You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Should one or more of these risks or uncertainties materialize or should any of our underlying assumptions prove incorrect actual results may differ significantly from results expressed or implied in these communications.
In addition, when -- we may use certain non-GAAP financial measures in this conference call.
The format of the call will be open remarks and announcement by Jose followed by a financial review from George.
These discussions will be followed by a Q&A session and we expect the call to last about 60 minutes.
We had another great quarter and a lot of good things to talk about today.
Today I will be reviewing our fourth quarter and full-year results, as well as providing my outlook for 2021 and the markets we serve.
And I hope in pray that you and your love ones are healthy and state.
The safety of our team members has been our top priority.
And as I reflect on the unprecedented challenges during 2020, I am incredibly proud of the men and women of MasTec.
Our operations have exhibited tremendous resiliency during the pandemic.
And as I look forward to 2021 and beyond, I am extremely excited about various significant growth opportunities as we provide critical power, communications and other infrastructure services to our customers.
I am honored and privileged to lead such a great group.
The men and women of MasTec are committed to the values of safety, environmental stewardship, integrity, honesty and in providing our customers a great quality project at the best value.
These traits have been recognized by our customers and it's because of our people's great work that we've been able to deliver these outstanding financial results in the challenging environment and position ourselves for continued growth and success.
Now some fourth quarter highlights.
Revenue was $1.6 billion for the fourth quarter.
Fourth quarter adjusted EBITDA was $262 million, and fourth quarter adjusted earnings per share was $1.75.
For the full year, 2020 revenue was $6.3 billion, 2020 adjusted EBITDA was $810 million, and 2020 full year adjusted earnings per share was $5.11.
And finally, cash flow from operations for the year was $937 million a record level.
In summary, we had an excellent quarter and another great year.
On our third quarter call in October, we talked about our longer-term goals and our future business mix.
Considering the impacts of the pandemic on the oil and gas industries, we laid out a path to achieving an annual revenue target of $10 billion with double-digit margins.
One of our key highlights of 2020 and was our ability to grow non-oil and gas revenues by almost 12% and non-oil and gas adjusted EBITDA by over 40% despite the pandemic.
Our guidance that we provided today reflects continued diversification, as we expect our non-oil and gas business to grow approximately 20% in revenues and approximately 45% in EBITDA in 2021.
While we didn't lay out a time line for our $10 billion revenue target in the third quarter, the visibility within our end markets has continued to improve.
In just a matter of months since our last call, we believe the size and the scale of growth opportunities has significantly expanded.
I believe the recent events in Texas, demonstrates the need for significant investment in both infrastructure and continued power generation diversification.
We believe MasTec's diversification with capabilities in transmission grid and substation construction, power distribution maintenance, renewable construction including wind, solar, biofuels and battery storage coupled with our capabilities around gas-fired plant construction with its associated infrastructure uniquely positioned MasTec to benefit from continued and renewed investments in the power grid.
These opportunities coupled with the growing investments in communication networks from both large carriers and smaller rural focused operators provide MasTec with significant growth opportunities in 2021 and beyond.
In addition to our organic growth opportunities, we are seeing a growing number of potential acquisition targets.
Acquisitions over the years have been a source of significant growth for MasTec.
While we've been less active over the last few years, we believe the right companies can help us fully capture our current market opportunities.
Subsequent to year-end in the first quarter, we closed on two acquisitions.
The first company focuses on integrity work and maintenance work related to gas distribution and the second company is a fully integrated infrastructure contractor specializing in transportation projects.
Included in today's 2021 guidance, revenue contribution for these two companies is about $300 million.
In addition, we remain active and are focused primarily on clean energy, power grid services, telecommunications and infrastructure companies.
Now I'd like to cover some industry specifics.
Our communication revenue for the quarter was $569 million.
EBITDA margins came in better-than-expected at 11.1% and were up 300 basis points year-over-year.
For the year, revenues were $2.5 billion and margins were 10.7%, a 270 basis point improvement over last year.
Fourth quarter and second half of the year communication revenues were impacted by a slowdown of our largest two customers in this segment.
With the recent 5G spectrum auctions now complete, we expect revenue acceleration throughout 2021.
While the first quarter of 2021 will be sequentially similar, we are encouraged by our customers' capital plans discussed this earnings season.
A key highlight for us in 2020 was our ability to diversify our customer base within our Communications segment.
