Primoris Energy Services

Issue Winter 15


Headquartered in Deer Park, Texas, Primoris Energy Services (PES) is focused on providing quality construction services to the energy industry in the United States. It is a subsidiary of Dallas-based Primoris Services Corp., which has a history as an engineering and construction company that dates back to the 1960s.

“We are dedicated to providing quality construction service to the U.S. energy industry,” Vice President of Business Development John Cradure says. “Industrial, pipeline, power and fabrication are our four main service lines. Safety is another major concern for us, and our management takes accountability for safety, creating a safety-first culture from the top down.”

PES includes seven divisions, which are James Industrial Constructors, Sprint Pipeline Services, Saxon Construction, Force Specialty Services, Surber Roustabout, RamFab and Cardinal Mechanical. In addition, it has a subsidiary, Primoris Pipeline Services. This footprint has positioned PES so it can offer a full range of services, including industrial, civil, process mechanical, pipeline installation, electrical and instrumentation, and plant maintenance.

“We have focused mainly on industrial clients in the past, and we have also done work for gas companies, refineries and chemical plants, as well as within the power industry,” Cradure says. “We are very experienced contractors, having worked on everything from small cap projects to mega-projects.”

Market Forces
Growth in the nation’s energy industry is providing opportunity for PES. In fact, the company has recently been pursuing a half-billion-dollar project for one industrial client. Recently, the large projects in the industry have been liquefied natural gas (LNG) facilities and ethylene projects.

“We are well positioned to serve the companies that are in those markets,” Cradure says. “We can provide underground piping, concrete placement, steel erection and pipe fabrication. We have 150,000 square feet of pipe fabrication space and we are an industry expert in nickel alloys, duplex, super duplex, titanium, carbon steel, chrome moly and stainless steel pipe fabrication. We also have a continuous presence with many customers for ongoing maintenance.”

The LNG market has been particularly important because of the low natural gas prices, which are being driven by the activity in the nation’s shale plays. As exploration and production companies continue to unlock access to resources, supply is becoming more abundant.

PES is seeing its customers get involved in projects such as the development of LNG export facilities to send LNG offshore. Companies are also looking to create facilities that will allow them to power fleet trucks and commercial vehicles with LNG fuel.

“The natural gas revolution has produced a stable market, with a seemingly unlimited supply of natural gas needing to be brought to market,” Cradure says. “We can provide safe, reliable and efficient service for the construction of these LNG facilities.”

Supporting Growth
For the company to reach its goals, it is putting money back into its operations in the form of training programs and compensation packages that are helping PES to acquire and retain good people. PES believes that the companies that can find and keep their employees will be successful.

“We have a database of more than 16,000 names, so when we look at future projects, we are mindful of when they will ramp up or down, and when employees are available or booked,” Cradure says. “We don’t want to see a lull between projects. When you see the end of a project coming, it is important to have more projects in the pipeline because it keeps employees satisfied.”

Training is critically important for PES, and it is an accredited training center, which allows the company to support unskilled labor and train them to grow into supervisory and upper-management candidates. That kind of training supports organic growth, Cradure says.

Acquisitive growth is another focus, as PES looks to acquire companies that can add to its capabilities.

“We added fabrication, industrial maintenance and pipeline services,” Cradure says. “We pursue organic growth through training and retention, while acquisitions will help us to be diversified.”

In the short term, building its human resources capability will be critical for PES. Over the long term, acquisitions will be a major focus. PES understands that it needs to grow at a controllable pace so it doesn’t sacrifice quality as it grows.

“When the market turns, we need to be partnered with clients and have strong relationships with them in order to maintain a steady flow of revenue,” Cradure says. “We don’t want our business to be unsustainable.”

“Unity is strength,” says Conrad Bourg, president of James Industrial Constructors. “When there is teamwork and collaboration, wonderful things can be achieved.”

Fortunately, PES has the ability to serve many markets. The company has a strong footprint that extends into all major energy plays in the United States. It will continue to seek organic and acquisitive growth in many geographic locations.

“There are billions of dollars’ worth of projects kicking off in 2015 in just a few states alone,” Cradure says. “We need to manage our opportunities and our brand. We want this industry to know our brand and know our legacy as part of Primoris Services Corp. We are construction experts, and we can provide top-quality service on projects for all the players in the energy market.”


Primoris Energy Services