This presentation contains information that is "forward-looking" in that it describes events and conditions ENSERVCOreasonably expects to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon anumber 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 futurepossibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subjectto a variety of risks, which are beyond ENSERVCOs ability to predict, or control and which may cause actual results todiffer materially from the projections or estimates contained herein. Among these risks are those set forth in a Form 10-Kfiled on March 30 2012. It is important that each person reviewing this presentation understand the significant risksattendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-lookingstatement made herein*Note on non-GAAP Financial MeasuresThis presentation also includes a discussion of Adjusted EBITDA, which is a non-GAAP financial measures provided as acomplement to the results provided in accordance with generally accepted accounting principles ("GAAP"). The term"EBITDA" refers to a financial measure that we define as earnings plus or minus net interest plus taxes, depreciation andamortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items thatmanagement does not utilize in assessing ENSERVCO’s operating performance. None of these non-GAAP financialmeasures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator ofoperating performance or any other GAAP measure.
Symbol OTCQB: ENSV52-week range $0.30 - $1.35Recent price (1/9/13) $0.70Shares outstanding* 31.7 millionMarket capitalization* $22.2 millionWarrants* 6.0 millionOptions* 3.1 millionPublic float* 11.5 millionCash* $720,000Fiscal year end December 31* Reflects impact of a new $16 million credit facility and a $2 million private placement of equity, both completed subsequent to close of the 2013 third quarter.
A leading provider of well completion, well stimulation and fluid management services, and only national provider of hot oiling, well acidizing and frac heating services to the domestic on-shore oil and gas industry Benefiting from dramatic increase of domestic oil and gas reserves; active drilling in conventional and unconventional fields; increased hydraulic fracturing and horizontal drilling Customers include many of domestic energy industry’s leading exploration and production companies Roughly 55% of revenue derived from non-cyclical, maintenance-related work Reputation for modern, high-quality equipment fleet and skilled, responsive workforce Growth strategy involves geographic expansion, market share gains and introduction of new well-site service offerings Company developed first U.S. frac heater in late 1990s
Mike Herman - Chairman and Chief Executive Officer• Owns 55% of ENSV common stock• Began career in family oil and gas business• More than 30 years of experience as investor and operator of E&P and oilfield services companies• Built ENSERVCO through acquisition of leading regional well-site service businesses• Chairman and largest shareholder of Pyramid Oil Company (AMEX: PDO), a California-based, 100-year-old E&P• Former Chairman and owner of Key Food Ingredients LLC, a global supplier of dehydrated vegetables. Sold Key Food in 2007• Former Chairman and majority owner of Telematrix, Inc., a provider of telecommunications equipment to the worldwide hotel and hospitality industry. Sold majority stake in 2006Rick Kasch – President and Chief Financial Officer• Owns approximately 5% of ENSV common stock• Responsible for ENSERVCO operations since Company inception• Former head of operations and CFO of ENSERVCO’s predecessor businesses, Dillco & Heat Waves. Completed acquisitions with Mike Herman and then launched ENSERVCO• Former CFO of Key Food Ingredients, LLC• Extensive operating, financial management, capital formation and public company operational management experience. Helped raise more than $1 billion for previous employers through private and public equity and debt offerings, including IPOs, secondary offerings, IDBs, and traditional term debt and revolving lines of credit• Former CFO of NYSE-traded company; former divisional President and COO of major hospitality company
Reports record full-year revenue of $32.1 million* Q4 revenue* represents best-ever quarterly performance, and a 78% increase versus prior-year quarter2012 Expands service territory into burgeoning Utica Shale and Mississippi Lime regions Strengthens financial position with new $16 million credit facility and $2 million equity raise Opens major operations centers in Bakken Shale and northern Niobrara Shale fields2011 Full-year revenue increases 32% to $24.7 million from prior year Full-year adjusted EBITDA improves 47% to $3.1 million from prior year Becomes a public company in July following merger with Aspen Exploration Corporation2010 Commences operations in prolific Marcellus Shale region2009 Company reports positive EBITDA of $414,000, despite 50% decline in revenue following global collapse in oil prices Remaining interest in Heat Waves acquired2008 Full-year revenue reaches $30.6 million, up 178% from 2007 Full-year EBITDA improves 295% to $7.5 million versus 2007 Company acquires 35-year-old Dillco Fluid Services, a provider of water hauling, fluid disposal, frac tank rental,2007 and well-site construction services Company founder acquires a majority interest in Heat Waves Hot Oil Service, an 8-yer-old provider of2006 hot oiling, frac heating acidizing, pressure testing & water hauling services *preliminary, unaudited
Hot Oiling Frac Heating Acidizing Pressure Testing Fluid Hauling Frac Tank Rental Disposal Wells Site Construction Roustabout
Hot OilingThe circulation of heated oil or similar fluids down a well bore, where the fluid dissolves and dislodgesparaffin and other hydrocarbon deposits. Related services involve the heating of oil storage tanks, whicheliminates water and other soluble waste that can reduce the operator’s revenue at the refinery.Frac HeatingThe heating of water being used in well frac jobs to a predetermined temperature, which prevents freezingand ensures that fracing solutions mix properly.AcidizingPumping specially formulated acids and/or chemicals into a well to dissolve materials blocking the flow ofthe oil or natural gas. Acidizing is most often used for increasing permeability throughout the formation,cleaning up formation damage near the wellbore and removing the buildup of materials restricting the flowin the formation.Pressure TestingThe pumping of fluids into new or existing wells or other components of the well system to detect leaks.
