ENSV - Earnings call 3 2023 | Enservco Corporation

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Operator

Greetings, and welcome to the Enservco Third Quarter 2023 Earnings Conference Call.

[Operator Instructions]

Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Rich Murphy (sic) [ Jay Pfeiffer ]. begin. may you Sir,

Jay Pfeiffer

to of Third Rich the Mark Officer. Chairman; welcome Presenting Murphy, Conference on and Financial Chief behalf company Patterson, Enservco's and Quarter XXXX Call. Executive Hello, today are

the discussed a based XX-K in today's the uncertainties are estimates, SEC. date during As are management's filings well matters this may as to statements on as include assumptions and recent disclosed subject company's as call other projections and most that forward-looking of with and reminder, risks

questions SEC is in business risks no could material statements. company's events. today's limited during this point statements certain enservco.com that The subject replay A available out materially also call subsequent that of forward-looking assumes at Reg disclosure I'll the cause to differ of that to which from after Enservco because to become obligation by update prohibits nonpublic actual selective its information. will results to be of webcast those call. management's untrue ability anticipated call respond FD, is to forward-looking

addition, be in approximately news the hours after are accessing available Instructions or today's telephone will for In X call. available the release. beginning webcast replay a replay

the ahead. I'll call Rich that, please to go turn With Rich, Murphy. over

Richard Murphy

Thanks, call. third financial third results September morning, quarter ended welcome for and quarter Jay. Good Yesterday, to XXXX. our XX, the and earnings we announced X-month period

increases. this up until quarters had revenue reported year-over-year Enservco that quarter, recall may You consecutive of X

for what long trend believe This the term. best ended quarter, for in that we was our interest

that potential revenue Dakota a operating assets operations more strategic more in move Specifically, for areas reallocate we to growth. shut our to productive and profit North down offer

of of year. operations last X the Dakota first for North revenue former generated $X.X million Our months

slightly revenue and result, was year-over-year broken. was on a basis As quarter a third streak a down

streak. optimistic quarters starting new active prices maintaining and As we quite a customer remain they with more oil now move into our and about chances demand our where and are, we of

still are year's decline, the quarter And pace for despite period. revenue X% X-month revenue last ahead our we X of

move mentioned, areas. also to heating the benefit I calculated active to resources to was the expected on season underutilized a of the allowing is activities. convert focus As to capital have fund working additional in North more Dakota to us assets exit It

are to a acquire equipment that for demand cooler cash further estate our in heating winter when that's third services. with our in any in We Dakota million be the strengthen discussions fall into real to to of increased North In and moving party we're balance expected excited $X drive and case, sheet. vicinity generate temperatures will

and As of we profitability. quarters you our and when know, fourth first are generate our bulk the revenue

So we we're can can forward so. the next we months what seeing -- to accomplish X or over that accomplish looking

quarter Rapid operating operations, E&Ps Appalachian in going the West Hot and Shale, and Eastern Ohio, going frac Rapid provides Pennsylvania forward, to Marcellus of our addition the This Basin Hot Virginia. the benefit we're heating from also water area, services to encompassing

the impact full That's third We acquired change in that Rapid enjoying we'll when going operations. the in late QX to quarter, benefit in didn't the we get revenue much period. begin so of Hot company

take we all our footprint. can market to operating also believe We entire continue share across

more In and Rapid added addition our region revenue, Hot our the depth existing had of incremental in team. to contributing benefit strengthening the management providing position to

Mike operations, sector Rapid development, NYSEAM growth in than and private Mike in executive experience and XX Chief the companies. is more Hot CPA, of joined CFO for of companies, including years Specifically, the brings and former Lade, capital corporate formation Staff. energy M&A who Enservco's extensive emerging a President listed of work with

