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• Grew revenues to $3.8 million – up slightly from Q2 2023;

• Improved profit position to a net loss of $2.3 million, or $0.08 per diluted share, from a net loss of $2.6 million, or $0.12 per diluted share, for Q2 2023;

• Generated Adjusted EBITDA to $1.6 million for the first six months of 2024 versus an Adjusted EBITDA loss of $0.1 million in prior year;

• Made significant progress on multiple fronts to drive increased overall operational and financial flexibility in support of the Company’s recent strategic announcements including:

  • Sale of its seasonal frac water heating business in Colorado;

  • Closing of the immediately accretive acquisition of Buckshot Trucking – a highly-regarded and well-positioned energy logistics business offering year-round growth potential; and

• Entrance into a new relationship with Star Equity Holdings, including respective equity investments between the companies.
  

MANAGEMENT COMMENTARY

Rich Murphy, the Company’s CEO and Chairman stated “Our second quarter results marked an overall improvement on both a quarterly and year-to-date basis as well as a continued focus on controlling costs, which places us in a good position for the second half of 2024 as we begin to benefit from the positive financial performance and substantial opportunities provided by our recent transactions.”

Murphy continued, “The Company has evaluated and just recently executed a number of strategic initiatives designed to enhance our financial position and further rationalize our asset base as we reduced reliance on our seasonal frac water heating services business. In support of these efforts, we recently divested certain non-core assets and invested in opportunities such as logistics that generate solid cash flow and provide visible near and long-term growth. Over the past week, we announced the exit of our seasonal-focused Colorado frac water heating business and the closing of the immediately accretive Buckshot acquisition that provides a complementary customer base and increased profitable expansion opportunities. Importantly, we also announced our strategic financial relationship with Star Equity Holdings, which included respective equity investments by both companies. We are excited to have Rick Coleman – as CEO and a Director at Star – join the Board to add his insight and expertise as we look to further prudently expand our market position to enhance our service offerings and customer base.”

Mr. Murphy concluded, “I am extremely proud of the team here at Enservco. Over the past year and a half, we have been fortunate to materially improve our business and financial health through several key transactions and milestones. Many of these required significant organizational changes, and I want to thank everyone for their support and dedication as we critically repositioned the Company for long-term success – both operationally and financially. We look forward to shifting our nearer-term efforts to ensuring the successful integration of Buckshot’s people and assets into Enservco’s business, with five months of Buckshot’s operations to be reflected in our second half results. This provides a solid outlook for the remainder of 2024 and the expectation of a strong 2025 assuming current or improved market conditions. Finally – and as important – I want to thank our shareholders for their ongoing confidence and continued support.”

CONFERENCE CALL & ADDITIONAL INFORMATION

The Company has scheduled a conference call on Thursday, August 15, 2024 at 10:00 a.m. ET to discuss its second quarter 2024 operational and financial results, and provide further details concerning its recent transactions and outlook. To participate, interested parties should dial 888-506-0062 at least five minutes before the call is to begin. Please reference the “Enservco 2024 Second Quarter Earnings Call” or use the participant access code of 790636. International callers may participate by dialing 973-528-0011. The call will also be webcast and available on Enservco’s website at www.enservco.com under “Investors” on the “Events” page.

In addition, interested parties can participate through the webcast by accessing the following link:

https://www.webcaster4.com/Webcast/Page/2228/51082

Like callers, participants should access the webcast at least five minutes prior to start time. In addition, a replay of the webcast will be available following the call through the above link.

ABOUT ENSERVCO

Enservco provides a range of logistics solutions and oilfield services through its various operating subsidiaries in major domestic oil and gas basins across the United States. Additional information is available at www.enservco.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This news release contains information that is "forward-looking" in that it describes events and conditions Enservco reasonably expects to occur in the future. Expectations for the future performance of Enservco are dependent upon a number of factors, and there can be no assurance that Enservco will achieve the results as contemplated herein. Certain statements denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond Enservco's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in Enservco’s annual report on Form 10-K for the year ended December 31, 2023, and subsequently filed documents with the Securities and Exchange Commission (“SEC”). Forward looking statements in this news release that are subject to risks also include (a) the ability of Enservco to successfully integrate Buckshot’s market opportunities, personnel and operations and to achieve expected benefit; and (b) our ability to further transform into a logistics business; (c) the ability to restructure our debt; and (d) the ability to maintain compliance with the NYSE/American Stock Markets. Enservco disclaims any obligation to update any forward-looking statement made herein.

CONTACT

Mark Patterson
Chief Financial Officer
Enservco Corporation
mpatterson@enservco.com

ENSERVCO CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
 

ENSERVCO CORPORATION AND SUBSIDIARY
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)

ENSERVCO CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

NON-GAAP INFORMATION

This press release and the accompanying tables include a discussion of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a complement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term "EBITDA" refers to a financial measure that we define as earnings (net income or loss) plus or minus net interest taxes, depreciation, and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing Enservco’s operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure. We have reconciled Adjusted EBITDA to GAAP net loss in the table below. We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.