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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

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!