Weyel further as of M&A in to the profitable managing companies. Chairman was addition a energy CEO growth Energy He is Board Rapid understand our served who of energy pursue and Steve valued billion. at the a an deepwater also We Weyel, and Corp, activity. was XX-year Hot of member, is Directors. executive, how a Chairman with Mike specialists strengthened having transaction drive $X.X opportunistic accomplished Founder, executive team turnaround public year Enservco's earlier to and EnVen merged this and nearly Director private exploration of an company Board that

than commodities, leadership transactions and energy in successfully global deregulated financing. to His encompasses upstream and close M&A has oil managed gas. and services, oil power He billion more $XX

building Steve a the to do. in larger Board which in enterprise, of X managing we and the join is our director interacting team a what intend second the much past months, to capable is we are

building our steadily are momentum We businesses. across

and margins customer improving operating to Based our our positioned by we well services meet are that for growth basins. on expect encouraged believe further are continued demand drilling on demand. activity We we feedback, and

going So you to some I'm I Mark? few that, Patterson, hand call CFO, the with closing Mark our through over to numbers to a comments. the provide of take before

Mark Patterson

Thank you, Rich.

prior Our flat On was revenue Services revenue million $X.X year. year-over-year lower third $X.X million. compared basis, services segment revenue $X.X at quarter decreased million year million million to to $X.X a basically the was $X.X a from in Completion Production at ago. X%

a hot As was activity overall Colorado increases in decline, the Pennsylvania of Most in from with in revenue acidizing by part Rich our markets. our noted, region. oiling along exit Texas lower offset and hot and activity this our North big Dakota played our oiling in nice

million diluted basic $X.X year. decreased or quarter $X.XX negative million negative a to of basic the to slightly quarter was a loss the share in compared net in and the same last million of net which year. million And EBITDA $X.X third per $X.XX and compares share or $X quarter to per loss same in diluted adjusted last $X.X QX

year-over-year. $XX.X increased through to results. million X% million $X.X $XX.X attributable increased million Services and million from which increase than X The offset $X.X Revenue segment, a Production was to X-month Services, decline million. X% in from the $X.X Completion XX% year-over-year months $X.X the to Turning growth year-over-year to versus more in million were which

$X.X generated XXXX. a The also former of negative months million exit first on negative Dakota year. EBITDA diluted $X.X last $X.X $X.X result improve As per and during adjusted through X our last same loss million call, a months $X.XX and North versus this X-month share XX% $X.X basic loss operations in year. The the to million or million or was from the mentioned of diluted helped a previously net same X of of basic North by period share $X.XX net of per revenue period Dakota the the million in

loss and Recall million net included gain of extinguishment. on ago, year the $X.X debt in the

our that, improved much absent over prior been loss net So year. have would the

cost. internal ways declines the expenses run on goal insurance, $X.X our we're costs, significant we you in compensation. are seen includes million, of As quarter, some rightsizing onetime excluding to over and to an and rate XX months legal SG&A public business accounting, noncash company annual This relations headcount, and last We've of reduce approaching focused SG&A other very investor and our past continue legal, our look told at areas.

One as $X.X Partners. from as final million participation Rapid and well Enservco REIT largest that of highlight, our shareholder, Board recently we closed Hot financing River investors convertible debt include Cross

including the stockholders optimism Board, I a understand think it's about game skin that company. reflects have the of important prospects the lot their that our of our senior future that in our people,

So with to Rich. that, call I'll the back turn

Richard Murphy

$X.X M&A from recap, want opportunistic words reduction greater reduction our as in debt explore equipment debt and This transactions a to quarter to transform we flexibility new with our we balance to revenue an the in XXXX That's just sheet close our from successful relating third million impressive us million I much ongoing million sheet. few closed about look add to year-end our efforts $X.X with financing. term Mark. To financial peak streams. Thanks, balance $XX improved XXXX. gives and a

long to teams, opportunities quality looking the on to we're improved with addition sheet, leadership optimizing in again, and balance the heating our customer current So new and growth term. demand our over solid opportunities season forward capitalizing of the depth

our With be call that, for joining questions. Operator? and you I'll thank take any today, to happy again

Operator

[Operator Instructions]

We a Global Alliance Jeff with from have question Partners. Grampp

Jeffrey Grampp

just And in the just you season. business here. discuss can but needing there? I that months that couple can maybe First context, is impactful done or for to Rapid size even, think, better Hot much how closing not historical integration there ask of heating only know upcoming be to wanted the of we're I revenue, be how kind this, fleet a to understand of into about

