WHC Energy Services

WHC Energy Services LLC:

Optimistic about what’s in the pipeline As it celebrates its 60th birthday, WHC Energy Services LLC anticipates dynamic industry expansion.

Written by: Kevin Doyle Produced by: Stephen Marino

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HC Energy Services LLC embarks on its 60th year in business in 2017 with a clear vision for the future and a reputation forged as a preferred contractor meeting the needs of America’s leaders in energy delivery.

Established in 1957 as Woodson, Holzer and Crain, and formerly known as WHC, Incorporated, the company maintains headquarters in Broussard, LA. In a move that strengthened its financial position and assured sustainable growth in the oil and gas industry, it teamed with equity group Alvarez and Marsal Capital Partners in December 2014, changing its name to WHC Energy Services, LLC. Today this privately held general contractor is under the guidance of President Randy Warner and provides construction services for pipelines and related facilities.

It also offers pipeline right of way and facilities maintenance services.

Warner became involved with the company in 2004 as a consultant, brought in by George Crain Jr.,

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| WHC Energy Services LLC| 1 the son of founder George Crain Sr., to evaluate and determine whether to sell what was a small family-owned business or simply close up shop. “I told them that I thought we could build it up and find a suitable buyer. I became President and COO in January 2005 and George Crain Jr. stayed on as CEO. In December 2014,

| WHC Energy Services LLC| 2 the sale completed with Alvarez and Marsal Capital Partners after presentations from many other interested buyers.”

In little more than a decade, WHC has transformed from a business catering to a select clientele into a dynamo that eclipsed USD $330 million in sales revenue in 2016.

Leadership is at the very core of Warner’s DNA but he deflects any

credit. “Our success is the result of dedicated teamwork,” Warner says.

“Our culture is about family first and working together. It’s not about me, or any individual. It’s about the people who do the work. It’s about the quality of our work – we do what we say we are going to do. We live our belief in the value of safety first and treating everyone with mutual trust and respect. We have received three letters of appreciation from clients in the last month alone who appreciate our work ethic and our professionalism,” says Warner.

Warner is a 1970 graduate of the Air Force Academy. He flew 56 combat missions in a B-52 during the Vietnam War. Throughout his professional career, he has applied the lessons learned while leading a flight crew a half-century ago and half a world away.

Growing The Company George Crain Sr., the only one of the three founders who remained in the industry, ran the company as a small family

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| WHC Energy Services LLC| 5 business, cultivating a specific market and a stellar reputation.

George Crain Jr. joined the company after serving in the Army and eventually, with his sister Azalie Holland, bought out their father, maintaining operations as they were with annual revenue of $25 $30 million.

Sadly, the younger Crain contracted Multiple Sclerosis and could not serve effectively as company president. When the downturn of 2004 hit, the company was not fully prepared to weather the trough in available projects so George Crain Jr. financed it out of his personal resources. The company then sought Warner’s

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experience, leadership and advice.

Becoming today’s $330 million version of its former self required both the discipline to ride out The Great Recession that eviscerated the construction industry in general and the foresight to implement measured long-term growth strategies that ultimately led to the partnership with Alvarez and Marcal Capital.

People and Training

When Warner came to WHC from the Petro-Chemical sector, he discovered the company, in general, did not have much in the way of formal business management training.

He set about to change that,

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“The industry dynamics are good. We see continuous expansion.”

President Randy Warner www.whcenergyservices.com

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| WHC Energy Services LLC| 9 implementing a cradle to grave approach for each contracted project.

was to send key Project Managers for formal Project Management training.

“You have to start with the people doing your work. From the time we get a request to submit a proposal for a project, we assign a Project Manager with a specific Superintendent to develop the construction strategy and estimate. If we win the job, that PM and Super will stay with that job until the last dollar is collected. They own it,” Warner says.

“From there, our guys said ‘Why don’t we just teach it ourselves’ and that’s what we did. Our key managers started an in-house training Lunch and Learn meeting for every project we execute,” Warner says.

