Enservco Corporation

First quarter 2024 revenue was $9.8 million, up 10% from $8.9 million in the first quarter of 2023. Adjusted EBITDA was $2.2 million versus $1 million in Q1 2023, a 125% year-over-year increase. Net income was $0.8 million, or $0.03 per diluted share, compared with a net loss of $1 million, or $0.07 per diluted share, last year. Completion Services revenue rose to $7.3 million from $6 million, while Production Services revenue declined to $2.5 million from $2.9 million. Gross profit margin increased 10%, and G&A expense decreased 18% year over year. Management did not provide formal next-quarter or full-year financial guidance, but said Production Services is trending toward a roughly $3 million quarterly revenue run rate and reiterated a target to close Buckshot by end of June/early July.

Rich Murphy framed the quarter as evidence that the company’s turnaround is gaining traction, citing better execution, improved margins, and the benefit of a colder-than-last-year heating season. He emphasized that Enservco is trying to move away from dependence on weather-driven business and toward a more stable logistics model, calling Buckshot a potentially transformational first step. His tone was upbeat and confident, especially on the company’s ability to reduce debt, improve market share, and transition into a more consistent cash flow generator.

Mark Patterson highlighted the operating drivers behind the quarter: cold days in January lifted Completion Services, while Production Services was temporarily softer due to weaker acidizing demand. He pointed to continued SG&A reduction, saying the company is getting closer to an internal annual SG&A run rate goal of $3.6 million, excluding one-time legal and noncash items such as stock compensation. He also noted that the class action lawsuit was dismissed with no further appeals expected, and said the company made material progress in reducing debt in 2023 while continuing to look for accretive opportunities that improve year-round cash flow and the balance sheet.

Analysts focused on Production Services stability, asking whether the weaker acidizing demand was temporary and whether revenue could return toward prior levels. Management said the business should be viewed as a roughly $3 million revenue run rate, with Texas as the core and Pennsylvania hot oiling adding high-margin upside at rates about 2.5x Texas. Questions also centered on Buckshot timing and financing; management said the deal is a $5 million transaction with $1.25 million in equity and $3.75 million in cash, that a shareholder vote is required, and that they are targeting close in early July with financing described as manageable.