Nuverra Environmental Solutions (NYSE:NES)

CAPS Rating: 3 out of 5

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Player Avatar Googlespooch (45.07) Submitted: 4/23/2013 6:12:54 AM : Outperform Start Price: $39.50 NES Score: -82.18

With fracking on the rise, it should seem that the US government will not block its continuation. I say this because it would be one of the most disastrous policy decisions in a long time if the government really did block fracking. Despite this, however, it is important to consider that fracking is still ecologically damaging. It produces filthy water, damaged soil layers, etc. It should seem, then, that the EPA may begin to require more of the fracking companies in terms of environmental regulation. Enter Hekkman! Hekkman already recycles fracking water in addition to a few other services that the company provides. Were the EPA to bring in increased environmental regulation, it should not seem far fetched to consider Hekkman as a big winner considering water treatment would be one of the top regulation targets. With established infrastructure and know-how, Hekkman would be poised to handle EPA regulations very well.

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