CB&I Scores Engineering, Construction Contract for Northeastern Facility
CB&I - Wednesday, July 13, 2011
rigzone.com
From the article:"...CB&I has been awarded a contract, valued in excess of $300 million, for a new natural gas processing plant in the Northeastern U.S....".
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My original purchase of this company was because of their growing NG infrastructure businesses. I thought they would be a big player in building many of the new NG processing plants in the growing shale regions in the U.S.. I am also pleasantly surprised that their newly created Lummus Technology division is landing service contracts that provides the initial NG process planning design. This group of engineers and the services they provide allows the company to land these new processing plant facility contracts.
From the new contract announced this week:"...CB&I's work scope includes the engineering, procurement and construction of a 200 million cubic foot per day natural gas processing plant, including full fractionation and treatment capabilities, storage tanks and loading systems. In addition, CB&I's Lummus Technology business sector is providing its proprietary NGL-MaxSM recovery technology. The contract is scheduled for completion in 2012. .."
The stock has run up over 122% in the past year. Based on the analysts estimate(s) for next year of $2.83/share and an industry PE of 19, fair value could be around $53.77/share. That's a possible 33% increase from Friday's close of $ 40.50/share. With a looming slow down in economic growth, I will hold my small amount of shares and perhaps add back to a full position on any significant correction.
EKS |
