Primoris Services (PRIM) 10 Aug 192019 Q2 Earnings call transcript

Greetings! Welcome to Primoris Services Corporation 2019 Second Quarter Financial Results Conference Call. All this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded.

the Investor to Relations. turn Tholking, host, now of Director will conference your over Kate I

You begin. may

Thank you, David. for joining Hello. Good morning, today. everyone. us Thank you

Our Ken Dodgen, King, Vice President be Executive day Financial Tom Executive speakers Officer. Chief and Officer; and Chairman Chief David President; McCormick, and for the Executive will

morning's discuss we site to have key highlight In on that slides call. we posted this points addition to also press release, plan this Web on our

site, by the today's going to selecting to Events You www.prim.com, can Web Investors’ find then link call. Once corporate you'll & access slides the on for them the webcast next Investors. our the Presentations site, section, in

including Before everyone we contain statements remind with begin, the made statements that regard future company's like call to during performance. I'd to today's forward-looking may certain

believes, estimates, forward-looking identify projects, expects, intended future may, statements. are expressions or as such Words similar to and

involve inherently XX, other on and press for statements other those morning's without including, this period Form Risk Forward-looking section in the with Commission. the filings those and Exchange and discussed December annual ending report risks in the in our Factors and limitation, release XXXX, XX-K uncertainties, Securities detailed portions and

whether publicly new except Primoris obligation not any laws. forward-looking result securities be required or may information, as a to undertake any revise statements future does events otherwise, as of update or under applicable

over CEO, King. David our the to now like to call turn I'd

review our quarter Thanks, Kate. second to Good morning, for XXXX today everyone. Thank us you results. joining

record history. earnings, per the with over quarter We’re reaching $X of extremely delivered ended in we pleased share, a and of Primoris’ we quarter another $X.XX that another backlog positive billion,

profitable the XXth consecutive posted results. marks This quarter Primoris quarter has

quarter XXX of than XX% higher record last year’s quarter revenue. second Our was second million revenue

that because peers. risk many the recognize faced with I Primoris’ have that to the risk I’m recent profile industry construction profile growth, from of is associated want of our and challenges important others to it’s in aware revenue our discuss different

second our strategy the margins several side focus growing XX% stable, continues management accounting good are on years is revenue revenues grow, to quarter Our our visibility. as revenue. MSA utility-based for provide of of risk MSA one our and deliver revenue This of

The evenly on cyclical other or project. are one fairly end we is our any our remainder split and segment, reliant any one operating market not of revenue single between

While most a handful have of is emphasis it true a or larger are of priced we we projects either larger terms contract reimbursable. projects, unit and our cost place on strong

less than this Fixed-price our XX% year. for jobs account revenue of

but successful are have large butter. they been projects and like and We bread very not Primoris’ major historically on power pipelines, projects

million. average is contract than value less $XX Our

We strongly approach believe size mix contract profitable and a us our focus deliver project disciplined markets conservative to and grow on this continue plan to as strategy growing we end of following critical elements company. and we that MSA quarters, helped are revenue, XX the years terms of consistently diverse a

Our second MSA very notable and with project quarter saw us add some to our awards. backlog

looking of has Our addressable over look $X.X awards $XX just to we’re months, that favorable. market over tracking of opportunities. the to But next identified billion billion XX expanded

MSAs for renewable including gas hardening projects assisting diesel and The for fire in diversities them both pipeline systems; civil upgrading, industrial biofuels, projects. their sectors, and range strengthening across electric awards of large-diameter and potential to all solar, these utilities, and

growth provide visible to earnings Some of years solid revenue many and these for continue Primoris multiyear agreements, come. very revenues with to

contractors as special groups list. for segment contractors I give that a also specialty the ENR’s Primoris remarks, ranks of to spots move in individual and very these my one start I’m all want Primoris recognition the Canada. States United top I in helping to up As proud several top

