Enservco board adds transportation-industry vet as strategy
LONGMONT — Enservco Corp. (NYSE American: ENSV), which has traditionally provided specialized well-site services to the domestic oil and gas industries, has added a transportation-industry veteran to its board of directors as the company attempts a strategic pivot away from the more seasonal aspects of its energy-services business and toward transportation and logistics.
Marc Kramer, a transportation investor and adviser who has spent the last seven years as executive chairman of Soar Transportation Group, joins the board in replace of Steve Weyel, who, according to Enservco, resigned his position in April “to focus his attention on a new business venture.”
Enservco’s declaration of a strategic shift toward logistics comes on the heels of a March deal to acquire Fort Lupton-based energy-logistics and transportation company Buckshot Trucking LLC for $5 million in cash and stock. The acquisition is expected to close before the end of the second quarter of 2024.
SPONSORED CONTENT
The company said that it “continues to explore strategic initiatives to reduce reliance upon the seasonal frac heating business,” which provides energy companies with heated water used during the hydraulic fracturing process. “The Buckshot Acquisition will provide Enservco with a proven and growing foundation in an attractive year-round logistics business.”
The Buckshot acquisition, which still requires shareholder approval, “will prove transformational for Enservco as we transition away from a seasonal business that is subject to commodity risk, to a logistics business that generates strong year-round cash flow,” Enservco CEO Rich Murphy said in a prepared statement. “The transition will not require substantial new overhead or capital. We are continuing our evaluation of strategic alternatives designed to further reduce our seasonal focus, with the underlying premise that any opportunities must be immediately accretive, generate solid cash flow, and provide visible near and long-term growth.”
Enservco’s stock price, which closed at 21 cents per share Friday, has struggled in recent years, losing more than 96% of its value since May 2019.
Enservco Corp. (NYSE American: ENSV), which has traditionally provided specialized well-site services to the domestic oil and gas industries, has added a transportation-industry veteran to its board of directors as the company attempts a strategic pivot away from the more seasonal aspects of its energy-services business and toward transportation and logistics.
