ENSERVCO Corp.

ENSERVCO Corp. provides well enhancement and fluid logistics services to exploration and production companies operating in the U.S. onshore oil and gas industry. Strong customer demand and a reputation for safe and reliable operations have fueled ENSERVCO's rapid geographic expansion and positioned the company as one of the energy industry's leading hot oiling, well acidizing and frack water heating providers. Through its two subsidiaries, Heat Waves Hot Oil Service LLC and Dillco Fluid Service Inc., ENSERVCO serves many of the largest E&Ps operating in the United States. Headquartered in Denver, ENSERVCO works in both conventional and unconventional oil and gas fields.

Expert Comments:

Rudolf Hokanson, Barrington Research (12/22/14)
"We reiterate our Outperform rating and $4/share price target for ENSERVCO Corp. . .the fair market value of the company's equipment (not including real estate) is approximately $50M. . .forecasted top-line growth of about 30% or more is made possible by the utilization of internally generated cash flow and an under-leveraged balance sheet. Adjusted EBITDA margins are expected to approach the upper end of 25–30%. . .as the company ends Q1/15, we expect it to have about $20M or more of fire power for further growth."

"ENSERVCO Corp is a relatively small company that provides frack water heating, hot oiling and acidizing services to the exploration and production universe. I like that the company is increasing its exposure to these defensive types of services. We're in a questionable environment for oil prices. Drillers are being squeezed and rig counts are going down, but even in a down market drillers need someone to pump hot oil down a well to dislodge paraffin buildup or to acidize a well to stimulate production. ENSERVCO has done a good job gaining market share in its existing markets, as well as with making small acquisitions and growing organically into new markets. . ." read more >

"One of my favorite small-cap service companies is ENSERVCO Corp. Its forte is heating up oil to improve flow. The company works with hot oil trucks, frack water heating units and acidizing. These technologies are not particularly new or complex, but ENSERVCO is very good at what it does and it performs to customers' timetables. I have listed ENSERVCO as a Speculative Buy, because a lot of small service companies have to fight hard to make their way in a competitive arena. But ENSERVCO's trucks are servicing a lot of basins, and the company is building itself a good reputation, well by well. I have put a $4/share price target on it." read more >

Rudolf Hokanson, Barrington Research (11/13/14)
"We reiterate our Outperform rating and $4/share price target for ENSERVCO Corp. . .the company has been adding capacity and expanding geographically, and is in the midst of a two‐stage $16M capex program. . .revenue in Q3/14 was a record, up 20% over the $4.8M in the same period last year. . .the firm recently announced the acquisition of an asset package in the Northern Bakken shale region. . .management stated that with their strong balance sheet and banking relationship, and solid operating cash flows, the company expects to remain active in the M&A arena."

Philip Juskowicz, Casimir Capital (11/11/14)
"We reiterate our Buy rating on ENSERVCO Corp. . . the company has been growing its well maintenance businesses, primarily consisting of hot oiling and well acidizing. These services are utilized throughout a well's life and are therefore relatively protected even in weaker pricing environments."

Bhakti Pavani, Euro Pacific Canada (11/5/14)
"ENSERVCO Corp. acquired a package of oilfield service assets, including 12 hot oil trucks, a frack water heating unit, miscellaneous equipment, tools and supplies for ~$3M and a six-acre operating yard with a maintenance shop and office facility located near Tioga, N. Dak., for ~$0.7M, paying a total acquisition price of $3.7M. . .we believe the company scored an attractive deal for the assets."

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Investing Highlights
 
Ability to fund 30%+ revenue CAGR from cash flows
 
Capacity and geographic expansion underway
 
Reduced reliance on drilling activity insulates against oil price swings
ENSERVCO Corp. Content