Comcast became MasTec's third largest customer in 2020 growing over 100% from 2019 and our T-Mobile business also grew significantly in 2020 with sequential growth in the fourth quarter of approximately 60%.
We're also very excited with recent developments with rural operators.
The rural digital opportunity fund or RDOF which is a follow-up to the Connect America Fund will provide $20 billion of funding over the next 10 years to build and connect gigabit broadband speeds in unserved rural areas.
Additionally in October of 2020, the FCC established the 5G fund for rural America which will provide up to $9 billion in funding over the next decade to bring 5G wireless broadband connectivity to rural America.
We entered the rural telecom space in 1997 through an acquisition and have been serving this customer base for nearly 25 years.
I believe we are entering one of the most exciting periods in the history of telecommunications and that the deployment of 5G wireless technologies and the associated networks is truly a game changer for the consumer, our customers and for MasTec.
Moving to our Electrical transmission segment, revenue was $126 million versus $116 million in last year's fourth quarter.
Margins decreased year-over-year and were impacted by poor performance on a particular project, which we expect to complete in the first quarter.
We have now begun one of the larger projects we had previously been awarded and expect a much better margin profile in 2021.
Backlog remained strong and improved both sequentially and year-over-year.
We are confident that we can deliver strong revenue growth this year.
Scale in this segment is important for us, as we strive to achieve double-digit margins.
We believe we are well positioned for 2021 and beyond as the drivers for this segment remain intact, which include aging infrastructure, reliability, renewable integration and system hardening.
Moving to our oil and gas pipeline segment, revenue was $600 million.
While we had nice sequential revenue growth, revenues were negatively impacted by the delayed start of some of our larger projects.
Margins for the quarter were again very strong and positively impacted by the reimbursement of delayed project idle equipment cost.
Without associated revenue, these reimbursements had a significant impact on margin.
Backlog in this segment is strong and we expect strong double-digit revenue growth in 2021.
On our third quarter call, we forecasted a longer-term recurring revenue target of $1.5 million to $2 billion a year, assuming a continued depressed oil and gas market.
As a reminder, over the last three years, less than 10% of our revenues have come from oil pipelines with the majority of our business being tied to natural gas.
We continue to see strong demand for integrity services, gas distribution and line replacement activity.
We are focused on continuing to diversify our revenues in this segment.
Moving to our Clean Energy and Infrastructure segment, revenue was $1.5 billion for the full year versus $1 billion in the prior year, a roughly 50% year-over-year increase.
More importantly, EBITDA margins for the year were 5.3%, a 140 basis point improvement over last year.
The size and scope of the opportunities we are seeing in this segment continues to grow.
While the segment has received a lot more attention over the last few quarters, I still think it's an underappreciated part of MasTec's portfolio.
With the new administration and a clear focus on clean energy, we have seen a significant increase in planned clean energy investments from both traditional customers as well as oil and gas companies that are trying to improve their carbon footprint.
For example, earlier this month, energy transfer announced the creation of an alternative energy group focused on renewable energy projects.
As a leading clean energy contractor and partner, MasTec is uniquely positioned to benefit from these investments.
I'd also like to highlight the diversification within our clean energy and infrastructure segment.
While we got our start and win, today we are capable of meeting any of our customers' demand.
While we've seen a significant demand uptick for solar and biofuels, we believe the recent Texas events will create even more demand for reliable baseload generation including gas-fired plants.
In the first quarter, unrelated to the events in Texas, we began construction on a gas-fired plant in Alabama that is replacing an existing coal plant.
This plant will be among the world's most fuel-efficient and lowest emission natural gas plants.
It is important to note that while this plant plans to run on natural gas, the turbine we are installing is capable of eventually burning a mixture of natural gas and green hydrogen, thereby establishing power generation flexibility.
This is another market that has tremendous potential for MasTec.
While George will cover 2021 guidance in detail, I'd like to highlight that our 2021 guidance reflects strong 24% revenue growth.
With all of our segments expected to approach double-digit top line increases when compared to last year.
We expect both revenues and EBITDA in 2021 to be at record levels.
To recap, we had another great year, while times can be challenging and uncertain, opportunities always arise from these challenges.
Our customers are looking for ways to change and improve their business models and are looking for strong partners to help them, in that lies our opportunity.
Our greatest strength has been to understand the trends in our industry and our customers' needs.
