Market Monitor Splash Pages - ArkMalibu€¦ · Category / Company Valuation Statistics Multiples...

M&A MARKET MONITOROILFIELD EQUIPMENT AND SERVICES JANUARY 2019

5 Yr

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23,382 23,405 21,379

19,365 19,608

11.1x 11.1x 10.8x11.8x

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10,000

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20,000

25,000

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2014 2015 2016 2017 2018

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Deal Count Median TEV/ LTM EBITDA Multiple

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any c losed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future result s. Certain adjustments have been made to the information to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classi fication was omitted.

US & Canada M&A Market Overview

Overall Market Transactions

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

As of 12/31/2018

Energy

5 Yr

4 Yr

3 Yr

2 Yr

1 Yr

256

123 123 130 138

8.4x8.9x

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2014 2015 2016 2017 2018

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Deal Count Median TEV/ LTM EBITDA Multiple

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any closed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future results. Certain adjustments have been made to the information to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classi fication was omitted.

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

As of 12/31/2018

US & Canada M&A Market Overview

Oilfield Equipment & Services Transactions

Public Companies' Trading Metrics | Oilfield Equipment & ServicesAs of: 12/31/2018

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTMLast Sale PriceMarket CapitalizationTotal Enterprise ValueLTM EBITDA Margin %CY - 1 TEV/Total RevenuesLTM TEV/Total RevenuesNTM TEV/Forward Total RevenueCY - 1 TEV/EBITDALTM TEV/EBITDANTM TEV/Forward EBITDA

