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Heckmann possible takeover target?

|Includes: Citigroup Inc. (C), HAL, SLB

Heckmann and Poseidon, which supply workers and equipment to handle the chemical-tainted water that is a byproduct of “fracking,” might now attract interest from oilfield services that help energy companies tap unconventional assets, said Ladenburg Thalmann & Co. and Haywood Securities Inc. With analysts projecting revenue at both companies will jump at least 50 percent next year, according to data compiled by Bloomberg News, Stephen Trauber, global head of energy investment banking at Citigroup Inc., says he expects takeovers in the industry to increase as demand for water-management expertise rises.

“Water has really leapt to the forefront of energy-related developmental issues,” Michael Roomberg, a New York analyst for Ladenburg Thalmann, said in a telephone interview. “There’s an increasing premium placed upon health, safety and environmental services that these companies practice in the shale plays. A company that’s in the business of ensuring the safe disposal, treatment and transport of water like Heckmann is ideally positioned in this very rapidly growing space.”

Heckmann and Poseidon might make sense for Schlumberger Ltd. and Halliburton Co., the world’s two biggest oil services, Roomberg and Haywood’s Geoff Ready said.