~ Posted Increase in Year-Over-Year Revenues, Segment Profit and Net Income ~ ~ Grew Adjusted EBITDA by 125% from Q1 2023 ~ LONGMONT, Colo., May 15, 2024 (GLOBE NEWSWIRE) -- Enservco Corporation (NYSE:ENSV) ("Enservco", or the "Company"), a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries, today announced operational and financial results for the first quarter of 2024. FINANCIAL SUMMARY(in 000's, except per share data)   Q1 2024 Q1 2023 % Change Revenues $ 9,792 $ 8,912 10%   Production services $ 2,485 $ 2,863 (13%)   Completion and other services $7,307 $ 6,049 21%         Segment profit $ 3,261 $ 2,015 62%   Production services $ 364 $ 546 (33%)   Completion and other services $ 2,897 $ 1,469 97%           Income (loss) from operations $ 1,262 ($ 459) NM         Net income (loss) $ 740 ($ 1,004) NM   Per diluted share $ 0.03 ($ 0.07) NM           Adjusted EBITDA(1) $ 2,222 $ 986 125% NM: Not meaningful. (1) A non-GAAP financial measure; see the "Non-GAAP Information" section in this release for more information including reconciliations to the most comparable GAAP measures. Q1 2024 HIGHLIGHTS Grew revenues 10% from Q1 2023 with the Company's primarily seasonal-focused completions services revenue increase partially offset by a production services revenue decrease; Drove segment profit increase of 62% year-over-year primarily due to overall top-line growth complemented by execution of further operating efficiency initiatives and related cost savings; Reduced general and administrative expenses 18% from prior year; Improved profit position to net income of $0.7 million, or $0.03 per diluted share – an increase from a net loss of $1.0 million, or $0.07 per diluted share, for Q1 2023; Increased year-over-year Adjusted EBITDA by 125% to $2.2 million; Announced agreement to acquire Buckshot Trucking LLC, an experienced and profitable energy logistics business (the "Transaction"); Expected to generate increased operational and financial flexibility with addition of year-round business highlighted by significant growth opportunities and non-dependence on weather related business; and Evaluating various financing alternatives with closing of the Transaction targeted in early Q3 2024. MANAGEMENT COMMENTARY Rich Murphy, the Company's CEO and Chairman stated "We kicked off 2024 on a strong note with first quarter results that materially exceeded the prior year across the board on key financial metrics, including revenues, segment and operating profit, and net earnings. Also included was 125% year-over-year growth in Adjusted EBITDA. Significantly contributing to our first quarter 2024 results was more than a 95% increase in profit from our completions services segment that primarily reflects solid performance from our seasonal-based frac water heating offerings. As we have discussed in the past, this business is very winter weather-dependent, and we were fortunate to have a colder first quarter this year versus the same period in 2023. This was partially offset by a decrease in profit in our production services segment. I want to thank the entire workforce – and especially our employee team – for their continued hard work and dedication as we continue to execute on internal and external initiatives designed to enhance our business mix and promote future success." Murphy continued, "While the first quarter benefited from improved seasonal conditions for our frac water heating services business, our performance during the period also highlighted our efforts to drive further improvements throughout the Company. These initiatives were muti-faceted and included reducing our footprint to focus only on operations that provide the best economic returns, lowering costs and streamlining processes throughout the organization, and taking necessary steps to enhance the Company's financial outlook. Combined with our pending acquisition of Buckshot, we believe Enservco will be in a much-improved position in the marketplace and with the investment community. We look forward to evaluating and executing additional opportunities that further evolve our business away from seasonal to more year-round activities designed to drive long-term cash flow generation, profitability, and shareholder value." Q1 2024 FINANCIAL RESULTS Total revenues were $9.8 million – 10% higher than $8.9 million in the same quarter last year. Production services revenue, which includes hot oiling and acidizing services, decreased to $2.5 million from $2.9 million in the same quarter last year, primarily due to decreased acidizing services in the Company's Texas region, combined with decreased hot oiling activity levels in Enservco's Pennsylvania and Texas regions. Production services generated a segment profit of $0.4 million compared to a segment profit of $0.5 million in Q1 2023. Completion services revenue, which is primarily seasonal-focused frac water heating services, grew to $7.3 million from $6.0 million in the prior year quarter. Primarily driving the increase was colder weather in 2024 relative to the prior year that led to increases in frac water heating service activity levels. In addition, service price