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Dec 31, 2019
Enservco Q4 2019 Earnings Report
Enservco experienced a challenging fourth quarter due to declining customer activity levels.
Key Takeaways
Enservco's Q4 2019 revenue declined to $8.1 million from $13.3 million in the same quarter last year, with a net loss of $3.3 million compared to a net loss of $517,000. The company faced challenges due to a decline in customer activity levels and pricing pressure.
Total revenue declined to $8.1 million from $13.3 million.
Production services revenue was flat at $3.5 million.
Completion services revenue declined to $4.6 million from $9.8 million.
Net loss was $3.3 million versus a net loss of $517,000.
Enservco
Enservco
Enservco Revenue by Segment
Revenue by Segment
Production services Revenue
CapyFin.comCompletion services Revenue
CapyFin.com Forward Guidance
Activity levels have continued to decline into 2020 and are likely to remain depressed in the near term due to pressure on crude oil prices related to the Saudi-Russia oil price war and to the impact of COVID-19 on the world economy.
Positive Outlook
- Grew market share in 2019 as a result of acquisition of Adler Hot Oil Services.
- Ended the year with largest customer base in company history.
- Closed non-strategic water transfer business.
- Renewed focus on core competencies in production and completion services.
- Eliminated $1.1 million in redundant costs associated with the Adler transaction.
Challenges Ahead
- Activity levels have continued to decline into 2020.
- Activity levels are likely to remain depressed in the near term.
- Pressure on crude oil prices related to the Saudi-Russia oil price war.
- Impact of COVID-19 on the world economy.
- Unseasonably warm fourth quarter in Oklahoma negatively impacted frac water heating revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income