Nuverra Environmental Solutions (formerly Heckmann), a company that recycles and otherwise disposes of shale drilling wastewater and leftover rock and dirt from drilling, decided to release the “bad news” ahead of an earnings call on August 8 that 2Q13 profits will not meet expectations. They’ll show earnings of a measly $165.5 million. Nuverra has a growing presence in the Marcellus and Utica Shale region.
So what were the challenges in 2Q13 that caused Nuverra to falter financially? Believe it or not, one of the reasons for their “poor” financial showing is stronger than predicted growth for their business in the Marcellus/Utica. The strong growth forced them to parcel out work to subcontractors, which costs more than having your own employees do the work. Nuverra says they’re now ramping up and expanding their own people in the Marcellus/Utica…
