Enservco improved performance, implemented strategy shift in Q2

LONGMONT — Enservco Corp. (NYSE American: ENSV) modestly boosted its top and bottom lines in the second quarter of 2024, a period during which the energy-logistics and specialized well-site services company pulled the trigger on a corporate-strategy shift that had been in the works for months. 

The company’s second quarter sales were $3.76 million, up from $3.72 million in the same period last year. 

Enservco reduced its net loss from nearly $2.6 million in the second quarter of 2023 to $2.3 million in the most recent period. 

“Our second quarter results marked an overall improvement on both a quarterly and year-to-date basis as well as a continued focus on controlling costs, which places us in a good position for the second half of 2024 as we begin to benefit from the positive financial performance and substantial opportunities provided by our recent transactions,” Enservco CEO Rich Murphy said in a prepared statement. 

Enservco this week closed on its acquisition of transportation company Buckshot Trucking LLC, thanks in part to a new investment and loan for Star Equity Holdings Inc. (Nasdaq: STRR; STRRP).

Finalization of the $5 million Buckshot deal came just days after Enservco offloaded Heat Waves Hot Oil Service LLC, its hydraulic-fracturing water heating subsidiary, to Platteville-based HP Oilfield Services LLC for almost $1.7 million.

Combined, the Buckshot and Heat Waves deals represent a strategy shift away from the more seasonal aspects of Enservco’s energy-services business and toward transportation and logistics. 

“The company has evaluated and just recently executed a number of strategic initiatives designed to enhance our financial position and further rationalize our asset base as we reduced reliance on our seasonal frac water heating services business. In support of these efforts, we recently divested certain non-core assets and invested in opportunities such as logistics that generate solid cash flow and provide visible near- and long-term growth,” Murphy’s statement said. “Over the past week, we announced the exit of our seasonal-focused Colorado frac water heating business and the closing of the immediately accretive Buckshot acquisition that provides a complementary customer base and increased profitable expansion opportunities. Importantly, we also announced our strategic financial relationship with Star Equity Holdings, which included respective equity investments by both companies.”