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NRC Group to Construct Second Landfill in the Permian Basin

Construction will begin immediately, and operations are slated to begin in early 2019.

NRC Group Holdings Corp. (NRGC) announced that its wholly owned subsidiary NRC Group Holdings, LLC has received a permit for its landfill facility located in Reagan County, Texas, which lies within the Permian Basin. Similar to the Pecos County permit that was announced earlier this month, construction will begin immediately, with operations expected to begin in early 2019. With construction commencing on both landfill facilities simultaneously, NRC Group is ahead of its anticipated schedule for its Permian Basin waste disposal expansion, which is further supportive of fiscal year 2019 revenue and adjusted EBITDA guidance.

“This permit underscores NRC Group’s compelling near-term waste disposal expansion strategy,” said Jim Baumgardner, chairman of NRCG, in a statement. “The continuing opportunity to invest in our waste disposal capabilities results in highly attractive returns on invested capital with a rapid payback for facilities that will be operational for decades. We look forward to accelerating our waste management expansion strategy and continue to seek additional investments in this business.”

NRC Group is in the process of expanding its waste disposal capabilities into the Permian Basin to meet the growing demands of its waste disposal and environmental services customers. This new facility is modeled on the success of its existing Karnes, Texas, facility and anticipates strong customer adoption rates.

“We have been serving customers in the Permian Basin for over six years through our environmental services business and look forward to offering those customers our compelling and cost-effective waste disposal services, many of whom utilize our existing Karnes County landfill facility,” said NRCG CEO Chris Swinbank in a statement. “After the completion of our Reagan County landfill and our other planned Permian Basin facilities in Pecos and Andrews County, we will be able to serve our customers throughout the Permian Basin by providing cost-effective access to environmentally safe waste disposal services. Our 'cradle-to-grave' environmental and waste management solutions provide an unique services offering to solve our customers’ waste problems from the point of generation to ultimate disposal at our landfill facilities.”

In addition to these two new landfills, the Permian Basin is home to other landfills, including Petro Waste Environmental LP’s Deep Six, Big Lake, Orla and Howard County landfills.

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