It's an ugly session for Nuverra Environmental (NES -32%) after reporting weak Q3 results and a 1:10 reverse split, but at least losses have held steady through the day.
Of $233M in asset writedowns, $98.5M went toward the TFI business bought last year for $245M; NES says it plans to sell the business, an admission that the business never lived up to its billing as a stable source of earnings.
Revenue in the fluids management unit was flat as earnings declined; peers Key Energy (KEG) and Basic Energy Services (BAS) appear to be doing a better job managing current conditions.
On its Q4 outlook, NES says it doesn't expect a material change in overall business activity and believes the typical seasonal slowdown could be greater than normal.
Craig Hallum cuts shares to Sell from Hold after "consistently poor results" and "continued margin compression."
Nuverra Environmental (NES -6.6%) extends yesterday's losses sparked by a negative post on Seeking Alpha, which said "a liquidity crisis is looming" and shares could fall 80% over the next year.
Jefferies analyst Scott Graham is out defending NES, disputing claims that the company has a high probability of bankruptcy and saying the article ignores data on financial ratios "as seen by the banks."
Graham also points out that Dick Heckmann has not jumped ship and remains chairman with significant ownership.
The analyst is not positive on the stock, however, maintaining a Hold rating and cutting his price target to $2.75 from $3.25.
Nuverra Environmental Systems (NES) -20.9% premarket after a Seeking Alpha post by MBAvalueinvestor says shares could lose 80% over the next year.
NES is "a destroyer of capital," constantly posting disappointing results and overstating guidance, and its power fuels and core businesses are in decline, the article says.
A "liquidity crisis is looming": NES has $551M of debt and borrowing capacity has been restricted on its credit facility, it has cut spending but is still set to violate its credit facility covenants by year-end.
Nuverra Environmental Solutions (NES +6.7%) jumps after announcing an agreement with Halliburton (HAL -1.5%) wherein the two companies will work together to advance HAL's H2O Forward Service which allows customers to recycle waste water for use in well completions. (PR)
Bill Diehl+ FollowFollowing- Unfollow|Send Message4 Feb
: The company has refinanced it's debt saving a lot in interest.
Feb 4, 10:12 AM
holydawn+ FollowFollowing- Unfollow|Send Message29 Jan
$NES Did state of union help this company at all regarding the proposed investment in natural gas?
Jan 29, 12:36 PM
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Green Eagle+ FollowFollowing- Unfollow|Send Message29 Jan
: Sorry, I think it's gonna take a lot more than the SOTU to help this one out.
Jan 29, 1:32 PM
NES vs. ETF Alternatives
Nuverra Environmental Solutions Inc formerly, Heckmann Corp provides environmental solutions to customers focused on the development and ongoing production of oil and natural gas from shale formations.