Nuverra Environmental Solutions Inc. (fka NESCQ)

[Wildbilly]

Oil-Service Firm Heckmann Hit by Price Pressures

10:53 EST - Heckmann (HEK) is unwinding a good chunk of its early-month stock gain as the water-services firm for oil-and-gas explorers gets downgraded to underperform by Wedbush, which hasn't been overly upbeat to begin with. It shaves 50c off its price target, to $2.50, while lowering 2013 estimates. The investment bank says "significant price pressure" is hurting HEK as the industry has moved into shale plays, causing a glut. Meanwhile, "the high-margin rental business experienced significant price destruction while utilization rates have been cut in half." HEK is down 6.7% at $4.06. ([e-mail])
(END) Dow Jones Newswires
February 11, 2013 10:53 ET (15:53 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.- - 10 53 AM EST 02-11-13

Source: DJ Broad Tape