Quanta Servicesfilecache.investorroom.com/mr5ir_quanta/677... · • Quanta continues to see opportunities to increase shareholder value through growth in revenues and EPS over a

Quanta ServicesInvestor Presentation

Nov. / Dec., 2016NYSE: PWR

Quanta Services Investor Presentation

This presentation (and oral statements regarding the subjects of this presentation) includes forward-looking statements intended toqualify under the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include any statements reflecting Quanta's expectations, intentions, strategies, assumptions or beliefs aboutfuture events or performance or that do not solely relate to historical or current facts. Forward-looking statements involve certainrisks, uncertainties and assumptions that are difficult to predict or are beyond Quanta's control, and actual results may differmaterially from those expected, implied or forecasted by our forward-looking statements due to inaccurate assumptions and knownand unknown risk and uncertainties. For additional information concerning some of the risks, uncertainties and assumptions thatcould affect our forward-looking statements, please refer to Quanta’s documents filed with the Securities and Exchange Commission,as well as to the risks, uncertainties and assumptions identified in this presentation. Investors and analysts should not place unduereliance on Quanta’s forward-looking statements, which are current only as of the date of this presentation. Quanta does notundertake and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events orcircumstances after the date of this presentation or otherwise, and Quanta expressly disclaims any written or oral statements madeby any third party regarding the subject matter of this presentation.

Page 2Investor Presentation

Forward Looking Statement Disclaimer

Quanta Services Investor PresentationPage 3

Key Takeaways

• Quanta continues to see opportunities to increase shareholder value through growth in revenues and EPS over a multi-year period

• Believe 2015 was a transition year to improved financial performance in 2016

• Quanta is the leading specialty infrastructure contractor in the markets we serve, providing infrastructure solutions with unmatched scope and scale

• North America is in a multiyear investment cycle for infrastructure

• Quanta’s corporate actions demonstrate confidence in our long-term growth prospects and a commitment to generating shareholder value

Investor Presentation

Canada17%

U.S.80%

Australia2%Other

1%

Revenue by Geography

Fixed Price41%

Cost Plus21%

Estimated Revenue by Contract Type

Unit Price38%

NewConstruction

52%

Maint. & Repair9%

Estimated Revenue by Project Type

MSA38%

Engineering 1%*Revenue, as reported, by type of work, geography, contract and project type based on revenues of $7,572 million for the twelve months ended Dec. 31, 2015.** Represents the midpoint of guidance range

2015 Consolidated Revenue = $7.6 Billion*

2016 Est. Revenue = $7.7 Billion **

Electric Power65%

Oil & GasInfrastructure

35%

Company OverviewStrategically Focused, Operationally Diverse


Quanta Services Investor PresentationPage 5Investor Presentation

Company OverviewStrategically Focused, Operationally Diverse

Electric Power

• Transmission

• Distribution • Substation

• Emergency Restoration

• Energized Services

• EPC Solar & Renewables

• EPC Fossil Generation

Design Engineering Project Management Installation Maintenance Replacement

• Smart Grid

Oil & Gas

• Asset Management

• Mainline Pipeline

• Shale Midstream Pipe

• Compression, Metering & Pumping Stations

• Gas Distribution

• Horizontal Directional Drilling

• Pipeline Integrity

• Storage Facilities • Specialty Offshore Field Services

• Pipeline Logistics Mgt.

Servicing The Entire Infrastructure Life Cycle

Quanta Is A Leading Integrated Infrastructure Solutions Provider

• No single customer accounted for more than 8% of revenues in 2015

• The ten largest customers accounted for approximately 36% of revenues in 2015

• Strong relationships with the majority of U.S. investor owned utilities and Canadian utilities – many going back for decades

• No significant revenue from U.S. exploration and production companies

Company OverviewDiverse & High Quality Customer Base


• Industry leading safety performance• Recognized market leader in electric power and oil and gas pipeline construction in

North America• Entrepreneurial business model and culture• Broad, self-performing platform developed through organic growth and acquisitions• Strong scope and scale with deep customer relationships• Preferred employer in the industries we serve • Strong financial profile

Company OverviewLeading Energy Infrastructure Solutions Provider


• Quanta is the largest energy infrastructure specialty contractor in North America

• Unmatched scope, providing broader solutions to customers• Unmatched scale as the largest employer of skilled workforce

in the industry – approx. 26,000 employees• Track record of safe execution• Projects are getting larger and more complex; customers

increasingly seeking cost certainty and performance• Quanta has consistently been working on numerous large

projects simultaneously for the past five years• Significant revenues from strategic relationships, recurring

work and an increasing amount of negotiated work

Quanta vs. Specialty Contractors Quanta vs. Traditional E&Cs

• Today, our customers believe skilled construction labor is a finite resource and critical to overall project success, where engineering and procurement are more commoditized

• Quanta has the largest skilled workforce in the industry –approx. 26,000 employees

• Quanta self-performs its projects – controls quality and execution

• E&Cs typically provide project management oversight and have limited self-perform construction capabilities

• Quanta derives significant revenues from strategic relationships, recurring work and an increasing amount of negotiated work

• Price is often the primary driver of who wins E&C projects

Est. Large Project Capability

*Bubble Size = Avg. Market Cap0%

20%

40%

60%

80%

100%

Est.

