Shares of Energy Recovery have surged over 96% thus far in 2016, drowning the short sellers who have increased their bets against the water desalination specialist along the way. Not that the company’s CEO Joel Gay is too worried about the naysayers, who have chosen to short 13% of Energy Recovery’s shares at last check. ‘We were recently reported as the number one performing stock in California over the last 12 months and fourth best performing stock nationally,’ said Gay. ‘We have and we will continue to be bad news for those who short our company.’ Energy Recovery designs and manufactures energy recovery devices for the oil and gas, chemical and water industries. The company’s technology captures wasted energy from high pressure fluid flows and reuses them within an industrial system – reducing costs, energy use and emissions. Last fall, Energy Recovery executed a more than $3 billion deal, including $75 million paid up front, with oilfield services giant Schlumberger , to license a new technology that increases the efficiency of hydraulic fracturing operations. The technology, called VorTeq, will dramatically decrease capital and operational costs in the hydraulic fracturing industry. ‘Long story short, we can drive down the cost per barrel to frack a well by up to $5, hence the compelling nature of the offering,’ said Gay. The company also secured an $11 million purchase order in July for the first multiple IsoBoost system installation for what will be one of the largest gas processing plants in the Middle East. IsoBoost is a hydraulic pumping system that saves energy in the CO2 removal process in ammonia production. The system will recover up to 80% of otherwise wasted pressure energy. ‘IsoBoost is a hydraulic turbocharger which in essence reduces the cost to sweeten sour gas by up to 60%,’ said Gay. ‘So we are very excited about that opportunity and the technology itself’.
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