Compression

Archrock, Inc. 7.49 969 2,477 36.0% 2.7 2.8 2.5 7.9 7.8

CSI Compressco LP 2.32 106 755 22.1% 2.7 2.0 1.5 12.2 8.9

Enerflex Ltd. 11.71 1,041 1,158 13.3% 1.1 0.9 0.8 8.0 7.0

Exterran Corporation 17.70 640 1,022 14.9% 1.2 0.7 0.7 8.3 5.0

Natural Gas Services Group, Inc. 16.44 216 153 33.9% 3.9 2.3 2.1 11.1 6.8

Median 11.71 640 1,022 22.1% 2.7 2.0 1.5 8.3 7.0

Distribution

MRC Global Inc. 12.23 1,105 2,150 4.5% 0.7 0.5 0.5 17.8 11.6

ServiceNow, Inc. 178.05 31,925 31,114 2.4% 12.4 12.7 9.8 NM NM

Median 95.14 16,515 16,632 3.5% 6.5 6.6 5.2 17.8 11.6 21.8

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

NTM

7.4

36.3

6.7

6.3

5.9

4.5

5.7

5.9

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful




Price Value Value Margin 2017A LTM NTM 2017A LTM



NTM

Engineering & Construction

Saipem S.p.A. 3.74 3,724 5,269 10.4% 0.6 0.6 0.6 1.8 5.5

Petrofac Limited 6.08 2,065 3,435 12.0% 0.5 0.6 0.6 5.7 4.8

TechnipFMC plc 19.58 8,768 7,310 13.7% 0.8 0.6 0.6 6.9 3.9

Subsea 7 S.A. 9.72 3,103 2,698 16.8% 1.1 0.7 0.7 3.4 4.3

McDermott International, Inc. 6.54 1,181 4,157 12.7% 0.7 0.8 0.4 5.5 6.1

Median 6.54 3,103 4,157 12.7% 0.7 0.6 0.6 5.5 4.8

Energy Efficiency and Clean Technology

Itron, Inc. 47.29 1,864 2,802 10.2% 1.4 1.2 1.1 13.0 11.8

Ameresco, Inc. 14.10 648 1,114 10.5% 1.1 1.4 1.3 12.9 13.5

Median 30.70 1,256 1,958 10.4% 1.3 1.3 1.2 12.9 12.7

Land Drillers

Helmerich & Payne, Inc. 47.94 5,227 5,395 24.8% 3.8 2.2 1.8 17.6 8.7

Nabors Industries Ltd. 2.00 716 4,308 24.2% 2.5 1.4 1.3 11.2 6.0

Patterson-UTI Energy, Inc. 10.35 2,248 3,153 24.6% 3.2 1.0 1.0 15.0 3.9

Precision Drilling Corporation 1.74 510 1,675 22.5% 2.3 1.6 1.4 9.9 6.9

Pioneer Energy Services Corp. 1.23 96 508 14.0% 1.6 0.9 0.8 20.7 6.3

Median 2.00 716 3,153 24.2% 2.5 1.4 1.3 15.0 6.3

4.0

5.5

5.7

4.9

5.5

5.0

5.6

4.9

4.4

4.4

6.2

4.8

9.9

12.6

11.2



NM = Not Meaningful







NTM

Large Cap Equipment and Services

General Electric Company 7.57 65,845 184,103 4.9% 2.4 1.5 1.5 16.4 30.7

Siemens Aktiengesellschaft 111.90 90,641 114,913 11.0% 1.4 1.2 1.2 11.5 11.0

Honeywell International Inc. 132.12 97,807 104,589 20.9% 3.1 2.4 2.8 15.0 11.6

ABB Ltd 19.00 40,504 46,960 13.3% 1.8 1.3 1.2 14.3 10.0

Schneider Electric S.E. 68.38 37,252 45,881 16.2% 1.8 1.6 1.5 11.6 9.8

Emerson Electric Co. 59.75 37,413 41,123 20.5% 3.0 2.4 2.2 14.2 11.5

Eaton Corporation plc 68.66 29,757 36,594 17.6% 2.1 1.7 1.6 12.8 9.8

Median 68.38 40,504 46,960 16.2% 2.1 1.6 1.5 14.2 11.0

12.8

9.1

11.8

8.4

8.9

10.2

9.0

9.1



NM = Not Meaningful







NTM

Large Cap Service

Schlumberger Limited 36.08 49,964 64,899 21.2% 3.6 2.0 1.9 15.4 9.2

Halliburton Company 26.58 23,285 31,706 18.6% 2.8 1.3 1.3 17.1 7.1

Baker Hughes, a GE company 21.50 11,038 36,389 11.4% 2.6 1.6 1.5 27.6 15.0

Weatherford International plc 0.56 560 8,234 -2.2% 2.1 1.4 1.4 54.8 NM

Superior Energy Services, Inc. 3.35 518 1,695 15.8% 1.5 0.8 0.8 39.5 5.1