Self

Perfo

rm C

apab

ility

*Bubble Size = Avg. Market Cap

LargerSmaller

Company OverviewDifferentiated Competitive Position – In the Sweet Spot


Company OverviewDifferentiated Competitive Position – In the Sweet Spot


0%

20%

40%

60%

80%

100%

Est.

Self

Perfo

rm C

apab

ility

Est. Large Project Capability

*Bubble Size = Avg. Market Cap

LargerSmaller

• Quanta is uniquely positioned to meet customer needs versus both specialty contractors and traditional engineering and construction companies

• Customers understand that skilled labor is critical to project success

• Projects are getting larger and more complex and customers are increasingly seeking comprehensive solutions

• Demand for specialty construction resources is high and increasing, but supply is limited

• Quanta has the largest energy infrastructure specialty contractor workforce in North America

• Quanta is investing in engineering and program management to provide true complete EPC solutions

Multiyear Infrastructure Investment CycleFor Electric Power and Oil and Gas Infrastructure


• Electric Power - See growth opportunities driven by:• Need to repair, replace, upgrade and maintain transmission and distribution infrastructure

throughout North America• Regulation is driving grid investment• Changing generation mix – more renewables and natural gas generation

• Oil & Gas Infrastructure - See growth opportunities driven by:• Continued harvesting of resources from North American unconventional shales and Canadian oil

sands• Need for midstream infrastructure and lack of takeaway capacity• Increased natural gas demand for shift from coal to gas and renewable generation• Natural gas demand for LNG export• Natural gas local distribution company demand and pipeline integrity programs

However, regulatory delays can impact the timing of project awards and construction starts

Electric PowerContinued Transmission Growth Opportunities


• The North American electric grid requires significant investment due to many decades of underinvestment and changing needs

• Transmission spending has increased to +3x historical spending levels in North America• Reliability initiatives (New Build)• NERC reliability compliance (Rebuild & Upgrade)• Renewable interconnects

• Coal retirement and gas generation switching and development• Electrification of mining, oil sands and other industrial facilities• FERC 1000 – Merchant transmission

Primary Drivers of New Transmission Projects

Reliability59%

RenewableIntegration

18%

Other12%

Economic or Congestion11%

Source: NERC 2013 Long-Term Reliability AssessmentSource: The C Three Group, Aug. 2015

$0

$5

$10

$15

$20

$25

$30

$35

Avg. 08-11 Avg. 12-15 '16 '17 '18 '19 '20

Billi

ons

Est. North American Transmission SpendingOut year estimates tend to have upward revision bias

Electric PowerAdditional Growth Opportunities


• Strategic relationships account for more than 50% of electric power segment revenues

• Distribution services growing as reliability and modernization are utility priorities

• Smaller and medium sized power grid projects associated with:

• Coal generation retirement and coal to gas switching

• Reliability initiatives

• Growth in sub-transmission and substation interconnects to high-voltage transmission backbones

• Regional market drivers creating energized services demand

$0

$5

$10

$15

$20

$25

$30

$35

$40

Avg. 08-11Avg. 12-15 '16 '17 '18 '19 '20Bi

llion

s

Est. North American Distribution Construction Market

Source: The C Three Group, Sept.. 2015

Oil & Gas InfrastructureLong-Term North American Oil & Gas Production Trends


• Production of shale natural gas, oil and natural gas liquids has grown dramatically and is expected to remain at high levels for the foreseeable future

• Much of these resources are in areas that have not been traditional fossil fuel sources and do not have adequate energy infrastructure in place to gather, store, process and transport product

• Canadian oil production lacks adequate takeaway pipeline infrastructure• Economics of pipeline transportation is increasingly attractive versus rail in a low oil price environment• Pipeline construction capacity is more limited in Canada versus the U.S. and construction capacity constraints could be

significant

• It will take many years and significant energy infrastructure investment to harvest these resources

U.S. Tight Oil Production2005-2025 (millions of barrels per day)

Canadian Oil Sands & Conventional Production(Millions of barrels per day)

U.S. Shale Natural Gas Production2005-2025 (trillion cubic feet)

0

1

2

3

4

5

6

Source: EIA, Annual Energy Outlook 2015 Source: Canadian Assoc. of Petroleum Producers

0

2

4

6

8

10

12

14

16

18

Source: EIA, Annual Energy Outlook 2015

Chart1

U.S. Tight Oil ProductionH - '05'06'07'08'09'10'11'12'13P - '14'15'16'17'18'19'20'21'22'23'24'250.297999999999999990.3150.344999999999999970.611999999999999990.690.8711.31400000000000012.19300000000000013.1494.18873599999999964.78945500000000024.9424755.27605900000000015.46874500000000025.56009499999999965.60378799999999985.53028299999999985.48097200000000045.42352800000000015.39375499999999965.3076819999999998

figure 21

Energy production, imports, and exports

Figure 21. U.S. tight oil production in four cases, 2005-40 (million barrels per day)