increases in the Company's Pennsylvania and Colorado regions contributed to the growth in year-over-year revenue. Completion services generated a segment profit of $2.9 million compared to a profit of $1.5 million in the same quarter last year. Operating profit improved to $1.3 million versus an operating loss of $0.5 million in Q1 2023. In addition to a significant improvement in the Company's combined segment results, year-over-year performance benefitted from an almost $0.3 million – or 18% – decrease in general and administrative expenses primarily due to reduced legal costs substantially associated with Enservco's successful shareholder litigation matter. The Company reported net income of $0.7 million, or $0.03 per diluted share, compared to a net loss of $1.0 million, or $0.07 per diluted share, in the prior year. Adjusted EBITDA was $2.2 million versus $1.0 million for Q1 2023 – a 125% year-over-year increase.   BUCKSHOT TRANSACTION & OTHER UPDATES Enservco expects to close the Transaction in early Q3 2024, with the Company currently evaluating financing alternatives. Following closing, Enservco looks forward to quickly integrating Buckshot's assets and operations into the broader organization. The Company remains excited about the opportunities afforded by the addition of this year-round business that has strong margins and cash flow visibility, coupled with growth prospects. Separately, Enservco continues to explore strategic initiatives to reduce reliance on its seasonal frac water heating services business and invest in opportunities that generate solid cash flow and provide visible near and long-term growth. CONFERENCE CALL & ADDITIONAL INFORMATION The Company has scheduled a conference call on Thursday, May 16, 2024 at 9:30 a.m. ET to discuss its first quarter 2024 operational and financial results. To participate, interested parties should dial 888-506-0062 at least five minutes before the call is to begin. Please reference the "Enservco First Quarter 2024 Earnings Conference Call" or use the participant access code of 623631. International callers may participate by dialing 973-528-0011. The call will also be webcast and available on Enservco's website at www.enservco.com under "Investors" on the "Events" page. In addition, interested parties can participate through the webcast by accessing the following link: https://www.webcaster4.com/Webcast/Page/2228/50645 Like callers, participants should access the webcast at least five minutes prior to start time. In addition, a replay of the webcast will be available following the call through the above link. ABOUT ENSERVCO Enservco provides a range of oilfield services through its various operating subsidiaries, including hot oiling, acidizing, frac water heating, and related services. The Company has a broad geographic footprint covering major domestic oil and gas basins across the United States. Additional information is available at www.enservco.com. On March 20, 2024, the Company announced an agreement to purchase Buckshot Trucking LLC, an energy logistics provider in multiple key oil and gas basins (the "Buckshot Acquisition"). The Buckshot Acquisition is scheduled to close in the third quarter of 2024. When closed, the Buckshot Acquisition would provide Enservco with a growing business that is not weather dependent, allow the Company to enter steady year-round logistics, provide an expanded operating footprint, and improve cash flow visibility. 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 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 Enservco's annual report on Form 10-K for the year ended December 31, 2023, and subsequently filed documents with the Securities and Exchange Commission ("SEC"). Forward looking statements in this news release that are subject to risks related to, among other things, closing of the Buckshot Acquisition on anticipated terms and timing, and the ability of Enservco to successfully integrate Buckshot's market opportunities, personnel and operations and to achieve expected benefits. Enservco disclaims any obligation to update any forward-looking statement made herein. CONTACT Mark PattersonChief Financial OfficerEnservco     ENSERVCO CORPORATION AND SUBSIDIARYCondensed Consolidated Statements of Operations(In thousands, except per share amounts)(Unaudited)       For the Three Months Ended       March 31,       2024     2023     Revenues:                 Production services   $ 2,485     $ 2,863     Completion and other services     7,307       6,049     Total revenues     9,792       8,912                       Expenses:                 Production services     2,121       2,317     Completion and other services     4,410       4,580     Sales, general, and administrative     1,232       1,503     Severance and transition     -       1     Gain on disposal of assets     -       (1 )   Depreciation and amortization     767       971     Total operating expenses     8,530       9,371                       Income (loss) from operations     1,262       (459 )                     Other (expense) income:                 Interest expense     (578 )     (590 )   Other income     56