Big Future for the New Heckmann Corporation (HEK): NextEra Energy, Inc. (NEE), Clean Harbors Inc (CLH)

Page 1 of 2

Heckmann Corporation (NYSE:HEK)When environmental solutions provider Heckmann Corporation (NYSE:HEK) reported earnings this week it capped a great ending to the company’s transformational year. Not only did Heckmann Corporation (NYSE:HEK) report a surprise profit but the company’s report surprised investors by unveiling a name change. If approved by shareholders at the company’s annual meeting in May, the company will be known as Nuverra Energy Solutions and its new ticker symbol will be NES.

While some investors might ignore this change, thinking its nothing more than noise, branding is an important next step in the company’s evolution. Instead of investors wondering what the heck Heckmann Corporation (NYSE:HEK) actually does, its new brand will be built upon the foundation that the company is the forerunner for a new era of environmental solutions. In order to take the company to that next level, as well as to fully integrate its recent mergers, a name change was a must.

Now, as for the actual name chosen and the reasoning behind it, no one can say it better than the one whose name it’s replacing. Founder Dick Heckmann Corporation (NYSE:HEK) noted on the company’s conference call: “Every customer we talk to wants an integrated, nationally based, full service solutions provider.” The best way to communicate that to its customers was to eliminate the nearly dozen different company names it currently uses and unify the company around one core brand. That core brand, Nuverra Energy Solutions, contains references to “new,” “green,” “earth,” and “time,” and reflects the broader focus of the company’s now-unified operating units. However, the real reason for the selection of this name according to Heckmann Corporation (NYSE:HEK) is that “all the obvious names are taken and trademarked, and the URLs are unavailable.” You have to love that kind of honesty and candor coming from management!

The question for investors is whether the new name will matter? I think in this case it will matter more than most investors realize. You see, the biggest battle surrounding energy policy in the U.S. is around the environmental issues. In order for fracking to have a cleaner image, exploration and production companies need to have a partner that will adhere to stricter environmental compliance and be accountable. Moreover, these companies are demanding a comprehensive solutions provider. This is what the new brand Nuverra plans to deliver.

Brand image has become increasingly important in the energy industry. One well-known recent example is found in NextEra Energy, Inc. (NYSE:NEE). Formerly known on the corporate level as Florida Power & Light, as the company has devoted more of its capital to build out its wind business, so a rebranding capturing this next era of energy generation made sense. The company, which just commissioned its 10,000th MW of wind power, is now the company to own for investors desiring to invest in a clean generation utility.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!