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Aqua America: Fracking to Generate Tidal Wave of Profits or Drown Stock?

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Published: Monday, 9 Jul 2012 | 5:34 PM ET
Lee Brodie By: | Producer

If you keep an eye out for big upside movers in the market, chances are Aqua America has landed on your radar.

Shares of the company have been steadily marching higher, with the stock up about 17% year to date.

Although Aqua America is a utility that provides water to homes and businesses in Pennsylvania, Texas, North Carolina, Ohio, Illinois, New Jersey, New York, Florida, and more -- gains are likely due to another side of their business.

Aqua America is also involved in fracking - at least in an ancillary way. The company makes money bringing water to the drilling site and charging per gallon for that water.

Sounds lucrative. Especially if you consider that Aqua America is expected to pump 3 million gallons of water a day to drilling operations in the Marcellus Shale.

However, their involvement is not without controversy. Opponents of fracking have staged protests at headquarters to express their dissatisfaction.

Will fracking generate a tidal wave of upside? Or will it ultimately drown the stock? What must you know before you put money to work?

Don’t make a move until you check out our interview with Aqua America CEO Nicholas DeBenedictis. Watch the video now!

Aqua America CEO: PVR Water Services & Natural Gas
Nicholas DeBenedictis, Aqua America CEO, discusses his company's recent successful and collaborative efforts with Penn Virginia Resource Partners, known as PVR Water Services LLC.



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Trader disclosure: On July 9, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long M; Karen Finerman is long MA; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami is long AGU; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long FCX CALLS; Pete Najarian is long TJX CALLS; Pete Najarian is long KEY CALLS; Pete Najarian is long XOM CALLS; Scott Nations is long BAC; Scott Nations is long JPM

For Jamie Townsend
Nothing to Disclose

For Amelia Bourdeau
Nothing to Disclose

For Dennis Gartman
Dennis Gartman is long NatGas

For Nicholas Debenedictis
Nothing to Disclose

For Joe Weisenthal
Pending

For John Williams
The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in WU
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: V
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: WU
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided.: V
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: MA
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: V
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.: WU
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: MA
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: V
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: WU

CNBC.com with wires

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If you keep an eye out for big upside movers in the market, chances are Aqua America has landed on your radar.

   
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