ENSV - Earnings call transcript Q2 2020

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Operator

Good day, ladies and gentlemen, and welcome to your Enservco Second Quarter Earnings Call. All lines have been placed on a listen only mode and the floor will be open for your questions and comments following the presentation. At this time, it is my pleasure to turn the floor over to your host, Mr. Jay Pfeiffer, Investor Relations. Sir, the floor is yours.

Jay Pfeiffer

Enservco’s quarter to call. welcome and XXXX conference second Hello are the Acting Presenting of today Rich CFO. on behalf Hargrave, company Murphy, Margie CEO and

to forward-looking business uncertainties as well differ with of risks matters call cause date those XX-K, and certain in after on questions reminder, as anticipated during to because today’s non-public call. is will the update of estimates, statements available Enservco of risks this by the limited actual during company’s subject ability include recent point FD, and no untrue management’s forward-looking assumptions I a replay filings today’s events. based in call obligation could management’s that will also call SEC. prohibits material is its as to and to As projections the subject other are Company’s of statements. are Reg disclosed selected discussed that may forward-looking disclosure results this subsequent from out most enservco.com information. SEC become to statements which be webcast materially respond that A that assumes to at

Additionally, a two for after telephone over call approximately Rich, the go available telephone Murphy. be please Instructions release. a in call. ahead. replay I’ll will webcast or available today’s turn the beginning accessing are the news hours that, replay With to Rich

Rich Murphy

fund common you and Cross thanks Acting everyone, a give the myself. Welcome, investors, is River longtime and CEO, of assumed joining is I Murphy, addressing for Enservco. manage investment CEO of first a on background of want owner role Partners our I'm Since Chairman Enservco I've Jay. The since Thanks, time stock. today. little I my call Rich to acting this

years and blue critical provides Enservco’s fact, teams the broad customer services base, set, position largest company's prolific oil $XXX, water heating couldn't short, footprint, ago, chip CapEx most are factoring demand the five of producers Enservco facility. in mission and We fleet In the prices size space. country. committed ambitious keep by frac oil largest program double Approximately for diverse credit shareholder. a services, Enservco a field services dominant funded essentially when gas the and up large its with to Enservco of geographic growing were basins was is north to in company It in the the new the and to

the But debt Today have As luck commodity it, in uneven would big as Had this weight oversupply years, recent has been oil in not simply disappointing issue. in the have volatility prices in financial to slowing which lead our environment, results. debt economic oil and load was service revenue under would to prices a our customer expansion become unsustainable. lower lead high remain turn demand, just complete, growth. global collapsed of prices

in covenants debt. are patient certain which has lender, loan but our which violation refinance We has been extremely with with assets of to our also Bank, East West us,

to As today, working noted in do diligently that. are earnings our we release

result on an a balance in lender of shareholder’s Specifically, transaction we're debt third-party equity. we significant working will hope reduction investment and a our that group in and long-term a with a increase

aid the the request directors refinancing in We secured the all East price. earlier be premium the in by Enservco further negotiations, our approved be us some be including that's in West of maturity facility. will of converting I still weeks, credit XX-day have way, we to in us it parties, on week completed, Bank, been a date debt extension will plan our the Board, at By balance approximately progress a work there's involved this If and senior do. have it XXth place transformational refinancing while is which short of granted to X.X no into the work tentatively we completing a are independent sheet. from increasing of will the unregistered this coming XX% August to in to assurances, we revolving of or with successful nothing be XXXX investment of subordinated closing want successfully and million have stock progress, partners equity, the clear, interest show for effort made crossword to a this at a common lot

board to months. CapEx organization all These the I million reductions annualized business, X and to and maintenance of been involved executive this personnel our out on of Margie proud we've cost in organization, working levels basis. team of want financial include budget. results. last Concurrently, challenges in is hard I'll parties, the of very -- leaner the any adjustments our over result locations to made has group, reshaping lower beginning with and more business also The of the all recap tell or seven structure. taking I'm reductions you consolidation that, a the reduce turn of our done that year, of With plus team business price. Enservco call executive at the to our our very Since certain work have entire physical and over a cost to to closure However, our are lender, better the investment get team and collaboratively than the structure done. meet overhead of costs we commodity the fluctuating