ReferenceHigh Oil PriceLow Oil PriceHigh Oil and Gas Resource

H - '050.30

'060.32

'070.35

'080.61

'090.69

'100.87

'111.31

'122.19

'133.153.153.153.15

P - '144.194.194.194.19

'154.795.384.655.15

'164.945.754.595.49

'175.286.424.795.92

'185.476.844.946.57

'195.566.975.017.10

'205.607.135.057.45

'215.537.275.017.61

'225.487.354.977.89U.S. Tight Oil Production (Million Barrels Per Day)

'235.427.134.888.15

'245.396.974.838.55

'255.316.864.788.91

'265.096.644.729.05

'274.996.374.519.30

'284.946.174.399.55

'294.886.004.299.90

'304.835.844.2110.23

20314.635.684.1310.47

20324.465.544.0610.69

20334.395.333.9210.88

20344.385.163.7411.08

20354.404.993.5911.24

20364.374.793.4511.37

20374.364.633.3411.46

20384.324.493.2311.51

20394.304.353.1511.54

20404.294.203.0811.56

U.S. Tight Oil ProductionH - '05'06'07'08'09'10'11'12'13P - '14'15'16'17'18'19'20'21'22'23'24'250.297999999999999990.3150.344999999999999970.611999999999999990.690.8711.31400000000000012.19300000000000013.1494.18873599999999964.78945500000000024.9424755.27605900000000015.46874500000000025.56009499999999965.60378799999999985.53028299999999985.48097200000000045.42352800000000015.39375499999999965.3076819999999998

Source: AEO2015 National Energy Modeling System, run REF2015.D021915A.

Chart1

U.S. Shale Gas ProductionH - '05'06'07'08'09'10'11'12'13P - '14'15'16'17'18'19'20'21'22'23'24'251.13599999999999991.3911.8952.69600000000000023.75.47199900000000038.028999000000000710.15700099999999911.34199899999999912.84233113.62352699999999914.18073700000000114.28877800000000114.61939414.99589215.44139099999999915.74725616.12490100000000116.46151000000000116.78531817.033669

fig 26

Energy production, imports, and exports

Figure 26. U.S. shale gas production in four cases, 2005-40 (trillion cubic feet)

ReferenceHigh Oil PriceLow Oil PriceHigh Oil and Gas Resource

H - '051.14

'061.39

'071.90

'082.70

'093.70

'105.47

'118.03

'1210.16

'1311.3411.3411.3411.34

P - '1412.8412.8912.8212.92

'1513.6213.9813.4814.01

'1614.1814.7014.0415.23

'1714.2915.2214.1115.62

'1814.6215.6514.3116.74

'1915.0015.8914.4817.77

'2015.4416.2814.6518.82

'2115.7516.6914.7919.62

'2216.1217.1115.0320.36U.S. Shale Gas Production (Trillion Cubic Feet)

'2316.4617.5015.2321.14

'2416.7918.0115.5022.08

'2517.0318.6915.7722.93

'2617.1319.2415.9723.72

'2717.3319.7316.1624.63

'2817.4720.1416.4025.53

'2917.6920.5516.6326.53

'3017.8520.9716.8127.50

203118.0221.4017.0028.40

203218.1821.8117.2529.24

203318.3722.1417.4730.10

203418.5922.3817.5830.98

203518.8522.6517.7131.84

203619.1222.9417.8732.53

203719.3823.2218.0533.06

203819.5123.4118.1133.58

203919.6023.5718.0234.12

204019.5823.6318.0634.57

U.S. Shale Gas ProductionH - '05'06'07'08'09'10'11'12'13P - '14'15'16'17'18'19'20'21'22'23'24'251.13599999999999991.3911.8952.69600000000000023.75.47199900000000038.028999000000000710.15700099999999911.34199899999999912.84233113.62352699999999914.18073700000000114.28877800000000114.61939414.99589215.44139099999999915.74725616.12490100000000116.46151000000000116.78531817.033669

Source: AEO2015 National Energy Modeling System, runs REF2015.D021915A,LOWPRICE.D021915A, HIGHPRICE.D021915A, and HIGHRESOURCE.D021915B.

Oil & Gas InfrastructureLong-Term North American Oil & Gas Production Trends


• Need for pipeline and related infrastructure driven by the significant increase in North American unconventional natural gas and oil production –not commodity prices

• Takeaway pipelines have not been built fast enough to keep pace with hydrocarbon production – significant pipeline development needed

• Large pipeline construction industry capacity is currently tight, but could get significantly strained over the next several years

• Quanta is the largest pipeline construction company in North America

• This positions Quanta to remain active in select shales and also allocate resources to large pipeline opportunities

• We are ready to assist our customers in meeting their development goals in what could be a resource challenged environment

3,718 3,4634,099

4,798 4,730

2014 2015 2016 2017 +2018

Est. Large Pipeline Project Miles In Construction

Source: Avondale Partners, April 2016

$8.2

$22.1 $21.7

$14.2

2016 2017 2018 2019Source: KeyBank Capital Markets, May 2016

North American Major Planned Large Pipeline Capex(In $ Billions)

Oil & Gas InfrastructureOil Price Volatility – What Does It Mean?