proud three and seven number for top that Primoris. ranked and California solar we that two Texas. also by EPC were were those the done Power I’m are contractor contractor World’s projects ENR number We of say Solar recently also to projects the notified recently, EPC one

said, into with segment. individual Civil the dive With results I’ll starting segment the that

by projects Departments civil both Transportation. profitability civil they tracking Louisiana and segment. the ramp LNG-related gratified Belton for and improvement quarter highway We’re heavy extremely of in safety the in jobs The on as up. this Notable Texas and this are well work execution awards include

margin time, a and newer At our we’ve I’m led the that our same to meeting establish couple management now Mark record heavy to work of years is track pleased Buchanan, team new say with expectations. had our a civil by

closely Our with units projects, varied alkylation I&M a as energy other crackers project. Primoris working on expansion projects renewable business team ethane is as and

we improve continue in margins to and segment by target our expect gross for margin next be back half, the that in second We anticipate this to range. we’ll year

Tim & our a services. unit for cross-sell industrial Our a to led by had second award with units Construction quarter. to Industrial secured Kevin first the strong Healy full their isomerization Primoris quarter, Engineering segment, refinery Design EPC Smith, continue jointly their and And an in they work & customer. second Power, major

see to year expect continuing year. the second backlog of the good them We revenue next for up growth half and ramp to in

progress to making and and pursue we well, project fire LNG farms, currently recently already strategic work several see soon. They other opportunities pursuing of awarded to they market, pleased positive renewable sessions, capturing micro to this some heaters they’ve in and that as initiatives made. came out their our one markets planning announcements first natural traditional This in the biogas and are expect their in gas OnQuest I’m continue of market. the was from the was be dairy

leaner have Canadian growing thanks improved them. sands, to costs in operations for work margins been MSA has Our to revenue led and increasing oil the overhead

market. is team focused growing highly that on our in strengths management local Our

due Constructors, some Coast, slower in work challenges. industrial to a by the has Primoris seen Our burn revenue permitting led Industrial delays client and Gulf

are wave the the in associated space. we We this tracking installations closely now are multiple second and facilities, in of LNG petrochemical the and export opportunities

the other in the potential they’re compressor compressor headwinds several a of ARB station recently power tracking the Industrial to helping was face cycle station, is awarded for in team, awards. California. they win This combined a offset some market great and

also fit ARB in well will such Washington markets seeing the State Industrial other trends that have We team. West for as begun and Coast Oregon

with They announced last are year Texas. from lessons we’re energy this we in going down value-added on new just earlier large year’s West our well, project. major This working The benefiting markets. is from renewable last also teams project solar in learned and the in very solar the year’s road is closely facility here Texas solar projects

the that The PV, gigawatts forecast in for just we’re with Utility by price and for environment We grown X.X and are we’re XXXX the utility several by last quarter, opportunities to tracking throughout familiar now our solar U.S. has since more seeing region, it margins. sizable XXXX Southwest. low driven

led the by major Prim, just for for A June passed us anniversary and T&D for MSA services electrical group overhead utility to We line one-year notable the for was going award into strong. East quarter handle their a interest Jeff construction in this in T&D our it’s our market, distribution.

We’ll to through indirect their worksites second with crews a company-owned damper group. associated to placed as T&D continue XX-person ranging transition has grow this as the crews. though costs X-man their on from to continue group a them indirect resource-driven a growth the quarter margins associated The we XXX – is with to market, costs growth over fleet this

as shift grid increased and reliability. emphasis to We a environmental capital regulation concerns are on spending substantial our from class seeing in placed distribution generation plants

We hardening also. in ARB our California are lot electric work fire of Northern seeing with a group

wet the remain long-term encouraged the in we utility headwind market. very was another While the weather for by quarter, electric trends

ramp weather impact a the by second some quarter. their in Our led wet margins quarter although had on gas revenue solid ramping slight start execution, in the up traditional delayed continues Colorado some distribution utility Christy, integrity in experienced and throughout of QXC up. Mike distribution Midwest shift slightly work their segment, the which mix, our the

replacement We some margin work to believe new robust. expect markets the but we very grow are opportunities headwinds as in continue these territories, we see to into for

for The long-term utility work our market. natural continues expand to outlook are to and increase, we in this excited reach gas

equipment margins open our acquisition work. closer right-size grow, that also to utility came to work working with union and continues shop to we’re latest utility get to Our the the fleet

