Nuverra Environmental Solutions Inc. (fka NESCQ)

[fredugsi]

Credit Suisse had some interesting comments today:

26 May 2011
Heckmann Corp. (HEK)
• Expect more of a benefit from Eagle Ford Shale play (Western Texas).
Haynesville play remains strong, while Marcellus provides large growth
opportunity. Acquisition pipeline will be focused in new geographies in alternative
water services (i.e.- not transportation).
• Eagle Ford play appears to be ramping up well. HEK is currently negotiating more
water rights to broaden footprint. Company plans to more than double
transportation footprint.
• Haynesville remains core shale play for HEK. Company currently extending
pipeline further into LA (appears to be following ECA wells).
• Marcellus still one of the larger opportunities (5x Haynesville). CEO appears
comfortable with current footprint in region to grow at desired pace.
• HEK says business can be 25% to 30% EBITDA margins.
• We expect HEK to utilize more LNG trucks, which are a 1/3 less costly to operate
as traditional diesel trucks.
• HEK expects business to double in next year.
• Regarding the China water business, seeing more interest from buyers. Expect
eventual exit via IPO (CEO says he is in no rush as business is now profitable).