Energy Services of America Corporation (Energy Services) is a contractor and service company that operates primarily in the mid-Atlantic and central regions of the United States.
The company provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. For the gas industry, the company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private n...
Energy Services of America Corporation (Energy Services) is a contractor and service company that operates primarily in the mid-Atlantic and central regions of the United States.
The company provides services to customers in the natural gas, petroleum, water distribution, automotive, chemical, and power industries. For the gas industry, the company is primarily engaged in the construction, replacement and repair of natural gas pipelines and storage facilities for utility companies and private natural gas companies.
Energy Services is involved in the construction of both interstate and intrastate pipelines, with an emphasis on the latter. For the oil industry, the company provides a variety of services relating to pipeline, storage facilities and plant work. For the power, chemical, and automotive industries, the company provides a full range of electrical and mechanical installations and repairs including substation and switchyard services, site preparation, equipment setting, pipe fabrication and installation, packaged buildings, transformers, and other ancillary work with regards thereto. Energy Services’ other pipeline services include corrosion protection services, horizontal drilling services, liquid pipeline construction, pump station construction, production facility construction, water and sewer pipeline installations, various maintenance and repair services and other services related to pipeline construction. The company has also added the ability to install broadband and solar electric systems and perform civil and general contracting services.
On December 2, 2024, the company completed the acquisition of the assets of Tribute Contracting & Consultants, LLC.
Energy Services’ customers include many of the leading companies in the industries it serves, including: TransCanada Corporation; NiSource, Inc.; Marathon Petroleum; Mountaineer Gas; American Electric Power; Toyota Motor Manufacturing; Bayer Chemical; Dow Chemical; Kentucky American Water; WV American Water; and Various state, county, and municipal public service districts.
The majority of the company’s customers are in West Virginia, Virginia, Ohio, Pennsylvania, and Kentucky. However, the company also performs work in other states, including Alabama, Michigan, Illinois, Tennessee, and Indiana.
Energy Services’ sales force consists of industry professionals with significant relevant sales experience, who utilize industry contacts and available public data to determine how to market the company’s line of products most appropriately. The company relies on direct contact between its sales force and customers’ engineering and contracting departments to obtain new business.
A substantial portion of the company’s workforce are union members of various construction-related trade unions and are subject to separately negotiated collective bargaining agreements that expire at varying time intervals.
C.J. Hughes Construction Company, Inc. (‘C.J. Hughes’), a wholly owned subsidiary of the company, is a general contractor primarily engaged in pipeline construction for utility companies. Contractors Rental Corporation (‘Contractors Rental’), a wholly owned subsidiary of C.J. Hughes, provides union building trade employees for projects managed by C.J. Hughes.
Nitro Construction Services, Inc. (‘NCS’), a wholly owned subsidiary of C.J. Hughes, provides electrical, mechanical, HVAC/R, and fire protection services to customers primarily in the automotive, chemical, and power industries. Revolt Energy, LLC (‘Revolt’), a wholly owned subsidiary of NCS, performs residential solar installation projects. Nitro Electric Company, LLC (‘Nitro Electric’), a wholly owned subsidiary of NCS, performs industrial electrical work and has a satellite office registered in Michigan. Pinnacle Technical Solutions, Inc. (‘Pinnacle’), a wholly owned subsidiary of NCS, operates as a data storage facility within Nitro’s office building. Pinnacle is supported by NCS and has no employees of its own. NCS and its subsidiaries will collectively be referred to ‘Nitro’.
All C.J. Hughes, Nitro, and Contractors Rental construction personnel are union members of various related construction trade unions and are subject to collective bargaining agreements that expire at varying time intervals.
West Virginia Pipeline, Inc. (‘West Virginia Pipeline’ or ‘WVP’), a wholly owned subsidiary of Energy Services, operates as a gas and water distribution contractor primarily in southern West Virginia. The employees of West Virginia Pipeline are non-union and are managed independently of the company’s union subsidiaries.
SQP Construction Group, Inc. (‘SQP’), a wholly owned subsidiary of Energy Services, operates as a general contractor primarily in West Virginia. SQP engages in the construction and renovation of buildings and other civil construction projects for state and local government agencies and commercial customers. As a general contractor, SQP manages the overall construction project and subcontracts most of the work. The employees of SQP are non-union and are managed independently of the company’s union subsidiaries.
Tri-State Paving & Sealcoating, Inc. (‘TSP’ or ‘Tri-State Paving’), a wholly owned subsidiary of Energy Services, provides utility paving services to water distribution customers in the Charleston, West Virginia, Lexington, Kentucky, and Chattanooga, Tennessee markets. The employees of TSP are non-union and are managed independently of the company’s union subsidiaries.
Ryan Construction Services Inc. (‘Ryan Construction’ or ‘RCS’), a wholly owned subsidiary of Energy Services, provides directional drilling services for broadband service providers along with offering natural gas distribution services, cathodic protection and corrosion prevention services, and civil construction services. Ryan Construction operates primarily in West Virginia and Pennsylvania. The employees of RCS are non-union and are managed independently of the company’s union subsidiaries.
Seasonality
The company’s revenues and results of operations usually are subject to seasonal variations. These variations are the result of weather, customer spending patterns, bidding seasons and holidays. The first quarter of the calendar year (year ended September 2024) is typically the slowest in terms of revenues because inclement weather conditions cause delays in production and customers usually do not plan large projects during that time. While usually better than the first quarter, the second calendar year quarter often has some inclement weather which can cause delays in production, reducing the revenues the company receives and/or increasing the production costs. The third and fourth calendar year quarters usually are less impacted by weather and usually have the largest number of projects underway. Many projects are completed in the fourth calendar year quarter and revenues are often impacted by customers seeking to either spend their capital budget for the year or scale back projects due to capital budget overruns.
Competition
The company’s largest competitors are Otis Eastern, Miller Pipeline, Brown Electric, Summit Electric and Apex Pipeline.
Government Regulation and Environmental Matters
The primary environmental statutory and regulatory programs that affect Energy Services’ operations include the following: Department of Transportation regulations, regulations set forth by agencies, such as the Federal Energy Regulatory Commission and various environmental agencies, including the Environmental Protection Agency, and state and local government agencies.
Energy Services’ facilities and operations are also governed by various other laws and regulations, including the federal Occupational Safety and Health Act, relating to worker health and workplace safety. The Occupational Safety and Health Administration has issued the Hazard Communication Standard. This standard applies to all private-sector employers, including the natural gas exploration and producing industry. The Hazard Communication Standard requires that employers assess their chemical hazards, obtain and maintain certain written descriptions of these hazards, develop a hazard communication program and train employees to work safely with the chemicals on site.
History
Energy Services of America Corporation was founded in 2006. The company was incorporated in Delaware in 2006.
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