Our overall the another XX antiquated many current replace utility it multi-decade could that cycle very natural are estimating experiencing market as a systems. gas view years to remains take we of distribution the investment positive with

had remains awards seem this to this all Gulf who dormant stations. Pipeline led segment, Scott Underground & to our various along Street pipeline Coast the us quarter, pipeline projects by Texas, quarter doom second it this great Pennsylvania quarter was which Coast achieved Notable Wall and for time. every included into in a Summers, Pipeline predict for say, Now some Atlantic I at West the on surprise have pumping And while might project and groups. somewhat

Texas to of starting XXXX projects continues two-thirds not to in and quarter certainly in liquids. with natural received several That a natural see strong shift from and we’re to was years, the April demand margins, of their West Permian, outlook. see crudes equivalent gas their annual talking stretching work. but already gas clients of and their them, for Primoris more opportunities just the as out one It work their impacted May. We with rainfall wet in about Pipeline

in and tank meter repair and outstanding Coast it refining services a field see gathering quarter of stations farms. site of the year quadruple years is what pump ago. on are revenue growth also work couple compressor their maintenance stations, had stations performing in work and stations, pipelines They track Most full Primoris an and work sets. just team new where Our they’re Gulf pump was in Permian areas, laying to consists of from region, their their the experiencing and

standby be And burning continue away, two Atlantic Pipeline great They last, Coast we the jobs started revenue to but some while to resume. had wait quarter quarter. least, project we in paid and Rockford right the certainly not booked for another and

are quarter in year. will We this project of optimistic start next first

such all management managers more company-wide skills planning, a across our continued also We’ve a as focus on of lines. project created training that our curriculum all topics superintendents. commercial and replicated with clients, We’ve that’s procurement business standard for covers and communication formalized

directors Before made creating directors and mention the a for over recently implemented corporate our as to and governance our changes deeper practices like deep published governance I of stock. declassification mandatory look improvements conduct for dive guidelines. retirement Primoris corporate turn taken I’d prohibition our governance to at Board, practices. hedging recent a things some We reaffirming We’ve we’ve some on of a and with age in to our a Ken and sustainability such numbers, our code

our to here Tom and with outlining matters. as in publishing initiatives to our will social We’ll be environmental election last also Board since well meeting his He coming our newest sustainability has Tom, today. the Board member, our very be the deserved. is I’d us well at guide, me McCormick, welcome as company Board first well week. which these was to like President, also our improvements company, to elected the served and

With it now that, over turn Ken. to I’ll

quarter to Thanks, David, and to second balance everyone. flows, cash good XXXX guidance going and review morning, on before our sheet move operating results, and we questions. I’m our your our

quarter revenue full second Our over increase to to Transmission XXX was compared second XX%. of compared month the accounted XXX million as only in the XX XXXX, three revenue million or of The an in quarter million segment had for months in of million XXXX. XXXX XXX increase one almost we of

by contributed services over Pipeline. Rockford also both along strong business, the to driven of revenue primarily Primoris segment Pipeline field increases growth our XX in with and increase, Our million

agreements. we combined combined the three accounted work our year-to-date, those quarter were three top where XX.X% the XX.X% customers, and largest second revenue. of our accounted In second a quarter, for customers customers for customers Our MSA a and in under these revenue, of top long-term year-to-date three same utility

of jobs our This achieve don’t only our thousands agreements, for large MSA results. many thousand fixed-price with on averaging is invoice just evidence we each rely few that Under work dollars. these further customers month orders a we to

the profit Gross profit to under primarily of increase Transmission an was by XX in increase quarter second in quarter million the just XX and growth revenue Pipeline driven earlier. the was of mentioned compared gross XXXX, in segments the second The million in XX%.

