Nuverra Environmental Solutions (NYSE:NES) (“Nuverra” or “the
Company”), a leading provider of full-cycle environmental solutions
to the energy and industrial end-markets, today announced financial
results for its second quarter and six months ended June 30,
2014.
Summary of Key Second-Quarter Financial
Results1
- Revenue was $126.9 million ($156.6
million including TFI).
- Net loss from continuing operations for
the quarter was $(24.7) million (net loss of $(23.3) million
including TFI).
- Adjusted EBITDA was $22.9 million
($25.9 million including TFI).
- Net cash capital expenditures were
$13.9 million in the second quarter ($15.2 million including
TFI).
1 Results of operations of Thermo Fluids Inc. (“TFI”) are
reflected as discontinued operations due to its pending
divestiture.
Mark D. Johnsrud, Chief Executive Officer, commented, “During
the second quarter, we sharpened our focus on pricing within the
Shale Solutions segment in order to further strengthen our overall
platform and reduce low-margin business. We implemented pricing
increases in multiple basins during the quarter, which included
releasing some business that does not meet our profitability
targets. We also identified opportunities to become more efficient
and reduce costs. While these activities as a whole resulted in
essentially flat sequential revenue for the second quarter, we
achieved a 220 bps sequential improvement in adjusted EBITDA
margins at our Shale Solutions segment, and a 328 bps sequential
improvement in adjusted EBITDA margins from continuing
operations.”
The Company also continued to advance its business model and
address evolving customer demands, including initiatives for the
construction of fixed pipelines and comprehensive solids treatment
and reuse solutions. “As shale drilling, completion, and production
work expands and matures, the industry is seeing significant
increases in well density, which is heightened by the presence of
stacked pay zones in certain basins,” Mr. Johnsrud commented. “This
is enhancing customer interest in long-term solutions for solids
management, as well as fixed pipelines to deal with increasing
amounts of water, which is a function of both increased production
and more water-intensive hydraulic fracturing methods. As an
example, during the second quarter the Company handled an increase
of over 20% in liquid disposal volumes quarter over quarter.”
Relating to growing its pipeline solutions initiatives, Nuverra
recently executed a Memorandum of Understanding with a major
customer to construct a significant fixed pipeline system for
produced, flowback, and fresh water backed by a long-term contract.
The Company is currently working on finalizing a definitive
agreement for the system. Subject to successful completion of the
definitive agreement, project development is currently expected to
begin in the late fourth quarter of 2014 or first quarter of 2015
and to be completed in late 2015. Current contemplated capital
investments in the pipeline system are estimated between $125 and
$150 million. The Company is also in active discussions with other
customers for additional fixed pipeline initiatives in multiple
basins.
“We are very excited about the progress we have made in
advancing our pipeline initiatives,” Mr. Johnsrud commented. “We
believe fixed pipelines will play a critical role as shale basins
mature. Long-term demand from production-related water grows with
more wells on production, and advances in fracing techniques are
resulting in significant increases in water volumes. Nuverra is at
the forefront of this industry development, given our team’s
expertise as well as our experience with our Haynesville
pipeline.”
Additionally, the Company continues to take steps to advance its
handling of drilling solids. The construction of additional assets
to expand solids treatment and reuse initiatives at Nuverra’s
Environmental Treatment Center located at its landfill in the
Bakken Shale area is on track to generate incremental revenue
beginning in the fourth quarter of 2014.
The Company also completed its previously announced acquisition
of permitted land in the Eagle Ford, and is moving forward to
develop a comprehensive solids treatment, recycling and disposal
facility which it expects to be operational in the second half of
2015.
In conjunction with these growth initiatives, the Company is
considering a drop-down Master Limited Partnership (“MLP”)
strategy. The Company currently believes that this structure could
potentially include assets currently in operation, as well as
future assets the Company develops. The Company has engaged a law
firm to assist it with this process, including seeking to obtain a
Private Letter Ruling (“PLR”) from the Internal Revenue
Service.
The Company reaffirmed its belief that E&P operator
activities, particularly on the completions side, will increase
through the balance of the fiscal year. Mr. Johnsrud commented, “We
remain optimistic that drilling and completion activities will
continue to grow in the back half of the year based on growing well
density and increasing use of hybrid and slickwater fracs, all of
which require abundantly more water. We are confident our expanded
service offerings, some of which are commencing in 2014, will
complement this continued industry growth.”
