ENSV - Earnings call transcript Q1 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Enservco First Quarter 2021 Earnings Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Jay Pfeiffer. Sir, the floor is yours.

Jay Pfeiffer

Hello, and welcome to Enservco's 2021 first quarter conference call. the Hargrave, are President of Chairman; Murphy, behalf Marjorie and and on Company Rich today Executive Presenting CFO.

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

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

Rich Murphy

thanks financial everyone, joining call. we our and Welcome, for the before results quarter Thanks, market our Jay. first This morning opened. released

serve projects and warm those good levels policing been is part. approach had activities. and our were frac of played conducted over services months, and our we our increase The service about heat for giving in floated in certainly the the is to a expected it's activities activity, a want did share areas the Unfortunately, stated average despite the June. steady And fair I've fact comments first exception why. were continue prices. the that not customer rule possible we heating been rather the today. water the And budgets committed into we in improved hopeful water quarter, we heat As enjoy uptake on in drilling the sometimes earlier one that and that release, All the news to that frac this the that completion project back demand of seasons. Colorado seemingly pandemic in results and our did six The we fact here's the even next news than for whether, extend first weather in And that's quarter my do past commodity not anticipate over said in of season.

and well reopening bodes commodity First, activity. drilling economic the oil, the world and completion for and recovery is increased underway increased demand higher prices, for now

You when may a XXXX, back in to kicked really XXX pandemic from rig in, August the recall, low in last rigs year. as domestic of plummeted the February count XXX

levels. Although, up still the above it's has back XXX well pre-pandemic below went count

utilization back are We grow to rig XXX near our for alongside. current compensated normalizes count will

activity We're we've from business oiling hot increase heating customers as customer in RFPB by the new new recent in also basins. services by as opportunities Our season. We several wins. price water similar for the and are growing acceptance further believed $X.XX to customer think frac increases existing up encouraged well seen upcoming

solid reliability duty give to us the grow due management continue deep producers and our into for relationships believe grow companies two projects reputation good service Those future. and lot to the we services continue to companies oilfield to work past their with for to do water of over the those partnerships refer a reason we of customer us into water addition, will couple and have In safety. quarters,

to heating customers in in conclude season. with is oiling hot September focusing our time is oiling In our March, see fleet. where hot of XXX,XXX our basis. South on Ford been of we've round [indiscernible] we our upcoming to our active a now, year for service area in hot Right That the we refresh in CapEx business, attention on units. a revenue can good time a that Lastly, more generate for initiate concentration shale most largest XX and program resources, expansion potential our and has scheduled Texas Eagle oiling program

market this capture which about Northwest We are and East also we're encountered Shale, Southwest very process, We're opportunity a but Haynesville Louisiana. good still Arkansas expansion pursuing Texas, share in opportunity. the the excited to in early

process to into is another the profit. distributable a order services and non-oilfield in there. and over done traditional revenue permanent area job doing working sales field oiling oilers yard this In hot XX-months. up next two augmenting team believe its dozen of we down to equipment great we support our are Ultimately, hot just up location. key recently and the the for services Our point area We're in personnel can meantime, our keep to the

I'll the Specifically, total over expectation customer dirt in generate well Marjorie financial with XXXX. call as ladder expected are approximately two additional and of we've projects July. revenue hauling the results. to doing engaged in equipment to us the $XXX,XXX recap a been turn With May for These alone to for as projects in that, oiling three in June initial project

Marjorie Hargrave

Thank you, Rich.

in believe, took are in growth bears strategy million implement much in $XX.X through approximately fresh of our our $XX release that to noted a going forward addition over transformed of million the in the sheet As repeating, was capital, moving well-positioned we expense financial and stronger business. results, deliver morning, elimination approximately improved with balance million our the annual this we long-term. out we Accordingly, debt press right-sizing and it a that of are program $X.X but

million QX, was $X.X loss in in the services from $X.X quarter versus QX resulting X.X was million segment year-over-year, million year. loss completion but Total numbers. from revenue compared primarily reduce the $XXX,XXX last declined expenses of our to million, from profit declined revenue quarter in last a and and year. profit of down reflection of measures. to the revenue $X.X million $X.X million in This $XXX,XXX activity revenue million decline in reported a of year. operating segment last in last We've Now the expenses. $XXX,XXX to same the year. $X.X the services same the million, $XX.X in million cutting from same to $X.X Total down a first is QX cut of quarter Production the to cost to quarter XX% $X.X due production customer Completion

