Halliburton Company (HAL), Baker Hughes Incorporated (BHI): These Companies Could Drown In Recycled Water

Basic Energy Services, Inc (NYSE:BAS) derived more than a quarter of 2012 revenues from its fluid services unit. Its operations rely heavily on the legacy model of hauling water. Superior Energy Services, Inc. (NYSE:SPN) counts on its traditional fluid services offerings for about 20% of revenues.

Basic Energy Services, Inc (NYSE:BAS) seems to see which way the wind is blowing, and made two acquisitions in recent months to gain exposure to water treatment and recycling activities. Superior Energy Services, Inc. (NYSE:SPN), on the other hand, doubled down on its water-hauling activities with a February 2012 acquisition in this space. Ultimately, both companies are likely to face a formidable challenge from Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI).

It seems likely that a water-recycling revolution is coming to the fracking world. Those companies that adapt and offer innovative solutions for better water management are likely to benefit handsomely.

The article These Companies Could Drown In Recycled Water originally appeared on Fool.com and is written by Sara Murphy.

Sara Murphy has no position in any stocks mentioned. Follow her on Twitter @SMurphSmiles. The Motley Fool recommends Halliburton. The Motley Fool owns shares of Devon Energy.

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