Our ability to provide services whether existing or new has always been a strength.
I'm excited for what the future holds for MasTec.
Keep up the good work.
Today I'll briefly cover our fourth quarter and annual 2020 financial results including cash flow, liquidity and capital structure as well as our initial guidance expectation for 2021.
As Mark indicated at the beginning of the call, our discussion of financial results and guidance will include non-GAAP adjusted earnings and adjusted EBITDA.
In summary, while fourth quarter 2020 revenue was slightly below our expectation at $1.63 billion, earnings margin exceeded our expectation with fourth quarter 2020 adjusted EBITDA at $262 million or 16% of revenue, a 370 basis point increase when compared to the fourth quarter of last year.
This capped a strong year for MasTec, despite the negative impact of the COVID-19 pandemic with annual 2020 adjusted EBITDA of $810 million and strong adjusted EBITDA margin rate of 12.8%, a 110 basis point improvement over last year.
It is worth noting, that 2020 results show significant strength and growth in our non-oil and gas segment results.
With 2020 revenue growing approximately $470 million or 12% and, 2020 adjusted EBITDA for these segments increasing $90 million or 43% when compared to 2019.
We expect this trend to continue and accelerate in 2021.
We ended 2020 with a new record level of cash flow from operations of $937 million this allowed us to reduce our net debt levels during 2020 by $481 million to approximately $880 million which equates to a book leverage ratio of just over one.
With this level representing one of the best leverage metrics ever recorded by MasTec.
In summary, our capital structure is in an extremely strong position, allowing us to fund any and all worthwhile future growth opportunities.
Now I will cover some detail regarding our 2020 segment results and guidance expectations for 2021.
Fourth quarter 2020 Communications segment revenue of $568 million decreased 16%, compared to the same period last year.
And this level was slightly below our expectation, primarily due to lower activity levels of Verizon One Fiber project activity.
Fourth quarter 2020 Communications segment adjusted EBITDA margin rate exceeded our expectation at 11.1% of revenue, a strong 310 basis point improvement compared to the same period last year.
Annual 2020 Communications segment revenue was approximately $2.5 billion with an adjusted EBITDA, at $270 million or 10.7% of revenue.
Annual 2020 adjusted EBITDA for this segment increased $61 million or 29%.
And adjusted EBITDA margin rate grew 270 basis points, when compared to 2019.
These increases were achieved despite the impacts of the COVID-19 pandemic which negatively impacted both, top line revenue and operating results.
Looking forward to 2021, we expect that annual Communications segment revenue will grow approaching a double-digit range and approximate $2.8 billion with continued 2021 adjusted EBITDA margin rate improvement approximating 75 basis points to 100 basis points over 2020 levels.
As Jose indicated in his remarks, the US Telecommunications market is rapidly evolving.
Trends include, multiple activities to support 5G development, including upcoming initial deployment of recently auctioned C band spectrum, expanding small cell deployments and necessary fiber backhaul investments.
It also includes, expanding fiber to the home deployments to support growing telecommuting and tele-learning initiatives that have accelerated during the COVID-19 pandemic, increasing 5G home deployments and upcoming high-speed Internet expansion into rural communities across the country to the rural digital opportunity fund.
We expect these trends will develop and accelerate over the course of 2021.
With a slow first quarter, in which, revenue will approximate our fourth quarter 2020 level, followed by increasing levels of year-over-year revenue growth each quarter thereafter.
Importantly, this ramping trend provides continued future revenue growth opportunities in 2022, as these trends are expressed over a full year period.
Fourth quarter 2020 clean energy and infrastructure or clean energy segment revenue was $345 million, generally in line with our expectation.
Annual 2020 clean energy revenue was $1.53 billion, an increase of $492 million or 48% compared to 2019.
Fourth quarter 2020 clean energy adjusted EBITDA was $11 million, or 3.2% of revenue and annual 2020 clean energy adjusted EBITDA was $80 million or 5.3% of revenue, generally in line with our expectation.
Fourth quarter 2020 adjusted EBITDA rate fell slightly below the annual 2020 rate of 5.3%, primarily due to fixed costs on seasonally lower fourth quarter revenue.
At 5.3% of revenue annual, 2020 Clean Energy adjusted EBITDA margin rate increased 140 basis points compared to 2019.
Looking forward to 2021, we expect to continue to experience a very active bidding market in the Clean Energy and Infrastructure Space.
