Nuverra Environmental Solutions, a provider of full-cycle environmental solutions to the energy and industrial end-markets, reported $128.0 million ($155.7 million including TFI) in revenue for the first quarter ended March 31, 2014.
Total revenue in the first quarter of 2014 was down 2% from $130.6 million in the first quarter of 2013.
Net loss from continuing operations for the quarter was $11.9 million (net loss of $11.5 million including TFI).
During the quarter the company continued to make significant progress to expand its full-cycle business model and execute their growth strategy, said Mark D. Johnsrud, chief executive officer. However, the quarter was impacted by severe winter, which curtailed activity throughout their operating areas.
Further the company’s results in the Northeast were negatively affected by an accident at one of its major customer’s wells, which resulted in significant pullback in their drilling and completion activity during the first quarter as they conducted safety reviews.
In the second quarter, the company is returning to normalized levels across all basins, and hope service intensities will increase as operators continue to gain efficiencies through multi-well pads and longer laterals, which increases waste volumes and drives demand for the solutions we provide.
“Our expanded service offerings, which will include thermal treatment of drilling solids and pipeline transportation networks, combined with stricter environmental regulations, are creating significant opportunities to cross-sell additional solutions to existing customers,” Johnsrud said.
For the first quarter, total revenue from the Company’s Shale Solutions business was $128.0 million, of which approximately $97.1 million was derived from predominantly liquids-rich areas and $30.9 million was derived from predominantly gas-rich areas.
Nuverra believes the market dynamic in the basin is improving. Additionally, the basin management team has been very successful with cost reductions.
The Company recently made a capital investment in the Eagle Ford, signing a definitive agreement to acquire permitted land for construction of an integrated environmental treatment center that is expected to open by the first quarter of 2015.
For the upcoming quarter, Nuverra expects sequential improvement in terms of both revenues and margins, as well as a gradual resumption of drilling and completion activities that were delayed due to weather.