Second Quarter 2014 Financial
Overview
Including TFI, second quarter revenue was $156.6 million,
compared with $165.5 million in the second quarter of 2013, and
$155.7 million in the first quarter of 2014.
Adjusted EBITDA for the second quarter of 2014 including TFI was
$25.9 million, compared with $33.3 million for the same prior-year
period, and $22.0 million in the first quarter of 2014. Excluding
TFI, adjusted EBITDA in the second quarter was $22.9 million
compared with $28.0 million in the second quarter of 2013, and
$18.9 million in the first quarter of 2014.
The Company incurred non-recurring adjustments to EBITDA from
continuing operations in the second quarter totaling $13.0 million,
primarily due to expenses related to the settlement of legacy legal
matters. These adjustments included $5.5 million in settlement
expense and $1.3 million in legal fees for a total of $6.8 million
to resolve all claims related to the previously disclosed lawsuit
in Dimmit County, Texas. Also, as part of the previously announced
China Water settlement, the Company recorded a non-cash settlement
charge of $3.6 million related to the change in the market value of
the 847,990 shares issued as part of that settlement, as well as
$1.0 million of final legal expenses and defense costs.
Jay C. Parkinson, Chief Financial Officer, commented, “We are
very pleased to conclude these legacy matters and look forward to
executing on this management team’s vision and strategy to create
long-term growth and value for the future. We have removed
potential obstacles by resolving significant litigation matters and
completing the integration and rebranding of our shale business. We
have taken decisive actions to revitalize our operating model and
are very excited to clear the path and execute on our new
initiatives.”
On June 30, 2014, cash and cash equivalents were $3.3 million
excluding TFI ($4.4 million including TFI) and total debt was
$580.52 million, including $400.0 million of senior unsecured
notes, $163.3 million drawn under the Company’s asset-based
revolving credit facility and $17.2 million in capital leases. Net
cash capital expenditures including TFI in the second quarter
totaled $15.2 million, primarily related to the ongoing
construction of the Company’s new environmental treatment center
for solids in the Bakken.
As previously disclosed, during the second quarter the Company
amended its Stock Purchase Agreement (“SPA”) relating to the sale
of TFI to Verolube USA, which included a transaction closing
deadline of August 29, 2014. The Company has completed and
delivered to Verolube USA all required TFI stand alone audits and
interim reviews, as required under the revised SPA.
2 Excludes unamortized discount and premium of $0.7 million,
net.
Operational Highlights
For the second quarter, total Shale Solutions revenue was $126.9
million, of which $92.2 million was derived from predominantly
liquids-rich areas and $34.6 million was derived from predominantly
gas-rich areas.
Reviewing basin-level operational detail:
Bakken
In the Bakken Shale area, revenues declined slightly from the
first quarter of 2014, primarily related to utilization declines in
the Company’s rental business due to the impact of over-supply in
the basin. This was largely offset by continued growth in landfill
solids volumes, as well as increases in liquid disposal volumes,
which resulted in overall sequential increases in margins.
Marcellus and Utica
In the Marcellus and Utica Shale areas, revenues increased
sequentially as the positive trends exiting the first quarter
continued and drilling and completion activities returned to
normalized levels. Mr. Parkinson said “A significant opportunity
remains for the management of water containing high levels of total
dissolved solids. We opened a new treatment system in April in
response to our customers’ needs, and we are also seeing increased
volumes at our existing AWS treatment facility. The Marcellus/Utica
is also an area where we have been highly focused on improving our
margins, and we recently implemented a price increase with our
largest customer, which will take effect beginning in the third
quarter.”
Haynesville / Tuscaloosa Marine
Shale
Revenues increased sequentially in the Haynesville Shale,
reflecting an uptick in drilling activity in the basin, as well as
higher pipeline volumes. “We continue to be enthusiastic about
developments in the Haynesville,” Mr. Parkinson said. “Activity
levels have increased, particularly in the Cotton Valley formation,
and we saw increasing pipeline volumes during the quarter as a
result. We see a number of Cotton Valley wells that were drilled in
the first half of 2014 coming onto production in the second half of
the year, which we believe will drive incremental pipeline volumes.