The next step in development

“We have had maybe five people

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Personnel retention is rarely an issue. Something as simple as recognizing an employee with a company baseball hat for a job well done engenders loyalty.

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resign during the past 12 years out of 60 or 70 employed; and three of them came back. We don’t usually need recruiters; we get calls from highly qualified people who ask us when we have an opening, if we would consider them. Our Superintendents are rewarded for each project and they often share a part of their bonuses with their team employees. It is about recognizing and rewarding profitable and safe performance.

We have a good benefits environment and we make every effort to encourage transparency

in our company,” says Warner.

Just how deep does the family culture run? Warner tells the story of eight employees who lost their homes due to recent floods that ravaged the local area “Our employees, on their own, started a collection for clothes, furniture, toys and money. We raised money with donations from other employees and from our vendors, suppliers and subcontractors. Many of our vendors donated supplies and equipment as well as labor to

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| WHC Energy Services LLC| 13 “Our culture is about family first and teamwork It’s not about me, or any individual.

It’s about the people who do the work. It’s about the quality of our work – we do what we say we are going to do.”

President Randy Warner help our people clean up and rebuild. Many employees freely donated their personal time to help the families recover their homes. This is the WHC family aspect. That is who we are,” Warner says with pride.

Safety First, Last and Always Perhaps nothing commands Warner’s attention as much as the company’s safety protocol.

Safety discussions take place on a daily basis and it is an absolute edict that employees and sub-contractors adhere to WHC’s guidelines, summed up in

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the mantra: “Stop. Think.

Observe. Proceed.”

“Safety is Number One and it starts with me. It’s about behavior, seven days a week, 24 hours a day. Everything you do and everything you have is contingent upon you being safe.

We have a reputation for that and nothing gets in the way of that.

You can’t just talk – you have to live it. If you don’t, you won’t work for WHC or for our client base. It’s just that simple,” Warner stresses.

The company maintains a pool of preferred sub-contractors who meet WHC’s strict safety guidelines. And, when it comes to bringing aboard a new sub?

“To get a contract to work with WHC, we do a thorough background check. An in-depth review and evaluation of safety records, procedures and management commitment to safety is completed. We commit to providing our clients with assurance that we will deliver a good and safe project the way we always do, so we’re going to screen all contractors very diligently,” Warner says. “Because

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| WHC Energy Services LLC| 17 of our qualifying process, we believe WHC gets the best.”

And, the company sometimes implements safety measures picked up from its clients and sub-contractors. WHC strongly encourages joint safety programs shared among the client, WHC and the subcontractors. “It’s about people going home from work in the same condition they came to work,” says Warner.

Day to Day Thanks to the current growth and

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expansion of Oil and Gas operations in the Permian Basin area in West Texas and southeastern New Mexico, Warner says, WHC is experiencing long-term continued growth in the region.

The company maintains its legacy office in Lafayette, LA; a smaller branch office in East Houston, TX; field offices in Odessa, TX; and an executive office in West Houston, TX. “Now we’re getting a very large number of bid requests, about 48

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a month. Clients are booking contractors for 2018 as a protection against price increases and labor shortages.

There is high demand for both pipeline and associated facilities construction services and we are expecting to fully participate in the continuing growth,” Warner says, noting WHC is now experiencing its most accelerated demand for facilities projects in more than 10 years.

Every project has its own idiosyncrasies and Warner says the company is equipped to meet

every client’s specific needs.

“It fluctuates by system and by client. If the client knows the pipeline needs compression because of the throughput, we will provide for that. If it’s a smaller line, they may not need a compression station to start, but may want one later,” Warner explains. “We recognize the needs of the client and we adapt to their changes while maintaining the goal of the project.”

For example, Warner says: “One of our largest clients is now in the

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building mode for compression stations for pipelines that are existing or are being installed.

