recently there have been some "red herring" reports from the expected sources , discussing some drillers
who are developing their own "in house" water service and how this will kill HEK ..
backing up for a more macro view , this kind of thing has gone on with companies for over a century ...
"do we support a non core, but vital activity , or vendor out , or lease , or contract for services" ....
most likely , a few of the larger drillers can well afford to do this , though the operation will be an actual drag on
earnings, but wll result in a unit that can be spun off for nice profit downstream .. others will realize that it
was folly to attempt in house water treatment ..
most large companies have all they can do to remain competitive with their core operations and it's
worth the difference in cost to contract a turnkey solution from a company that concentrates on that
service ... there is pretty hefty infrastructure necessary for water processing/disposal and it's not
a permanent thing for a company ....
junior drillers , who don't have much capital , cannot afford their own water service unit , as they are
trying to minimize cost while they develop wells and prepare to be bought out by a large firm and
cannot carry too much debt ....
basically , these articles are bunk , to be certain , they start with a viable premise , but pen the articles
to "fire the 'magination" a la "how white my shirts can be " ... apologies to mick jagger .. garce
#$%$ Heckmann constantly points out how intricate the regulations are for these businesses on both the federal level and even more so from state to state - HEK solves the drillers needs from start to finish and from one shale to the next - this is why the company has gone from servicing approx. 3 to 10 of the top ten drillers. One call does it all. With the price of NG solidly above $4 and still at a low level (VS. the rest of the world) there is loads of growth to be had in this industry. Hang in there and prosper!
these things take time and patience and something to coat the stomach ... i;'m hoping that the
upcoming er/cc will be a bit granular ... it will be good to see how acretive TFI has become , as
well as progress on the PF deal, which should have added to the bottom line in Q1 ... i suppose
it wouldn't hurt either for the company to announce outfitting the truck fleet wih NG trucks , a la
WM ... either way , we should start to see quarter over quarter improvements over the next
2 years .. how high the price gets bid to is anyone's guess ..
BTW ... IF it turns out that the big outfits are going to develop their own water treatment services ,
then HEK will become an attractive takeover target ... garce