Halliburton Company (HAL), Chesapeake Energy Corporation (CHK): Why I’m Pouring More Money Into the Company That Cleans up Frack Water

The other area of concern, its decline in the Eagle Ford, also points to a problem that it can solve. It has hired new management to lead that division — if turned around, it will be an important driver for Nuverra in the future. Top Nuverra customers, such as Chesapeake Energy Corporation (NYSE:CHK), are investing heavily in this liquids rich play. While the company has already drilled 900 wells in the play, it still sees a decade of growth ahead there. Nuverra needs to be better positioned to capture the growth of Chesapeake Energy Corporation (NYSE:CHK) and its peers, so the hope is that the new management can get the job done.

While I’m not thrilled with the performance I’ve seen from Nuverra since I first bought my shares, its future is just too compelling. That’s why I plan on taking advantage of its recent weakness to buy more shares. While I expect the ride to be bumpy, I think that its position to clean up all the water used in fracking will pay off over the long term, which is why I’m pouring more of my own money into its stock.

The article Why I’m Pouring More Money Into the Company That Cleans up Frack Water originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Nuverra Environmental Solutions. The Motley Fool recommends Halliburton. The Motley Fool owns shares of Nuverra Environmental Solutions and has the following options: long January 2014 $30 calls on Chesapeake Energy, long January 2014 $4 calls on Nuverra Environmental Solutions, and short January 2014 $3 puts on Nuverra Environmental Solutions.

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