Oil and gas well site service company Enservco reported better than expected results last month with Q2 revenue up 44%. $ENSV heads into a global energy crisis with soaring oil and gas prices with a strong cash position.
Oil and gas well site service company Enservco reported better than expected results last month with Q2 revenue up 44%. $ENSV heads into a global energy crisis with soaring oil and gas prices with a strong cash position.
Enservco Corporation, a Colorado based diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries. The results were a reflection of higher revenue and the impact of cost-cutting measures
Enservco Q2 2021 Earnings Highlights
- Q2 revenue up 44% as Company posts gains across all service offerings
- Q2 net loss improves by 63%, reflecting higher revenue, cost efficiencies, CARES Act tax credits and lower interest expense following debt refinancing
- Q2 adjusted EBITDA improves 24%
- Balance SheetStrengthened Since December 31
- Year End Working capital increases to $4.2 million from $0.3 million
- Cash and cash equivalents increase to $3.8 million from $1.5 million
- Stockholders’ equity improves to $9.2 million from $2.6 million
- $1.9 Million PPP Loan Has Been Fully Forgiven and Will Be Booked into Other Income in Q3
- Production services revenue was $2.2 million, up 61% from $1.4 million in the same quarter last year.
- The production services segment loss improved by 73% to a loss of $117,000 compared to a loss of $431,000 in the same quarter a year ago.
- Completion services revenue increased 13% to $858,000 from $758,000 year over year and generated a segment loss of $491,000, a 35% improvement over the segment loss of $758,000 in the year-ago second quarter.
- Sales, general and administrative expense declined 20% to $1.0 million from $1.2 million year over year – a reflection of cost-cutting measures and lower personnel and stock-based compensation costs partially offset by higher public company costs related to share offerings.
- Depreciation and amortization was flat at $1.3 million.
- Total operating expenses in the second quarter remained flat year over year at $6.0 million despite a 44% increase in revenue.
“We are pleased to report a return to year-over-year revenue growth and a marked improvement in profit metrics for our second quarter,” said Rich Murphy, Executive Chairman.
“We are seeing increased customer activity across most service areas with steadily increasing commodity prices and rig counts driving revenue increases in all three of our core service offerings – frac water heating, hot oiling and acidizing – as well as our small but growing non-oilfield services initiative.
Our hot oiling business led the way in the quarter with 58% year over year growth based on renewed demand in our northern service areas and a growing presence in Texas where we have our largest concentration of units and have opened a second yard to serve the Ark-La-Tex region. Although Q2 an Q3 are typically our slower, offseason quarters, we are gratified with our recent performance and optimistic that with stable commodity prices and a continuation of the economic recovery, we can continue to deliver improved financial results.”
About Enservco
Based in Longmont, Colorado, with field locations in major oil and gas basins throughout the U.S., Enservco serves more than 300 E&P customers, including majors, mid-tier and small independent operators. With one of the industry’s largest, most modern equipment fleets, the Company provides an array of complementary oilfield services that help customers increase efficiencies and maximize production.
ENSERVCO, through its Heat Waves Hot Oil Service subsidiary, is a leading provider of frac water heating, hot oiling and acidizing services to domestic onshore conventional and unconventional oil and gas producers
Enservco is listed on the NYSE American exchange under the symbol ENSV.
Source: Envesco
From The TradersCommunity News Desk