Recycled Water Is No Fracking Savior

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. 

The American energy boom is far from over
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


Read/Post Comments (4) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 08, 2013, at 7:17 PM, wallaworry wrote:

    Nuverra "has been on a tear" and there is "enthusiasm" in its shares? What chart are you looking at? I assume from this alone, not to mention the spelling and grammar errors, that this article is meant as a joke.

  • Report this Comment On December 09, 2013, at 1:11 PM, nzevit wrote:

    This technology makes a lot of sense. The business model is still having trouble, and until recently they have not been getting the PR they deserve. Hopefully this and another article that went on line recently will bring this technology more to light.

    It seems that there is a rare combination of increased well output as well as a "greener" technology.

    Now for the business men to run the company a bit better.

  • Report this Comment On December 09, 2013, at 1:12 PM, nzevit wrote:

    talking about gasfrac of course.

  • Report this Comment On December 09, 2013, at 1:34 PM, nomercadies wrote:

    This article doesn't really follow the information we've picked up from obvious stock price charts and listening to conference calls. The idea the stock price has been on a tear makes me wonder if we are talking about "tear" the noun or "tear" the verb. Some of the facts about how fracking works and the relationship with Halliburton are ignored. It makes me wonder which one of us has the wrong facts. Since the stock un-split, the stock price has dropped a couple bucks for crying out loud. Call up any chart and check it yourself. Insider buying is being reported as an increase ... these managers must not be very smart, or maybe they have been getting information other than what this article offers. Please feel free to point out where I am wrong.

Add your comment.

DocumentId: 2756811, ~/Articles/ArticleHandler.aspx, 4/24/2014 11:23:10 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement