DENVER, CO--(Marketwire - Jul 18, 2012) - ENSERVCO Corporation (OTCQB: ENSV) (OTCBB: ENSV), a provider of well-site services to the domestic onshore conventional and unconventional oil and gas industries, today said it expects to report second quarter revenue of $5.6 million, up 26% versus the same quarter of fiscal 2011. The increase was driven by an anticipated 58% quarter-over-quarter improvement in revenue at the Company's flagship Heat Waves division, which provides hot oiling, frac heating, acidizing and fluid logistics services to the exploration and production industry.
This represents the sixth consecutive quarter in which ENSERVCO has delivered top-line growth versus the comparable prior-year period. Moreover, quarter-over-quarter revenue improvements have exceeded 25% in all but the two most recent quarters, which were adversely impacted by an exceptionally warm winter.
Management attributed the continued top-line growth at Heat Waves primarily to the Company's operational expansion within three of the country's most active unconventional oil plays -- the Bakken and Niobrara Shale Formations of North Dakota and Wyoming, and the Mississippi Lime formation in southern Kansas and northern Oklahoma.
Although spring and summer have historically been slower periods for Heat Waves due to the seasonal pullback in fluid heating work, the heating season within ENSERVCO's new service territories extends into the summer, and can last up to 10 months of the year. In addition, the division has seen strong demand in recent months for fluid logistics and well acidizing services.
"Even with the challenges brought on by last year's record warm winter, we have established a consistent pattern of delivering quarter-over-quarter revenue growth," said Rick Kasch, president and CFO. "Given our recent geographic expansion and new customer relationships, we believe these revenue trends will continue for the foreseeable future. Moreover, if we experience anything resembling normal weather patterns in the coming fall and winter, we believe ENSERVCO could experience record demand during the approaching busy season."
Through its various operating subsidiaries, ENSERVCO has rapidly emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac heating and fluid management services. The Company owns and operates a fleet of more than 245 specialized trucks, trailers, frac tanks and related well-site equipment. ENSERVCO operates in Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Ohio, Pennsylvania, Texas, Utah, Wyoming and West Virginia. ENSERVCO became a public company in July 2010 as a result of a merger transaction involving Aspen Exploration Corporation. Additional information about the Company is available at www.enservco.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains information that is "forward-looking" in that it describes events and conditions ENSERVCO reasonably expects to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon a number of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond ENSERVCO's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in Form 10-K filed on March 30, 2012. It is important that each person reviewing this release understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-looking statement made herein.