MasTec, Inc. (MTZ) has acquired Big Country Energy Services Inc and its affiliated operating companies for $103 million in cash. The acquisition terms also include assumption of approximately $24 million of Big Country’ debt and a 5-year contingent earn-out.
Calgary, Canada-based Big Country is engaged in oil, natural gas and natural gas liquids gathering systems, and pipeline construction, pipeline modification and replacement services; compressor and pumping station construction. Big Country has an esteemed clientele of energy and pipeline companies, including Shell, Canadian Natural Resources Limited (CNQ), Enbridge Inc. (ENB), Suncor Energy Inc. (SU), Encana, Husky, ConocoPhillips and Cenovus Energy.
Big Country has approximately $53 million in tangible net worth and employs around 1,200 people and owns 600 pieces of construction equipment. Big Company also has construction offices in Alberta, British Columbia and Saskatchewan, as well as in Wyo. and N. D.
This acquisition is in sync with MasTec’s expansion plans in Canada's dynamic energy sector. Big Country will significantly enhance MasTec's ability to cash in on the rapidly expanding opportunities anticipated for energy infrastructure work in North America in the near future.
This news comes on the heels of an impressive first quarter results announced earlier this month, MasTec’s earnings increased an impressive 93% year over year to 27 cents per share, outperforming the management’s guidance of 24 cents a share. MasTec posted record net sales of $919 million in the first quarter, increasing 24% year over year, exceeding the company’s prior guidance of $850 million. The organic revenue growth rate was 19% in the reported quarter, driven by the growth in oil and gas pipeline and facilities, electrical transmission and wireless construction.
For 2013, MasTec expects revenues to be around $4.0 billion and adjusted diluted earnings per share to be $1.80. The Zacks Consensus Estimate for revenue currently stands at $4.01 billion and for earnings at $1.80 per share, in line with management guidance.
Coral Gables, FL-based MasTec is a leading infrastructure construction company operating mainly throughout North America across a range of industries. Its activities include engineering, building, installation, maintenance and upgrade of energy, utility and communications infrastructure and industrial infrastructure. MasTec currently retains a short-term Zacks Rank #3 (Hold).
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