• A low percentage of our business is directly tied to oil related projects – natural gas a larger influence

• Industry estimates call for continued high levels of oil and gas production over near- and long-term• Most of our services address strategic infrastructure needs driven by longer-term North American

unconventional shale and Canadian oil sands development • Various services we provide and end markets we serve have been impacted by oil price volatility

Large Pipeline• Expect large pipeline market to

remain active over next several years

• Oil pipelines that are already commercially secured are expected to move forward

• Approx. 2/3 of the large pipeline opportunities over the next several years expected to be for natural gas transport

• This is critical infrastructure needed to support long-term production

Midstream Gathering• Little exposure to oily shales• Vast majority of Quanta’s

midstream gathering work is in Marcellus and Utica areas

• Driven by natural gas & natural gas liquids

• E&P’s focusing capex on “core” shale plays (Marcellus, Utica, Permian, Eagleford, Bakken)

• Infrastructure bottlenecks remain

Other O&G Services• We provide a wide range of other

oil and gas infrastructure services, each with varying drivers and end markets

• Primarily natural gas related• Engineering, maintenance, repair

and replacement services• Some of these services are being

impacted by low commodity prices

Strategies for Differentiation & GrowthInitiatives to Grow the Business Over the Next Five Years


• Ongoing programs to continuously improve safety, leadership development, operational performance standards and results• Safety ingrained in Quanta’s culture. Strive for incident free environment• Developed world class training facility• Leadership training programs to provide upward path for advancement and to develop

the next generation of field leadership

• Leverage and grow leadership position in existing services to expand in current markets and penetrate new ones• Through acquisitions and greenfield initiatives• Strategic alliance agreements; increase negotiated work

• Create additional platforms to continue profitable growth for the long-term• Acquisitions play important role• Strategic investments that provide construction backlog and is a competitive

differentiator



Acquisition Strategic Rationale

• Acquisitions have and will continue to play a strategic role in differentiating Quanta in the marketplace and positioning the company for profitable long-term growth

• Seek well respected, entrepreneurial leadership with extensive history of operational excellence

• Only interested in companies that bring strategic value to Quanta and provide opportunity for 1+1=3 growth opportunity over time

• Brings leadership position in new geography• Enhances presence and capabilities in an

existing geography• Brings or enhances customer relationships• Brings leadership position in adjacent or

new market• Brings unique service or technology that

Quanta can leverage to further differentiate its turnkey solution offering

Typical Deal Terms• Target 4x-5x EBITDA multiple• 40% of consideration in Quanta stock, 60%

of consideration in cash• Meaningful stock component for operational

and stakeholder alignment• Company leadership stays on to run the

business• Non-compete agreements• Stock locked up for period of time



Exam

pleRationale

• 2014 - Canadian Large Pipeline & Midstream Pipeline Services

• Significantly enhanced Canadian large pipeline capabilities

• Improved midstream gathering, facilities, integrity and fabrication capabilities

Oil & Gas

• 2013 & 2014 - Australia • Electric power infrastructure opportunities• Pipeline infrastructure needs for coal seam gas

and LNG export facilitiesElec. / O&G

• 2013 – Rocky Mountain Area Expansion • Expand into Rocky Mountain region Electric

• 2013 - Offshore Oil and Gas Infrastructure• Following onshore customers who have assets

onshore and offshore• Changing industry regulations, fragmented

market, significant growth opportunity

Oil & Gas

• 2011 - Shale Midstream Gathering • Significant need and organic growth opportunities; segment diversification

Oil & Gas

• 2010 - Canadian Electric Transmission and Distribution

• First mover – Market leader in Canadian T&D with Valard and other acquisitions.

Electric

• Acquired Price Gregory to capitalize on the need for takeaway pipeline for shales and Canadian oil sands

Oil & Gas• 2009 - Large Pipeline & Facilities

• 2007 - EPC Solar • Leverage electric power leadership into EPC solar opportunities

Electric

Financial Overview

Recent Financial PerformanceRevenue, GAAP and Adjusted Diluted EPS


(4) Includes $80.2 million of expense, net of tax, or $0.36 per diluted share, from an arbitration decision, charge to provision for long-term contract receivable and the benefit associated with release of certain income tax contingencies.

For the Years Ended December 31,

2012 2013 2014 2015 2016 Est.

($ in millions)Revenue

$5,825$1.22

$1.40$1.22

$0.62

$1.20

2012 2013 2014 2015 2016Est.

(4)

(5)

Electric Power Oil & Gas Infrastructure

GAAP Diluted EPS (1)

$1.37$1.56

$1.85

$1.11

$1.54

2012 2013 2014 2015 2016Est.