Richard Murphy

XX I basin our operation itself which the bond Hot Rapid face mean, the tails to moved -- and in simple. some We've equipment the operations. to basin basically Yes. yard, a it Hot [ combined itself ] We cost is that same, XX all is integration I but we is pretty had we Rapid -- the there. the about mean about

revenue opportunity, last the is example. as bad far probably As a year

pretty with of we lot better winter warm risk. and as if X the Marcellus the weather of no mitigate of to We're terms other's basin services it margins one to our do we And service forward, the reasons risk hand, providers, have weather don't they're listen, was us forcing take kind go each will the that because, it in and were of heating open improve. I'll a trying that last

tend better, tends season be the be to to So margins the shorter. but

of Last year was basically us revenue. that all generally a didn't of a lot year for

-- around in little Hot less. Rapid So million year. $X.X million probably revenue had revenue was $X last $X.X to a we million

I combined won't X. X plus entity better X It with pricing. be do can think equals the

the I'm whether And Last people helm far and seeing a other we saw this well, this And here. work business, there have from us. I change, we as -- didn't left understand from times and customers lot is And at to Colorado as to E&P of lot business a heating the is thing my not I think willingness just call-out we us, one work of season that. customers our think, but with the equipment. got a second have is Jeff, year, it's

sure very call-out So stranded their and they left up or for not season they getting to they're work. want make the equipment lock expensive

to the guys. from So for shift in is environment was good fundamental a an of been kind which all customers, our of us 'XX unhealthy mindset service for It's it because XXXX of good. there's

Jeffrey Grampp

pricing is I that you're quantify across referenced is heating And way service seeing. pricing kind helpful. then a that to specific on or to Is And all lines? of That's the stronger last Understood. maybe the year? release side, relative that, think your action there frac to some water that

Richard Murphy

rate business, low end, percent Dakota up end even being board, with and the now gone. Colorado, The Wyoming the that's PA, it right primarily But want hot PA hourly both North Across because rate and is in and all, to of seeing for don't and oiling. a well, it's we space on price, the high of the across heating goes with but heating I daily going XX% we're XX%. a give Yes. to kind the Colorado probably combination continue the rates see

but XX%, we're seeing to So more I term what XX% think you're critical. is term is seeing that and

term rate. I healthy get up mean a a locked to XX-day with standby

So that if it's that not that's And the our thing frankly the cold, in quite was we're always be paid. that needs healthy. to industry XXXX. getting still And disappeared thing

lot term -- that's back to XX-day So type paid leaving a very the in just important lesser the feature. with hot in to play. we it a equipment a being get rate, happens of still but be industry, that you're if February, XX-, get still starting XX-, of And it's

Jeffrey Grampp

Yes, to relative years. digestion terms back before of back last more kind kind period a big on for effectively? of what M&A there Any And seeing? through to commentary of yourselves Understood. definitely one seriously that's in market with last broadly a get Or in And the into change Rapid of would M&A, consider want updated Hot market? me, kind of there is that you're getting of Rich. the couple just you'd the you kind

Richard Murphy

as be niche very or on the in And We're market. whether stuff. remarks type stuff. have it No, M&A, our good with at team now we're we from to see tuck-in definitely a you right looking from the can Board, execute transformative

sheet The for right the up balance feel we where gets can pretty integration the complete, we're last ramping is, is and now With Rapid to like sign -- to be and bid just much in because -- go. signed Hot it it Jeff, we Pennsylvania done coldest on activity. our in basin your season last at all to lock the get contracts trying just

driving would won't plentiful, there's at that we're with what yes, the looking do. M&A that activity lot I options stuff. is looking pending we're -- a And of well So at nothing but but mainstream businesses say we fit tomorrow, the are that

Operator

[Operator Instructions]

hand will closing no As for Mr. queue, further may to comments we have questions Murphy you I in have. it back any

Richard Murphy

are to I with yeoman's want this where work service, on and last to call get employees particularly then done and over where everyone thank the X we years and to in customers. balance us we are the who our sheet

spot to fall season, see the excited as we're large. I I outcome entering and get the think be winter now to good more and couldn't and we're become a in winter this

as look I the catching forward to investors with up to winter. we So and everyone march

for So Take care. again time. thanks your

Operator

you. conference, and you thank may We Thank time. your participation. This today's you this at concludes for disconnect lines your

Enservco (ENSV) 16 Nov 232023 Q3 Earnings call transcript