Transmission was quarter This quarter was revenue segments. compared of and of impact percent challenging Pipeline the to a XX% conditions in XXXX. XX.X% as in weather of second in to due the second Utilities, profit Gross the the largely decline

in months compared SG&A the is legacy compared month compared one Willbros quarter a to due units the prior-year were – quarter under million having increase the XX.X just to XXXX. only second quarter. expenses in second million three XX for full business The to to in only this

However, only the quarter SG&A expenses of of this were X.X% compared X.X% revenue revenue prior to year. in

to as And as revenue forward. we of going we with pleased SG&A maintain expenses SG&A expect continued grow percent range very We’re low our X% our expense revenues. the control a of in

$X.X was during from interest change second loss $X.X the Interest the our the second for of expense in non-cash The quarter. on million the million, is unrealized prior-year well fair million due as a balances increase $X.X quarter. increase charge to rate debt a as swap the value in higher quarter

attributable for Our expect effective Primoris the income is XX% be to where tax quarter, rate the for on we to the rate year. which full was

income million XXXX. the the or quarter mentioned, share Primoris net to XX.X in or second David to attributable share per XX.X million of As quarter $X.XX second $X.XX per was in compared

small held million our XX on of cash quarter with by venture, balance Carlsbad relatively of we cash the ended Excluding amount sheet. the joint the

to normal during quarter related second $XX capital support trend. the Our This quarter cash was up operations from revenue in use million required cash. to of and primarily ramp the working this seasonal the a is flow our seasonal during

is our this, XX due, receivable million majority secured prepetition utility through to is liens. of a tied XX past Included Of roughly and XX reorganization. customer by million a million in is going and the accounts XX Chapter the

We to the committee paid, bankruptcy resolve to work post-petition all is work. and and current on the get customer and the the continue customer with delay

an Our transition under due revolving was year cash on outflows our facility, quarter. scheduled million anticipate the our XXX borrowed operating at increase to the paying seasonal cash XX, June mortgage from equipment debt by revolver funds in normal later loans. million, debt XXXX was our cash of XX normal increase flows loan, XX inflows. This the payments to We of down million offset and during credit loans term when

During XX million quarter, balance spent included just million expenditures, for equipment XX and the facilities. we second under on the capital construction on which

We year. the million and million the expect to second half in on of spend CapEx between XX XX

quarter, during as for the backlog or X.X backlog XXX of during Our MSA Primoris, new total million backlog was a segments. billion, of XX mentioned. and David level billion, Pipeline backlog. X.X the June steady as of XX% Civil at by Fixed awards the in increase total billion quarter was record X.X an held driven

our for now guidance. And

utility assumptions changed remains of the loaded The seasonality to expect the this you our And year. of quarter. XXXX, we per in For QX to customers our on normal well to much share. $X.XX who $X.XX like of by work underlying segments, the of Coast work fiscal little the than most as of still not results timing guidance the in about first ask of for remaining driven larger in as the year Despite backend MSA XXXX Pipeline, we seasonality unchanged during our quarters, certain expected projects. ACP it anticipate operating stronger Atlantic have of two for this to across our no those

can we David? questions. now to that, With turn your

conducting Thank you. we a Instructions]. At this be time, session. will question-and-answer [Operator

Jagoda Lee question with is CJS from first Our Securities.

