Ladies and gentlemen, thank you for standing by. Welcome to the Quanta Services Fourth Quarter Earnings Conference Call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions. (Operator Instructions). This conference is being recorded today, Tuesday, February 24, 2009. I’d now like to turn the conference over to Kip Rupp, Managing Partner with DRG&E. Please, go ahead, sir.

Great, thank you, [Mikael] and welcome everyone to Quanta Services’ conference call to review 2008 fourth quarter and full year results. Before, I turn the call over to management I have the normal housekeeping details to run through. If you’d like to be on the e-mail or fax distribution list to receive future press releases for Quanta, or if you had any technical difficulty this morning and did not receive your e-mail or fax, please call our offices at DRG&E, at 713-529-6600. Also, if you’d like to listen to a replay of today’s call, it will be available via webcast by going to Quanta’s website at quantaservices.com. In addition, there is a telephonic recorded instant replay that will be available for the next seven days, 24 hours a day that can be accessed as set forth in the press release, by dialing 303-590-3000, and using the pass code 11126526#. Please remember that information reported on this call speaks only as of today, February 24, 2009 and therefore you’re advised that any time-sensitive information may no longer be accurate as of the time of any replay of this call. Also this conference call will include forward-looking statements intended to qualify under the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, projected revenues, earnings per share, tax rates, and capital expenditures, and other projections of financial and operating results and information, the impact of current economic and market conditions, growth and opportunities in particular markets including as a result of renewable energy initiatives and the recently enacted economic stimulus package, anticipated future projects, Quanta’s strategies and plans, as well as any other statements reflecting Quanta’s expectations, intentions, assumptions or beliefs about future events or performance or that do not solely relate to historical or current facts. Forward-looking statements involve certain risks, uncertainties, and assumptions that are difficult to predict or are beyond Quanta’s control and actual results may differ materially from those expected or implied as forward-looking statements. For additional information concerning some of the risks, uncertainties and assumptions that could affect our forward-looking statements, please refer to the company’s annual report on Form 10-K for the year ended December 31, 2007, its quarterly reports on Form 10-Q for the quarters ended, March 31, 2008, June 30, 2008 and September 30, 2008 and its other documents filed with the Securities and Exchange Commission, which may be obtained through the SEC’s website at sec.gov. All forward-looking statements whether written or oral, are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements. Management cautions that you should not place undue reliance on Quanta’s forward-looking statements and Quanta does not undertake any obligation to update any forward-looking statements to reflect events or circumstances after this call. With that, I’d like to now turn the call over to Mr. John Colson, Quanta’s Chairman and CEO. John?

Good morning everyone and welcome to the Quanta Services fourth quarter and year end 2008 conference call. To start the call this morning I will provide a general overview of the quarter, insight on the impact of the current economic conditions, developments in the industries we serve and perspectives on emerging opportunities. Our comments will be followed by an operational review by Jim O’Neil, President and Chief Operating Officer, and a review of financial results by James Haddox, Chief Financial Officer. John Wilson, President of Electric Power and Natural Gas Operations, and Ken Trawick, President of Telecommunications and Cable Operations are also present and will be available for any questions. As always we welcome your questions following our remarks. Final quarter of 2008 saw the further deterioration of our nation’s economy, but as you will hear throughout the call, our long-term outlook remains strong, and our customers remain committed to spending on their infrastructure for the long-term. We believe Quanta’s opportunities continue to grow, and our outlook for the future remains optimistic. While discouraging economic news seems prevalent, it is in times like these that the strength of Quanta’s strategy becomes evident. Because of our diverse customer base, diverse service offerings, diverse industry focus and diverse workforce, we are able to quickly maneuver, adjust our focus and reallocate our resources to match the continually changing economic environment. As a result, we believe we are better able to minimize the impact of industry, our economic downturns and fully leverage and maximize emerging our ongoing opportunities. This strength is evident in our fourth quarter and year 2008 financial performance and our growing backlog. Revenues for the fourth quarter were $921.5 million, compared to $879 million in the prior year’s fourth quarter. Revenues for the full year 2008 were a record $3.78 billion,…

