BENCHMARK ELECTRICAL SOLUTIONS

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1 BENCHMARK ELECTRICAL SOLUTIONS QUARTERLY NEWSLETTER Q Safety Update Safety. Why do we continue to talk about safety? Why is it so important to Benchmark to provide a safe work environment? The answer is you! We want to take a moment to recognize Justin Handley, Jorgan Warman and Jeremy Arrant for turning in the most SOR Cards for the Year of It is important to note that all three of these gentlemen are apprentices and they are starting their career down the right path. Great job guys! Some of you Journeyman need to step up your game! The efforts of these individuals, and everyone working for Benchmark, is the reason that you get to go home at night in the same condition that you showed up to work that morning. Benchmark s commitment is to our employees and their safety, therefore it is a requirement that each field employee turn in 4 SOR cards each week. Do not wait for somebody else to speak up or take care of problems. Continue watching out for each other on a continuous basis! We have recently assembled the Safety Committee team members for the 2017 calendar year, but it s not too late for you to get involved. Please let your supervisor know, or reach out to Lee Freeman at the main office, if you are interested in becoming a part of this year s committee. On our larger projects, we will start putting together a project-specific Safety Committee as well. Keep a look out for further information regarding this in the coming months. Current members of the Safety Committee are: 1. Kim Page 2. Tim Evavold 3. Lee Freeman 4. Troy Hansen 5. James House 6. Kyle Raybon 7. Greg Zeitler 8. Brandon Fielder

2 2016 Safety Statistics We had one injury early in Thus, our TRIR for 2016 was 2.4. Since then, we successfully worked over 80,000 man-hours without any further incidents. Keep up the good work and let s keep that streak going long past the 2017 calendar year! Our goal for 2017 is to work over 200,000 man-hours with zero recordable incidents! Remember to do everything you can as an individual to contribute to this goal! Safety starts with you. Summary of Current Work 2016 was a relatively slow year for Benchmark on the outside, but the wheels have been turning vigorously on the inside. Benchmark has been strategically positioning itself for immense growth in the coming years with a strong presence in the Bakken, Marcellus/Utica, Permian/Delaware and Northern Colorado regions. With oil and gas commodity prices on the rise, we are seeing a major uptick in potential projects and maintenance opportunities in these regions, not to mention the substantial work that we have already secured. In addition to the oil and gas sector, we have also spent the year expanding into other markets to ensure the continued success of our company including service, water/wastewater, and some commercial construction projects. Northern Colorado Region: Even though Benchmark has expanded to several other states, northern Colorado is where it all started and therefore holds a special place in our hearts. Even though oil and gas has been extremely slow in this region (all regions really), we found a way to fight through it and make it work. We branched out into other industrial sectors such as water/wastewater and even tried our hand back in the commercial market. While our focus as a company is Oil and Gas, we also like to team up with the right General Contractors to take on very selective commercial construction projects. Kyle Raybon and his team successfully executed the REI remodel in Fort Collins, and as a result, we have been invited to bid on two other REI stores in northern Colorado with Jackson Dean, but more on this below. Read further to find out more about what we have been up to in Colorful Colorado.

3 Anadarko Petroleum Company- As one of Anadarko s top electrical contractors in this region, we have been staying busy with them all year long working on miscellaneous projects. We are currently bidding an expansion project for their COSF facility and have also been added as a contractor for their Production side. We are looking forward to great things with Anadarko in 2017! Water/Wastewater Projects- We have completed too many water/wastewater projects to name in this newsletter. While these projects are small, they are a great addition to our resume as we continue to chase down the larger facility projects in our state. Magellan Carr Extension- Kyle and his team have been working diligently to meet the different milestones associated with this project. With guys spread out over 5-7 different sites at a time, we have been able to meet every deadline and maintain exceptional communication with the client. Magellan is looking up to be a very successful project for us and we are excited to see what else these guys have around the corner. REI- Ft Collins- REI was one of our first commercial projects in years. The project came with its own set of challenges (i.e. night shift work, multiple trades in enclosed area, etc.) but again, our team was able to effectively pre-plan their work and coordinate effectively with all other trades. Because of our success, we have been given the opportunity to negotiate two other REI stores in this region which will play a major role in our success in Service Department- Mark Valenzuela has been working on building our service department for most of As we all know, these things can take time and Mark is heading down the right path. With over 250 service calls in 2016, Mark is looking at adding a full-time Service Technician to handle his day to day operations so that he can focus on the continued growth and success of this portion of the company. We have picked up several different property management companies and have started getting our foot in the door with several local manufacturing/fabrication companies in and around the northern Colorado area. Keep up the good work Mark! Upcoming Projects (Potential): Undisclosed Producer- Multiple well pads Anadarko- COSF Front End Heating Project Discovery Midstream- Gathering facilities and cryo plant Fifth Creek Energy- Ongoing well pad construction and maintenance Extraction Oil and Gas- Ongoing well pad construction and maintenance Magellan Midstream- Wyoming pipeline facilities and potential expansion projects Kinder Morgan- Prairie Wolf meter station DCP Midstream- Godfrey Bottoms and Crossroads Compressor Station

