DISCLOSURE APPENDIX CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, INFORMATION ON
TRADE ALERTS, ANALYST MODEL PORTFOLIOS AND THE STATUS OF NON-U.S ANALYSTS. U.S. Disclosure:
Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be
aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this
report as only a single factor in making their investment decision.
29 April 2010
Americas/United States
Equity Research
Environmental Services
Clean Harbors (CLH)
COMMENT
Clean Harbors is Potential Beneficiary of Gulf
Oil Spill
■ Comment: In the wake of the oil spill in the Gulf of Mexico off the Louisiana
coastline, we wanted to highlight potential implications on Clean Harbors.
The company’s
field services segment provides
tank cleaning,
decontamination, remediation and spill clean up work. On a normalized
basis, Field Services revenue runs anywhere between $250-300mm. Last
year Clean Harbors had no real emergency response work, but with the
Gulf news out today, this year could prove to be different.
■ Current estimates indicate the oil well is leaking approximately
5,000/bbls per day and the slick is now spread over a ~600 mile area.
Due to the gravity and breadth of the spill, not to mention it occurring 16
miles off the coast of some of the largest wetlands in the United States, we
believe a decision will be made quickly. BP PLC, Anadarko Petroleum and
Mitsui Corp. will be responsible for capping the well as well as providing
clean up services. Putting this in perspective, our energy team estimates it
could take an additional ~90 days to drill a relief well, which at current rates
could place an additional ~450,000/bbls in the water, or roughly
~200,000/bbls more than the Valdez spill in 1989 (unless the flow from the
well is able to be stopped by other means).
■ Oil Spill Work Could be 5 to 6 Bucks to Stock Price- We believe if Clean