During the quarter, we implemented pricing increases with a number
of customers in the basin.”
Activities in the Tuscaloosa Marine Shale region also increased
in the second quarter, and the Company expects to see increasing
demand in this region through the balance of the year as operators
expand their drilling and completion activities. The Company had
previously curtailed activities in the basin in 2013, but due to
recent industry activity increases has re-commenced operations.
Eagle Ford
The Eagle Ford operations delivered continuing improvements in
the second quarter, including sequential revenue and adjusted
EBITDA growth. The Company is focused on efficiency and continued
growth in the basin, including construction of an environmental
treatment center at its recently acquired permitted land.
During the second quarter, the Company finalized the shutdown of
its operations in the Barnett Shale area, after concluding that
revenue generated in the basin did not meet its margin and return
on capital targets, and also reduced activity in certain areas of
Oklahoma and Kansas. The Company expects to continue to actively
review its operations, pricing strategy, and efficiency in each
basin with the goal of improving operating margins and returns on
invested capital.
Business Outlook
Mr. Johnsrud provided commentary on the Company’s strategy and
business outlook for the second half of the year:
“Looking ahead, the trends we observed in the second quarter
support our expectation for a stronger back half of the year. We
anticipate E&P spending levels related to drilling and
completion activities to continue to intensify, which will require
that more fluids and solids be managed both on and off the well
sites. The anticipated increase in E&P spending combined with
an increasingly demanding environmental regulatory landscape forms
the basis for our positive outlook. Additionally we believe the
progress we have made in advancing our integrated business model,
including new initiatives like the pipeline and Environmental
Treatment Centers for solids, will drive margins, growth, and
returns on invested capital.”
Conference Call &
Webcast
The Company will host a conference call to discuss its second
quarter 2014 financial results at 4:30 p.m. ET (1:30 p.m. PT)
today. To participate on the conference call, please dial
+1-800-289-0438 (US) or +1-913-312-1378 (International) and
reference conference ID 3553637. An audio replay of the call will
be available approximately one hour following the conclusion of the
call through August 21, 2014. The audio replay of the conference
call can be accessed by dialing +1-888-203-1112 (US) or
+1-719-457-0820 (International) and entering access code 3553637.
The call will be webcast live and a replay available by accessing
the “Investors” section of the Company’s web site at
www.nuverra.com.
About Nuverra
Nuverra Environmental Solutions is among the largest companies
in the United States dedicated to providing comprehensive and
full-cycle environmental solutions to customers in energy and
industrial end-markets. Nuverra focuses on the delivery,
collection, treatment, recycling, and disposal of restricted
solids, water, wastewater, used motor oil, spent antifreeze, waste
fluids and hydrocarbons. The Company continues to expand its suite
of environmentally compliant and sustainable solutions to customers
who demand stricter environmental compliance and accountability
from their service providers. Interested parties can access
additional information about Nuverra on the Company's web site at
http://www.nuverra.com, and in documents filed with the United
States Securities and Exchange Commission, on the SEC's web site at
http://www.sec.gov.
About Non-GAAP Financial
Measures
This press release contains non-GAAP financial measures as
defined by the rules and regulations of the United States
Securities and Exchange Commission. A non-GAAP financial measure is
a numerical measure of a company’s historical or future financial
performance, financial position or cash flows that excludes
amounts, or is subject to adjustments that have the effect of
excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP
in the statements of operations or balance sheets of the Company;
or includes amounts, or is subject to adjustments that have the
effect of including amounts, that are excluded from the most
directly comparable measure so calculated and presented.
Reconciliations of these non-GAAP financial measures to their
comparable GAAP financial measures are included in the attached
financial tables.
