With a new five-year services agreement signed with major
utility company Xcel Energy in support of their massive natural gas pipeline
infrastructure and revenues up more than 21% year-over-year, automation
specialist and provider of engineering, procurement and construction management
(EPCM) services, ENGlobal, has met or exceeded their operational targets
recently. Being able to comfortably expand internally while still increasing
overall margins on their projects, even accelerating revenue intake when compared
to last fiscal year, when the company divested their Gulf Coast EPCM business
for nearly $80 million, all speak mightily of the company’s ability to weather
a downturn in broader energy prices and still thrive.
Consistent project execution has been key to ENG’s success
and the deal signed between ENG and Xcel, with whom the company has a long
history of cooperation, having executed a sizeable capital program to date in
an extremely efficient manner, will see the company providing a variety of design,
engineering and procurement services across Xcel’s sprawling nationwide natural
gas infrastructure footprint. This deal is a natural extension of the
relationship between the two companies and owes a lot to ENG’s exemplary
performance with previous large pipeline projects, like Xcel’s 60-mile West
Main replacement job and the 34-mile Clean Air Clean Jobs Act related Cherokee
pipeline. A real vote of confidence like this follow up deal, from one of the
biggest domestic utilities, which has a $17 billion plus market capitalization
and annual revenues of nearly $11 billion, is a glowing advertisement of
ENGlobal’s expertise in the midstream and downstream sectors to other potential
clients.
That said, ENGlobal’s automation expertise is easily on par
with their EPCM capabilities and more companies are realizing each day how
crucial it is to go with a highly experienced services partner like ENG when it
comes to handling mission-critical tasks like control systems integration. As a
recent article in the automation industry’s leading publication,
Autmomation.com, recently pointed out, it is the engineering culture and proven
track record of a given company which is truly essential when it comes to
ensuring you are dealing with a highly skilled team of professionals who can
deliver results that will either make or break and entire project.
Also noted in the article was the importance of logistics
and geographical location, even if the team servicing the particular project’s
automation needs is relatively small. ENG has a number of ideally-located
facilities to serve their target industries, with their primary midstream
automation, subsea controls and integration, as well as automation integration
and fabrication facilities in Houston, Texas, proximal to their Gulf Coast
clients. In addition, ENG has their primary upstream/downstream process
automation facilities over in the heart of the Southeast at Mobile, Alabama.
The company will be supporting the recent Xcel agreement from their main
upstream/midstream pipeline and facilities location in Denver, Colorado and the
company maintains a large midstream/downstream engineering facility in Tulsa,
Oklahoma as well, giving the company excellent traction with the world’s
largest crude oil storage facility, the Cushing Hub and its numerous operators.
ENG is one of the leading providers of automation
integration services today for pipeline, facility and terminal projects,
offering a complete soup-to-nuts approach that spans the gamut from conceptual
engineering and project scope development, to estimates, eventual design and
even eventual project management. Few companies have both the EPCM and
automation experience in hydrocarbon transportation and distribution that
ENGlobal has and whether it is developing feasibility studies and the
engineering framework for a given project, or circumnavigating the complex
permitting and construction requirements, the company has the know how to
deliver a command performance via their expert teams, who are always
tightly-integrated with the client’s project teams.
Take a closer look at ENGlobal by visiting www.englobal.com
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MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