Median 21.50 11,038 31,706 15.8% 2.6 1.4 1.4 27.6 8.2

9.5

7.6

11.1

9.2

5.0

9.2



NM = Not Meaningful







NTM

Logistics

ATCO Ltd. 28.30 3,238 13,504 35.7% 3.9 3.7 4.9 9.4 10.2

Tidewater Inc. 19.13 695 676 -8.2% 1.0 1.9 1.4 20.2 NM

Bristow Group Inc. 2.43 87 1,243 8.2% 1.3 0.9 0.8 23.3 10.9

Hornbeck Offshore Services, Inc. 1.44 54 1,030 10.8% 5.7 4.8 3.9 98.7 44.3

Civeo Corporation 1.43 240 712 15.2% 1.7 1.6 1.4 9.6 10.3

Median 2.43 240 1,030 10.8% 1.7 1.9 1.4 20.2 10.6

8.7

15.7

6.0

27.9

7.6

8.7



NM = Not Meaningful







NTM

Mid and Small-Cap Service

Aspen Aerogels, Inc. 2.13 51 51 -10.1% 1.0 0.5 0.4 NM NM

Tetra Tech, Inc. 51.77 2,866 2,996 10.7% 1.4 1.4 1.3 12.9 12.8

Ensign Energy Services Inc. 3.51 551 1,087 16.1% 1.8 1.4 1.3 8.9 8.5

Calfrac Well Services Ltd. 1.79 258 992 13.1% 1.4 0.6 0.6 15.4 4.6

Trican Well Service Ltd. 0.87 273 361 12.5% 2.0 0.5 0.6 14.6 3.9

Basic Energy Services, Inc. 3.84 102 389 6.3% 1.1 0.4 0.4 NM 6.3

C&J Energy Services, Inc. 13.50 910 834 12.5% 1.5 0.4 0.4 87.0 3.0

CGG 1.32 940 1,738 31.2% 2.2 1.3 1.2 8.0 4.2

Core Laboratories N.V. 59.66 2,638 2,924 22.8% 7.9 4.1 4.1 39.3 18.1

Dawson Geophysical Company 3.38 78 44 8.5% 0.5 0.3 0.2 NM 3.2

DMC Global Inc. 35.12 523 554 16.1% 2.1 1.9 1.6 27.1 11.8

Flotek Industries, Inc. 1.09 62 114 -2.0% 1.0 0.4 0.4 150.3 NM

Frank's International N.V. 5.22 1,171 925 0.2% 2.7 1.9 1.6 NM NM

FTS International, Inc. 7.11 777 1,169 27.6% NM 0.7 1.1 NM 2.4

Helix Energy Solutions Group, Inc. 5.41 802 923 22.0% 2.3 1.2 1.2 14.5 5.7

Keane Group, Inc. 8.18 856 1,125 17.5% 2.0 0.5 0.6 19.7 3.0

Key Energy Services, Inc. 2.07 42 243 4.7% 0.9 0.5 0.4 NM 10.0

Liberty Oilfield Services Inc. 12.95 908 1,255 20.9% NM 0.6 0.6 NM 2.8

NCS Multistage Holdings, Inc. 5.09 229 242 17.4% 3.6 1.1 1.1 19.1 6.2

Newpark Resources, Inc. 6.87 624 760 10.5% 1.4 0.8 0.8 20.0 8.1

Nine Energy Service, Inc. 22.54 680 709 13.1% NM 0.9 0.7 NM 7.2

ProPetro Holding Corp. 12.32 1,030 1,040 19.7% 2.0 0.7 0.5 18.4 3.3

Ranger Energy Services, Inc. 5.17 46 188 9.3% 1.3 0.7 0.5 NM 7.5

RPC Group Plc 8.31 3,368 4,904 15.1% 1.4 1.0 1.0 10.0 6.6

Select Energy Services, Inc. 6.32 510 844 15.4% 3.0 0.6 0.5 20.4 3.7

Solaris Oilfield Infrastructure, Inc. 12.09 330 467 59.8% 9.5 2.8 1.8 17.0 4.7

Median 5.87 588 839 14.1% 1.8 0.7 0.7 18.4 5.7

27.3

11.2

4.6

3.5

7.3

5.8

4.3

4.1

4.0

6.4

5.9

3.9

6.2

3.3

3.0

2.4

3.7

19.0

4.9

8.7

32.7

14.4

3.5

4.3

5.9

3.7

3.4



NM = Not Meaningful







NTM

Mid and Small-Cap Equipment and Service

AMETEK, Inc. 67.70 15,714 17,097 26.3% 4.5 3.6 3.3 17.2 13.8

Hubbell Incorporated 99.34 5,435 7,134 17.1% 2.2 1.7 1.5 13.1 9.8

Valmont Industries, Inc. 110.95 2,451 2,975 12.5% 1.5 1.1 1.0 11.5 8.5

Littelfuse, Inc. 171.48 4,314 4,516 23.2% 3.8 2.8 2.5 15.6 12.0

AZZ Inc. 40.36 1,051 1,338 12.3% 2.0 1.5 1.4 11.3 12.8