Fluid Management ServicesServices include: transporting water to fill frac tanks or reservoirs at well locations, transporting contaminated production water to disposal wells, moving drilling and completion fluids to and from well locations, and transporting flow-back fluids from the well site to disposal wellsENSERVCO owns and operates a fleet of trucks, each of which has a hauling capacity ranging from 80 to140 barrels.Frac Tank RentalRental of frac tanks to oilfield operators for storage of fluids at the well site. The tanks have a capacity of upto 500 barrels and are used for storage of fresh water, salt water, flowback, temporary production and mud.Frac tanks are used during all phases of the life of a producing well.Construction and Roustabout ServicesConstruction of service roads and well pads utilizing ENSERVCO’s fleet of power units, which includesdozers, trenchers, motor graders, backhoes and other heavy equipment
Heating Equipment 55 Frac heaters, Hot oilersWater haulers 75Acidizing trucks 5Construction units 25Frac tanks 15Misc. 70Total: 245
ENSERVCO entered the Marcellus region in January 2010 to provide frac-heating services to a large, longtime customer One year later, ENSERVCO was providing frac heating, hot oiling and water hauling services to 12 major E&Ps in the region Company expanded operations into adjacent / underlying Utica Shale play in 2012. By January 2013, Company Carmichaels, PA had begun servicing 4 of 5 largest operators in the play Fracking techniques in Utica require much higher fluid temperatures than in Marcellus. Fluid heating demand in Utica extends over much of the year, versus 4 to 5 month heating season in Marcellus
ENSERVCO opened new operations centers in North Dakota (Bakken Shale) and Wyoming (Niobrara Shale) during September 2011 Bakken Company has established extensive customer rosters in both regions Killdeer, ND Bakken facility, in Killdeer, ND, employs a workforce of approximately 40. Service fleet includes frac heaters, hot oilers and well-site construction equipment Niobrara Cheyenne, WY New facility in Cheyenne, WY is second yard serving Niobrara region. Combined, Cheyenne and Platteville Platteville, CO facilities employ more than 25. Equipment includes frac heaters, hot oilers and water haulers
Generated approximately 75% of ENSERVCO’s 2012 consolidated revenue Primary services: Frac heating Hot oiling Acidizing Pressure testing Serving customers in Colorado, Pennsylvania, North Dakota, Montana, Wyoming, Nebraska, West Virginia, Ohio, Kansas, New Mexico, Oklahoma and Texas
Generated approximately 25% of ENSERVCO’s 2012 consolidated revenue Primary services: Water hauling Water disposal Frac tank rental Well-site construction Operations in Kansas, Oklahoma & Texas
Capitalize on supply/demand imbalance in recently entered basins Expand service territory into additional domestic oil & gas basins Leverage Master Service Agreements to capture new business as E&Ps narrow their vendor lists Expand well-site service offerings
* Full-year record. Preliminary and unaudited.
Subsequent to the close of the third quarter, ENSERVCO closed on a $16 million credit facility with PNCBank, and a $2 million private placement of equity. The below pro forma balance sheet reflects the impact ofthe credit facility and equity sale. See Note 11 to Company’s Q3 financial statements for more detail.
Leadership position in well stimulation and fluid management services, and only national provider of hot oiling, well acidizing and frac heating services to the domestic on-shore oil and gas industry Energy industry’s only nationwide provider of comprehensive fluid heating solutions Proven, entrepreneurial management team focused on aggressive growth Company positioned to capitalize on significant imbalance in well-site service supply and demand Master Service Agreements with blue-chip customer base Extensive modern equipment fleet
Contacts: Rick Kasch Geoff High Derek Gradwell President & CFO Principal SVP Natural ResourcesENSERVCO Corporation Pfeiffer High Investor Relations, Inc. MZ North America 303-333-3678 303-393-7044 212-301-7130 email@example.com firstname.lastname@example.org email@example.com