4 Crestone Peak Resources- Ongoing well pad construction and maintenance Service- Ongoing service/maintenance with Vintage, Dollarhide, Earl Weston, Connell, and more Bakken Region: While there are no immediate plans to set up an office in North Dakota, it was home to the largest project that we completed in 2016 and we will continue to keep an eye on capital projects in that region for Read below for more information on the Liberty Cryo Plant that John and his team completed at the end of Liberty Midstream County Line Cryo Plant- John Davis III and his team worked their asses off on this project!!! Whether it was mechanical delays or weeks of straight rain, John and his team found a way to overcome. We want to extend a big THANK YOU to the County Line team for executing this project and for doing so with zero injuries! Thank you all for your hard work! Marcellus/Utica Region: As most of you know, we opened a field office in Pennsylvania at the end of It took some time to get the wheels rolling up in that area but Tyler Fisher and his team are looking good for an explosive We have recently completed projects for EQT, Summit Midstream and Antero in that region and are starting out on small projects with Rice Midstream and PennEnergy in Ohio and Pennsylvania. Below is a summary of recently completed and current projects from the northeast. Antero Nichols Compressor Expansion We teamed up with Black Eagle in the northeast to complete the expansion of the Nichols Compressor Station in West Virginia. Our guys were delayed significantly during the course of this project, however through effective pre-planning and tireless efforts, we were able to meet the customer s extremely tight deadline with no issues.

5 EQT Interconnects- EQT has a very stringent process in bringing on new contractors. You must start with small projects and earn your way up to larger facility projects. We have been working with EQT for several months and were just recently upgraded to Large Project Approved status. The client even said that our instrumentation work on Blue Pointer was one of the better sites they have ever seen. Keep up the good work guys! Summit Midstream- Summit Midstream has several different Dehy facilities in the Ohio region that will soon be needing compression added to them. We wanted to start out with a few small projects for Summit so that we could fully understand their specific requirements is looking like a big year for Summit and we are in position to be a big part of that. Rice Midstream (Poseidon and Olympus)- Even though Rice is our most recent client in this region, we have a feeling that they are going to have a big year in With major acquisitions in the Marc/Utic region, Rice is gearing up for some big things and we are fortunate to be a part of that. Upcoming work (Potential) EQT- MVP Pipeline Facility projects Columbia/TransCanada- Gibraltar Compressor Station and Meter Station EQT Interconnects and utility power upgrades Erickson- Multiple projects Rice Midstream- CDPs and other facility upgrades/expansions PennEnergy (Pine Run Midstream)- Ongoing facility construction and maintenance Permian/Delaware Region: Our newest region to expand into seems to be the most prolific. West Texas has been extremely resilient during the downturn in commodity pricing and seemed to be impacted the least during that time. Oil and gas is at the center of everything in the Midland and Odessa area, and we are looking forward to being a part of that culture. Read further to find out more exciting information about Benchmark in the Permian. Navitas Newberry Cryo Plant (60 MMCFD)- Benchmark was contracted by a joint venture with Dancar Energy Construction and Trailhead Engineering to complete the Instrument and Electrical scope for the Navitas Newberry Cryo Plant Phase 1. Phase 1 will have the capability of processing 60 MMCF per day and Navitas is planning on expanding to a total of 260 MMCF per day at this plant in Nathan Jernigan has been at the helm of this project and has been an indispensable asset for Benchmark. We are looking forward to a successful project on this one and earning our client s business for the 200 MMCF/D expansion.

6 Upcoming Work (Potential) Sendero Midstream 70 MMCF/D Cryo Plant Sendero Midstream 130 MMCF/D Cryo Plant Navitas Midstream Newberry Expansion NGL Orla #5 Salt Water Disposal Navigator Energy Services- Multiple CDP s Northern Natural Gas- Multiple projects Kinder Morgan- Multiple projects Milestone Environmental- Salt Water Disposals (South Texas) SAFETY, QUALITY, PRODUCTIVITY BE THE BEST!

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