Point Roberts, WA - June 7, 2013 (Investorideas.com Newswire)
Investorideas.com staff: Investorideas.com, an investor research portal specializing in
investing
ideas in leading sectors reports on oilfield services /frac water
treatment stocks and how a small Houston company, HII Technologies, (
OTCQB: HIIT) is beating the odds competing against the big players dominating the sector.
According to a recent research report from Jeffries, 'Oil Services
& Equipment-Over-Hauling Frac Water; U.S. Oilfield Water Recycling
Review”, bigger
companies
in the space have the edge.
"We believe water recycling in the oil patch should grow
significantly in the U.S. over the next few years, perhaps with some
regulatory push. Recycling lowers well-cost vis-à-vis fresh water and
enables activity in drought-prone regions. That is a boon to all of OFS
except water haulers, but we think the complexity of fracking with
recycled water gives the edge in pumping services to
(NYSE:HAL), (NYSE:BHI) and (NYSE:SLB) over smaller peers. "
The Houston
Business
Journal reported on Jeffries findings on May 23 rd, in an article
entitled, ' Recycled frac water: Big oilfield service companies have the
edge', just days after the small Houston-based company reported its
earnings.
Clearly the market is large and there is room in the frac water
treatment sector for the smaller companies to thrive as companies like
Schlumberger Limited (NYSE: SLB) can't or chose not to do it all.
In mid-May 2013, HII Technologies, Inc. (
OTCQB: HIIT)
reported financial results for the first quarter ending March 31. First
quarter 2013 revenues were $2,609,773, which generated a gross profit
margin of $532,292. These revenues consisted of AES Water Solutions as
well as initial revenue contribution from South Texas Power and the AES
Safety
Services divisions, which were launched in late December 2012 and
January 2013 respectively. AES Water Solutions generated revenues of
$536,371 for the comparable period in 2012. Accordingly, on a pro forma
basis, this represents revenue growth for AES of more than 380% for the
first quarter of 2013.
Brent Mulliniks, President of AES Water Solutions stated, "We
experienced good growth in the first quarter from both increased demand
with existing customers and from expanded operations. AES incurred
additional expenses as it established new areas of operations in the
Permian Basin and the Cline Shale in West Texas as well as the Eagle
Ford Shale in South Texas." Mr. Mulliniks continued, "New revenues are
now being generated as a result of these expenditures."
"All three divisions, Water, Power and Safety, exceeded their
revenue targets for the first quarter 2013," said Matthew Flemming, CEO
of HII Technologies.
About HII Technologies, Inc.
HII Technologies, Inc. is a Houston, Texas based oilfield services
company with operations in Texas, Oklahoma, Ohio and West Virginia. The
Company is positioned to take advantage of the significant anticipated
growth in horizontal drilling and hydraulic fracturing within the United
States' active shale and unconventional "tight oil" plays by deploying
new oilfield related technologies to enhance the value of services to
its customers. The Company's frac water supply services subsidiary does
business as AES Water Solutions, its onsite oilfield contract safety
consultancy does business as AES Safety Services, and its mobile
oilfield power subsidiary does business as South Texas Power (STP). Read
more at
www.HIITinc.com,
www.AESwatersolutions.com and
www.oilfield-generators.com.
Investors can research more water remediation stocks with Investorideas.com stock directories
Article source: Houston Bizjournal article:
http://www.bizjournals.com/houston/ blog/drilling-down/ 2013/05/ water-recycling-to- benefit-big-service.html
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