Nuverra Environmental Solutions Inc (NES)’s Solid Acquisition Extends Its Bakken Dominance

Last year Hess Corp. (NYSE:HES) and Whiting Petroleum Corp (NYSE:WLL) represented 33% and 25%, respectively, of Bakken-based Power Fuel’s revenue before it merged with Nuverra. Both companies represent big future opportunities, as Hess Corp. (NYSE:HES) expects to drill 175 wells this year and has plans to double its daily production by 2015, while Whiting Petroleum Corp (NYSE:WLL) sees the potential for more than 4,000 future wells on its Northern Rockies acreage. If Nuverra can continue to work with both companies to capture that growth and up-sell value-added services like solid waste, then it speaks to a bright future for the company.

Those are just some of the reasons why this looks like a very solid acquisition for Nuverra Environmental Solutions Inc (NYSE:NES). While I’d liked to have seen more financial disclosure, I’ll take the company at its word that the deal is accretive to earnings. The big bonus here is that the site is located in the Bakken, a play which is likely just 10% developed, which means that there’s the potential for decades of growth ahead.

The article Nuverra’s Solid Acquisition Extends Its Bakken Dominance originally appeared on Fool.com and is written by Matt DiLallo.

Motley Fool contributor Matt DiLallo owns shares of Nuverra Environmental Solutions and has the following options: Short Jul 2013 $35 Puts on Waste Management and Short Jun 2013 $4 Puts on Nuverra Environmental Solutions. The Motley Fool recommends Waste Management. The Motley Fool owns shares of Nuverra Environmental Solutions and Waste Management and has the following options: Long Jan 2014 $4 Calls on Nuverra Environmental Solutions and Short Jan 2014 $3 Puts on Nuverra Environmental Solutions.

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