Hi. Good Pete for It’s Lee. morning. Lucas

digits, you when weather in Transmission but you break normalized mix the out expect was to you low-double can the mix mentioned how the be normalize? versus impact from segment weather, assuming much and a margins should Just would in large

above those – T&D those we some be, Pete, quarters had to those And margins were having an we’re from as effect, equipment to are EBITDA anticipating When U&D months. come but fact, to were the flatten into the this particular EBITDA very what around well over our that we what close because unit and did couple Yes, that in specific mentioned you of actually some both to a when tell a asking to you of of them the leases, our – somewhat at the plus ability in work actually to equipment our that that group. expectations much they’re weather most we reported weather the from the will would lease acquisition, over cost your us what in come line the with pretty probably which margins years that we and did the get versus close level the numbers for although next you getting expecting out we some and us – I side, you’ve will the thanks as moving to it look earnings ranges had say, up we certainly has quarter and four I seen was a areas the still mentioned to and I pretty I’ll I that guess the that, up we side. XX some would the dips smooth mention helped question. not they that we’ve expecting estate their that or the right were our in past to perspective. question was from backlog of group, side When be, some it and three of real had bought leases into that take in also group second into the is of They the more going MSA due last equipment do in was that of those mainly weather margin that. to out, shortfall to to leases moving moment, from onerous off leases, first out we’ve mentioned that quarter,

Helpful, or also, Civil. expected Can major up project quantify the that are weather turning year started Civil? just a this follow DOT the that mainly me thanks. from volumes to And And you lower refining was from to one continue in Texas impact?

contract to work there PDC the customers in doing refining get that started I&M allow and we typically because list. able a site years It our identify in and area don’t group customer that some we don’t few start actually ago major was that our it. to I Louisiana group a to on want identify Yes. secure down our was

sorry I’m I Your second missed. question,

Texas volumes just you volumes a impact? expect Do was weather the from DOT. to lower is It regarding that mainly continue or the lower one-time Sorry.

a one-time That’s weather impact. probably

intentionally kept previous results intentionally group we that we with now start we’re to in the say positive very take back beginning will flat seeing got direction, turned since Buchanan that open calls, Now to up that have, TxDOT. revenues amount fairly I until around, – way, has to and Mark in headed we turned work you as noted you we group. the the that the that of some battleship believe of used we relative got right we begin see out to certainly would as back

guys. Very helpful. Thanks,

questions. appreciate Thank you. We the

is Afzal Tahira Capital Our Markets. from next KeyBanc with question

This Tahira. is Sean on for

First we prepared is the and to to question for is the you’d some and me added this in is, for characterize hoping trend there few some alluded expected particular get how backlog the see larger prospects. petrochemical likelihood but remarks, in I’m And for PI&E the broadly, color quarters that just segment? on might updates And next segment? how bookings some LNG maybe the to

this another petrochemical and if that it is question still Tom that one With to respect have So he McCormick answer we’re and add can prospects, and LNG tracking. wants. we I’ll David to

EPCs burn those those pushed We’re of little still going means bit year expect on won’t be those so out. year, that to a working awarded projects. a speak, major to whole go with XXXX. later into some later this They’re lot probably just to it’s revenue We jobs. They’ve will the we larger to on in which come but fruition,

those add, recently LNG – them that heard we larger here thing on know, and secure make of most to awards. is to we’re certainly as major announcements only few I’d those subcontractor the you began projects, a EPCs of of those the you’ve About Yes. Tom, are

of those really some as quarter, able fourth start will – in work, first be third next of to second year. the mentioned, this to to quarter Tom up we’ll later some begin pick to And so which

they construction awarded you’ll they to through lot of go drawings So through think got before a some issuing for one those see about got and work, start thing a jobs design but site. mobilizing is have to done design go to certain that them the phase contractors A phase. frontend

side petchem was – the on And side. that LNG

the you’ve side, of are also on couple dedicated some of at work in as sub some seen, some least projects. of heard some and those get petchem awards, majors a we’re to again, their of the of mention work of sub some that them and on petchem line a On methanol-related you’ve a to we

bit facility in bit little do methanol, remarks. of the of So ethane then it’s type a prepared a ethane mentioned with work work, our mix some methanol to of whether – of cracking little that a of of LNG mix work and the it’s anything we

And mobilize the respect I be clients to need necessary they their think the tied sites. getting permits petchem, going it’s to to to with the

