Industrial water company acquisition to expand produced water business capabilities for Hackmann

Nov. 8, 2010
PALM DESERT, CA, Nov. 8, 2010 -- Heckmann Corporation has signed a definitive agreement to acquire Complete Vacuum and Rental Inc., a private oilfield produced water disposal and transport company based in Carthage, Texas...

PALM DESERT, CA, Nov. 8, 2010 -- Heckmann Corporation of Palm Desert, California today announced that it has signed a definitive agreement to acquire Complete Vacuum and Rental Inc. ("CVR"), a private oilfield produced water disposal and transport company based in Carthage, Texas. CVR specializes in providing a complete range of water and wastewater service solutions to the exploration and production (E&P) industry serving the Haynesville Shale region from the Panola, Shelby, Rusk and Angelina Counties in Texas. Additionally, CVR is currently preparing to expand into the Eagle Ford Shale (south Texas) and Barnett Shale (north Texas and Oklahoma) plays. Revenues for CVR's last fiscal year totaled approximately $60.0 million.

Heckmann Corporation will acquire CVR for $66.0 million (consisting of cash, the assumption of debt, and stock) plus an earnout based on certain growth metrics. Other terms of the transaction were not disclosed. The acquisition is expected to close by the end of November 2010, subject to completion of due diligence, and Heckmann Corporation expects the transaction to be immediately accretive to earnings.

Mr. Richard J. Heckmann, Chairman and CEO of Heckmann Corporation, stated, "With this important transaction we are putting our strong financial resources to work according to our 'buy and build' business model. We believe the addition of CVR adds significant value to the company and reinforces our well recognized produced water expertise. We expect that the addition of CVR will triple our annual revenues based on our current revenue run rate. We will also gain the footprint we need to firmly establish Heckmann Corporation as a major player in water and wastewater services for the energy business.

"Our pipeline runs right through CVR's market area and is in close proximity to CVR's strategically located truck terminals allowing us to take advantage of the volumes of water that currently must be hauled long distances for disposal," Mr. Heckmann continued. "CVR's disposal facilities are the perfect complement to our capacity resources and will enable expanded pipeline volumes for CVR customers. The combination of our two businesses in east Texas will provide a true full service one-stop-shop for the E&P universe in the Haynesville Shale regions. We intend to make the most of our greatly enhanced operational resources by expanding our business to other natural gas production areas using CVR as our platform."

"There are many obvious and compelling synergies between Heckmann's pipeline and disposal facilities and CVR's transport and disposal capacity," added Steve Kent II, CEO of CVR. "Together, we concluded that the best way for both parties to continue our rapid growth and expansion was to team up and utilize Heckmann's considerable financial capability to build one large and profitable leader in our region. Access to Heckmann's pipeline and disposal capacity gives us an undeniable competitive advantage and we believe we can duplicate this advantage in other shale locations."

Disposal Capacity
CVR has 6 active disposal facilities totaling 125,000 barrels per day of capacity, plus an additional 4 permitted sites which could add an additional 80,000 barrels per day of disposal capacity. When added to HWR's 7 permitted wells and 65,000 barrels per day of disposal capacity, the company believes that the combined potential disposal capacity of 270,000 barrels per day will be the largest in East Texas and Western Louisiana. HWR is also currently in the process of permitting additional wells and capacity.

Transport Capacity
CVR owns and operates over 175 tractors and 200 trailers along with approximately 800 frac tanks. In addition to transporting produced water and other waste water streams to its disposal sites, CVR transports fresh water for production and provides services for site preparation, water pit excavations, and remediation.

Conference Call
The Company will discuss the CVR transaction during its upcoming third quarter 2010 conference call to be held at 1:30 p.m. PST on Tuesday, November 9, 2010. To participate on the conference call, please dial 1-877-941-8601 or 1-480-629-9810 and reference conference ID 4378534.

An audio replay of the conference call will be available approximately one hour after the conclusion of the call through November 17, 2010. The audio replay can be accessed by dialing 800-406-7325 or 303-590-3030 and entering access ID number 4378534.

About Heckmann Corporation
Heckmann Corporation (NYSE: HEK) was created to buy and build companies in the water sector. On January 30, 2010, the Company completed its 50-mile water disposal pipeline in the Haynesville Shale which can treat and dispose up to 100,000 barrels of water per day. The completion of the pipeline makes the Company one of the largest handlers of produced water in North America. On February 9, 2010, the Company announced its joint venture with Energy Transfer Partners (NYSE: ETP) to provide turnkey transportation and treatment solutions for complicated water flows in the Marcellus and Haynesville oil and natural gas fields. In October of 2008, the Company acquired China Water & Drinks Inc., and now operates seven bottled water facilities in the Peoples Republic of China with Coca Cola as its largest customer. The Company also makes strategic minority interest investments, such as its investment in water infrastructure solutions and pipeline provider Underground Solutions Inc. (OTC: UGSI).

Interested stockholders and investors can access additional information about Heckmann on the Company's web site at, and in documents filed with the U.S. Securities and Exchange Commission, on the SEC's web site at