Drilling Down on a Fracking Small-Cap

GreenHunter Resources (GRH) operates in an attractive subsector of the hydrofracking industry. The company handles the water produced from the hydraulic fracturing process in a number of different ways. GreenHunter can store it above ground, recycle it for reuse (removing the briny contaminants in the process) or, most simply, send the water back underground in salt water disposal wells. 

It's a great business, but GreenHunter is still in the process of becoming a great company. After a few years of dabbling in other green energy areas, it's strictly in water disposal now, but the growing pains remain. In the first quarter, because of a variety of operational issues, GreenHunter posted negative EBITDA, giving rise to liquidity concerns in the market. I believe those concerns are alleviated by GRH's recent decision to sell two SWD wells in Texas, raising a combined $12.7 million in proceeds....498 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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