It Great, And you I how question is is very around this me guys the of helpful. prospect positioned just an pipeline was to at point. ACP next get really for hoping are like idea strong. sounds

you restart, might potential how be potential a offset on await able delays particular further we As guys project? that to

to as know, you a us. customer. we certainly And they’re for want Well, abandon any customer good don’t

In we fact, them. have a contract with

hoping get is year. robust And approved we’re large-diameter there the of so latter for But this they a demand part pipelines. that very

What when we in fairly fact, of also up but is, Rockford pre-awards kind mentioned, quickly. in on large ACP, mentioned put group starting we’re the it Pennsylvania well be released XXXX-'XX onward revenue will burning secured projects as to be do with Texas very on some I on through Rockford hold I immediately timeframe. obviously, we that what we those our West awards had and were in that ones two and resources Those we were seeing that asked group. some and our quite on verbal In announce to can’t and

encouraged I very gets hope ACP goes that – through, are approved. we So

that projects verbally project. But doesn’t, event in a be with I marshal we’re it those think to now. we’ll on these able the to it’s quickly resources – talking great other

near pretty And in you is, believe very secure on WG to a MSA segment, the me contract for guys the in great. one major I T&D expecting last legacy renewal That’s a term. were

going customers comment. can with So in extent pricing around renewals I’m discussion. hoping for just the T&D an discussions are And tie to you those how and maybe those update there

I’ll The discussions is that extremely going McCormick, Tom are question. again. well. This answer

sometime in third I it’s be that We’re have and very contract. would would an close. early place fourth quarter, we in execute to the quarter, agreement expect able

well. extremely going actually it’s So

Yes. I’ll will it or renewal bit so more done, flavor. looks it’s from seen acquired like typically that when one The positive direction. be add levels this that even at gets slightly headed in we that that when group, a revenue maybe level of we’ve very above

Really the helpful responses. time. so much Thanks for

questions. Thanks for the

next Our is Thalhimer Thompson question with Adam from Davis.

Good Congrats good morning, guys. Hi. a on quarter.

Thanks, Adam.

morning. Hi, Adam. Good

Good morning, Adam.

of flow you Ken, sense us can the some for give for free kind cash full year?

Yes.

So free cash ahead I last have and they’re flow revenue numbers XX% last but me levels. now, going year, be probably higher year above for guess the I the XX% would right on probably year’s to full to of of don’t levels, front so in slightly just

Perfect.

And then say is you mean work they how it steady that? does you work Okay. I And Northern Would that is hardening for mentioned in fire ARB – California. or accelerating? then are what doing

– Well, McCormick. is this Tom is this Adam,

power some for doing of California out a we’re in a underground. there protection what lines going have them lines replacing clients lot is of we’re that in of or So certain coated our instances, in lot California, areas on Northern with

probably It it’s of the and grow We up fire we but that hardening, also place Atlantic be – is whether number starting storm California, programs going And clients to is a a in storm or little pick in now right flat, to coming hardening hurricanes Coast, there but the multiyear Atlantic so and that for expected in bit it’s it flat that the probably or It’s to going number have in storms, of it’s growing a systems Coast programs ice coming certainly have their hardening. up clients in years. more. It’s have it be for the not years. do the East to that’s – in Southeast the programs are Coast quarters.

out I’ll We were In of those fire more. the fact, fires of had the of a one Northern out But under place in Underground of a we been of can the I the an the about strategic in taken two call had Underground request contractor California, because ago it ago, of there. up all the add clients was contractors bit there working not there previously of couple clients years there. at when to Unfortunately, into distribution, side the the out situation. gas major request that little ARB California years more took obviously, one a went we out clean ARB Adam, business at really electrical a all umbrella, of our if electrical look that,

customers of steadily we’ve us system, as in hardening what’s California for that work to our both the on seen up. of with that there going go to few out the segment do if the electrical ramp Underground continue Northern up So as with And for ARB that Southern these we all over expect California next see well years, not longer.