These non-GAAP financial measures are provided because
management of the Company uses these financial measures in
maintaining and evaluating the Company’s ongoing financial results
and trends. Management uses this non-GAAP information as an
indicator of business performance, and evaluates overall management
with respect to such indicators. Management believes that excluding
items such as acquisition expenses, amortization of intangible
assets, stock-based compensation, asset impairments, restructuring
charges, expenses related to litigation and resolution of lawsuits,
and other non-recurring charges, among other items that are
inconsistent in amount and frequency (as with acquisition
expenses), or determined pursuant to complex formulas that
incorporate factors, such as market volatility, that are beyond our
control (as with stock-based compensation), for purposes of
calculating these non-GAAP financial measures facilitates a more
meaningful evaluation of the Company’s current operating
performance and comparisons to the past and future operating
performance. The Company believes that providing non-GAAP financial
measures such as EBITDA, adjusted EBITDA, adjusted net income
(loss), adjusted net income (loss) per share, and operating working
capital, in addition to related GAAP financial measures, provides
investors with greater transparency to the information used by the
Company’s management.
Forward-Looking
Statements
This press release may contain "forward-looking statements"
within the meaning of the safe harbor provisions of the United
States Private Securities Litigation Reform Act of 1995. Words such
as "expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," “confident,” and
similar expressions are intended to identify such forward-looking
statements. Forward-looking statements in the press release
include, without limitation, forecasts of growth, revenues,
business activity, adjusted EBITDA, pipeline and solids treatment
initiatives, and landfill and treatment facility activities, as
well as statements regarding possible divestitures, timing of such
divestitures, acquisitions, financings, business growth and
expansion opportunities, availability of capital, ability to access
capital markets, and other matters that involve known and unknown
risks, uncertainties and other factors that may cause results,
levels of activity, performance or achievements to differ
materially from results expressed or implied by this press release.
Such risk factors include, among others: difficulties encountered
in acquiring and integrating businesses; uncertainties in
evaluating goodwill and long-lived assets for potential impairment;
potential impact of litigation; risks of successfully consummating
expected transactions within the timeframes or on the terms
contemplated, including risks that such transactions may fail to
close due to unsatisfied closing conditions; uncertainty relating
to successful negotiation, execution and consummation of all
necessary definitive agreements in connection with our strategic
initiatives; whether certain markets grow as anticipated; pricing
pressures; risks associated with our indebtedness; low oil and or
natural gas prices; changes in customer drilling and completion
activities and capital expenditure plans; shifts in production
among shale areas in which we operate and/or into shale areas in
which we currently do not have operations; control of costs and
expenses; and the competitive and regulatory environment.
Additional risks and uncertainties are set forth in the Company's
Form 10-Q for the three months ended June 30, 2014, its Annual
Report on Form 10-K for the fiscal year ended December 31, 2013, as
well as the Company's other reports filed with the United States
Securities and Exchange Commission, which are available at
http://www.sec.gov and the Company's web site at
http://www.nuverra.com. As a result of the foregoing considerations
and the other limitations of non-GAAP measures described elsewhere
herein, you are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
presentation. All forward-looking statements are qualified in their
entirety by this cautionary statement. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND
SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
Three Months Ended Six
Months Ended June 30, June 30, 2014
2013 2014 2013 Revenue: Non-rental revenue $
