Reuters: Global Markets: Lack of outlook spooks Heckmann investors, shares plunge 20 percent

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Lack of outlook spooks Heckmann investors, shares plunge 20 percent Aug 7th 2012, 15:51 Tue Aug 7, 2012 11:51am EDT (Reuters) - Shares of Heckmann Corp (HEK.N) plunged as much as 20 percent to their lowest ever after the water management company posted a surprise adjusted second-quarter loss and shied away from giving a financial forecast for the year. The departure from the company's usual practice of giving forecasts spooked investors, who have pushed Heckmann's shares down 50 percent this year on two straight quarters of estimate-lagging results. "Management's tone appears to be more realistic this quarter as they note the difficult environment in which they are operating and have removed guidance," said Wedbush Equity Research analyst David Rose, who has an "underperform" rating on the stock. Heckmann treats the waste water generated by energy companies in the production of oil and natural gas from shale fields. It also delivers fresh water to these companies and provides recycling services for oily waste products. CEO Dick Heckmann said on Monday's post-earnings conference call that the company found it hard to figure where producers were going with their budgets. "It's just become very difficult with the stops and starts that we are seeing to plan as far out as we thought we could plan six months ago," Heckmann added. The company, which slashed capital budget by half for the rest of 2012, said the current quarter will be better than the second quarter. Heckmann on Monday reported weak second-quarter results, with revenue lagging analysts' estimates. Global Hunter Securities cut its rating on Heckmann's shares to "neutral" from "buy," citing disappointing results in sequential quarters and the decision to remove guidance. Heckmann's shares fell 67 cents, their most in a day, to an all-time low of $2.71 in early morning on Tuesday on the New York Stock Exchange. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Saumyadeb Chakrabarty) Link this Share this Digg this Email Reprints

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