The single most profitable company in the oil patch today
This tease says the company has 85% profits, has something to do with processing the waste water from the fracking process. It reduces the waste so much they only require 1-2 trucks instead of 50 to 100. They also mention a 7% dividend. It comes from Keith Schaeffer, oil and gas investments
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Heres a little more to the pitch “Dividend Payments that Flow like Water
As I mentioned, the company has a strong cash position, and its dividend currently kicks off a yield of roughly 7%. ” also “It’s an ideal situation for this company. So let me recap…
# 1. Market share in this rapidly growing industry is still measured in just single digits.
# 2. Demand is accelerating for this company’s win-win solution – one which benefits everyone involved.
# 3. The company has this fast-growing market practically cornered.
# 4. It’s a cash flow machine — with profit margins of 85% or more.
Cheaper. Safer. Cleaner. More profitable. And in total control of the new breed of water-services segment.”
Anyone have any ideas?
joel – check this out – 3 cos are mentioned – maybe you can figure out which it is;
http://www.investorideas.com/news/2012/water/02141.asp
Thx, I did look at those 3. Ridgeline just completed a purchase of a company, Danziker Hydrologicals that developed a new technology for recycling water but I couldn’t find much information other than that. There was no mention of a 7% dividend either and ridgeline is only selling for .92/share. I’ll keep looking.
It is not HEK, but that is the fracking water treatment stock that Cramer talks about, not that that should be buy signal. There is no dividend listed, so not the company.
I was looking for info on this and came across this company, Altela, Inc.
Quoted from their web site.
“Altela, Inc. offers a fundamentally different water desalination/decontamination solution inspired by nature itself. Through the use of its proprietary, patented AltelaRain® technology”
http://www.altelainc.com/
Sounds like this technology might be what he is talking about and they are working on some drill sites but Altela is a private company from what I can tell.
We aim to please — focused on this one in today’s article for you, you can find the writeup here: http://stockgumshoe.com/reviews/oil-gas-investments-bulletin/the-single-most-profitable-company-in-the-oil-patch-today-revealed/
This company, Poseidon Concepts, is the real deal. They were the first to conceive of a simple solution to the problem of drillers having to either store water in pits ( with ecological and other drawbacks) or in multiple (dozens) relatively small steel containers. Poseidon has some patent protection, in the way that the supporting panels are connected, but otherwise the process is wide open for competition. “Wide open” does not mean virtually anyone can duplicate the idea overnight. Poseidon will have a minimum of 400 tanks by the end of the 2nd quarter by their own forecast and most likely at least 50% more by the end of 2012. This is from zero in 2010. Both when previously owned by OpenRange and since the spinoff as a separate company, management has consisently beat their own estimates.
As far as I can tell, only two companies (one Canadian, one U.S. ) has announced any intentions to vigorously compete. To give you an idea of their position, the U.S. company , Quick Pits, privately held, recently announced a target of 100 tanks by the end of 2012. They did not have the confidence to announce how many tanks they already have in the field. Poseidon has a two-year jump, they are already in every major field in the U.S. and Canada, already have a track record with no environmental accidents, already have numerous long-term contracts with major companies, already have the 2012 dividend covered already by contracts with room to spare. All they have to do is stay #1 and they will be enormously profitable for a very long time.
One of the advantages of Poseidon, versus say a fracking company like C&JEnergy or GasFrac, is that the total industry is available to them. There is almost no restriction based on geography or local drilling and fracking conditions. There is no need for expensive specialized labor. There is virtually no limit to the number of tanks which can be provided. Even at the current lease prices for the tanks, the specific savings to the driller is 40% to 60%.
You can go to Poseidonconcepts.com to get the story.
I guess I sound excited. I am. This is my largest single investment by far. Even though my investment has almost doubled, I believe it could very well double again by the end of 2012.