107,299 $ 114,495 $ 217,143 $ 223,819 Rental revenue 19,563
20,482 37,733 41,805
Total revenue 126,862 134,977 254,876 265,624 Costs and
expenses: Direct operating expenses 92,757 95,644 186,383 187,656
General and administrative expenses 24,655 15,403 43,203 29,482
Depreciation and amortization 21,370 28,003 42,281 56,054
Restructuring, impairment and exit costs -
4,952 - 4,952 Total operating
expenses 138,782 144,002 271,867
278,144 Loss from operations (11,920 ) (9,025
) (16,991 ) (12,520 ) Interest expense, net (12,969 ) (13,256 )
(25,019 ) (26,671 ) Other income (expense), net 472 (208 ) 52
(1,239 ) Loss on extinguishment of debt - -
(3,177 ) - Loss from continuing
operations before income taxes (24,417 ) (22,489 ) (45,135 )
(40,430 ) Income tax (expense) benefit (305 ) 824
8,499 14,760 Loss from
continuing operations (24,722 ) (21,665 ) (36,636 ) (25,670 )
Income from discontinued operations, net of income taxes
1,453 8,816 1,912 189
Net loss attributable to common stockholders $ (23,269 ) $
(12,849 ) $ (34,724 ) $ (25,481 ) Net loss per common share
attributable to common stockholders: Basic and diluted loss
from continuing operations $ (0.97 ) $ (0.89 ) $ (1.45 ) $ (1.07 )
Basic and diluted income from discontinued operations 0.06
0.36 0.08 0.01 Net
loss per basic and diluted share $ (0.91 ) $ (0.53 ) $ (1.37 ) $
(1.06 ) Weighted average shares outstanding used in
computing net loss per basic and diluted common share 25,524 24,241
25,273 24,042
NUVERRA ENVIRONMENTAL SOLUTIONS,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS (In thousands)
June
30, December 31, 2014 2013
(Unaudited) (Note 1)
Assets Cash and cash equivalents $
3,347 $ 8,783 Restricted cash 112 110 Accounts receivable, net
96,929 87,086 Inventories 3,662 3,328 Prepaid expenses and other
receivables 4,433 10,457 Deferred income taxes 22,123 30,072 Other
current assets 125 409 Current assets held for sale 25,458
21,446 Total current assets 156,189
161,691 Property, plant and equipment, net
483,020 498,541 Equity investments 4,032 4,032 Intangibles, net
140,663 149,363 Goodwill 408,696 408,696 Other assets 19,719 21,136
Long-term assets held for sale 169,230 167,304
Total assets $ 1,381,549 $ 1,410,763
Liabilities and Equity Accounts payable $ 23,252 $ 33,229
Accrued expenses 66,385 63,431 Current portion of contingent
consideration 9,924 13,113 Current portion of long-term debt 6,326
5,464 Financing obligation to acquire non-controlling interest
10,394 - Current liabilities of discontinued operations
9,683 9,301 Total current liabilities
125,964 124,538 Deferred income taxes 28,069
42,982 Long-term portion of debt 573,503 549,713 Long-term portion
of contingent consideration 1,461 2,344 Other long-term liabilities
3,984 4,324 Financing obligation to acquire non-controlling
interest - 10,104 Long-term liabilities of discontinued operations
31,719 32,389 Total liabilities
764,700 766,394 Commitments and contingencies
Common stock 28 27 Additional paid-in capital 1,348,412 1,341,209
Treasury stock (19,503 ) (19,503 ) Accumulated deficit
(712,088 ) (677,364 ) Total equity of Nuverra Environmental
Solutions, Inc. 616,849 644,369 Total
liabilities and equity $ 1,381,549 $ 1,410,763
Note 1: The condensed consolidated balance sheet at December 31,
2013 has been derived from the audited consolidated financial
statements included in the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 2013.
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Six Months Ended June 30, 2014
2013 Cash flows from operating activities: Net loss $
(34,724 ) $ (25,481 ) Adjustments to reconcile net loss to net cash
provided by (used in) operating activities: Income from
discontinued operations, net of income taxes (1,912 ) (189 )
Depreciation 33,581 43,721 Amortization of intangible assets 8,700
12,333 Amortization of deferred financing costs 1,646 2,411
Amortization of original issue discounts and premiums, net 72 72
Stock-based compensation 1,408 2,123 Impairment of property, plant
and equipment - 3,499 (Gain) loss on disposal of property, plant
and equipment (2,248 ) 95 Bad debt expense 1,014 915 Loss on
extinguishment of debt 3,177 - Deferred income taxes (6,965 )
(14,955 ) Other, net 1,147 816 Changes in operating assets and
liabilities, net of business acquisitions and purchase price
adjustments: Accounts receivable (10,857 ) 6,956 Prepaid expenses
