They are not taking into account anything that is not "committed" already. Such as the Keystone. Yes, I said Keystone, it's out in the open finally! Apparently they will be involved with the Keystone project, and that will be huge if it is approved. AAnd I bet it will be. Obama said NG will be part of all of the above. And it is a major bargaining tool that will be used to get some of the new taxes enforced.
Plus, they are counting on "normal" storm activity.
Plus, they will likely get new projects that are as of yet "uncommitted."
Their gross margin is increasing and they don't need the same number of projects to succeed, and yet they can expand very quickly. They said that doing Keystone won't hamper their ability to do other projects.
I just started looking at this company, and I got the same feeling from reading the conference call transcript. They basically said that Keystone is not included in any of the guidance. If approved, and given the labor union pressure being put on Obama around this project, I think it gets approved, this could be big for Quanta.
Aside from that, Quanta is in an a spot to benefit on the front and the back side of all of this. They would benefit from the pipeline that needs to be installed first, second, the conversion from oil/coal to nat gas helps, and then finally the transmission grid as a whole needs to be updated. The more regulation around efficiency we get, the better Quanta will do. With the Big O in the White House until at least 2015, I do not see this push going away any time soon.
I think this company is a raging buy at these levels.