Nuverra Environmental Solutions, Inc. - 10-K filing on 2014-03-10

Organization and Nature of Business Operations	12 Months Ended
Dec. 31, 2013
Organization and Nature of Business Operations	(1) Organization and Nature of Business Operations *Description of Business* Nuverra Environmental Solutions, Inc., a Delaware Corporation, together with its subsidiaries (collectively, the “Company”, “we”, “us” or “our”) is an environmental solutions company providing full-cycle environmental solutions to our customers in energy and industrial end-markets. The Company focuses on the delivery, collection, treatment, recycling, and disposal of restricted solids, water, waste water, used motor oil, spent antifreeze, waste fluids and hydrocarbons. Since the acquisition of Thermo Fluids Inc. (“TFI”) on April 10, 2012, the Company has operated through two business segments: Shale Solutions (formerly referred to as Fluids Management) and Industrial Solutions (formerly referred to as Recycling). Shale Solutions provides comprehensive environmental solutions for “unconventional” oil and gas exploration and production including the delivery, collection, treatment, recycling, and disposal of restricted environmental products used in the development of unconventional oil and natural gas fields. Shale Solutions currently operates in select shale areas in the United States including the predominantly oil-rich shale areas consisting of the Bakken, Utica, Eagle Ford, Mississippian Lime and Permian Shale areas and the predominantly gas-rich Haynesville, Marcellus and Barnett Shale areas. Shale Solutions serves customers seeking fresh water acquisition, temporary water transmission and storage, transportation, treatment, recycling or disposal of complex water flows, such as flowback and produced brine water, and solids such as drill cuttings, and management of other environmental products in connection with shale oil and gas hydraulic fracturing operations. In addition, Shale Solutions rents equipment to customers, including providing for delivery and pickup. Industrial Solutions provides route-based environmental services and waste recycling solutions that focus on the collection and recycling of used motor oil (“UMO”) and is the largest seller of reprocessed fuel oil (“RFO”) from recovered UMO in the Western United States. Industrial Solutions also provides environmental services including the recycling of spent anti-freeze and oil filters. As more fully described in Note 20, during the fourth quarter of 2013, the Company and its board of directors approved and committed to a plan to divest TFI, which comprises its Industrial Solutions business segment. Additionally, in the fourth quarter of 2013, the Company announced a strategic organizational plan to realign its Shale Solutions business into three operating divisions: (1) the Northeast Division comprising the Marcellus and Utica Shale areas (2) the Southern Division comprising the Haynesville, Barnett, Eagle Ford, Mississippian Shale areas and Permian Basin and (3) the Rocky Mountain Division comprising the Bakken Shale area. The implementation of this organizational change is ongoing and is expected to be completed during 2014.

Organization and Nature of Business Operations

12 Months Ended

Dec. 31, 2013

Organization and Nature of Business Operations

(1) Organization and Nature of Business Operations

Description of Business

Nuverra Environmental Solutions, Inc., a Delaware Corporation, together with its subsidiaries (collectively, the “Company”, “we”, “us” or “our”) is an environmental solutions company providing full-cycle environmental solutions to our customers in energy and industrial end-markets. The Company focuses on the delivery, collection, treatment, recycling, and disposal of restricted solids, water, waste water, used motor oil, spent antifreeze, waste fluids and hydrocarbons.

Since the acquisition of Thermo Fluids Inc. (“TFI”) on April 10, 2012, the Company has operated through two business segments: Shale Solutions (formerly referred to as Fluids Management) and Industrial Solutions (formerly referred to as Recycling).

Shale Solutions provides comprehensive environmental solutions for “unconventional” oil and gas exploration and production including the delivery, collection, treatment, recycling, and disposal of restricted environmental products used in the development of unconventional oil and natural gas fields. Shale Solutions currently operates in select shale areas in the United States including the predominantly oil-rich shale areas consisting of the Bakken, Utica, Eagle Ford, Mississippian Lime and Permian Shale areas and the predominantly gas-rich Haynesville, Marcellus and Barnett Shale areas. Shale Solutions serves customers seeking fresh water acquisition, temporary water transmission and storage, transportation, treatment, recycling or disposal of complex water flows, such as flowback and produced brine water, and solids such as drill cuttings, and management of other environmental products in connection with shale oil and gas hydraulic fracturing operations. In addition, Shale Solutions rents equipment to customers, including providing for delivery and pickup.

Industrial Solutions provides route-based environmental services and waste recycling solutions that focus on the collection and recycling of used motor oil (“UMO”) and is the largest seller of reprocessed fuel oil (“RFO”) from recovered UMO in the Western United States. Industrial Solutions also provides environmental services including the recycling of spent anti-freeze and oil filters.

As more fully described in Note 20, during the fourth quarter of 2013, the Company and its board of directors approved and committed to a plan to divest TFI, which comprises its Industrial Solutions business segment. Additionally, in the fourth quarter of 2013, the Company announced a strategic organizational plan to realign its Shale Solutions business into three operating divisions: (1) the Northeast Division comprising the Marcellus and Utica Shale areas (2) the Southern Division comprising the Haynesville, Barnett, Eagle Ford, Mississippian Shale areas and Permian Basin and (3) the Rocky Mountain Division comprising the Bakken Shale area. The implementation of this organizational change is ongoing and is expected to be completed during 2014.