Recycled Water Is No Fracking Savior

Shares of Nuverra Environmental Solutions (NASDAQOTH: NESC  ) , 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. 

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Read/Post Comments (4) | Recommend This Article (7)

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  • 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.

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