Margie Hargrave

Thank $X.XX Revenues in closed. quarter of million million with EBITDA adjusted $X.X compared million adjusted you, EBITDA $X.X adjusted we revenue million $X.X million was of Rich. of year. issued first loss $X.X an to compared release the $XX.X QX financial our million last last of months of adjusted in results and We and after revenue of of to EBITDA loss reported loss $X.X EBITDA an of an with market Today through $XX.X the half QX six second year. revenue press million XXXX

quarters of revenue are our EBITDA season know, you for generate majority year. QX season slower off given when As and heating QX a colder QX comprise QX and and QX our we while and our are quarters, the

quarter carried we pandemic. have of into slower due reduced and add this taken to second but advantage normal was Our year, headwinds prices the activity these some Those QX, commodity customer than new reflecting and to when downturns areas. for today we COVID-XX And approaching assets customers gearing customer more and activity an rapidly redeploy are up spring. Rich? expect the in increase heating into we and season next active have to through winter

Rich Murphy

Thanks Margie.

we done, heating So our the our are in focus closing, all so on get now our upcoming season. to priorities right refinancing efforts can

I for your process. this we open you Before to call for move patience I your through to the as want questions, and in Enservco thank interest

operator interests am fully to turn engaged Enservco. and to I know that, questions. and over our now to building I'll are aligned shareholder value As a committed fellow call shareholder, Operator? I for want you with for the the that And

Operator

Instructions] our you. question Pavani from Bhakti [Operator We'll Thank first with Alliance take Global.

Bhakti Pavani

Good morning, Rich. Thank for questions. taking my you

the side. question a Just on activity quick

uncertainty production? drilling with You cap rigs from know, are least to – we oil to environment, regards price just activity anything hear the know, the cutting at about small in the your side, picking the companies cap given hearing drill your starting on back end you the thoughts and what you wanted up small aren't hearing on

Rich Murphy

to but been chip all this oil our you budgets to starting see, deal are know, range, oil precaution, the in have we to stays of point. customers, the do, $XX CapEx lot we speaking, sense shut if general the we a Generally blue up with $XX is in

So we in there's have good the really – don't much second, for quarter. is which us, because third business

going occur. you're is if the activity, CapEx So it want to slow to have this time you

They'll our customers rumblings is from that's ducts – the they do we're opening start And lot price. and this that with a what hear that. we of kind there comfortable of now. up right So around stays oil hearing the get

Bhakti Pavani

it. Got

up. You know just a follow

does quarter firm strongest quarters revenue are heating the At heating any the it As quarter kind Margie received comes like the and or generating point, when because season? commitment, this your order of mentioned, look first to of book upcoming have you season. how fourth

Rich Murphy

with our in yards, sense development So who to guys these our as a the cutting makes makes their choose field part have to out relationships the to service yard which the to was of of business our who lot the our – decision more managers because cost provider. actually push

information gives better and flow. it also So, us

hearing this of – lot said know, expect probably, that So we oils frac is we're ducts, to be pipe DJ you there's the and $XX that's interesting is just know range in is almost job term, right what Basin, to The a about be but what to I seeing I have the and that in if going just we're going don't essentially complete. is unplugged. XXX basically Niobrara, They you know, now. ducts there's

are an that complete we essential job. service to frac So,

one just that's have essentially. basin. But in been So, shut XXX

be think activity a oil stable that price we will if So, on to be there'll around those we things get -- just front. here, that lot

Bhakti Pavani

did annualized cost. the able the just in you Appreciate And color. to been it. mention have that from Got front, million reduce you $X cost

Just wanted think their to year? do back cost further percentage you reduction in there you can of room of costs to achieve half reduce understand the EPS is for the what

Rich Murphy

little into moved Downtown in is there Denver from think we more Colorado. one G&A, our a office corporate I change we other made yard our Denver, biggest

the to I the with team be corporate the intermingled important yard think for -- staff it's guys.

getting as out. that's I -- the but into manner. focused on cost I'm more we've lot a So, heating in -- taken more as I'm and far a generation savings right obviously, now mean focused the season revenue

of much where our been, one the way to issues season early up very we or have not or strategic might waste. get data-driven has our I too a -- in So, as the think we so yard too managers past there's staff into we late with

in do I going by it's way. margins on season I think money we're just worth by save end get talk So, you that. And have to offline a it. I not the but can structured in could more -- about we and to expect to some how probably higher entering detail, that

Bhakti Pavani

good for But Thank you yes, much luck. sure. for Yes, very that's and my it side.

Rich Murphy

Thank you.

Operator

back other no you closing to Murphy, Mr. comments. conference any questions the I'll or for additional with holding, So, turn

Rich Murphy

the and As weekend. your Enjoy to call third always, to on We forward Thanks. you close time talking the today. again of the our look we appreciate quarter. attention on

Operator

that call. We and conclude for gentlemen, thank your today's you Ladies will participation.

at may day. have great You this and a time disconnect

Enservco (ENSV) 14 Aug 202020 Q2 Earnings call transcript