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Willbros Group Inc. Message Board

  • billyteex1 billyteex1 Sep 24, 2013 8:00 AM Flag

    Gulf Coast

    Several times it was mentioned about the Gulf Coast and the plans for a huge project. Estimates range that this project will be somewhere $10-$12B. However mentioned by the CEO it could actually grow from $50B-$1T in developments. From what I have researched it's called the Cameron Parish. The key to WG is that they are ahead of the curve on High Pressure Regs. The company expects to double revenues and get to 5% profitability. Let's see if they double Revenues, that's about $4B and say they reach 5% profitability, that's about $200M. You can figure out the EPS yourselves.

    This Gulf Coast project is going to be very big. WG is position to get their piece of it, in MHO. The comment I liked best by the CEO was that he characterized the market as "Robust". They plan on debt reduction of $50-$100M which is always a nice item. The down stream business is going to explode. The liquidified NG is needed around the world and the USA is in a position to take advantage of this development. Japan and Europe are depended on this gas. This could be a similar story to what RIG did 10 years ago. The CFO is buying because he sees the transition. Granted they have had their lumps over the past few years, but that's a learning curve. You know what they say, if you want to find a company that's about to double, buy one that just did it. They have the financing in place, they have or are selling off unprofitable assets. They are focused. The pieces just need to come together.

    Sentiment: Buy

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