The other factor behind the results in our Oil and Gas Field Service segment this quarter is the ongoing shift in the U.S. by major energy companies from dry gas wells to liquid-rich and oil plays. This trend, which we touched on during our Q1 call, continued during the quarter. What that shift means to Clean Harbors is that in addition to winning the business, we have to relocate our equipment from the dry gas sites that we're servicing to these new liquid-rich plays.
Unfortunately, that process takes time and money. The solids control assets and surface rental packages that we are repositioning to new drilling locations includes a variety of equipment, such as centrifuges, frac tanks, fluid control, pumps, generators, light towers [ph], well site trailers, et cetera. So much of this is made up of the Peak assets that we acquired in mid-2011.
We're aggressively moving ahead with redeploying these packages. And while I don't want to view specific numbers for competitive reasons, about 1/3 of our surface rental packages are in the process of being repositioned. We are fully confident that all of them will be in position to be fully utilized again in the fourth quarter.
Let me now turn to our other segments, which generally had strong results, especially our Environmental business, which extended the momentum we saw in 2011. Within our Technical Services segment, utilization at our incinerators surpassed 90% for the quarter, and at these high levels, where we achieved, we are able to maximize our profitability. Our U.S. locations generated 88% utilization. In Canada, our Sarnia incinerator was essentially 100% utilized this quarter.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV