ENSERVCO Updates Investors on 2018 Fourth Quarter and Full Year Financial Expectations
January 25 2019 - 7:00AM
ENSERVCO Corporation (NYSE American: ENSV), a diversified national
provider of specialized well-site services to the domestic onshore
conventional and unconventional oil and gas industries, today
announced it expects 2018 fourth quarter revenue, inclusive of the
Adler Hot Oil business unit, to increase approximately 4% year over
year to a range of $14.6 million to $14.7 million from $14.1
million in the fourth quarter last year. Full year revenue is
expected to increase approximately 20% to between $49.0 million and
$49.1 million from $40.8 million a year ago. The increases
were lower than anticipated due to reduced drilling and completion
activity related to the decline in crude oil prices during the
fourth quarter.
Net income and adjusted EBITDA for the 2018 full year are
expected to improve over 2017 levels, although fourth quarter
profitability is expected to be down year over year due primarily
to costs related to closure of the Company’s Dillco water hauling
business, increased fixed cost basis related to the October 26,
2018, acquisition of Adler Hot Oil Service, and unbillable
workforce time in December related to the decline in drilling and
completion activity.
Ian Dickinson, President and CEO, said, “Revenue and fleet
utilization in the first half of Q4 was well ahead of prior year
levels, but the steep decline in crude oil prices that began in
November resulted in customer year-end cost cutting initiatives
related to drilling and completion activity delays. With the
start of the new year and oil prices stabilizing, we are seeing
drilling and completion activity again on the upswing, with a
resultant increase in fleet utilization compared with the final six
weeks of 2018.”
About ENSERVCOThrough its various operating
subsidiaries, ENSERVCO provides a wide range of oilfield services,
including hot oiling, acidizing, frac water heating, water
transfer, and water hauling. The Company has a broad
geographic footprint covering seven major domestic oil and gas
basins and serves customers in Colorado, Montana, New Mexico, North
Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West
Virginia. Additional information is available at
www.enservco.com
Cautionary Note Regarding Forward-Looking
StatementsThis 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
contained in this release using the terms "may," "expects to," and
other terms 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, 2017, and subsequently filed documents with the
SEC. Forward looking statements in this news release that are
subject to risk include potential for drilling and completions
activity levels and fleet utilization to continue increasing.
It is important that each person reviewing this release understand
the significant risks attendant to the operations of
ENSERVCO. ENSERVCO disclaims any obligation to update any
forward-looking statement made herein.
Contact:
Jay PfeifferPfeiffer High Investor Relations,
Inc.Direct: 303-880-9000Email: jay@pfeifferhigh.com
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