Shares of Nuverra Environmental Solutions (NYSE:NES), a company heavily focused on water recycling during the fracking process, has bean on a tear after annoucning a 1-for-10 reverse stock split. However, the enthusiasm in its shares may be short-lived since I believe the outlook for this company is as cloudy as the water it is trying to reuse. Why? Much of the company's future depends on treating water used in fracking.

Using waterless tracking technology could become an even bigger opportunity that hinders growth for Nuverra. Also, improvements in drilling efficiency by names like Schlumberger (NYSE:SLB) and Halliburton (NYSE:HAL) could further lessen the case for Nuverra's technology. Also, at this juncture, using water in energy needs to be seriously evaluated, so I'm more inclined to focus on GASFRAC (NASDAQOTH:GSFVF), a company actually providing customizable waterless liquefied petroleum gas (LPG) gel fracturing technology. 

John Licata has no position in any stocks mentioned. You can follow John on Twitter @bluephoenixinc. The Motley Fool recommends Halliburton. The Motley Fool owns shares of Nuverra Environmental Solutions. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.