These are low expectations -- i.e., that the company will do approximately $30 million in annual work at 20% gross margins -- and, in light of what should be the steady nature of its bread and butter pipeline integrity work, I am not convinced that these expectations are realistic.
Second, one could attach some significance to the company's recently secured $115 million credit facility from TD Bank. This facility is intended to enable the company to post bid and performance bonds for possible LNG pipeline construction projects in the near future.
Surety bonds for this type of work usually amount to 10% of a project's value and Macro would be bidding as one, small member in a consortium of contractors. That, I think, gives a fair indication of the scale of the upside potential beyond (1) multiple expansion to some realistic, non-zero number and (2) a return to O&G prices in the US$60+/$2.75+ ranges seen in recent years.
In other words, even if Macro's legacy work is worth zero, it seems to me unlikely that the option that it may win some LNG pipeline work is also worth zero.
Macro is to be sure a "cigar butt" but, like Dawson, it is not a bad one and may yet turn out to be an excellent one.
Disclosure: I own some shares in Macro Enterprises