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Nuverra Responds to Texas Jury Verdict Involving Subsidiary Heckmann Water Resources (CVR), Inc.

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Dec. 8, 2013-- Nuverra Environmental Solutions (NYSE:NES), (“Nuverra” or the “Company”), a leading provider of full-cycle environmental solutions to energy and industrial end-markets, responded to the District Court of Dimmitt County, Texas jury verdict against its operating subsidiary Heckmann Water Resources (CVR), Inc. in a wrongful death case involving a vehicle accident.

The jury awarded $181 million in compensatory damages and $100 million in punitive damages. The accident occurred in May 2012 and involved a Heckmann Water Resources (CVR), Inc. truck and one other vehicle. No citations were issued against the subsidiary or its employees.

"We are disappointed by the actions of this Texas state court jury but remain confident in the judicial system at both the trial court and appellate court levels," said Mark Johnsrud, Chief Executive Officer. "While we are highly sympathetic to the deceased and his family for his unfortunate passing, we believe based on input from our legal advisors and consultants, both trial and appellate, that this recent award exceeds well-established judicial norms and precedent by a staggering margin. The verdict is subject to post-trial motions and has not yet been entered as a judgment. After conferring with our legal advisors, we believe we have meritorious grounds to seek reconsideration of the verdict and to appeal. We intend to file motions to reduce or overturn the award and otherwise to file for reconsideration of the case," Mr. Johnsrud added.

Based on the pre-award analysis of the case, Heckmann Water Resources (CVR), Inc.’s exposure in this matter was not expected to exceed its available insurance limits of $16 million. Although it continues to review the matter, the Company does not anticipate establishing an accounting reserve for the matter at this time.

The Dimmitt County jury verdict is against and limited to the Heckmann Water Resources (CVR), Inc. subsidiary, and any potential liability is limited to this subsidiary. Heckmann Water Resources (CVR), Inc. assets generated approximately 11% of the Company’s adjusted EBITDA for the nine months ended Sept. 30, 2013 and include fleet, real property and disposal wells in the Eagle Ford, Barnett, Permian, Mississippian Lime, Haynesville and Marcellus/Utica shale basins, excluding the Haynesville pipelines and the Marcellus treatment plant.

About Nuverra Environmental Solutions, Inc.

Nuverra Environmental Solutions is among the largest companies in the United States dedicated to providing comprehensive and full-cycle environmental solutions to customers in energy and industrial end-markets. Nuverra focuses on the delivery, collection, treatment, recycling, and disposal of restricted solids, water, wastewater, used motor oil, spent antifreeze, waste fluids and hydrocarbons. The Company continues to expand its suite of environmentally compliant and sustainable solutions to customers who demand stricter environmental compliance and accountability from their service providers.

Interested parties can access additional information about Nuverra on the Company's web site at http://www.nuverra.com, and in documents filed with the United States Securities and Exchange Commission, on the SEC's web site at http://www.sec.gov.

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in the press release may include, without limitation, forecasts of growth, revenues, business activity, accounting reserves, adjusted EBITDA and pipeline expansion, and future benefits from UMO cost reductions, statements regarding possible divestitures, timing of such divestitures, acquisitions, financings and other matters that involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the outcome of the appellate court process in this case; the trading of post-split shares of common stock on NYSE; difficulties encountered in acquiring and integrating businesses; uncertainties in evaluating goodwill and long-lived assets for potential impairment; potential financial impact of litigation; whether certain markets grow as anticipated; pricing pressures; risks associated with our indebtedness; low oil and or natural gas prices; changes in customer drilling activities and capital expenditure plans; shifts in production into shale areas in which we currently do not have operations; control of costs and expenses; and the competitive and regulatory environment. Additional risks and uncertainties are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as well as the Company's other reports filed with the United States Securities and Exchange Commission, which are available at http://www.sec.gov/ as well as the Company's web site at http://www.nuverra.com/. As a result of the foregoing considerations, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. All forward-looking statements are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Nuverra Environmental Solutions, Inc.

Nuverra Environmental Solutions
Liz Merritt, 480-878-7452