Heckmann Corporation Announces Record Second Quarter 2012 Financial Results
HWR has been increasing utilization within its fleet, while maintaining ample capacity to organically expand operations into other basins. HWR is now staging vehicles to transfer and expand its presence in West Texas and Oklahoma to enter the Permian Basin and Mississippi Lime Shale areas to address the needs of its contracted customers. HWR began water transfer operations in the Permian Basin in the second quarter and expects to commence trucking and other operations by the end of the third quarter.
To further expand its operations, the Company has signed a letter of intent to acquire a majority interest in a regional water treatment facility in the Marcellus Shale area. The plant includes a truck terminal and has a large precipitation and clarification system for treating flowback and produced water as well as drilling waters for reuse. The transaction is expected to close, subject to normal and customary closing conditions, before the fourth quarter of 2012.
Heckmann Environmental Services (HES), formerly Thermo Fluids Inc., is a route-based environmental services and waste recycling solutions company focused primarily on the collection and recycling of used motor oil (“UMO”). HES has a number of expansion initiatives underway to address market demand and service its growing customer base. In the second quarter, HES completed a small, strategic acquisition in California, providing entry into the largest UMO and environmental services market in the United States. HES also began construction to expand its antifreeze remanufacturing plant in Las Vegas, which will double the annual capacity at this facility to 2.0 million gallons. Additionally, HES is completing construction of a new oil filter recycling facility in Texas. Both facilities are expected to be fully operational in the fourth quarter of 2012.
For the ninth consecutive quarter, reprocessed fuel oil (RFO) yield outperformed relevant energy indices. Year-over-year, WTI crude oil prices were down 9%, however, RFO was up 23% in the second quarter of 2012 indicating that, so far, increased re-refinery capacity has off-set macro market pricing.
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