half are of How Perfect. Pipeline margins the you back the year? then margins. for about Pipeline And Okay. thinking

half margins of really because the the year of hurt weather situation. more first on the the was Well,

weather I the as don’t So see back really of think the into year, situation. typically half we the we go

demand typical larger-diameter getting indeed right Primoris Pipeline the gas is be is and margins lines, group, pretty group. should running in also. we So at of the our group gas our now, in In again, larger-diameter our heavy Rockford our one lines Pipeline Primoris

I’m when the those going to I’m is that So larger-diameter say anticipating I in although – but relative up improvement am to half margin pipelines. the last come cautious I this, anticipating

And then segment, while. to been lastly is? normal 'XX, what normal in I Civil return on but a said forget It’s you the

the a to going And higher. that’s unit’s with X% like we’re that and the X% up X%. that what it, get performance kind to from even range, beginning Kate that I when X% think into in X% get. things said is to and to that actually that’s mix But always we’re running we’ve of that come properly, little Yes, with what puts I think that to X% that. a mid-range on slides maybe looking we’re to of see our

revenue Now got we off again, bit the and that group burn the at continues Temple are part of the of I-XX pull is on some. literally margin pull to down a down group still corridor, project so that that zero we in finishing little

Thank Perfect. you. Okay.

Thank you.

[Operator Instructions].

with from question D.A. next is Our Davidson. Thielmann Brent

Hi. morning. Thanks. Good

Good morning, Brent.

morning, Brent. Good

Brent. morning, Good

just claims after of you Any terms maybe David, have there? side, update on the been guys some Civil of in the

projects and the TxDOT about management got we’re feel six five seeing them least that CCC we’ve to held what with At ahead There’s that now. it I submitted feel I’ve least in and from went Sure. that what’s our is months claims Contractor comfortable the comfortable two Committee, represented nine those by claim. I-XX will CCC, where corridor, we notified gotten be of at called paperwork Claims have I at. to

the the really depends and people working whether I across you their won’t or can’t for down TxDOT, they So Those that want five they rather remaining three pretty that be it on There Committee, the we’ve for them might mistakes. to them through Those sometimes to just and of CCC they the that settle best projects we’re off those what indication that received so of admit admit show takes the not that those progressing through burden – quick. then of have go called going through. through don’t the just it about with admit process lineup that handicap and to one table when Contractor that. system go in because are and Claims their a that than them. it two you their what’s mistakes, on not mistakes mistakes, talking process, sit we’re you’re are the admit

those take those I’m be So at another; to expecting be we X six for months optimistically, talking resolved. to months; least us pessimistically, not get XX might to might done it at another least resolutions that

kind I – guess guys are then shift on months? nat Okay, area. obviously to curious, the you renewables a more XX David, of any project gas XX potential if And guys strategic you focus big the that’s made about and in awards Power I’m segment, next towards have helpful. the optimistic sort of guess you I

We are.

Brent, We it an – have your question didn’t because gives really we do opportunity – really shift. to me appreciate and I a

we gas nat same storage and the may battery But not were nat we project we in of in we’ve California the facility or but out in first the is – also. additional may the that at awards headwinds But it remember, gives to – still still you it built. the of because us facilities The the of California, had gas facility feeling announced projects headwinds get state in verbal go. the that the built. If California, building to we California, haven’t time, an solar approved state

gas in still are So and gas-based what we the rest that where the nurturing that began we’re were. we’ve the to facilities got United nat at look nat And best was our along some our States. facilities across opportunities opportunities of

of wind on and begin of level the demand push side. kind or these farms, people really to the renewable may that guess, to close I Virginia. finished in about project began point one did half highly was at – we currently but very I’m at one remember, it and time, their year it we successful same the you look solar believe be us. getting we flatten, a is And a ago, As in that they maturity But to for not.

