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Primoris Services Corporation Announces New Contract Work Valued At Over $370 Million

Stocks in this article: PRIM

Primoris Services Corporation (NASDAQ Global Select: PRIM) (“Primoris” or “Company”) today announced new contract work totaling over $370 million for the period from May 9, 2012 to July 15, 2012. The new contracts and work authorizations secured by Primoris subsidiaries include power, pipeline, gas utility, industrial, water/wastewater, and highway/infrastructure projects throughout the continental United States.

Of the total awards, contracts valued at approximately $144 million are cost reimbursable projects and are not includable in backlog. Approximately $113 million of the new projects were awarded in the second quarter 2012, and the remaining $113 million represents new contracts entered into in the third quarter 2012.

In the East Construction Services Segment:

  • James Construction Group was awarded new contract work totaling approximately $118.7 million, of which approximately 65% should be completed by the end of 2012. The new contract work consists of the following:
    • The James Heavy Civil group work includes over $5.6 million of bridge construction work in Louisiana, $42.3 million for major highway construction projects in Central Texas, and $27 million for various transportation infrastructure projects in the Houston, Texas region. The Houston region projects include new work for the Silva Division, a recent acquisition.
    • The James Industrial group was awarded over $30 million for the construction of a new chemical facility and $2.7 million for other industrial projects in South Louisiana.
    • The Cardinal Mechanical division was awarded a $2.3 million specialty mechanical project for Southern Methodist University in Dallas.
    • The James Infrastructure and Maintenance group was awarded approximately $2.9 million for power plant related site work in Texas, $3.5 million for industrial site work in Louisiana, and $2.4 million for mining support work in Florida.
  • Cardinal Contractors was successful in securing approximately $10.3 million of new work in Florida, consisting of various water/wastewater construction projects and GML rehabilitation/lining work. Approximately 50% of this work should be completed in 2012.
  • Sprint Pipeline Services, a Primoris subsidiary acquired in March 2012 and headquartered in Houston, TX, secured $24.3 million in new work commitments. Their projects include a $14.3 million pipeline project in the Eagle Ford Shale region and $10 million from midstream oil & gas companies for various pipeline related projects. All of this work should be completed by the end of 2012.

In the West Construction Services Segment:

  • The ARB Underground Group has recently acquired approximately $101.9 million in new contract work in California, all of which should be substantially complete by the end of 2012. This new work includes:
    • $24.3 million for various natural gas pipeline construction projects;
    • approximately $39.8 million for retrofit and pipeline integrity work from three major California utility companies;
    • $9.0 million for underground gas and electric distribution projects;
    • and $28.8 million for water resource related pipeline construction work.
  • The ARB Industrial Group’s previously announced 50/50 joint venture was awarded an additional $38 million in contract value for work at the major solar power project in California. The majority of this work will be completed in 2013.
  • Rockford Corporation was awarded contracts for new natural gas pipeline construction work totaling approximately $66.1 million. This new work is located predominately in the Marcellus Shale region of Pennsylvania. The majority of this work should be completed in 2012.
  • Alaska Continental Pipeline secured approximately $11.5 million in pipeline replacement and upgrade work in the Pacific Northwest. All of this new work should be substantially complete by the end of 2012.

ABOUT PRIMORIS

Founded in 1946, Primoris, through various subsidiaries, has grown to become one of the largest construction service enterprises in the United States. Serving diverse end markets, Primoris provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to major public utilities, petrochemical companies, energy companies, municipalities, and other customers. With its acquisitions of James Construction Group in December 2009 and Rockford Corporation in November 2010, Primoris has doubled its size and the Company’s national footprint now extends from Florida, along the Gulf Coast, through California, into the Pacific Northwest and Canada. For additional information, please visit www.prim.com.

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements, including with regard to the Company’s future performance. Words such as "estimated," "believes," "expects," "projects," “may,” and "future" or similar expressions are intended to identify forward-looking statements. Forward-looking statements inherently involve risks and uncertainties, including without limitation, those described in this press release and those detailed in the "Risk Factors" section and other portions of our Annual Report on Form 10-K, our Form 10-Q, and other filings with the Securities and Exchange Commission. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

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