PALM DESERT, Calif.--(BUSINESS WIRE)--Heckmann Corporation (NYSE: HEK, HEK.WS), a water solutions company focused on water issues in oil and shale gas exploration and production, today announced that it has started construction on a pipeline expansion that will significantly increase its Heckmann Water Resources (HWR) produced water disposal pipeline capacity in Texas and Louisiana. The expansion will supplement HWR’s 50-mile pipeline through the Haynesville Shale area with the addition of approximately 19 miles of significantly enlarged pipe for produced water. The existing 19-mile section of the eastern portion of the Company’s pipeline will be used to transport fresh water to current and new customers for well development.
The additional capacity is required to support any future extension of the pipeline further east into the Haynesville Shale area to accommodate the Company’s growing customer base. The expansion will also enable the Company to construct additional truck terminals. This important combination of local trucking and pipeline facilities will provide customers with efficient access to HWR’s disposal wells.
Richard J. Heckmann, Chairman and CEO of Heckmann Corporation, stated: “Based on our discussions with major producers in the region, it’s clear that our pipeline expansion further east, coupled with a larger fleet of trucks, transport assets, and disposal capacity, provides an even more attractive ‘one-stop-shop’ solution for fresh water delivery and produced water disposal needs. With our solid presence in the northern Haynesville Shale area and rapid entry into the Eagle Ford Shale area, we have successfully developed a substantial disposal network that we believe will be difficult to replicate. Additionally, our strong balance sheet positions us with ample opportunity to expand our profile into other energy developments throughout North America.
“We have clearly been busy since announcing our recent acquisition and important additions to our management team in December,” Mr. Heckmann continued. “During our upcoming investor conference call on March 14, 2011, we expect to discuss additional expansion plans and progress that will further demonstrate our growing presence as a leading provider of water solutions for energy development.”
Western Portion of Pipeline
The Company has drilled three additional salt water disposal wells at the end of the western portion of the HWR pipeline to accommodate increased flows of produced water anticipated as a result of the pipeline expansion. It has also signed an exclusive agreement and is currently conducting diligence on acquiring additional disposal capacity. With these developments, the Company believes that it has a major competitive advantage, particularly in the Haynesville Shale area, combining disposal, pipeline and trucking assets into a total water management solution.
Eastern Portion of Pipeline
HWR indicated that the construction of the line expansion will cause the eastern portion of the current pipeline to be out of operation for approximately 60 days. HWR is working with pipeline customers to reduce the impact of the closure by providing trucking services and increasing the capacity of truck unloading facilities at its disposal wells in the area. The unaffected western portion of the current pipeline will continue to operate without interruption. The Company does not anticipate that the financial impact during the shutdown will be material to first half 2011 financial results, and does expect the expansion to be additive to second half 2011 financial results.
In order to enhance reliability, the expanded portion of the line will be constructed of fiberglass, which will allow HWR to operate the pipeline at higher pressures resulting in higher flows.
Expansion into Eagle Ford Shale Area
HWR has also commenced drilling two new disposal wells and is constructing adjacent truck terminals in south Texas in conjunction with its expansion into the Eagle Ford Shale area. HWR has ordered 40 additional 130-barrel transport trucks along with additional frac tanks to complement the 15 trucks recently dedicated to the Eagle Ford Shale area. HWR also acquired a 31-acre parcel near Pleasanton, Texas, where it is constructing a truck maintenance facility, truck yard and regional office to facilitate its expansion into this new and rapidly growing natural gas production region. HWR expects to be fully operational in its first phase of expansion in the Eagle Ford Shale area in the second quarter of 2011. The Company believes that it has developed a platform and infrastructure in the Eagle Ford Shale area to support growth significantly beyond the first phase announced today.
About Heckmann Corporation
Heckmann Corporation (NYSE: HEK) was created to buy and build companies in the water sector. In 2011, the Company continued the acquisition of additional disposal assets including expansion into the Eagle Ford Shale area in south Texas. In early 2010, the Company completed its 50-mile water disposal pipeline in the Haynesville Shale, and began expanding the line in 2011 to handle additional produced water and fresh water transportation. In February 2010, the Company announced its joint venture with Energy Transfer Partners (NYSE: ETP) to provide turnkey transportation and treatment solutions for complicated water flows in the Marcellus and Haynesville oil and natural gas fields. The acquisition of an oilfield produced water disposal and transport company in November 2010, recently renamed Heckmann Water Resources, makes the Company one of the largest handlers of produced water in North America. In October 2008, the Company acquired China Water & Drinks, Inc., and now operates seven bottled water facilities in the Peoples Republic of China with Coca-Cola as its largest customer. The Company also makes strategic minority interest investments, such as its investment in water infrastructure solutions and pipeline provider Underground Solutions, Inc. (UGSI.PK).
Interested stockholders and investors can access additional information about Heckmann on the Company’s web site at www.heckmanncorp.com, and in documents filed with the U.S. Securities and Exchange Commission, on the SEC's web site at www.sec.gov.
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,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. These forward-looking statements inherently involve certain risks and uncertainties that are detailed in the Company’s filings with the United States Securities and Exchange Commission and available at www.sec.gov as well as the Company’s website at www.heckmanncorp.com. 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.