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Wednesday, July 31, 2013

High Demand for Nuverra's Services Costs Company Money in 2nd Quarter

From The Motley Fool:
Nuverra Environmental Solutions (NYSE: NES  ) decided it was best not to wait until its scheduled earnings release on Aug. 8 to deliver the bad news. Instead, the company chose to preliminarily release second-quarter results and get all its bad news out in the open. Let's break down the release to see if there is anything positive for investors. 
Nuverra noted that several factors have been negatively affecting its business. The company pointed out that activity levels in some of the shale plays it operates in were below its internal forecasts because its customers worked at a slower pace than expected. It did allow that it sees some revenue being pushed into the second half of this year and even 2014.
Later in the article:
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 is aggressively hiring in the region and recently acquired a competitor in the Utica to expand its operations.
Read the rest of the article here. 

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