XXXX, side, to of per in in $X $X.XX to the lower million quarter up the million cash debt in the to used million same $X million $X.X a year. quarter first expenses by $XXX,XXX to first used facility, was to by million primarily $X.XX in last quarter, from QX negative the million to corporate interest $X.X in $X in our activities same we operations Adjusted $X.X $XXX,XXX in On loss first share due the offset rightsizing SG&A the year-over-year, facility. operations activity. QX loss reduced net in year. XX% of quarter attributable per credit cessation line quarter net million XXXX from the was primarily EBITDA cash a February, offering from from last Enservco compared provided million $X.X due the interest the the $X.X have of public partially share, paydown following in quarter negative or compared $X.X Cash to by restructuring. last our increased Company's or of was due expense expense in the to The year. improved XXXX third bottom million on in credit QX financing

the estimate that, through be Rich be receiving CARES all $XXX,XXX this may we hand other through income. credit back million it Also, comments. Act employee I'll closing quarter With Q $X the As and to in between XXXX, credit XX, we begun we to has our just in noted March million the totaled retention have in been first and will for now heard in $X other XXXX. in income, that XXXX credits, to extended recorded some Company

Rich Murphy

years in nearly close plenty have we Thanks, be during $XX reported much believe remind million, will that, we've you Marjorie. chaotic with in the industry more with adjusted I'll and upside I'll we $XX accomplished year, saying last million revenue of than a few years. our best there by coming than our today. of that we fleet despite EBITDA smaller

significantly our Given than our our expanded years. best revenue capacity fleet was size, it is higher in

years future continued for the as the Operator, approaching best Thank questions. our us still in though for are your you ahead call we open please again Enservco. of are result, support a As

Operator

Partners. Global the Ladies from coming Jeffrey, for and live. questions. open is from Jeffrey line first [Operator gentlemen, And the is Campbell Alliance is floor instructions] your question now

Jeffrey Campbell

are to these markets. You wondering price elsewhere? confined increases these increases possible they mentioned are I in the Or oil be hot likely certain to was areas?

Rich Murphy

increases have accepted price of basins. our all The been most across

And many we're depends basically across to typically. and are the it so, how by trusts It's customer to board. dedicate seeing us going

-- they lot they've a having been are but pushback. and So, of

Jeffrey Campbell

business? bit to prize to provide? for for large And the services volume discount If having are they your partnerships. being about want the you I their little hear compensated is by more service What money are additional a procuring? oilfield so, this that they

Rich Murphy

take do that? want to Marjorie, you

Marjorie Hargrave

us us what they've safety in involved more on no pricing. their started So no, getting But what understand, they've I there's from discount and in putting is their operation. committees done

two to so, a And them, we've before, that much in them, we've had in customers do the more do we all become different that operations can partner of customers bringing basin. us for with large it's they're of as but and

Jeffrey Campbell

more just Does Okay, that present thinking a past? it this so than How possibility should think we is recent more the Or you've the continuation had of about them? through in does had of for business ultimately history. -- you've that? about what kind

Marjorie Hargrave

It's we've past. more had business the than in

Rich Murphy

-- want being that that just And I we is to say that think something possibility. a is common Jeff, more something that from

and like trend. that's of stuck people As oil X or up we the pandemic services. this to a companies, XX was X crash E&P deal for come tighten easier people out the, they It's of want [indiscernible] kind versus

Jeffrey Campbell

increase Okay, you that Are you are that, do you more, two able can partnerships guys? when of you create? to thinking again, that -- about from number the mean work these you might you more be thinking say

Rich Murphy

Both.

Jeffrey Campbell

Okay.

support East the support, thought up correctly, oilers interesting wet was have that XX play could it and said the since XX dry to was regions. hot Haynesville if thought it some I in gas that heard could gas you months, does Haynesville next it East a Texas and I area So, generally Texas, significant

-- hiding your help? needing So, under are are some oil the production these there oilers? wondering, these that that will roof there are is Or I support kind wells was of gas

Rich Murphy

-- much a There We areas. of side on of no. gas Texas is It's do not probably these types independent. some people mostly, lot these East you too are big Yes, as in know giving too without the are business. They oil guys. away

inroads these So, to of have good independents. we lot some a

oil So, reason it I with just one in you. and it today. is primarily and can don't the share that's want do to I area.

