Nuverra Environmental Solutions Inc (NES), Oasis Petroleum Inc. (OAS), Magnum Hunter Resources Corp (MHR): The Weather Continues to Plague This Industry

He went on to point out that last year its Bakken operations were so hurt by the weather that it caused the company to miss production numbers for a couple of quarters. The weather is clearly an influence that Magnum Hunter Resources Corp (NYSE:MHR) investors need to watch.

What’s key for investors to realize is that while weather effects all companies, it affects the results of some in more direct ways. Both Nuverra Environmental Solutions Inc (NYSE:NES) and Oasis Petroleum Inc. (NYSE:OAS), for example, rely heavily on the Bakken for revenue. Meanwhile, a large and more diversified company like Halliburton Company (NYSE:HAL) barley notices when there is rain in Ohio. The takeaway for investors is pretty clear: Investing in a smaller energy company comes with a different set of risks. The weather often can be overlooked, until it holds back results.

The article The Weather Continues to Plague This Industry 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 $4 calls on Nuverra Environmental Solutions and short January 2014 $3 puts on Nuverra Environmental Solutions.

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