Thank you, John, and good morning everyone. As John stated, our operational and financial performance exceeded expectations in the fourth quarter, and contributed to a very strong year for Quanta. As we enter 2009, we remain optimistic about our business. We expect revenue growth this year, but we will experience challenges related to our telecom and natural gas operations. I will speak the specific opportunities, as I will review each of the industries we serve, electric power, natural gas, telecommunications and dark fiber, as each is experiencing unique dynamics, legislative developments and emerging trends. First, the electric power industry. In the fourth quarter of 2008, revenues from electric power operations including emergency restoration were approximately $530 million. This compared to approximately $494 million in the fourth quarter of 2007. 2008 was a strong year for our electric power operations, particularly our transmission services. Throughout the fourth quarter and into the first quarter of this year, we see utilities continue to invest in their transmission infrastructure. Recently, Quanta executed a letter of intent with National Grid to provide engineering and installation services on their substation and transmission infrastructure. Work under the five-year contract expected to be signed by April 1 of this year will be performed by New Energy Alliance, a joint venture between Quanta Services and Balfour Beatty Infrastructure. The contract is part of National Grid's investment of up to $1.7 billion over five years. The joint venture will perform work throughout National Grid's New England service territory. Quanta has also secured an additional $200 million and services to be performed under its existing contract with Northeast Utilities, or NU, which also extends the agreement by two years through 2015. This expansion built on the success of the recently energized Middletown to Norwalk transmission line, where Quanta's expertise in providing…

Thanks, Jim and good morning everyone. Today, we announced record revenues of $921.5 million for the fourth quarter, compared to $879 million in the prior year’s fourth quarter, reflecting growth of approximately 4.8%. This year’s fourth quarter revenues included emergency restoration revenues of approximately $47 million, compared to approximately $56 million being earned in 4Q ’07. Excluding emergency restoration revenues from both periods, revenue growth would have been approximately 6.0% in the fourth quarter. Revenues for fiscal year 2008 were record $3.78 billion, compared to revenues of $2.66 billion for fiscal year 2007, resulting in full-year 2008 revenue growth of approximately 42.3%. Pro forma revenues in fiscal year 2008 were $3.81 billion versus $3.33 billion in 2007 representing approximately 14% pro forma revenue growth in 2008. During 2008, emergency restoration services produced approximately $208 million in revenues, compared to approximately $142 million in pro forma revenues in 2007. Excluding emergency restoration revenues from both periods, pro forma revenue growth in 2008 was approximately 13%. When I refer to pro forma information in my discussion, I am referring to data prepared on a combined company basis taking into account the acquisition of InfraSource and smaller acquisitions in 2007 and 2008 all of this they occurred on January 1, 2007. Revenues from electric power work during the fourth quarter of ’08 increased by approximately $36 million or about 7% over the fourth quarter of 2007. Excluding all emergency restoration revenues from both periods, electric power revenues would have grown about 11%. For all of 2008 electric power work grew about 14% on a pro forma basis, from $1.89 billion to $2.15 billion. 2008 was an extraordinary year for storm restoration. However, after excluding these revenues from both periods, revenues from electric power work still grew about 12% on a pro forma basis.…

Thank you, sir. (Operator Instructions). Our first question comes from the line of Sanjay Shrestha. Please state your company name followed by your question. Sanjay Shrestha – Lazard Capital Markets: Thank you. Lazard Capital Markets. First of all, congratulations on a great quarter here guys.

Thank you. Sanjay Shrestha – Lazard Capital Markets: Couple of quick point of clarification if I may, you guys talked about still that double-digit growth year-over-year and 12-month backlog is up high single-digit year-over-year, you’re talking about the soft Q1. So, does that mean, seasonal strong Q2 and Q3 is even going to be stronger than sort of like what we’ve seen in the past. Can you guys sort of qualify that statement a bit more as to where exactly it’s going to come from and how you’re thinking about that?