Adjusted Diluted EPS (1)

$6,412

(2) Represents the midpoint of guidance range

(2)

*

$7,747(2)

(2)

$1.73

(3) Includes $0.33 gain from sale of Howard Energy investment

$7,700

(3)

(1) From continuing operations

$7,572

(5) Includes $73.4 million of project losses. Also includes $45.4 million of expense, net of tax, or $0.23 per diluted share,from net asset impairment charges.

Recent Financial PerformanceRevenue and Operating Income Margin by Segment


For the Years Ended December 31,

($ in millions)Electric Power

($ in millions)Oil & Gas Infrastructure

(3) Excludes a $38.8 million expense associated with an arbitration decision. Refer to appendix for non-GAAP reconciliation(4) Includes $7.3 million of project losses.

$1,535$1,870

$2,445$2,635

3.6%

7.4%8.3%

5.4%

2012 2013 2014 2015

Revenue Op. Margin

(3)

(4)

$4,290 $4,542$5,303 $4,937

12.4%11.5% 10.7%

7.5%

2012 2013 2014 2015

Revenue Op. Margin

(2)

(1) Operating margin excludes a $102.5 million charge to cost of services for long-term contract receivable in 2014. Refer to appendix for non-GAAP reconciliation(2) Excludes a $6.6 million property and equipment impairment charge. Includes the impact of $66.1 million of project losses. Refer to appendix for non-GAAP reconciliation

(1)

Recent Financial PerformanceStrong Backlog


($ in millions)12-Month Backlog

($ in millions)Total Backlog

Electric Power Oil & Gas Infrastructure

12/31/12 12/31/13 12/31/14 12/31/15 9/30/2016

$3,699

12/31/12 12/31/13 12/31/14 12/31/15 9/30/2016

$6,525$4,904

$8,237$5,220

$9,236

$5,209

$9,387$5,766

$9,843

Recent Financial PerformanceStrong Balance Sheet to Support Growth Strategies


$395 $489 $191 $129 $117

$517$1,085

$920 $1,036 $1,017

12/31/12 12/31/13 12/31/14 12/31/15 9/30/2016

Cash Credit Facility (Unused)

($ in millions) 12/31/2012 12/31/2013 12/31/2014 12/31/2015 9/30/2016

Cash and Equivalents $ 395 $ 489 $ 191 $ 129 $ 117

Other Debt -- 2 12 15 7

Credit Facility -- -- 69 467 480

Total Debt -- 2 81 482 487

Total Equity 3,772 4,241 4,526 3,088 3,277

Total Capitalization $ 3,772 $ 4,243 $ 4,607 $ 3,570 $ 3,764

($ in millions)

Liquidity$912

$1,574

$1,111 $1,165 $1,134

Recent Financial PerformanceHistorical Cash Flow


-$43

$163

$15

$434

2012 2013 2014 2015

($ in millions)

Cash Flow from Continuing Operations

($ in millions)

Free Cash Flow from Continuing Operations*

$117

$371

$248

$618

2012 2013 2014 2015

For the Years Ending December 31,

*Net cash provided by operating activities from continuing operations plus proceeds from sale of property and equipment less additions of property and equipment

For the Years Ending December 31,

Significant Corporate ActionsCommitted to Generating Shareholder Value


Executed on $1.25 Billion Share Repurchase Authorization• Aug. 2015 – Announced a new $1.25 billion share repurchase authorization through Feb. 28, 2017• Completed a $750 million accelerated stock repurchase (ASR) arrangement in April 2016

• Acquired 35.1 million shares at $21.36 per share• $500 million for opportunistic repurchases through Feb. 28, 2017

• $450 million / 19.2 million shares retired thus far

Completed $500 Million Share Repurchase Authorization• Completed previous $500 million share repurchase program• Acquired approximately 17.4 million shares for total cost of $500 million

Demonstrates our confidence in Quanta’s long term growth prospects and our commitment to enhancing shareholder value

Acquired $1.7 Billion of Quanta Common Stock

Under these programs Quanta has acquired approx. 32% of its outstanding stock

Recent Financial Performance2012 – 2015 Use of Capital & Go-Forward Priorities


Ending Cash@ 12/31/11

Cash fromOperations

Net Proceedsfrom Sale of

FiberLicensing

CreditFacility

Borrowings

Net Proceedsfrom Sale of

Telecom

Gain onInvestments

Other, Net Repurchasesof Stock

Capex, Net Acquisitions,Net

Investments Ending Cash@ 12/31/15

Use of Capital Priorities

(Amounts in millions)

$315

$1,353

$848

$1,700$485

$49

$98 $129

$783

• Working Capital• Capital Expenditures• Acquisitions• Investments• Stock Repurchase

$728

$265$221

SummaryPositioned for Growth


Multi-Year Growth Opportunities

Innovative, Industry Leading Solutions

Scale & Scope

Financial Strength

Operational & Safety Excellence

Corporate Office2800 Post Oak Blvd., Suite 2600Houston, TX 77056713-629-7600www.quantaservices.com

