Enservco Corp Releases Q2 2024 10-Q Report Highlighting Financial and Operational Improvements
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Enservco Corp, a leading provider of specialized services to the domestic onshore oil and gas industry, has released its Form 10-Q report for the second quarter of 2024. The report highlights significant financial and operational developments, showcasing the company's efforts to improve cost management and operational efficiency amidst fluctuating market conditions.
Financial Highlights
- Total Revenues: $13.556 million, increased by $915,000 or 7% compared to the same period in 2023, driven by increased demand in the Completion and Other Services segment.
- Loss from Operations: $157,000, a significant improvement from a loss of $2.549 million in the same period in 2023, attributed to cost-saving measures and increased industry activity.
- Net Loss: $1.587 million, improved from a net loss of $3.558 million in the same period in 2023, due to greater cost control and reduced depreciation expenses.
- Net Loss Per Share - Basic and Diluted: $0.06, improved from a loss of $0.20 per share in the same period in 2023, reflecting better cost management and operational efficiency.
Business Highlights
- Revenue Segments: The Production Services segment, which includes hot oiling and acidizing services, accounted for 70% of total revenues for the three months ended June 30, 2024, but saw a decrease of 9% compared to the same period in 2023. For the six months ended June 30, 2024, this segment accounted for 38% of total revenues, with an 11% decrease compared to the same period in 2023.
- Revenue Segments: The Completion and Other Services segment, which includes frac water heating and related support services, accounted for 30% of total revenues for the three months ended June 30, 2024, with a 36% increase compared to the same period in 2023. For the six months ended June 30, 2024, this segment accounted for 62% of total revenues, with a 23% increase compared to the same period in 2023.
- Geographical Performance: The company operates in several major domestic oil and gas areas, including the DJ Basin/Niobrara area in Colorado and Wyoming, the San Juan Basin in New Mexico, the Marcellus and Utica Shale areas in Pennsylvania and Ohio, the Jonah area, Green River and Powder River Basins in Wyoming, and the Eagle Ford Shale and East Texas Oilfield in Texas.
- Sales Units: The company owns and operates a fleet of specialized trucks, trailers, frac tanks, and other well-site related equipment to serve its customers across various regions.
- Future Outlook: Despite a decline in total domestic rigs in operation, the company anticipates steady activity levels and continued margin improvement over the coming years due to consistent demand for its services driven by micro and macro-economic conditions.
- Future Outlook: The company is exploring options to exit its seasonal frac water heating business and has classified related assets as 'Assets held for sale' as of June 30, 2024. A sales transaction for most of its Colorado-based frac water heating equipment was completed on August 7, 2024.