ESCO Technologies Inc. 65.95 1,709 1,917 17.9% 2.6 2.5 2.4 15.5 13.9

Badger Meter, Inc. 49.21 1,433 1,458 14.3% 3.6 3.4 3.2 18.6 24.0

Thermon Group Holdings, Inc. 20.28 661 860 18.9% 3.1 2.3 2.2 19.0 12.1

Powell Industries, Inc. 25.01 288 240 1.0% 0.6 0.5 0.5 NM 52.4

Median 65.95 1,709 1,917 17.1% 2.6 2.3 2.2 15.5 12.8

OCTG

Tenaris S.A. 10.81 12,760 12,634 19.3% 3.7 1.8 1.5 19.7 8.3

The Timken Company 37.32 2,868 4,505 16.2% 1.6 1.3 1.2 11.6 8.1

Vallourec SA 1.86 852 3,829 1.7% 1.3 0.9 0.8 NM 49.5

Median 10.81 2,868 4,505 16.2% 1.6 1.3 1.2 15.6 8.3

Oilfield Equipment

National Oilwell Varco, Inc. 25.70 9,853 11,344 8.8% 2.2 1.4 1.3 NM 16.1

Oceaneering International, Inc. 12.10 1,192 1,619 8.4% 1.2 0.9 0.8 10.1 10.3

Dril-Quip, Inc. 30.03 1,074 650 10.5% 2.9 1.6 1.7 262.6 15.6

Forum Energy Technologies, Inc. 4.13 448 888 5.8% 2.7 0.9 0.8 NM 16.6

Oil States International, Inc. 14.28 856 1,175 10.9% 2.1 1.2 1.1 49.1 10.8

Cactus, Inc. 27.41 1,032 1,169 36.5% NM 2.3 1.9 NM 6.3

Gardner Denver Holdings, Inc. 20.45 4,065 5,565 21.7% 3.7 2.1 2.0 28.7 9.7

Shawcor Ltd. 12.15 852 910 11.1% 1.3 0.8 0.9 10.8 7.5

TechnipFMC plc 19.58 8,768 7,310 13.7% 0.8 0.6 0.6 6.9 3.9

Median 19.58 1,074 1,175 10.9% 2.2 1.2 1.1 19.8 10.3

13.1

10.6

9.1

4.9

9.0

12.6

16.7

9.6

12.5

9.1

7.9

11.1

9.9

8.9

7.2

6.4

11.3

7.2

10.6

8.9

5.3

8.0

26.8

8.0



NM = Not Meaningful







NTM

Proppants

CARBO Ceramics Inc. 3.48 96 136 -12.7% 1.9 0.6 0.6 NM NM

Emerge Energy Services LP 1.54 48 245 16.7% 1.3 0.7 0.9 116.0 3.9

Covia Holdings Corporation 3.42 449 1,927 21.8% NM 1.0 1.0 NM 4.7

Hornbeck Offshore Services, Inc. 1.44 54 1,030 10.8% 5.7 4.8 3.9 98.7 44.3

Newpark Resources, Inc. 6.87 624 760 10.5% 1.4 0.8 0.8 20.0 8.1

Smart Sand, Inc. 2.22 92 135 24.7% 2.4 0.7 0.6 8.3 2.7

U.S. Silica Holdings, Inc. 10.18 789 1,711 20.2% 2.5 1.1 1.1 12.7 5.4

Median 3.42 96 760 16.7% 2.2 0.8 0.9 20.0 5.0

Infrastructure Services --

Environmental Services

Waste Management, Inc. 88.99 37,941 47,876 28.1% 3.3 3.3 3.1 12.2 11.7

Republic Services, Inc. 72.09 23,398 31,570 27.8% 3.1 3.1 3.0 11.1 11.4

Waste Connections, Inc. 74.25 19,565 23,083 31.6% 4.9 4.8 4.4 15.6 15.1

Veolia Environnement S.A. 20.56 11,367 24,669 11.3% 0.9 0.9 0.8 7.3 7.3

Stericycle, Inc. 36.69 3,324 6,121 17.3% 2.4 1.7 1.8 11.4 10.0

Clean Harbors, Inc. 49.35 2,764 4,135 14.7% 1.5 1.3 1.2 10.6 8.8

Evoqua Water Technologies Corp. 9.60 1,094 1,986 13.5% 2.8 1.5 1.4 21.5 10.9

Advanced Disposal Services, Inc. 23.94 2,123 3,996 24.7% 2.8 2.6 2.5 10.3 10.4

US Ecology, Inc. 62.98 1,388 1,638 22.7% 2.8 3.0 2.8 13.6 13.3

Median 49.35 3,324 6,121 22.7% 2.8 2.6 2.5 11.4 10.9

11.0

10.8

13.7

6.2

8.1

8.2

8.5

9.0

11.9

9.0

7.7

27.9

6.1

5.9

7.7

146.7

8.2

2.8



NM = Not Meaningful







NTM

Industrial Services

EMCOR Group, Inc. 59.69 3,436 3,382 6.1% 0.6 0.4 0.4 10.6 7.0

Bilfinger SE 29.22 1,271 1,297 2.6% 0.4 0.3 0.3 13.3 9.4