Investor ContactKip Rupp, CFAVice President – Investor [email protected]

Download the Quanta Services IR AppAvailable for iPhone, iPad & Android mobile devices

QuantaServicesIR

@QuantaIR

Connect With Quanta Services Investor Relations

AppendixReconciliation of Adjusted Net Income from Continuing Operations Attributable to Common Stock


2013 2014 2015 2016 2016Reconciliation of adjusted net income from continuing operations attributable to common stock: 372,057 269,224 120,286 184,500 192,500 Net income from continuing operations attributable to common stock (GAAP as reported)Adjustments: Impact of sale of equity ownership in Howard Energy (112,744) Impact of tax contingency releases (9,935) Provision for long term contract receivable 102,460 Arbitration expense 38,448 Asset Impairment Charges 58,451 Impact of Alberta tax law change 4,982 Severance and restructuring charges 6,352 6,352 Impact of income tax contingency releases and certain audit settlements (8,099) Impact of tax benefit from realization of previously unrecognized deferred tax asset (4,228) Acquisition and integration costs 8,145 14,754 7,966 3,053 3,053 Income tax impact of adjustments 39,836 (55,535) (16,186) (3,092) (3,092) Adjusted net income from continuing operations attributable to common stock before certain non-cash adjustments 297,359 361,252 171,271 190,813 198,813

Non-cash stock-based compensation 34,381 37,449 36,939 40,800 40,800 Amortization of intangible assets 25,865 34,257 34,848 31,700 31,700 Income tax impact of non-cash adjustments (22,715) (26,453) (25,817) (26,500) (26,500)

Adjusted net income from continuing operations attributable to common stock 334,890 406,505 217,241 236,813 244,813

Weighted average shares:Weighted average shares outstanding for basic earnings per share 214,929 219,668 195,113 157,300 157,300 Effect of dilutive stock options 49 22 7 - - Weighted average shares outstanding for diluted and adjusted diluted earnings per share 214,978 219,690 195,120 157,300 157,300

Diluted earnings per share from continuing operations and adjusted diluted earnings per share from continuing operations:Diluted earnings per share from continuing operations 1.73 1.22 0.62 1.17 1.22

Adjusted diluted earnings per share from continuing operations 1.56 1.85 1.11 1.51 1.56

Estimated Guidance Range

Adjusted Diluted EPS

Estimated Guidance Range

20132014201520162016

Reconciliation of adjusted net income from continuing operations attributable to common stock:372,057269,224120,286184,500192,500

Net income from continuing operations attributable to common stock (GAAP as reported)

Adjustments:

Impact of sale of equity ownership in Howard Energy(112,744)

Impact of tax contingency releases(9,935)

Provision for long term contract receivable102,460

Arbitration expense38,448

Asset Impairment Charges58,451

Impact of Alberta tax law change 4,982

Severance and restructuring charges6,3526,352

Impact of income tax contingency releases and certain audit settlements(8,099)

Impact of tax benefit from realization of previously unrecognized deferred tax asset(4,228)

Acquisition and integration costs8,14514,7547,9663,0533,053

Income tax impact of adjustments39,836(55,535)(16,186)(3,092)(3,092)

Adjusted net income from continuing operations attributable to common stock before certain non-cash adjustments297,359361,252171,271190,813198,813

Non-cash stock-based compensation 34,38137,44936,93940,80040,800

Amortization of intangible assets25,86534,25734,84831,70031,700

Income tax impact of non-cash adjustments(22,715)(26,453)(25,817)(26,500)(26,500)

Adjusted net income from continuing operations attributable to common stock 334,890406,505217,241236,813244,813

Weighted average shares:

Weighted average shares outstanding for basic earnings per share214,929219,668195,113157,300157,300

Effect of dilutive stock options49227- 0- 0

Weighted average shares outstanding for diluted and adjusted diluted earnings per share214,978219,690195,120157,300157,300

Diluted earnings per share from continuing operations and adjusted diluted earnings per share from continuing operations:

Diluted earnings per share from continuing operations1.731.220.621.171.22

Adjusted diluted earnings per share from continuing operations 1.561.851.111.511.56

AppendixReconciliation of Electric Power and Oil & Gas Infrastructure Services Segments Operating Income, As Adjusted


Amounts in millions, except percentagesOil & Gas

Infrastructure12/31/2014 12/31/2015 12/31/2014

Revenues 5,302.7$ 4,937.3$ 2,444.6$

Operating Income (as reported) 463.0 362.3 162.8

Addback: Provisions for long term contract receivable 102.5 - - Arbitration expense - - 38.8 Multi-employer pension plan - - - Property and equipment impairment charge - 6.6 -

Operating Income (as adjusted) 565.5$ 368.9$ 201.6$

Operating income margin (as reported) 8.7% 7.3% 6.7%Operating income margin (as adjusted) 10.7% 7.5% 8.3%