Yeah. I think obviously we’re depending on electric power to carry quite a bit of the load for 2009. Second quarter may not be as strong as you’re indicating there probably third and fourth quarter are going to be the stronger quarters of the year, but electric power is showing a strong growth for 2009, gas is showing growth for 2009. Telecom obviously now is down for 2009, but ancillary and of course our fiber is also showing growth. And if you do the calculation, if everything else breaks even, electric power only has to grow 13% in order to give us that double-digit growth. Sanjay Shrestha – Lazard Capital Markets: Got it. So, one more follow-up on that and so in terms of all this announcement, so the LOI with the National Grid and even $200 million incremental with Northeast utilities and the Allegheny project and none of them are actually in the backlog right now. So, all of them are probably going to go into backlog at the end of Q1, and second question on that, when do you guys realistically think CREZ might actually move into the backlog during 2009?

To correct you there Allegheny, some of Allegheny is in backlog, the other two that you mentioned in the pipeline are not in backlog. CREZ there might be some probably not much coming in the backlog in 2009. Probably, won't start those projects, really put people on the ground until next year.

But they maybe added to backlog.

But they will be added to backlog.

Backlog but revenue realization will be minimal. Sanjay Shrestha – Lazard Capital Markets: Thank you, James.

Thank you. Our next question comes from the line of Jamie Cook. Please state your company name followed by your question. Jamie Cook – Credit Suisse First Boston: Hi, good morning, just a follow-up on Sanjay's question. You think about 2009 and you’re suggesting we see the earnings acceleration happen in the back half of the year. Is that based on, I mean are you expecting additional transmission awards that hit in the first half of the year to get that earnings acceleration growth or do we or are based on the National Grid award, and the one was that Northeast utility, are those two awards enough I guess to see the earnings acceleration in the back half of the year?

Well, what we have in backlog are not necessarily those projects, the Northeast utilities announcements really future work, none of that is going to be in 12-month backlog… Jamie Cook – Credit Suisse First Boston: But basically there is nothing, I mean based on what you have in backlog today. You feel comfortable that the trends on electric power side is strong enough, to see the back half earnings acceleration?

That is right.

We’re hoping to that telecom will improve some as the year goes on; it gives us a more time to shuffle those resources into other projects and other areas. And so, we’re hoping to see some pick-up from telecom as well as time goes on, maybe not necessarily in the telecom industry, but in other industries as well. We also expecting fairly strong growth on renewables and really having some revenues coming in from renewables in third and fourth quarter.

Thank you. Our next question comes from the line of Tahira Afzal. Please state your company name, followed by your question. Tahira Afzal – KeyBanc Capital Markets: Hi. This is Tahira from Key. Good morning gentlemen, how are you?

Great, thank you. Tahira Afzal – KeyBanc Capital Markets: Just wanted to find out in terms of your CapEx, first of all, what are your assumptions within that for dark fiber?

Tahira this is James. This year we did about $94 million in CapEx for dark fiber and next year we expect that number to be about $85 million. Tahira Afzal – KeyBanc Capital Markets: Got it, okay. And then in terms of awards and the timeline, I think you indicated that in terms of contribution obviously CREZ is not really going to take place until 2010, but in terms of awards timeline would it be possible to get some color over there and then I noticed that I think FERC has approved the rate for a couple of trans-Canada projects would love some update or color on that and perhaps the Sunrise link and the Path projects?

Yeah well there is a number of projects that are yet probably to be awarded this year, you named some of them there and certainly we will be competitive on most if not all of those projects, not saying that we'll get them all, but we will get our share. CREZ being, the award of CREZ being probably the largest opportunity for us, but Sunrise project, Gateway project, the Trans-Canada projects, Path projects, there are several nice projects that we expect now, not that those large projects necessarily will bring us any revenue this year, but they should be in backlog.