Atlassian Corporation Plc 88.98 21,190 20,223 2.3% 14.3 21.4 16.2 NM NM

Aegion Corporation 16.32 527 774 7.7% 0.8 0.6 0.6 9.0 7.5

Mistras Group, Inc. 14.38 410 557 8.4% 1.1 0.7 0.7 15.9 8.9

Matrix Service Company 17.94 486 412 1.9% 0.4 0.4 0.3 22.2 19.0

Median 23.58 899 1,035 4.4% 0.7 0.5 0.5 13.3 8.9

Large Cap Infrastructure Services

Fluor Corporation 32.20 4,530 4,488 3.9% 0.4 0.2 0.2 9.6 5.9

Jacobs Engineering Group Inc. 58.46 8,321 9,769 5.8% 0.7 0.7 0.6 11.7 11.2

SNC-Lavalin Group Inc. 33.65 5,908 7,875 9.7% 1.4 1.0 1.0 17.7 10.6

KBR, Inc. 15.18 2,139 2,751 6.7% 0.6 0.6 0.5 16.2 7.6

Median 32.93 5,219 6,181 6.3% 0.7 0.6 0.6 14.0 9.1

Mid and Small-Cap Infrastructure Services

John Wood Group PLC 6.45 4,339 5,882 5.0% 1.6 0.7 0.5 22.6 13.5

Granite Construction Incorporated 40.28 1,889 1,827 6.9% 0.8 0.6 0.5 15.9 7.9

Tutor Perini Corporation 15.97 799 1,454 4.6% 0.4 0.3 0.3 8.3 7.1

Primoris Services Corporation 19.13 980 1,295 7.0% 0.6 0.5 0.4 8.5 7.0

Aecon Group Inc. 12.91 773 844 6.1% 0.6 0.4 0.4 10.1 6.0

Great Lakes Dredge & Dock Corporation 6.62 414 744 13.1% 1.0 1.1 1.0 11.6 8.2

Orion Group Holdings, Inc. 4.29 124 219 6.0% 0.5 0.4 0.4 19.4 6.2

Median 12.91 799 1,295 6.1% 0.6 0.5 0.4 11.6 7.1

6.6

4.5

5.3

5.4

6.6

5.8

5.4

5.9

60.0

6.5

5.8

6.3

6.4

7.9

9.0

6.6

7.2

7.9

4.8

5.7



NM = Not Meaningful







NTM

Testing, Inspection, & Certification

SGS SA 2,246.03 16,961 18,221 18.3% 3.4 2.7 2.6 18.0 14.8

Bureau Veritas SA 20.37 8,871 11,707 17.0% 2.6 2.2 2.1 14.9 12.9

Eurofins Scientific SE 373.25 6,588 8,509 17.7% 3.6 2.2 1.7 19.0 12.6

Intertek Group plc 61.18 9,840 10,613 19.9% 3.3 3.0 2.9 17.1 15.3

Alstom SA 40.38 9,016 9,638 8.4% 1.1 1.0 1.0 11.4 8.5

Applus Services, S.A. 11.09 1,587 2,205 11.7% 1.4 1.2 1.1 13.2 10.0

Median 50.78 8,943 10,126 17.4% 3.0 2.2 1.9 16.0 12.7

Utility Services

Quanta Services, Inc. 30.10 4,410 5,274 7.1% 0.7 0.5 0.5 10.0 7.5

Dycom Industries, Inc. 54.04 1,691 2,523 8.2% 1.4 0.9 0.8 10.7 10.7

MasTec, Inc. 40.56 3,131 4,837 9.2% 0.8 0.7 0.6 8.4 7.7

MYR Group Inc. 28.17 467 560 5.9% 0.5 0.4 0.3 9.0 6.5

Median 35.33 2,411 3,680 7.6% 0.8 0.6 0.5 9.5 7.6

11.1

5.4

6.4

6.2

5.8

6.0

9.2

13.8

11.5

8.3

11.3

12.7



NM = Not Meaningful

ABOUTArkMalibu advises business owners by making highly informed and relevant recommendations on steps towards finding a great partner or monetizing their businesses. We help you maximize value by effectively conveying your company’s investment merits and minimizing the buyers’ perceived investment risks. As one of the most trusted boutique investment banking firms, we leverage our proprietary process to serve our privately-owned clients based on our experience, creativity, and avoidance of conflicts of interest. We focus our energy and talent on turning culture into capital so that we can creatively deliver value beyond our clients’ expectations.

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