a out marshal mobility. in Solar is thought like was there marketplace and some contractors And was what we can. upward X,XXX could very the very found for still a to really Primoris good on that do these resources what we sites, that X,XXX-acre void

shift us just we’ve still really some that out renewables, while see from for a announce work wouldn’t additional opportunities market fact, future, been And are because slip us in opportunity in nat good chasing several highly our I definitely distant tracking say solar the so successful for we’re seems I groups so not headwinds in perfect you’ll Southwest against region. others in, the far. there are and gas it’s think too nat renewables we’re gases. it gas, and these And nat a to that to away It’s the

about with new there? really booking side, run is that there about can I seeing of out of and think color just of helpful Pipeline and quoting may some curious, guess I you’re of experienced? bidding has on the with the the that sounds I the projects had are some some color. composition guess that’s projects then there few you Okay, Any a – talking it ACP into the some the customers? issues the work on Street be talk that kind concern So you’re talking you out I’d that years that like types out of you things like customers. ACP

those Mountain got Coast types any that yes, LNG of Gulf have in these big Any ACP And them. are where you facilities then or visibility regional projects difference have gas or the the see it’s the brought of these, and all an also are in Yes. and such high to projects. But on states it we to larger Valley have natural friendly these doesn’t whether unfortunately the that projects and ones diameter Southwest things. more they of make get on opportunity

to what to bring that award the we’re you supply got see talking projects gas see are the indeed, those operators made to pipeline putting pipelines appreciate people to gas. So natural to out we’re region. Permian LNG the of facilities LNG some that’s supply that about on those out intake these in And beginning commitments the to beginning of of on already the side, are that the for major there as

seeing still what opportunity more large-diameter So call the amounts would regional-friendly we’re yes, of for areas tremendous in pipeline. I

And Brent, is McCormick. Tom this

The you’re smaller they these below the we’re large that the visibility projects, thing other radar. of seeing stay of and don’t is, multibillion-dollar so kind seeing have projects

in that lot don’t a forward of areas that clients hear there’s really going So with operate just we those that about. are you these

add I don’t just people. but want it in want of a one I my it. lot thing thought go I it Brent, because by comments, of to unnoticed more to I said quick

that think with the compressor pipelines that I stations, annualized bought field ago, Louisiana on you’re we we only more business size to a did of my other services and go began gentleman Field acquisition. of Texas the future, really in that pumping name field was field more services have in Bridges. But a that the Jeff those basis side get be the have to in services of and stations, company strategy services have Services, that these along And we few business, but are the had things our performed in so of a an of a then live nature, we has also called quadrupled acquired our year-after-year-after-year, on into think And in and see Texas One the that’s by Coastal but these of brought group, mentioned, us not years albeit going to in large-diameter a small, area our regions region, pipelines. ago moving an few comments, Sprint I’ve and I side to blossom. when fact we of years across some that and the really

it. Got

Okay. kind good business I’m for And in last you’re guess me. curious the balance of I focused pretty manageable. on much The new of one M&A? via sheet time shape, leverage guess is how I prospects your

are you us. M&A take years very me up longer that into Well, them this at through The let needs some – so to acquisitions. planning to four, begin seven be more Operating with now. brought John the And of Tom now was them we year on reason also then started it off, up couple and markets on from but grow of as good organic, look earlier process term, right some timing a And to strategic things Moreno at of and we The the and be I for to already very what to Officer organic, just benefit head. finished both three, came them our and going President to looking activities. of promoted I’ve then company entryways some to kind was hit that five, things beginning Chief just are the indeed, I in call opportunities, will

M&A So, me spend yes, see more lot you’re going a time the on side. to

all color. Thanks the for Okay.

for Thank Brent. you your much very questions,

you. Thank

call for session. We remarks. the will have the end of now King back reached closing turn the question-and-answer I And to David

I for want also each over us investor XX,XXX day. thanks special make questions. a for questions many to gave quality we Primoris sure our look today our and I joining seeing all I your day everyone good we Have us customers. forward our at providing appreciate work conferences. of thanks today. to a safely you to you your projects who planned asked employees Well, to appreciate

you. Thank This conference. today’s concludes

your participation. this your time disconnect may You lines thank at you and for