At this time, we are doing about 50 percent of our total project work in compressor and meter stations.”

different breeds. The pipeline folks just want to be out in the open,” Warner says, chuckling.

Most superintendents specialize in either pipelines or compressor station construction, but usually not both.

“We don’t want to own equipment. We have a strong preference to manage our cash.

We rent on a project specific basis, or lease to purchase and sell it when we no longer need it.

We have a great relationship with our vendors. We take great pride in how we treat them and how

“We have compressor station leaders and we have pipeline construction leaders. They help each other out but they are very

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The company leases all of its equipment; good business as far as Warner is concerned.

| WHC Energy Services LLC| 20 they treat us – we’re fair and we can count on them,” Warner says.

Looking Ahead With Optimism Warner believes the election of President Donald Trump has injected new energy into an industry that largely went dormant during the previous administration.

“Part of the expected [industry] expansion in 2007-08 was that 13 LNG plants were approved for building. But U.S. companies backed away; the people in Washington failed to

figure out who was going to purchase that gas in the international market,” says Warner, noting that Japan and China were ready and willing to step in and back prospective buyers. The discovery of several shale formations containing massive volumes of natural gas and oil, changed the strategy from importing LNG to exporting LNG. A reversal of sorts has been under way since the discovery of the Marcellus Shale that covers more than 100,000 square miles of New York, Pennsylvania, Ohio

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| WHC Energy Services LLC| 21 and West Virginia about 15 years ago. Focused natural gas extraction began in 2008.

“When one of our major clients was finishing its cross-country pipeline to bring natural gas to the East Coast, the Marcellus Shale was discovered. So, the client hired contractors to turn it around and run it in reverse to the West Coast to sell natural gas to China and Japan. The LNG plant will be built and the gas supply will be readily available,” Warner explains.

Warner says much of the

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Keystone Pipeline running from Alberta, Canada to refineries, tank farms and distribution centers in Illinois, Oklahoma and Texas has been fully operational for several years. However, growing opposition led to the prior administration’s rejection of Phase Four of the project in November 2015.

“Keystone already had lines operating and was bringing in a third line. It’s going to happen.

Keystone is one of the things we are going to finish,” Warner predicts, noting a pipeline from Oklahoma to Houston is also in

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| WHC Energy Services LLC| 23 the works. “The industry dynamics are good. We see continuous expansion.”

“So, the industry is optimistic about President Trump and his administration. Everyone is buzzing about how he is going to let us do what we can to drive energy in the U.S. as the prime exporter of natural gas. We control the natural gas market for the world and now we’re going to be able to do what we’re capable of doing to further reduce our dependence on foreign oil imports,” Warner says.

Recent approval by President Trump for the completion of the Keystone Pipeline and the Dakota Access Pipeline demonstrate the support for the expansion of the U.S. Oil and Gas industry. These projects will provide more jobs and expansion opportunities for other associated distribution systems.

Warner says conversion of coal-fired power plants to natural gas fired plants will continue to increase demand for construction services for the next four to five years. Continuing expansion of

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“Safety is Number One and it starts with me. It’s about behavior, seven days a week, 24 hours a day.”

President Randy Warner

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| WHC Energy Services LLC| 27 integrity projects for the existing pipeline distribution infrastructure in the U.S. will require more service providers as the nfrastructure grows. “We are at the threshold of probably the most exciting time for growth of our energy businesses in the last thirty years.

WHC is ready and prepared to serve,� Warner concludes.

COMPANY INFORMATION

Company Name: WHC Energy Services, LLC Country: U.S. Industry: Construction Est: 1957 Revenue: USD $330 million Premiere Service: Oil and gas pipeline and facilities construction President: Randy Warner Website: http://www.whcenergyservices.com/

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| WHC Energy Services LLC| 28 Randy Warner, President and CEO, has been with WHC Energy Services for 12 years. Randy received his Masters Degree in Business Administration from the University of Houston. While serving the United States Air Force as a B-52H Pilot, Commander and Squadron Operations Officer Randy was also able to attain his BS Degree in General Engineering. Randy is a seasoned team first executive with roughly 40 years of experience in the Oil, Gas and Petrochemical construction realm. WHC responsibilities include working with all employees to daily strategically develop and expand WHC pipeline and facility construction services in multiple states. Responsible for all construction operations, project services, financing, administrative support and operational accounting.

