Heckmann Corporation (HEK), Nabors Industries Ltd (NBR): This Misunderstood Energy Company Is Poised for Big Profits

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There’s also another industry trend working in Heckmann’s favor: a move toward more water recycling and reuse for drilling and fracking. In places such as the Eagle Ford formation, where oil and gas are plentiful and water is becoming more scarce, the need to reuse water grows every day. Unlike some fluids-treatment competitors such as Key Energy Services, Inc. (NYSE:KEG) that focus mainly on disposal, Heckmann is positioning itself as a full-service wastewater company with treatment and reuse capability. With this type of operation, it will be able to control the entire life cycle of transport, treatment, storage, and delivery of water used in oil and gas drilling.

3. Heckmann Corporation (NYSE:HEK) isn’t just natural gas anymore. Much of Heckmann’s early business was centered on servicing natural gas operations, so it would make sense to associate the steeper decline in natural gas drilling with lowered expectations for the company. This isn’t the case anymore. The company’s other half, Power Fuels, was almost primarily focused on servicing oil operations, so with the two companies teaming up, they now sport a diversified portfolio of oil and gas services. Heckmann’s management believes that several exploration and production companies are looking for a single company to handle their water services, and the merger positions it to be the company to provide that service.

What a Fool believes
We at the Fool like to see founder-led companies. So two founders must mean even better, right? After the successful merger of Heckmann and Power Fuels, Power Fuels founder Mark Johnsrud has taken over the reins as CEO and Heckmann Corporation (NYSE:HEK) founder Richard Heckmann will remain executive chairman of the newly formed company. Between the founders and other insiders, the company is more than 43% insider-owned. So investors can take comfort in knowing that management has a very large stake in the decisions it makes and that its goals should be closely aligned with shareholders.

The article This Misunderstood Energy Company Is Poised for Big Profits originally appeared on Fool.com.

Fool contributor Tyler Crowe owns shares of Heckmann. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool recommends and owns shares of Heckmann and National Oilwell Varco and has options on Heckmann.

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