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CONSOL Energy Inc. (CNX), Nuverra Environmental Solutions Inc (NES): This Identity Crisis Could Unlock Huge Value for Investors

Another asset that might be more valuable to a strategic acquirer is CONSOL’s water division. The company owns a variety of water treatment assets used to process and recycle water for its coal and natural gas businesses. This business would be a nice strategic fit for a company like Nuverra Environmental Solutions Inc (NYSE:NES). Nuverra Environmental Solutions Inc (NYSE:NES) has been consolidating water assets over the past few years, and therefore CONSOL’s 102 wastewater treatment plants throughout Appalachia would go far in advancing Nuverra Environmental Solutions Inc (NYSE:NES)’s commitment to protecting the environment by offering water solutions to producers. Furthermore, it would diversify its business into coal.

CONSOL has a range of other options in addition to the ones I’ve mentioned, making one thing clear: There is value that’s just waiting to be unlocked. The good news is that investors won’t have to wait long — the company expects to announce something as soon as next quarter. Unlocking value to embrace a new identity tends to be well rewarded by the marketplace, so investors who are interested in this type of situation might want start digging a little deeper to see what other hidden assets CONSOL has before the market discovers what exactly CONSOL is doing.

The article This Identity Crisis Could Unlock Huge Value for Investors originally appeared on Fool.com is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Nuverra Environmental Solutions. The Motley Fool recommends Alliance Resource Partners, L.P. 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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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