Jeffrey Campbell

more is not. historically big to oil know a just want I field. Okay. out coming It or this oils

So, that's news. good

Rich Murphy

for maintenance Actually, because say the our the is structures simply demand it prolific our there more need more greater guys and oiling is perfect a work actually and wells down to little older more hot keep takes they is a set. so

Jeffrey Campbell

Okay.

rather thinking the I time? ultimately potential as guess for around? wondering is grow that existing utilization should laying here be of which actually got was equipment what a over about I higher I'm is, not thing you've thought gave mentioned this interesting. could we us a non Or numbers than services year, you this oilfield a You that actually

Rich Murphy

the we done hot so the seeing our a right I seeing have we're demand time is oiler. fully about it's ready mean, full fleet where equipment. we for oil have is for I think, our -- should internal the equipment What go. Yes, we that pickup we now a profitable, utilization a want getting are first to talked to our plays our and obviously, we if project is with There point in of out, September, lot

needs take whether to none going oilers decision price is hot XX call. a to fleet we to hot business to be a we where point just oilers or the get want or it's hot oilers So, group Texas just of might, a East or of there'll be

not just lot did, but margin So, as a businesses put price in the also not proof mean, we only and I that bigger for more much points, higher context, consistent. it's to

we to how The lower So, that that's are consistent going fairly why front business business is. trying out consistent, is margin. figure it's

Jeffrey Campbell

margin think business, could a guess Well, have. somewhat but problem a hot I episodic is margin to mean, episodic higher since trade you the business for also about lower to episodic. nice it's oiling trying I a

Rich Murphy

but the being some We logistics them like mean, businesses, trying to what consistent And key worried want to how know I trucks, quite was this of frankly. nice points in we're now. all working right too for to we guess right I oil I move places options can't you the to that those we're to there, for our I don't right us. on. issue with just, the that's get Yes, It's much. see want those just logistics and starting pick to price highest as up. the prices are business a stack as have on And,

Jeffrey Campbell

with was talked demand be not is booking release, something advanced bit the the else to question near-term? winter just upcoming heating a And confused heating the since wondering, an should press the look heating was, the that better I one was in you monster. little a for in customer last my So, Why results in this is by or utilization reference Colorado? or in referring saying I just about advance the season this

Rich Murphy

Yes, observation. good it's a

think the bit the last still haven't hadn't E&P are get have companies business I that. seen probably years, now business in locked the up to want to, right might looks us, see current it that gotten some We just seeing that. couple popped at already trying what some they Possibly little in a because of for we we so prices, to with the

Operator

line your live. from next question The Ascendiant Ed, instructions] coming Ed Capital. is from Woo [Operator is

Ed Woo

terms changed for taking you really My you counts my are improving the there thank Has question prices What it the three commodity and months the in improving? are oil seeing is. question. of rig in out competition? Yes, much are past as

Rich Murphy

and Yes, it's a always been competition it's pop. mom

seems that's are not we're when a signal. disappointed and are three of way, doing up. for to trucks now as lot will or This less saying certainly, competitions, going prices things increases, because gotten really do have than push be to we're five a To out people it asking there's people our no Obviously competitive what price the pick me, most So, be low. I there and this there we're These afraid doing weren't anymore. pandemic. right it is to that

Ed Woo

you you rigs put Do oil other back. through hearing part? Great. the the the possibly business? long-term coming know XXX price And think then sustainable ramp And What your I question, back up from the rigs? of for is you mentioned they to up Or roughest to customers? are how still they of can work quickly increases are very cautious XXX

Rich Murphy

I with sustained that's the you price, activity that XX they was saw first sparse. completion Texas outside that -- of in they cautious a are and pretty oil quarter think the

completion brought years. over financing, couple of So I think, been good the haven't for It's obviously, new last probably words.

not their from operate is I and survived put where you think investors, we cash significantly they being years for back. will generate they're right. a flow rigs nuts. But prolific not XXX done that before the be said, as until rigs kind can to going oil, they know XXX of couple This but well together, can $XXX most basins they go

So, I we run have cautiousness have commodity that's of -- think a because here that I -- with prices. away we start think that probably

Ed Woo

think you that from E&P question is. Great, last my been M&A you? space, that in the salivation hurt potentially or you There's some then helps

Rich Murphy

recently, we're players and merger in do business hot but so it's as know, there with Creek referring helps was it both because the player those just Bonanza I and I extraction. you to we think And the was heating. oiling biggest just

news for good probably us. actually it's So,

Operator

at remarks. instructions] management any I'll back this it Thank time. there questions from for And team no other the the final hand to you. line were [Operator

Rich Murphy

for the I call. all to thanks investors just say, to support. want everybody joining the I appreciate

as you working anybody, know, all employees as shareholders hard the we do. I'm As investor want company Company and this in are are parties so for to

the again. next on Thanks you performance to our quarters. So forward I updating over look couple

Operator

gentlemen. conference. you, today's conclude Thank ladies and does This

participation. at may a have this time you day. Thank disconnect You for wonderful and your

Enservco (ENSV) 13 May 212021 Q1 Earnings call transcript