Enservco Corporation Updates Investors on 2019 Third Quarter Financial Expectations
October 24 2019 - 4:01PM
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 2019 third quarter revenue to increase
approximately 23% year over year to between $4.6 million and $4.7
million from $3.8 million in the third quarter last year.
Nine-month revenue is expected to increase approximately 19% to
between $38.1 and $38.2 million compared to $32.0 million in the
same period last year.
Third-quarter adjusted EBITDA loss and net loss are
expected to increase year over year. Adjusted EBITDA for the
comparative nine-month periods is expected to remain relatively
flat, although the year-over-year net loss is expected to
improve.
“We grew our market share over the past nine months
and entered our 2019-20 heating season with an expanded customer
base,” said Ian Dickinson, President and CEO. “However, we continue
to operate in an environment where drilling and completion activity
levels are declining. The impact of this trend is partially offset
by relative stability in demand for our production related
services.”
“In ramping up our operations for the winter
heating season, in October we incurred over-advances on our bank
line of credit and such amount was approximately $1.2 million as of
October 23, 2019, (above our current $29.7 million borrowing base
availability),” Dickinson added. “Although the bank can require
immediate payment of the over-advances, we are in positive
discussions with them regarding amending our loan agreement to
rectify the over-advance position as we move through our fourth
quarter. We believe that the amendment will be in place in the near
future.”
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, 2018, and subsequently filed documents with the SEC.
Forward looking statements in this news release that are subject to
risk include the Company’s ability to report final financial
results that are in line with the aforementioned estimates and the
ability to secure an amendment to its bank loan agreement. 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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