and other receivables 6,024 (1,317 ) Accounts payable and accrued
expenses (3,429 ) 2,781 Other assets and liabilities, net
(515 ) 566 Net cash (used in) provided by operating
activities from continuing operations (3,881 ) 34,346 Net cash
provided by operating activities from discontinued operations
2,880 2,130 Net cash (used in) provided
by operating activities (1,001 ) 36,476
Cash flows from investing activities: Cash paid for
acquisitions, net of cash acquired - (738 ) Proceeds from the sale
of property, plant and equipment 3,810 477 Purchases of property,
plant and equipment (23,943 ) (21,400 ) Proceeds from
acquisition-related working capital adjustment -
2,067 Net cash used in investing activities from
continuing operations (20,133 ) (19,594 ) Net cash used in
investing activities from discontinued operations (2,262 )
(1,600 ) Net cash used in investing activities
(22,395 ) (21,194 )
Cash flows from financing
activities: Proceeds from revolving credit facility 50,725
17,000 Payments on revolving credit facility (27,700 ) (34,500 )
Payments for deferred financing costs (734 ) (229 ) Payments on
notes payable and capital leases (2,700 ) (2,596 ) Other financing
activities (1,013 ) (529 ) Net cash provided by (used
in) financing activities of continuing operations 18,578 (20,854 )
Net cash used in financing activities of discontinued operations
- (400 ) Net cash provided by (used in)
financing activities 18,578 (21,254 ) Net
decrease in cash and cash equivalents (4,818 ) (5,972 ) Cash and
cash equivalents - beginning of period 9,212
16,211 Cash and cash equivalents - end of period 4,394
10,239 Less: cash and cash equivalents of discontinued operations -
end of period 1,047 1,565 Cash and cash
equivalents of continuing operations - end of period $ 3,347
$ 8,674
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND
SUBSIDIARIES UNAUDITED ADJUSTED EBITDA GAAP
RECONCILIATION (In thousands)
Three Months EndedJune
30,
Six Months Ended June
30,
2014 2013 2014 2013 Loss from
continuing operations $ (24,722 ) $ (21,665 ) $ (36,636 ) $ (25,670
) Depreciation of property, plant and equipment 16,974 21,664
33,581 43,721 Amortization of intangible assets 4,396 6,339 8,700
12,333 Interest expense, net 12,969 13,256 25,019 26,671 Income tax
expense (benefit) 305 (824 ) (8,499 )
(14,760 ) EBITDA 9,922 18,770
22,165 42,295 Adjustments:
Transaction-related costs, including earnout adjustments, net - 532
513 1,524 Stock-based compensation 1,115 1,333 1,408 2,123 Texas
court case settlement 5,500 - 5,500 - Shareholder litigation
settlement 3,581 - 3,581 - Legal and environmental costs, net 3,701
73 5,557 2,470 Restructuring, impairment, exit and other costs 63
4,952 63 4,952 Loss on extinguishment of debt - - 3,177 -
Integration, severance and rebranding costs - 2,324 2,072 3,002
Gain on disposal of assets (993 ) -
(2,248 ) - Adjusted EBITDA from continuing operations
22,889 27,984 41,788 56,366 Adjusted EBITDA from discontinued
operations 3,016 5,280 6,114
8,984 Total Adjusted EBITDA
$
25,905 $ 33,264 $
47,902 $ 65,350
Reconciliation of income from discontinued operations to
EBITDA and Adjusted EBITDA from discontinued operations:
Three Months EndedJune
30,
Six Months Ended June
30,
2014 2013 2014 2013 Income from
discontinued operations $ 1,453 $ 8,816 $ 1,912 $ 189 Depreciation
of property, plant and equipment - 675 - 1,340 Amortization of
intangible assets - 2,593 - 5,324 Interest expense - - - - Income
tax (benefit) expense (31 ) (7,514 ) 1,665
757 EBITDA from discontinued operations
1,422 4,570 3,577 7,610
Adjustments: Transaction-related costs 907 - 1,931 - Legal
and environmental costs 733 710 733 1,374 Gain on disposal of
assets (46 ) - (127 ) -
Adjusted EBITDA from discontinued operations
$ 3,016
$ 5,280 $ 6,114
$ 8,984 NUVERRA ENVIRONMENTAL
SOLUTIONS, INC. AND SUBSIDIARIES UNAUDITED CAPITAL
EXPENDITURES RECONCILIATION (In thousands)
Three MonthsEnded June
30,
Six MonthsEnded June 30,
2014 2014 Net cash capital expenditures from
continuing operations $ 13,941 $ 20,133 Net cash capital
expenditures from discontinued operations 1,212 2,262
Total net cash capital expenditures $ 15,153 $ 22,395
Nuverra Environmental Solutions, Inc.Liz Merritt,
602-903-7802VP-Investor Relations &
Communicationsir@nuverra.comorThe Piacente Group, Inc.Don Markley
or Glenn Garmont, 212-481-2050nuverra@tpg-ir.com