Nuverra Environmental Solutions Inc (NES) Can’t Catch a Break

In an odd twist, the company was actually affected negatively in another fast-growing shale play because it couldn’t keep up with demand. The company’s Marcellus and Utica operations were stronger than anticipated which forced it to subcontract some work, which had a negative effect on margins. Nuverra Environmental Solutions Inc (NYSE:NES) is aggressively hiring in the region and recently acquired a competitor in the Utica to expand its operations.

Nuverra Environmental Solutions Inc (NYSE:NES) really couldn’t catch a break in the second quarter. The weather slowed its business in its core Bakken operations while it couldn’t keep up with customers in the Marcellus as its business really took off. Both areas should be sorted out and look like long-term positives. The one area of concern is the Eagle Ford — the company really needs to clean up its act or else competitors will swoop in and take charge. I think the company is up to the task, and expect to see a much better second half from Nuverra.

The article Nuverra Can’t Catch a Break originally appeared on Fool.com.

Fool contributor Matt DiLallo owns shares of Nuverra Environmental Solutions. The Motley Fool recommends Halliburton. The Motley Fool owns shares of Nuverra Environmental Solutions and has the following options: long January 2014 $4 calls on Nuverra Environmental Solutions and short January 2014 $3 puts on Nuverra Environmental Solutions.

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