We anticipate that 2021 Clean Energy revenue will grow in the high 30% range and approach $2.1 billion in 2021, with continued 2021 adjusted EBITDA margin rate improvement of approximately 125 to 150 basis points over 2020 levels.
Fourth quarter 2020 oil and gas segment revenue was $600 million, a 30% sequential growth over the third quarter, representing the first 2020 quarterly period in which this segment exhibited revenue growth over 2019, as we initiated project activity on selected large projects that will extend into 2021.
That said, fourth quarter revenue was slightly below our expectation, as selected large project activity started later in the quarter due to regulatory delays.
Annual 2020 oil and gas segment revenue was approximately $1.8 billion, a decrease of $1.3 billion when compared to 2019, again due to regulatory delays in large project activity, as previously discussed.
Fourth quarter 2020 oil and gas adjusted EBITDA was $196 million or 33% of revenue and annual 2020 oil and gas adjusted EBITDA was $511 million, a $123 million decrease when compared to 2019.
Looking forward to 2021, we expect increased large project activity, continuing the project activity started in the fourth quarter of 2020.
We estimate that annual 2021 oil and gas segment revenue will grow in the 30% range and approach $2.4 billion, with virtually all this activity in backlog as of year-end 2020.
Given that a larger portion of 2021 oil and gas project activity is expected to be comprised of lower-margin cost-plus activity.
We are moderating our annual 2021 adjusted EBITDA margin rate expectation for this segment to the high teens range.
Fourth quarter 2020 electrical transmission segment revenue was $126 million, generally in line with our expectation.
And annual 2020 electrical transmission revenue was $506 million, a 22% increase over 2019.
Fourth quarter 2020 electrical transmission segment adjusted EBITDA margin rate was below our expectation at 0.6% of revenue, due to inefficiencies and delays on a project that is approximately 85% complete as of year-end 2020.
This project also impacted our annual 2020 electrical transmission segment adjusted EBITDA margin rate, which was 2.9% as compared to 7.1% in 2019.
Looking forward to 2021, we expect annual 2021 electrical transmission segment will show strong revenue growth, somewhere in the high-teens to low 20% range.
With 2021 adjusted EBITDA margin rate improving to the high-single-digits range.
We also believe end market trends in this segment will continue to develop and support future growth as clean energy power generation initiatives require significant transmission grid investment coupled with expanding storm and fire hardening grid needs.
Now I will discuss a summary of our top 10 largest customers for the annual 2020 period as a percentage of revenue.
AT&T revenue derived from wireless and wireline fiber services was approximately 14% and installed to the home services was approximately 4%.
On a combined basis, these three separate service offerings totaled approximately 18% of our total revenue.
As a reminder, it's important to note that these offerings while falling under one AT&T corporate umbrella are managed and budgeted independently within their organization, giving us diversification within that corporate universe.
Comcast, NextEra Energy, Crimean Highway pipeline and energy transfer affiliates were each at 5% of revenue.
Verizon, Xcel Energy, Duke Energy, Iberdrola Group and Enbridge were each at 4% of revenue.
Individual construction projects comprised 64% of our annual revenue with master service agreements comprising 36% and highlighting that we have a significant portion of our revenue derived on a recurring basis.
At year end 2020, our backlog was approximately $7.9 billion, a slight sequential increase compared to $7.7 billion as of the 2020 third quarter and a slight decrease compared to $8 billion as of year end 2019.
Lastly, as we've indicated for years, backlog can be lumpy as large contracts burn off each quarter and new large contract awards only come into backlog at a single point in time.
Now I will discuss our cash flow, liquidity, working capital usage, and capital investments.
For the year ended 2020, we generated a record level $937 million in cash flow from operations and ended the year with net debt of $880 million, which equates to a book leverage ratio of 1.1 times.
We ended 2020 with $423 million in cash on hand as well as record liquidity defined as cash plus borrowing availability of approximately $1.6 billion.
We are proud that annual 2020 cash flow from operations reached a new record level and that 2020 free cash flow, defined as cash flow from operations less net cash capex, once again exceeded adjusted net income.
We believe this performance highlights the strength, resilience and consistency of MasTec's cash flow profile.
During 2020, we reduced our net debt levels by approximately $481 million while still investing approximately $170 million in share repurchases and strategic investments.