Electric Power

Sheet1

Adjusted Operating Income Margin

$ in millions

Support for slide 23

Amounts in millions, except percentagesElectric PowerOil & Gas Infrastructure

12/31/1412/31/1512/31/14

Revenues$ 5,302.7$ 4,937.3$ 2,444.6

Operating Income (as reported)463.0362.3162.8

Addback:

Provisions for long term contract receivable102.5-0-0

Arbitration expense-0-038.8

Multi-employer pension plan-0-0-0

Property and equipment impairment charge-06.6-0

Operating Income (as adjusted)$ 565.5$ 368.9$ 201.6

Operating income margin (as reported)8.7%7.3%6.7%

Operating income margin (as adjusted)10.7%7.5%8.3%

AppendixReconciliation of Free Cash Flow


2012 2013 2014 2015Net Cash Provided by Operating Activities of Continuing Operations 116,715 370,558 247,742 618,183 Less: Net Capital Expenditures:Additions to Property and Equipment (171,983) (221,946) (247,216) (209,968) Proceeds from Sale of Property and Equipment 12,358 14,789 14,448 26,178 Net Capital Expenditures (159,625) (207,157) (232,768) (183,790)

Free Cash Flow (42,910) 163,401 14,974 434,393

Free Cash Flow from Cont Ops

Free Cash Flow From Continuing Operations

Source:2012201320142015

(Support Cash Flow Statement)Net Cash Provided by Operating Activities of Continuing Operations 116,715370,558247,742618,183

(Support Cash Flow Statement)Less: Net Capital Expenditures:

(Support Cash Flow Statement)Additions to Property and Equipment(171,983)(221,946)(247,216)(209,968)

(Support Cash Flow Statement)Proceeds from Sale of Property and Equipment12,35814,78914,44826,178

(Recalculation)Net Capital Expenditures(159,625)(207,157)(232,768)(183,790)

(Recalculation)Free Cash Flow(42,910)163,40114,974434,393



This presentation (and oral statements regarding the subject matter of this presentation) includes “forward-looking statements” intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. These statements reflect assumptions, expectations, projections, intentions or beliefs about future events, and use words such as "anticipate," "estimate," "project," "forecast," "may," "will," "should," "could," "expect," "believe," "plan," "intend" and other words of similar meaning. You can identify these statements by the fact that they do not relate strictly to historical or current facts. In particular, these include, but are not limited to, statements relating to the following:

• Projected revenues, net income, earnings per share, margins, capital expenditures, weighted average shares outstanding, tax rates, and other projections of operating or financial results;• Our business outlook, growth or opportunities in particular markets;• Future capital allocation initiatives, including the amount, timing, availability, and strategy with respect to any future stock repurchases;• Our long-term strategy and growth prospects of Quanta; • Our ability to deliver increased value and return capital to shareholders; • The strategic use of our balance sheet;• The expected value of contracts or intended contracts with customers;• The scope, services, term and results of any projects awarded or expected to be awarded for services to be provided by us;• The anticipated commencement and completion dates for any projects awarded;• The development of larger electric transmission and oil and natural gas pipeline projects and their impact on our business or the demand for our services; • The level of oil, natural gas and natural gas liquids prices and their impact on our business or demand for our services;• The impact of renewable energy initiatives, including mandated state renewable portfolio standards, the economic stimulus package and other existing or potential energy legislation; • Potential opportunities that may be indicated by bidding activity or similar discussions with customers;• The potential benefits from acquisitions;• The expected outcome of pending or threatened litigation; • The business plans or financial condition of our customers;• Our plans and strategies; • The current economic and regulatory conditions and trends in the industries we serve; • Possible recovery on pending or contemplated change orders or affirmative claims against customers or third parties; and • Other statements reflecting expectations, intentions, assumptions or beliefs about future events, and other statements that do not relate strictly to historical or current facts.

Although our management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These forward-looking statements are not guarantees of future performance and involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or beyond our control. These forward-looking statements reflect our beliefs and assumptions based on information available to our management at the time the statements are made. We caution you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by our forward-looking statements and that any or all of our forward-looking statements may turn out to be wrong. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties, including the following:

• Market conditions;• The effects of industry, economic or political conditions outside our control;• Quarterly variations in our operating results;• Adverse economic and financial conditions, including weakness in capital markets;• Trends and growth opportunities in relevant markets;• The cost of borrowing, availability of credit and cash, fluctuations in the price and volume of our common stock, debt covenant compliance, interest rate fluctuations and other factors affecting our financing and investing activities;• Delays, reductions in scope or cancellations of anticipated, pending or existing projects, including as a result of weather, regulatory or permitting issues, environmental processes, project performance issues, or our customers'

capital constraints;• The successful negotiation, execution, performance and completion of anticipated, pending and existing contracts, including the ability to obtain awards of projects on which we bid or are otherwise discussing with customers;• Our ability to attract skilled labor and retain key personnel and qualified employees; • The potential shortage of available skilled employees;



