Enservco Corporation Closes Acquisition of Rapid Hot Oilfield Services Provider
September 11 2023 - 8:00AM
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 has acquired all of the assets of oilfield services
provider Rapid Hot in an all-stock transaction valued at
$1,057,500.
Headquartered in Washington, PA, Rapid Hot serves E&P
customers in the Appalachian Basin and is a leading provider of
frac water heating services in Ohio, Pennsylvania and West
Virginia.
“This acquisition substantially strengthens Enservco’s position
in the Marcellus shale and also strengthens our management team
with the addition of Mike Lade, Rapid Hot’s president and CFO, who
joins Enservco as chief of staff,” said Rich Murphy. “We are also
pleased to announce the closing of a $1,625,000 convertible debt
financing that included participation from lead investors of Rapid
Hot, an Enservco board member and Cross River Partners. The
financing strengthens our working capital position as we approach
our 2023-24 heating season, which is expected to benefit from
anticipated cooler winter temperatures.”
Enservco also announced the addition of Steve Weyel to the
Company’s Board of Directors. Weyel joins the Board with more than
40 years of experience as a senior executive, board director and
chairman of private and public energy companies. He was the
founder, CEO and Chairman of EnVen Energy Corporation, a deepwater
exploration company that earlier this year was merged in a
transaction valued at nearly $1.3 billion. His energy leadership
encompasses global oil services, commodities, deregulated power and
upstream oil and gas. He has successfully driven and closed dozens
of M&A transactions and financings in excess of $20
billion.
“We look forward to benefitting from Steve’s deep experience in
the energy space and ability to identify and close attractive
M&A opportunities,” said Murphy. “In the last five months we
have added two new directors to our Board, whose oversight and
support of our management team will be essential as we expand our
business.”
Weyel added, “I look forward to joining the Enservco Board and
supporting management’s efforts to capitalize on organic and
acquisitive growth opportunities. Enservco has made great progress
in recent years reducing debt and taking costs out of the business,
and I’m excited to join the Board at this stage of the Company’s
evolution.”
About EnservcoThrough its various operating
subsidiaries, Enservco provides a range of oilfield services,
including hot oiling, acidizing, frac water heating, and related
services. 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, West Virginia, Utah, Michigan,
Illinois, Florida, and Louisiana. Additional information is
available at www.enservco.com.
*Note on non-GAAP Financial Measures 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 plus 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 Consolidated Statements of Operations table at the end of
this release. 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.
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,"
“should,” 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, 2022, and subsequently filed documents with the SEC.
Forward-looking statements in this news release that are subject to
risk include expectations for cooler winter weather and ability to
reduce costs, grow organically and acquisitively, increase market
share in key basins, improve its financial performance, build a
larger business and return value to shareholders. It is important
that each person reviewing this release understand the significant
risks attendant to the operations of Enservco. The Company
disclaims any obligation to update any forward-looking statement
made herein.
Contact:
Mark PattersonChief Financial OfficerEnservco
Corporationmpatterson@enservco.com
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