The best part -- it’s another big opportunity flying well under the radar of most investors. Your new stock profile is American Energy Partners (Ticker: AEPT).
I have been following (AEPT) very closely this morning, and I have great news for you. The stock just triggered a "20 Day Moving Average" BUY signal...
Water Scarcity Offers A Monumental Opportunity
As the global population rockets higher, the demand for water is only increasing -- substantially. The U.N. Educational, Scientific and Cultural Organization (UNESCO) says that 1.8 billion people will experience scarcity issues in the next five years.
All as the world deals with explosive population growth, agricultural demands, and the poor management of water resources.
U.S. states are already turning to alternate sources of water to replace traditional supplies.
For example, according to the Publix Policy Institute of California, “Recycled water is increasingly being used in urban areas for public landscape irrigation, golf courses, industrial cooling, and groundwater recharge. Replenishing sources of drinking water is the biggest growth opportunity for water recyclers. New state rules allowing replenishment of groundwater and surface water storage with recycled water will create opportunities for recyclers to cost-effectively meet growing demands well into the future.”
In the Southwest, water is becoming even scarcer.
In 2019 for example, the Arizona Department of Water Resources updated its groundwater model and discovered it did not have enough groundwater to meet the requirements for dozens of planned developments, reported Phoenix New Times. "The reality [is] that everybody is going after the same limited supplies of water right now," said Sarah Porter, director of the Kyl Center for Water Policy at Arizona State University.
One Of The Top Beneficiaries Could Be American Energy Partners Inc.
American Energy Partners (Ticker Symbol: AEPT) and its group of companies focus on providing solutions in markets where energy production and water meet technology. Collectively, the subsidiaries are engaged in the energy sector as well as the design, construction and operation of regional water treatment facilities that serve the industrial, energy and government sectors.
No. 1 Catalyst Are States Looking At Reclaimed Water As A Solution
Read the Full News Release That Recently Came Out Below
Water scarcity is a legitimate concern.
U.S. states are turning to alternate sources of water to replace traditional supplies.
In addition to California, the city of Scottsdale received its first permit to use reclaimed water, which is treated to drinking-water standards. The Arizona Department of Environmental Quality, which oversees the permitting to allow direct potable reuse, has said it will issue those permits on a case-by-case basis. "Lots of communities are looking at that and thinking about it as an option," added Sarah Porter.
American Energy Partners Inc. for example is working at the Mocanaqua Tunnel in Pennsylvania, and holds up to 500 billion gallons of mine water to help meet water demand.
AMERICAN ENERGY’S AES PROVIDES UPDATE ON MOCANAQUA MINE TUNNEL PROJECT Published: July 25, 2019
ALLENTOWN, Pennsylvania – (July 25, 2019) – Direct testing of the mine water pool in the Mocanaqua Tunnel has indicated that the volume and chemistry contained therein is suitable for consumptive use mitigation. This field work and the continued water level monitoring and water quality testing has confirmed the success of Phase 1 and Phase 2 of the project.
John Pippy, President of American Energy Solutions (“AES”), states, “The consumptive use feasibility report, which will include an estimated volume and acid mine drainage treatment costs is currently on track to be submitted to the SRBC in December.” He went on to say, “The project remains on schedule without any major hick-ups to date and we are excited about its future.”
“EPCAMR’s primary focus is on the Priscilla Lee Basin which has the greatest potential for the largest volume of underground mine pool water in the Black Creek Watershed Basin for Consumptive Use Mitigation. While there are several other smaller mine pool basins in the region, they ultimately are draining to the larger mine pool complexes that still drain to the Mocanaqua Tunnel,” explained EPCAMR’s Executive Director, Robert Hughes.
If successful, the project will produce millions of gallons of treated mine influenced water on a daily basis to citizens of Pennsylvania and lower the amount of mine drainage pollution entering into the Susquehanna watershed.
The No. 2 Catalyst For American Energy Is Q3, & Year End Guidance Showing 100% Year Over Year Growth In Annual Revenue
American Energy Provides Q3 & Year End Guidance
Published: Sept 10, 2019 9:02 a.m. ET
Sep 10, 2019 (NewMediaWire via COMTEX) -- Allentown, PA - (NewMediaWire (app.newmediawire.com)) - September 10, 2019 - American Energy Partners, Inc. (“American Energy”) (PINK: AEPT), a diversified energy company, has provided an update on its performance for the second half of 2019.