Thank you. Our next question comes from the line of Alex Rygiel. Please state your company name followed by your question. Alexander Rygiel – Friedman, Billings, Ramsey & Co.: Thank you, Friedman, Billings, Ramsey. A couple of quick questions, James could you run though 12-months backlog by end market?

Yeah, 12 months backlog at December 31st is $1.534 for electric and $528 million for gas, $289 million for telecom, $154 million for ancillary, and about $72 million for dark fiber. Alexander Rygiel – Friedman, Billings, Ramsey & Co: Great. And then, John with regards to your double-digit growth outlook in 2009, you still feel comfortable that earnings per share will be growing in excess of revenue growth in 2009?

That is been the history in our past, that is typically grown better than revenues. This year I think we’re going to have a challenge with margins, I wouldn’t be surprised to see some margin deterioration in 2009, but EPS may still grow faster than our revenues.

Thank you. Our next question comes from the line of Scott Levine. Please state your company name followed by your question. Pardon me. Mr. Levine your line is open at this time. (Operator Instructions). Our next question comes from the line of Jeff Beach. Please state your company name followed by your question. Jeffrey Beach – Stifel Nicolaus: Stifel Nicolaus. Good morning John and James. Again congratulations on a good quarter.

Thank you. Jeffrey Beach – Stifel Nicolaus: A couple of questions, you’d indicated that at this point you are more optimistic about the outlook for natural gas than at the third quarter of ’09 what’s been occurring over the past several months to influence you?

Well we continue to see activity from our gas customers. There was a hiatus there in the fourth quarter that had us concerned, but now we’re beginning to see projects come back out for bid. And there is more activity than we’ve seen in, say the last four, five months occurring now, which gives us some reasonably that natural gas is business is going to be good in 2009. Now, don’t misunderstand it, don’t think it’s going to be as hard as it was in 2008, but I think it’s going to be good in 2009. Jeffrey Beach – Stifel Nicolaus: And with the likelihood what I am seeing is a pretty good decline in gas drilling this year. If the outlook for gas is down next year, what your flexibility, do you just reduce your headcount and operations along with that is there any other strategy to help maintain profitability in 2010 in gas in the face of down drilling?

Yeah, I think that as I gave those rig counts to you, the horizontal rigs which are primarily used in the new tight shale formations. They’re still higher this year than they were at the same time last year, although they have been declining. But we’re still seeing activity in the new shale formations, which require the new infrastructure, which again gives us some optimism about the gas business for ’09 and somewhat ’10. Obviously, if that doesn't come about, we have to move those resources into another area, the obvious area is the transmission business. Some of that equipment and some of those talents of those people can be utilized in the transmission business, particularly on the underground side but also for hauling pipe and hauling steel, is not much different than hauling wood poles or steel poles. So, there is a lot of things, where you could transfer folks and equipment back and forth. Hopefully, we won't need to do that on the gas side.

Thank you. Our next question comes from the line of Michael Coleman. Please state your company name followed by your question. Michael Coleman – Sterne, Agee & Leach: Good morning. It's Sterne, Agee. Just a followup on a previous question, you mentioned that there may be some challenge with margins in 2009. Given the double-digit growth, what are the puts on the margin side, and do you have any further clarity on that?

Well, first on the margin side as far as pressure is concerned would be telecom, with telecom revenues being down as much as they are, projected to be down as much as they are. There is going to be lower margins in telecom work. And there may be lower margins on the gas side too of the business. Those are the margin challenges for this year. Michael Coleman – Sterne, Agee & Leach: Okay.

Our backlog margins are still overall better than they are today. Is that right James?

That is right. Michael Coleman – Sterne, Agee & Leach: Okay. And could you break out the 12-month backlog between distribution and transmission, I think you gave an overall number for electric power?

Mike, we don’t calculate that number. Michael Coleman – Sterne, Agee & Leach: You don’t?

We don’t have the breakdown between transmission and distribution.

The reason is, it’s not a good number, because you have too much – we give an estimate from time-to-time of how much revenues looking into the past, but there is too much transmission work that is related to distribution or distribution work that is related to transmission work and it’s not a clearcut line.

