Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Chesapeake Energy Corporation (CHK) & A Couple Important Graphics

One of the biggest economic stories of the next decade will likely be the fact that America will be producing more oil and natural gas that any country in the world by 2020.

The country is now dotted with large swaths of energy deposits that are being developed.

Source: SEC filing.

Much of this boom has been made possible through new fracking techniques. But these techniques are at the center of a firestorm regarding the environmental safety and the impact it can have on local ecosystems.

Furthermore, fracking requires enormous amounts of water. Chesapeake Energy Corporation (NYSE:CHK) recently estimated that every new well it drilled would require 5 million gallons of water – and because of that, energy prices would likely be staying high for the foreseeable future.

Chesapeake Energy CorporationEven if our appetite for fossil fuels levels off, these wells are likely going to be drilled to meet demand over the years. In addition, safety regulations imposed by the government will likely tighten, and the amount of water used will remain high.

That’s where Heckmann Corporation (NYSE:HEK) – with its tiny market cap below $1 billion – comes in. Over the past couple years, through a combination of capital spending and strategic acquisitions, Heckmann has positioned itself as the company that will help meet the environmental and water needs of the energy industry.

Image: Chesapeake Energy Corporation (NYSE:CHK)

Just as the real winners of the gold rush were those selling axes and blue jeans, Heckmann Corporation (NYSE:HEK) could profit not by extracting energy, but by being the only player equipped to handle water from start to finish.

To understand what the company does, check out this slide from a recent presentation.

Source: SEC filing.

The company has quietly built out an infrastructure of trucks, tanks, railcars and pipelines to deliver and collect the massive amounts of water energy extracting companies need.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.