Why Nuverra Environmental Solutions. Inc.'s Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Nuverra Environmental Solutions, Inc. jumped as much as 12% in early trading after announcing new financing.

So what: Management said an existing Bank Credit Facility has been converted into a $200 million revolving credit facility that will give the company more flexibility. It will be secured by the company's assets and will also allow management to buy back some of the outstanding 9.875% senior notes due 2018.

Now what: This should hellp lower financing costs slightly but it doesn't change the fundamental challenges for Nuverra. The company has lost money in three straight quarters and debt wasn't the main factor leading to those losses. This is an incremental positive for Nuverra but not a reason to fundamentally change your investment thesis today.

Where you should be betting on energy now
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.

The article Why Nuverra Environmental Solutions. Inc.'s Shares Popped originally appeared on Fool.com.

Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of Nuverra Environmental Solutions. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.