“The 2H guidance and our confidence in our long-term growth is based on the continued execution of our strategic goals,” said Brad Domitrovitsch, CEO of American Energy. “We believe our service business lines will be the primary driver of growth by means of our buy and build strategy, as well as an increasing customer base through our business development efforts.”
Since its acquisition of Hickman Geological Consulting, LLC in July of Q3, (“HGC”) American Energy is anticipating third quarter revenue to grow to $85,000. Year over year topline revenue continues to expand at a significant rate relative to past years, and the Company believes this trend will continue for the foreseeable future as planned cash accretive acquisitions are completed and those businesses come under the American Energy umbrella. Josh Hickman, COO of American Energy, states, “HGC has had continued growth in the third quarter since the Company's acquisition by AEPT. HGC has seen an increase in expert witness projects, oil and gas valuations, mineral rights sales and investment project review, which has more than offset a slight contraction in revenue from geotechnical projects.” In regards to Gilbert Oil & Gas, LLC, (“Gilbert”) Mr. Hickman said, “In the third quarter Gilbert invested in the maintenance of our oil and gas wells to increase production in anticipation of higher gas prices in the fourth quarter. These efforts significantly increased production volumes from the prior quarter.”
The Company forecasts fiscal year revenue of no less than $200,000 compared to FY2018
No. 3 Catalyst Is The Natural Gas Boom That Could Create Sizable Awareness
Thanks to the shale revolution, the U.S. became the top producer of natural gas, helping us become a net natural gas exporter over the last three years.
As recently as 2018, natural gas production soared to 30.6 trillion cubic feet, the highest annual amount ever recorded.
All thanks to horizontal drilling and hydraulic fracturing techniques.
However, for horizontal drilling to be successful at any time, significant volumes of water must be pumped in the field. In fact, according to estimates, the hydraulic fracturing process uses between 1.2 and 3.5 million gallons of water per well.
Larger projects can use up to five million.
However, without water, we wouldn’t have a natural gas boom at all.
Fracking, or the process of injecting liquid at high pressure into subterranean rocks to force out natural gas and oil, pumps incredible amounts of freshwater into shale formations miles underground. However, with scarce freshwater supply (by 2025, half of the world’s population will be living in water-stressed areas), reclaimed water is under sizable demand.
The Marcellus shale holds up to 50 trillion cubic feet of gas which remains largely untapped, suggesting high demand for water. To drill a single well in the Permian Basin, more than 11 million gallons of water was needed per day in 2016, notes the New Mexico Political Report, up from 1.3 million gallons a day in 2011.
The bigger the well, the more water needs to force out the natural gas and oil.
No. 4 Catalyst Are Strong Acquisitions That Could Fuel Big Growth
Read the Full News Release That Recently Came Out Below
American Energy Partners, Inc. Signs Definitive Agreement for Acquisition of Hickman Geological Consulting, LLC
Published: July 11, 2019
ALLENTOWN, Pennsylvania / PRNewswire/ -- American Energy Partners, Inc., a company dedicated to delivering solutions wherever energy production and water meet technology, agreed to acquire 100% of the membership interests in Hickman Geological Consulting, LLC in exchange for 40,500,000 shares of American Energy's preferred shares equal to approximately 5% of American Energy's outstanding common stock. American Energy reserves the right to repurchase these preferred shares prior to any other third parties.
While Josh Hickman, the owner of Hickman Geological Consulting, LLC, is on American Energy's board of directors, the transaction was approved by the Board of Directors after determining, in good faith, that the acquisition is in the best interests of American Energy since the acquisition will immediately contribute to top-line revenue.
The addition of Hickman Geological Consulting to American Energy's group of subsidiaries expands American Energy's services with in-house valuation of Oil & Gas assets, mineral buying advisement, A&D diligence and advisement, leasing and negotiations, as well as Oil & Gas exploration. The transaction provides a solid foundation to build upon inside energy services.
This acquisition represents only one of a series of acquisitions planned for the future. This acquisition marks the beginning of American Energy's buy and build strategy.
Conclusion: American Energy Partners, Inc Poised For Potential Upside
With severe water shortages, and monumental global demand, AEPT demonstrates significant growth potential. Based on acquisitions, natural gas company demand, and a strong need for better water sources, we could see another big move in both volume and price for the AEPT stock.
Stay tuned for more updates...