Primoris Services Corporation has announced three new underground awards valued at over US$140 million. The new contracts were secured by Rockford Corporation, a Primoris subsidiary and part of the West Construction Services segment. Work is scheduled to commence on the projects in the first quarter of 2015 and is anticipated to be complete in 2015.
The awards from major midstream operators with whom Primoris has longtime relationship and a proven record of successful projects.
- The first project is located in the Eagle Ford shale region near Houston, Texas. The project consists of 88.6 miles of 36 in. dia. crude oil pipeline that will replace an existing 24 in. dia. pipeline.
- The second project is located in the Marcellus shale region of northeast Pennsylvania. The project consists of approximately 2.5 miles of 24 in. dia. natural gas pipeline.
- The third project is also located in the Marcellus shale region of northeast Pennsylvania. The project consists of approximately 1.1 miles of 12 in. dia. and 2.3 miles of 24 in. dia. natural gas pipeline.
Primoris' oil-related projects include oil pipelines, refinery work, and oil storage terminals. The company's best estimate is that 2015 oil-related revenue will be approximately 14% of estimated total company revenue, with approximately 2% from upstream projects, 8% from midstream projects, and 4% from downstream projects. There are many other factors in addition to oil prices that contribute to the continued demand for oil-related projects, including the inadequacy of the current pipeline infrastructure, increasing regulations, and the need for ongoing maintenance of existing facilities. Our markets for non-oil-related projects have not been affected by the recent change in oil prices.
Adapted from press release by Hannah Priestley-Eaton