We ended 2020 with DSOs at 86 days down four days compared to 90 days last year and generally in line with our expected DSO range in the mid to high-80s.
As we begin 2021, our long-term capital structure is extremely solid with low interest rates, no significant near-term maturities and ample liquidity.
This combination gives us full flexibility to take advantage of any and all potential growth opportunities to maximize shareholder value.
Regarding our spending on equipment, annual 2020 net cash capex, defined as cash capex net of equipment disposals, was approximately $177 million and we incurred an additional $114 million in equipment purchase under finance leases.
We anticipate lower levels of capex spending in 2021 at approximately $100 million in net cash capex, with an additional $120 million to $140 million to be incurred under finance leases.
As we have previously indicated, as our end market operations shift, with non-oil and gas segments becoming a larger portion of our overall revenue, our capital spending profile should reduce as the Oil and gas segment has historically required the largest level of capital investment.
Moving on to our initial 2021 guidance.
We are projecting annual 2021 revenue of $7.8 billion with adjusted EBITDA of $875 million or 11.2% of revenue and adjusted diluted earnings of $5 per share.
As we have previously provided some color as to 2021 segment expectations, I will briefly cover some other guidance expectations as highlighted in our release yesterday.
We expect annual 2021 interest expense levels to approximate $58 million with this level including approximately $110 million of first quarter 2021 acquisitions, while excluding any potential additional M&A, strategic investments or share repurchase activity that may occur over the balance of 2021.
We expect to maintain a strong cash flow profile in 2021 with free cash flow once again exceeding 2021 adjusted net income despite expected working capital requirements related to our planned 24% revenue growth in 2021.
For modeling purposes, our estimate for 2021 share count is 74 million shares.
We expect annual 2021 depreciation expense to approximate 4.2% of revenue inclusive of first quarter 2021 M&A activity and capital additions.
Included in this expectation is an increased level of 2021 oil and gas segment depreciation expense when compared to 2020 as we are utilizing conservative depreciation life and salvage value estimates on recent capital additions to protect against potential market uncertainties.
We expect an annual 2021 other segment equity and earnings from our equity interest in Waha pipeline operations will approximate 2020's level.
We expect annual 2021 corporate segment adjusted EBITDA to be a net cost of approximately 1.1% of overall revenue.
We expect that net income attributable to non-controlling interest will approximate 2020 levels and cadence.
And lastly, we expect that annual 2021 adjusted income tax rate will approximate 25%.
Our first quarter 2021 revenue expectation is $1.65 billion with adjusted EBITDA of $172 million or 10.4% of revenue and earnings guidance at $0.80 per adjusted diluted share.
First quarter results typically represent our lowest earnings level of the year due to winter weather seasonality and a transition into new customer capital budgets.
Notable first quarter 2021 expectations include segment revenue levels expected to generally approximate fourth quarter 2020 levels with first quarter 2021 oil and gas segment revenue expected to significantly grow and approximate $600 million due to expanded cost plus project activity.
Our first quarter 2021 expectation also includes expected negative productivity impacts of recent winter weather storm disruptions across Texas and other parts of the country.
In terms of some additional color on the expected timing of 2021 consolidated revenue performance, we expect first half 2021 consolidated revenue to grow at a mid-teens growth rate with second half 2021 consolidated revenue growth rate accelerating to the high 20% to low 30% range and our annual 2021 revenue growth expectation is 24% over the prior year.
When modeling 2021 revenue, it is worth noting that oil and gas segment revenue after a strong 2021 first quarter will moderate during the 2021 second quarter and revenue during this period is expected to approximate second quarter 2020 levels as select large project activity slows due to spring season road frost bands before then accelerating again in the third quarter once work resumes.
Regarding our expected timing of 2021 consolidated adjusted EBITDA margin rate performance, we expect first half 2021 adjusted EBITDA margin rate will be in the high 10% range with second half 2021 adjusted EBIT margin rate in the high 11% range, with our annual adjusted EBITDA guidance at 11.2% of 2021 revenue.

user
compname reports q4 rev of $1.6 bln.
q4 revenue $1.6 billion versus refinitiv ibes estimate of $1.8 billion.
sees q1 adjusted earnings per share $0.80.
sees q1 revenue about $1.65 billion.
currently expects full year 2021 revenue will approximate $7.8 billion.
qtrly adjusted diluted earnings per share of $1.75.

assistant