I'm starting to see some evidence of consolidation happening in the water-frac industry as fully-integrated water-frac service providers try to catch onto this massive industry trend.
According to Lux Research, water service spending in O&G will increase by 15 X between now and the early 2020s.
As Excelyte does treat water that is reused by drillers, I can see IEVM being bought out by an integrated service provider.
According to Value investors club, IEVM's management stated that they can see themselves getting bought out at a $200+m valuation by a larger service provider.
Rock Water Energy, a leading service provider was founded in 2011 (1,000+ employees); Select Energy spun off all of its non-water service business segments in 2014 to focus on water-frac; HII Technologies made an aggressive water service acquisition in 2012 - which ultimately led to the company's bankruptcy last year, etc.
So it seems like we're in the early innings of something pretty good from my point of view.
