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 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

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

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!