Huntington Ingalls not ready to move further into energy market

Though Huntington Ingalls Industries' chief executive said he's convinced the energy market is a good adjacency for the contractor, he rejected suggestions the company move more deeply into the field.

Speaking at an investor day today, Mike Petters said he continues to believe in Huntington Ingalls' acquisition of UniversalPegasus, which specializes in engineering and project management services for the energy industry.

"We see a great alignment between the things that the shipbuilding engineers are doing day in and day out and what this marketplace needs day in and day out," he said. "We believe that the Pentagon's going to go forward with trying to be better at stuff that's undersea."

However, he said the company's efforts to access UniversalPegasus' customers has been "tempered" because of the decline in the price of oil.

Asked whether the state of the market might make it a good time to acquire more oil and gas-focused companies, Petters said the key is being "able to execute."

"I have conviction about the marriage of our capabilities and that market. I don't have conviction about the size of that market or growth rates in that market," he added. "We're focusing hard on the execution piece."