• Our dependence on fixed price contracts and the potential to incur losses with respect to the contracts;• Estimates relating to our use of percentage-of-completion accounting;• Adverse impacts from weather;• Our ability to generate internal growth;• Competition in our business, including our ability to effectively compete for new projects and market share;• The effect of natural gas, natural gas liquids and oil prices on our operations and growth opportunities and on our

customers’ capital programs and the resulting impact on demand for our services;• The future development of natural resources in shale formations;• Potential failure of renewable energy initiatives, the economic stimulus package or other existing or potential

legislative actions to result in increased demand for our services;• Liabilities associated with multiemployer pension plans, including underfunding of liabilities and termination or

withdrawal liabilities;• The possibility of further increases in the liability associated with our withdrawal from a multiemployer pension

plan;• Liabilities for claims that are self-insured or not insured; • Unexpected costs or liabilities that may arise from lawsuits or indemnity claims asserted against us;• The outcome of pending or threatened litigation;• Risks relating to the potential unavailability or cancellation of third party insurance, the exclusion of coverage for

certain losses, and potential increases in premiums for coverage deemed beneficial to us;• Cancellation provisions within our contracts and the risk that contracts expire and are not renewed or are

replaced on less favorable terms;• Loss of customers with whom we have long-standing or significant relationships;• The potential that participation in joint ventures exposes us to liability and/or harm to our reputation for acts or

omissions by our partners;• Our inability or failure to comply with the terms of our contracts, which may result in unexcused delays, warranty

claims, failure to meet performance guarantees, damages or contract terminations;• The inability of our customers to pay for services;• The failure to recover on payment claims against project owners or to obtain adequate compensation for

customer-requested change orders;• The failure of our customers to comply with regulatory requirements applicable to their projects, including those

related to awards of stimulus funds, which may result in project delays and cancellations;• Budgetary or other constraints that may reduce or eliminate tax incentives for or government funding of projects,

including stimulus projects, which may result in project delays or cancellations;• Estimates and assumptions in determining our financial results and backlog;• Our ability to realize our backlog;• Risks associated with operating in international markets, including instability of foreign governments, currency

fluctuations, tax and investment strategies and compliance with the laws of foreign jurisdictions, as well as the U.S. Foreign Corrupt Practices Act and other applicable anti-bribery and anti-corruption laws;

• Our ability to successfully identify, complete, integrate and realize synergies from acquisitions;• The potential adverse impact resulting from uncertainty surrounding acquisitions, including the ability to retain key

personnel from the acquired businesses and the potential increase in risks already existing in our operations;• The adverse impact of impairments of goodwill, receivables and other intangible assets or investments; • Our growth outpacing our decentralized management and infrastructure;• Requirements relating to governmental regulation and changes thereto;• Inability to enforce our intellectual property rights or the obsolescence of such rights;• Risks related to the implementation of an information technology solution;• The impact of our unionized workforce on our operations, including labor stoppages or interruptions due to strikes

or lockouts;• Potential liabilities relating to occupational health and safety matters;• Our dependence on suppliers, subcontractors and equipment manufacturers;• Beliefs and assumptions about the collectability of receivables;• The cost of borrowing, availability of credit and cash, fluctuations in the price and volume of our common stock,

debt covenant compliance, interest rate fluctuations and other factors affecting our financing and investing activities;

• The ability to access sufficient funding to finance desired growth and operations;• Our ability to obtain performance bonds;• Potential exposure to environmental liabilities;• Our ability to continue to meet the requirements of the Sarbanes-Oxley Act of 2002;• Rapid technological and structural changes that could reduce the demand for our services;• The impact of increased healthcare costs arising from healthcare reform legislation;• The impact of regulatory changes on labor costs;• The impact of significant fluctuations in foreign currency exchange rates; • The business, accounting or other effects from the sale of our fiber optic licensing operations; • Potential claims, damages or injunctive relief associated with prior dispositions of businesses; and• The other risks and uncertainties as are described elsewhere herein and in our Annual Report on Form 10-K for the

year ended Dec. 31, 2015 and as may be detailed from time to time in our other public filings with the SEC.

All of our forward-looking statements, whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements or that are otherwise included in this presentation. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. We do not undertake and expressly disclaim any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this presentation or otherwise, and we expressly disclaim any written or oral statements made by any third party regarding the subject matter of this presentation.

Slide Number 1Slide Number 2Slide Number 3Company OverviewCompany OverviewCompany OverviewCompany OverviewCompany OverviewCompany OverviewMultiyear Infrastructure Investment CycleElectric PowerElectric PowerOil & Gas InfrastructureOil & Gas InfrastructureOil & Gas InfrastructureStrategies for Differentiation & GrowthStrategies for Differentiation & GrowthStrategies for Differentiation & GrowthSlide Number 19Recent Financial PerformanceRecent Financial PerformanceRecent Financial PerformanceRecent Financial PerformanceRecent Financial PerformanceSignificant Corporate ActionsRecent Financial PerformanceSummarySlide Number 28AppendixAppendixAppendixForward Looking Statement DisclaimerForward Looking Statement Disclaimer

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