Thank you. We have a follow-up question from the line of Tahira Afzal. Please go ahead. Tahira Afzal – KeyBanc Capital Markets: Hi, gentleman. Just in regards to your earlier comment, where you said that CREZ would probably be the larger of those opportunities that you’re looking at. Would it be possible to just put it in size or in terms of context, you’ve got the Northeast award, which was well over a $1 billion. And then, some of the ones that we have from TrAIL and all have been more in the $300 million size? Would I put it somewhere in the middle of those two, how should I try to model this one out?

Well, I think it would be pretty difficult to model it out, but the opportunity is certainly larger than anything else out there over the next several months… Tahira Afzal – KeyBanc Capital Markets: Okay. Would it be even bigger than some of the bundled arrangements you are getting as in from Northeast and from Natural Grid?

It could be, but if that is all we have to play out, I wouldn't want to try to give any guidance based on how much CREZ work we would get, it's just the opportunity is bigger than most that we see out there. Tahira Afzal – KeyBanc Capital Markets: Fair enough. Thank you very much.

Thank you.

You have a follow-up question from the line of Alex Rygiel. Please go ahead. Alexander Rygiel – Friedman, Billings, Ramsey & Co.: Thank you. John, could you again circle back to the political environment as it relates to the outlook for electrical transmission. From my standpoint it doesn't seem to be any better than it’s ever been right now, particularly with the number of politicians talking about renewable portfolio standards as well as potentially empowering the FERC with transmission line, siting responsibility. So, could you talk about the political environment a little bit? And then talk about what your plans are to use the cash balance that is growing pretty quickly right now?

Sure, well we of course were busy preparing for this earnings release yesterday and didn't pay a lot of attention to the news, but this morning we saw the headlines in the paper, where Nancy Pelosi and Harry Reid and various other politicians have met in Washington yesterday at what is called an Energy Summit. And if I were going to write the quotes, I couldn't have written them any better, it looks like maybe John Wilson wrote those quotes. That was probably shocking to everyone in the room, how politicians have realized certainly what the issues are and how to solve those issues in transmission. So, I have to agree, I have never seen anything like it and I am amazed to that they are seeing the problem. Now, we'll have to have an act on the problem, but at least they're talking a good game. So, let's see how that works out. And obviously talking about our balance sheet, it's very strong right now. It deals good to handle all of that cash on the balance sheet in this kind of an environment, but in order of priorities, number one priority is working capital, investing that cash in working capital is the best thing we can do. Number two, after that is acquisitions we think that the market is going to do some due diligence for us and acquisitions and we might be able to pick up bargain out there, or two. And then of course after those are exhausted and we still have too much then we will look at the potential for share buybacks or dividends or something along those lines. But right now, we are getting work because of that strong balance sheet some of these larger projects it gives our customers a lot of comfort to know they're dealing with someone with balance sheet as strong as ours. Alexander Rygiel – Friedman, Billings, Ramsey & Co.: And one follow-up did you see any project cancellations within your natural gas business in the fourth quarter?

We saw, I do not think we saw anything that we had under contract cancel. We saw slow-ups on the distribution gas, primarily related to weather, but I think some of it related to the economy and the economic outlook of those gas companies customers, but I do not think we had anything that we had in backlog deteriorate, but there was a lot less opportunity out there for new contracts.

Thank you. And at this time we have reached the end of the hour I would like to turn the call back over to management for any closing remarks.

All right. Thank you very much. I want to thank you again for your participation in our fourth quarter conference call. We appreciate your questions and ongoing interest in Quanta.

Ladies and gentlemen this concludes the Quanta Services fourth quarter earnings conference call. The conference will be available for replay after 11:30 Eastern Standard Time today through March 3 at midnight. You may access the replay system at anytime by dialing 303-590-3000 and entering the access code of 11126526#. Thank you for your participation and at this time you may now disconnect.