Rick Mills, CFO and Sr. Vice President, has been with WHC Energy Services for 3 years. Rick received his Bachelors of Science Degree in Industrial Construction Management from Colorado State University. Rick has 25 years of experience in the Oil and Gas industry. WHC responsibilities include finance and accounting, purchasing, subcontracting and equipment management.

Fred Roberts, Executive Vice President and Board Member, has been with WHC Energy Services for 3 years. Fred received his MBA in International Business and his Bachelors of Business Administration Degree in Finance from Baylor University – Hankamer School of Business. Fred has 42 years of experience in the Oil and Gas industry. WHC responsibilities include banking, bonding, insurance, claims management and Human Resources.

Pam Romero, Vice President and Controller, has been with WHC Energy Services for 27 years. Pam received her Associates Degree in Business from Spencer Business College. Pam has 30 years of experience in the Oil and Gas industry. WHC responsibilities include all accounting functions, payroll, audit and cash management.

Rayburn Judice, Sr. Vice President, has been with WHC Energy Services for 8 years. Rayburn received his Bachelors of Science Civil Engineering Degree from University of Louisiana at Lafayette. Rayburn has 36 years of experience in the Oil and Gas industry. WHC responsibilities include all pipeline operations for capital projects as well as maintenance projects.

Ryan Hebert, Vice President Pipeline Operations, has been with WHC Energy Services for 9 years. Ryan received his MBA and his Bachelor’s Degree in Mechanical Engineering from Louisiana State University. Ryan has 9 years of experience in the Oil and Gas industry. WHC responsibilities include all pipeline operations, estimating and project management.

Mike Cain, Vice President Western Operations, has been with WHC Energy Services for 2 years. Mike studied Business at The University of Maryland University College. Mike has 10 years of experience in the Oil and Gas industry. WHC responsibilities include all operations in Western Operations and maintenance projects in Texas.

Kevin LaBauve, Sr. Vice President, has been with WHC Energy Services for 25 years. Kevin studied Architecture at University of Louisiana at Lafayette and studied Mechanical Engineering at California State University - Bakersfield. Kevin has 26 years of experience in the Oil and Gas industry. WHC responsibilities include all facilities operations for capital projects as well as maintenance projects.

Randel Badeaux, P.E., Vice President Facilities Operations, has been with WHC Energy Services for 7 years. Randel received his Bachelors of Science degree in Civil Engineering from University of Louisiana at Lafayette. Randel has 7 years of experience in the Oil and Gas industry. WHC responsibilities include all facilities operations, estimating and project management.

Jerry Martin, Sr. Vice President Business Development has been with WHC Energy Services for 8 years.

Jerry received his MBA and his Bachelors of Science Degree in Chemical Engineering from University of Houston. Jerry has 45 years of experience in the Oil and Gas industry. WHC responsibilities include business develop, sales and client relations.

John (Jack) Rizzo, Vice President Business Development, has been with WHC Energy Services for 5 years. Jack received his Associates degree in Law Enforcement from Sam Houston State University.

Jack has 47 years of experience in the Oil and Gas industry. WHC responsibilities include client relations, project sales and new client development.

Beau Gervais, Vice President Business Development, has been with WHC Energy Services for 1 year.

Beau received his Bachelors of Art degree in Speech Communication and his Bachelor of Science degree in Industrial Distribution from Texas A&M. Beau has 19 years of experience in the Oil and Gas industry. WHC responsibilities include client relations, project sales and new client development

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300 Industrial Trace Broussard, LA 70518 T: 337.837.8765 E: info@whcenergysevices.com