News On Camber Energy Inc. (CEI) Now Under CEIN

Quanta Services, Inc. PWR unveiled that it acquired San Jose, CA-based Cupertino Electric, Inc. for approximately $1.54 billion. The deal combines $1.3 billion in cash and 883,000 shares of Quanta common stock valued at roughly $225 million. The deal, finalized on Jul 17, also includes a potential earnout of up to $200 million based on future financial performance targets.

Acquisition Synergies

The integration of CEI’s skilled workforce and management aligns seamlessly with Quanta’s culture. This acquisition will enable both companies to provide comprehensive electrical infrastructure solutions, from power generation to transmission and consumption, benefiting utilities and large power consumers. Additionally, CEI's low-voltage electrical capabilities will help diversify and expand Quanta’s offerings. CEI’s strong project backlog and vibrant end markets are expected to enhance Quanta's growth, cash flow, returns, and earnings per share (EPS).

Quanta will also gain access to CEI's established mid-market utility-scale solar and battery storage platforms, complementing its existing renewable energy capabilities.

PWR expects CEI to contribute revenues of $1-$1.1 billion and adjusted EBITDA of $80-$90 million for the rest of this year. For 2025, CEI is projected to generate $2.325-$2.425 billion of revenues, $175-$195 million of adjusted EBITDA and 40-50 cents of adjusted EPS.

About CEI

Founded in 1954, CEI is a premier provider of electrical infrastructure solutions, offering turnkey services to the technology, renewable energy, infrastructure, and commercial sectors. With a workforce of approximately 4,300 employees, CEI provides engineering, procurement, project management, construction, and modularization services to a diverse customer base in the United States.

CEI has demonstrated strong financial performance, achieving double-digit compound annual growth rates in both revenues and net income over the past four years. In 2024, CEI is expected to generate $2.1-$2.2 billion in revenues and $155-$175 million in adjusted EBITDA.

Price Performance

Following the announcement, PWR’s stock rallied 8.1% on Jul 18. In the past six months, shares of this Zacks Rank #4 (Sell) company have gained 30.1% compared with the Zacks Engineering - R and D Services industry’s 32.5% growth.

Camber Energy said Monday it has obtained a notice of allowance from the US Patent and Trademark Office for a patent application called "End of Line Protection with Trip Signal Engaging."

The patent, expected to be issued in the coming weeks, is in addition to patents in Camber's portfolio of wildfire mitigation technologies, the company said.

Camber Energy said Tuesday it secured a purchase order worth 3.8 million Canadian dollars ($2.8 million) for a 3.5 megawatt customized secondary power system.

Camber Energy's majority-owned subsidiary, Simson-Maxwell, received the order, with delivery expected in early 2025 to Iqaluit, the capital city of Nunavut in Canada.

Shares of the company were up over 5% in recent trading.