Stockholders' Equity

6 Months Ended

Jun. 30, 2012

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 6. STOCKHOLDERS’ EQUITY

On April 25, 2012, we changed the stated liquidation value of our 10% Series C Preferred Stock from $100 per share to $25 per share. As a result, the 22,000 shares of our Series C Preferred Stock issued in connection with the acquisition of Hunter Disposal were converted to 88,000 shares of 10% Series C Preferred Stock.

The following table reflects changes in shares of our outstanding common stock, preferred stock and warrants during the periods reflected in our financial statements from December 31, 2011 to June 30, 2012:

	Preferred Stock		Common Stock		Treasury Stock			KSOP		Warrants
December 31, 2011		15,780		26,177,989		13,985			15,200		3,549,047
Issued shares of Series C Preferred Stock in Hunter Disposal acquisition		88,000		—		—			—		—
Issued shares of Series C Preferred Stock in Blue Water acquisition		20,000		—		—			—		—
Issued shares of Series C Preferred Stock in joint venture agreement		16,000		—		—			—		—
Issued shares of Series C Preferred Stock upon redemption of Series B Debentures		120,213		—		—			—		—
Issued shares of common stock in Hunter Disposal acquisition		—		1,846,722		—			—		—
Issued shares for Share based payments		—		45,201		(13,984	)		—		—
Issued shares of common stock upon exercise of warrants		—		20,000		—			—		(20,000	)
Issued shares of common stock upon acquisitions		—		490,347		—			—		—
Warrants expired during the period		—		—		—			—		(459,047	)
June 30, 2012		259,993		28,580,259		1			15,200		3,070,000

Preferred Stock

We were not able to pay dividends on our Series A Preferred Stock for the quarters ending December 31, 2008 through June 30, 2012. In accordance with the terms of this preferred stock, accrued dividends of $2.3 million were added to the stated value of the preferred stock, resulting in a stated value per share of $1,384 at June 30, 2012. This additional $2.3 million in stated value will accrue dividends at a 10% rate.

On February 17, 2012, we issued 22,000 shares of our 10% Series C Preferred Stock as partial consideration in our acquisition of Hunter Disposal. On April 25, 2012, we changed the stated liquidation value of our 10% Series C Preferred Stock from $100 per share to $25 per share. As a result, the 22,000 shares of our 10% Series C Preferred Stock issued in connection with the acquisition of Hunter Disposal were converted to 88,000 shares of 10% Series C Preferred Stock. See Note 3 – Acquisitions, for additional information. The Series C Cumulative Preferred Stock earns 10% dividends paid monthly and is not convertible into common shares of the company except for under certain circumstances in the event of a change of control.

During the six months ended June 30, 2012, the Company issued 120,213 shares of our Series C Preferred Stock upon conversion of $2.7 million in principal along with accrued interest of $279 thousand on our Series B Debentures.

On April 27, 2012, the Company issued 20,000 shares of our 10% Series C Preferred Stock as partial consideration in the closing of the Blue Water Acquisition.

On June 29, 2012, the Company issued 16,000 shares of our 10% Series C Preferred Stock as partial consideration in the closing of four permitted disposal well sites for the Eagle Ford Water Hunter Joint Venture.

Common Stock and Common Stock Warrants

We have 90,000,000 authorized shares of common stock. We cannot pay any dividends on our common stock until all Series A cumulative preferred dividends have been satisfied.

On February 17, 2012, the Company issued 1,846,722 shares of common stock with a fair market value of $3.3 million based on stock price of $1.79, as partial consideration in the acquisition of Hunter Disposal. See Note 3 – Acquisitions, for additional information.

During the six months ended June 30, 2012, the Company issued 45,201 shares of common stock for payment of Board fees to nonemployee members of Board of Directors as payment of their fees for 2011 and first quarter of 2012.

During the six months ended June 30, 2012, the Company issued 20,000 shares of common stock upon exercise of 20,000 of our $1.50 warrants.

During the six months ended June 30, 2012, 459,057 of our $1.50 common stock warrants have expired.

On June 27, 2012, the Company issued 242,471 shares of our common stock valued at $512 thousand (based on a closing price of $2.11 per share as of June 27, 2012) as partial consideration for entry into the joint venture agreement with Blue Water Energy Solutions.

On June 29, 2012, the Company issued 247,876 shares of our common stock valued at $506 thousand, (based on a closing price of $2.04 per share as of June 29, 2012) as partial consideration for the acquisition of four permitted disposal well sites for the Eagle Ford Water Hunter Joint Venture.

Treasury Stock

During the six months ended June 30, 2012, the Company issued 13,984 shares of the Company’s common stock out of treasury, with a cost of $211 thousand, for payment of shares owed for fully vested share grants under our share based compensation plan.