Enservco sales dry slightly as oil-industry services firm leaves North Dakota

LONGMONT — Enservco Corp. (NYSE American: ENSV), which provides specialized well-site services to the domestic oil and gas industries, saw its year-over-year top line results recede a bit in the third quarter of 2023, a period when the company pulled its operations out of North Dakota. 

“The strategic decision to exit North Dakota will allow us to reallocate resources to operating areas that offer more potential for improved profitability and growth over the long term,” Rich Murphy, Enservco executive chairman, said in a prepared statement. “We are in advanced discussions to sell real estate and excess equipment related to the North Dakota operations, which will strengthen our cash position as we move into our heating season.”

Third-quarter revenue fell 6% year-over-year to $2.9 million in the third quarter of this year from $3.1 million in the same period last year. Enservco blamed the results on its decision to exit the North Dakota market.
Still, Enservco reduced its net losses in the most recent period to $3 million from a net loss of $3.1 million in the third quarter last year. 

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“We are steadily building momentum across our business and are now entering our fourth and first quarter heating season when we generate the majority of our revenue and profitability. Moving forward, we are focused on growing revenue both organically and through M&A, controlling costs to improve profitability and reducing long-term debt,” Murphy said. “We are encouraged by improving margins and continued drilling activity in our markets and based on customer feedback, expect further demand growth for our services.”