765kV EPC Power Line Project Is Largest Contract Award in Quanta's History
Houston, TX /PRNewswire/ - Quanta Services, Inc. (NYSE: PWR) announced today that it was selected by American Electric Power (AEP) to provide engineering, procurement and construction (EPC) solutions for the Wind Catcher Generation Tie Line (Wind Catcher Tie Line). The anticipated contract value for this project makes it the largest project award in Quanta's history. The Wind Catcher Tie Line consists of approximately 350 miles of a single circuit 765kV power line located between Guymon and Tulsa, Oklahoma, and two new substations. Quanta will provide turnkey EPC services for the entire project and estimates that up to 1,000 people could be working on the project in Oklahoma, supported by technical and engineering operations in Texas. Once completed, the Wind Catcher Tie Line would deliver energy from the Wind Catcher wind farm in western Oklahoma to customers in Arkansas, Louisiana, Oklahoma and Texas.
Duke Austin, Quanta's President and Chief Executive Officer, commented, "We are pleased to provide an innovative solution to a long-standing customer and partner. Quanta has built more high-voltage electric transmission infrastructure in North America than any other specialty contractor, with industry-leading experience constructing 765kV power lines. Quanta brings significant scope, scale and financial resources, as well as a track record of safely executing large, complex projects. We are confident that our collaborative process will provide benefits to the communities this project is designed to serve and appreciate AEP's confidence in our ability to safely execute on the Wind Catcher Tie Line project."
Quanta is providing early-phase project support services to AEP. Subject to AEP obtaining state and federal regulatory approvals, which are required for the Wind Catcher Tie Line project, Quanta expects construction to begin in the later part of 2018, with completion expected in late 2020. Quanta has yet to determine whether the project will be included in third quarter 2017 backlog.
About Quanta Services
Quanta Services is a leading specialized contracting services company, delivering infrastructure solutions for the electric power, oil and gas and communications industries. Quanta's comprehensive services include designing, installing, repairing and maintaining energy and communications infrastructure. With operations throughout the United States, Canada, Latin America, Australia and select other international markets, Quanta has the manpower, resources and expertise to safely complete projects that are local, regional, national or international in scope. For more information, visit www.quantaservices.com.
Forward Looking Statements
This press release (and any oral statements regarding the subject matter of this press release) contains forward-looking statements intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, any expected value of the contract or project; the scope, services, terms and results of the project awarded under the contract; the anticipated commencement and completion dates for construction of the project; the anticipated date for obtaining regulatory approvals for the project; projected backlog; the impact of the project on the electric power grid; and the safety, efficiency or success of the project; as well as statements reflecting expectations, intentions, assumptions or beliefs about future events and other statements that do not relate strictly to historical or current facts. Although Quanta's 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 statements can be affected by inaccurate assumptions and by a variety of risks and uncertainties that are difficult to predict or beyond our control, including, among others, the effects of industry, economic or political conditions outside of the control of Quanta; failure to obtain regulatory approval for the project; successful performance and completion of the contract and the project awarded thereunder; failure to realize the anticipated value of the contract or the project; delays, reductions in scope, or cancellations of the contract or the project awarded thereunder, including as a result of weather, regulatory or environmental issues, project performance issues, claimed force majeure events, or customer capital constraints; the potential for claims associated with schedule delays, performance shortfalls or Quanta's inability or failure to comply with the terms of the contract for the project, which may result in additional costs, unexcused delays, warranty claims, failure to meet performance guarantees, damages or contract termination; the inability or refusal of the customer to pay for Quanta's services; failure of the customer to comply with applicable regulatory requirements, which could result in delay or cancellation of the project; the failure of subcontractors to perform their obligations, including warranty obligations, under their subcontracts; adverse changes in economic conditions and trends in relevant markets; estimates and assumptions in determining contract value and backlog; Quanta's ability to realize backlog; cancellation and termination provisions present in the contract; and other risks and uncertainties detailed in Quanta's Annual Report on Form 10-K for the year ended Dec. 31, 2016, Quanta's Quarterly Report on Form 10-Q for the quarter ended Mar. 31, 2017 and any other documents that Quanta files with the Securities and Exchange Commission (SEC). For a discussion of these risks, uncertainties and assumptions, investors are urged to refer to Quanta's documents filed with the SEC that are available through the company's website at www.quantaservices.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at www.sec.gov. 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. Quanta does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Quanta further expressly disclaims any written or oral statements made by any third party regarding the subject matter of this press release.
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