Nuverra Environmental Solutions, Inc. (NYSE American: NES) is engaged as a water logistics and oilfield services company for oil and natural gas activities in the United States. The company specifically provides water transfer, disposal services, rentals, and other services assisting with drilling and production of shale oil and natural gas. Shares of the water services company are soaring 116% through early trading on Monday, December 13, 2021. Over the past three months, Nuverra Environmental Solutions has seen average daily volume of 25,520 shares. However, volume of 40.47 million shares or dollar volume of $121.41 million, has already exchanged hands through early trading Monday.
Shares of Nuverra Environmental Solutions are surging after the company announced that it has entered into a definitive agreement to be acquired by Select Energy Services, Inc. (NYSE: WTTR). Under the terms of the agreement, Select Energy Services will issue Nuverra shareholders 4.2 million shares of Class A common stock in exchange for all outstanding shares of Nuverra. This gives the transaction an approximate total of $45 million, when including the assumption of $20 million in long term debt.
The acquisition would add an additional 300,000 barrels per day of daily water dispisal capacity across Texas, Louisiana, North Dakota, Montana, and Ohio. This would bring Select Energy Services’ total daily disposal capacity to approximately 2.5 million barrels per day.
John Schmitz, Select’s Chairman, President and CEO, stated, “We are excited to further expand Select’s world-class sustainable water services and infrastructure footprint through yet another attractive set of consolidation opportunities. These acquisitions represent a continuation of our strategic effort to improve and bolster our base business, advance our technology and diversification efforts, and execute on strategic consolidation opportunities. The Nuverra acquisition will strengthen our geographic footprint with a unique set of water logistics and infrastructure assets, particularly in the Bakken, Haynesville and Northeast, while continuing to expand our production related revenues. Additionally, the acquisition of HB’s onshore operations will add significant asset and regional breadth to our market leading rentals and accommodations business unit within our Water Services segment.”
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