Energy Recovery, Inc. (NASDAQ : ERII)
Energy Recovery, Inc. (ERII), a pressure energy technology company announced on Monday a 15 year license agreement with Schlumberger. The agreement states that ERII will give exclusive rights to its VorTeq hydraulic pumping technology to Schlumberger.
Energy Recovery, Inc. CEO Comments
Energy Recovery’s President and Chief Executive Officer Joel Gay stated,
“We are thrilled to be working with Schlumberger, the world’s largest oil field services company, and a leading supplier of technology associated with hydraulic fracturing solutions. We believe VorTeq is a paradigm shift for the hydraulic fracturing industry as it significantly reduces maintenance costs associated with pumping downtimes and provides considerable redundancy efficiencies.”
“We believe this technology offers Schlumberger the immediate benefit of reducing wear and tear on its pumps, as well as reducing downtime. In the medium-term, we believe it provides Schlumberger additional savings associated with eliminating redundant equipment onsite,” said Gay. “For a company in this market who wants to keep producing but needs to be mindful of costs, this technology tackles these challenges and delivers meaningful results.” Globe Newswire
ERII Technical Analysis
ERII gapped up in price yesterday to $7.03, up from the prior day’s close of $2.46, which is a 186% increase in price based on favorable news. Taking a look at the daily chart, we can see the last time the stock traded above this price level was on September 23rd 2013, when it closed at $7.12. Taking a look at the past year of trading we can see the previous 52 week high was $5.42. The stock has a float of 47.79 million shares and traded on over 154 times the normal daily trading volume. The stock did reach pre market highs of $7.69, but gave back $0.66 at the open, or equivalent to 9%. For trading purposes, my entry point would have been $7.10 looking for a run to $8. My stop loss would have been $6.90 fearing anything below that and the stock would start to fill in the gap up.
Energy Recovery, Inc. designs, develops, and manufactures energy recovery devices (ERDs) to transform untapped energy into reusable energy from industrial fluid flows and pressure cycles. The companys products include PX ERDs and turbochargers for water desalination; AT and Halo turbochargers for low-pressure brackish and high-pressure seawater reverse osmosis systems; Pressure Exchanger energy recovery devices and turbochargers; and high-pressure pumps. It also offers IsoBoost energy recovery systems comprising turbines and industrial pumps; and lsoGen systems that enable oil and gas operators to capture hydraulic energy and generate electricity from high-pressure fluid flows. In addition, the company provides engineering, technical support, and training services; and preventive maintenance and support services, as well as reinstallation services. It serves engineering, procurement, and construction firms that design and build large desalination plants; original equipment manufacturers; and oil companies, and exploration and production companies. The company markets its products directly to customers through its sales organization, as well as through authorized independent sales agents in the United States and internationally. Energy Recovery, Inc. was founded in 1992 and is headquartered in San Leandro, California. Yahoo Finance