side customer the I many for want through to thank enough And we've First, that about see can't and I continue have times say many, made Quanta think

today ongoing Quanta. and in your with thanks for interest So, participating us

teleconference. today's concludes This

disconnect Thank time. lines now wonderful at your may participation. your You you And day. a have this for