2. This
presenta,on
contains
informa,on
that
is
"forward-‐looking"
in
that
it
describes
events
and
condi,ons
ENSERVCO
reasonably
expects
to
occur
in
the
future.
Expecta,ons
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
deno,ng
future
possibili,es,
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
projec,ons
or
es,mates
contained
herein.
Among
these
risks
are
those
set
forth
in
ENSERVCO’s
Form
10-‐K
filed
on
March
20,
2014,
and
in
its
reports
subsequently
filed
with
the
Securi,es
and
Exchange
Commission,
all
of
which
are
available
at
www.enservco.com,
and
in
addi,on
to
the
other
risks
and
caveats
included
in
this
presenta,on.
It
is
important
that
each
person
reviewing
this
presenta,on
understand
the
significant
risks
aUendant
to
the
opera,ons
of
ENSERVCO.
ENSERVCO
disclaims
any
obliga,on
to
update
any
forward-‐looking
statement
made
herein.
In
addi,on,
we
would
point
out
that
our
ability
to
respond
to
ques,ons
at
this
mee,ng
is
limited
by
SEC
Regula,on
FD.
In
short,
Regula,on
FD
prohibits
us
from
making
selec,ve
disclosure
of
material
non-‐public
informa,on.
Where
we
believe
that
Regula,on
FD
prevents
us
from
responding,
we
will
answer
the
ques,on
with
“no
comment”
or
a
similar
phrase.
When
we
believe
it
is
appropriate
to
announce
material
non-‐public
informa,on,
we
will
publish
press
releases
or
file
reports
with
the
SEC.
*Note
on
non-‐GAAP
Financial
Measures
This
presenta,on
also
includes
a
discussion
of
Adjusted
EBITDA,
which
is
a
non-‐GAAP
financial
measures
provided
as
a
complement
to
the
results
provided
in
accordance
with
generally
accepted
accoun,ng
principles
("GAAP").
The
term
"EBITDA"
refers
to
a
financial
measure
that
we
define
as
earnings
plus
or
minus
net
interest
plus
taxes,
deprecia,on
and
amor,za,on.
Adjusted
EBITDA
excludes
from
EBITDA
stock-‐based
compensa,on
and,
when
appropriate,
other
items
that
management
does
not
u,lize
in
assessing
ENSERVCO’s
opera,ng
performance.
None
of
these
non-‐GAAP
financial
measures
are
recognized
terms
under
GAAP
and
do
not
purport
to
be
an
alterna,ve
to
net
income
as
an
indicator
of
opera,ng
performance
or
any
other
GAAP
measure.
Cau,onary
Statement
on
Forward-‐looking
Informa,on
3. Symbol
(NYSE:
MKT)
52-‐week
range
Recent
price*
Avg.
volume
(3
mo.)
Shares
-‐
outstanding
Shares
-‐
fully
diluted
Market
cap*
Fiscal
year
end
ENSV
$1.30
-‐
$4.02
$1.97
94,218
37.6
M
39.0
M
$71.9
M
December
31
Key
Data
ENSV
1-‐year
price
performance
Financial
Results
(TTM
at
12/31/14)
Revenue
$56.6
M
Adjusted
EBITDA
$10.9
M
Russell
3000
Index
member
Analyst
Coverage
•
William
Blair
•
Maxim
Group
•
Northland
Capital
Markets
•
Sido,
•
Barrington
•
Zacks
•
Euro
Pacific
Capital
•
Casimir
Capital
*Recent price and market cap data as of March 20, 2015, and subject to change.
4. ENSV
Shareholder
Overview
ENSERVCO’s
ins-tu-onal
shareholder
count
grew
from
1
at
January
1,
2014,
to
40
at
December
31,
2014
Par,al
list
of
ENSERVCO’s
ins,tu,onal
shareholders
as
of
March
20,
2015,
based
on
SEC
repor,ng:
Ins,tu,on
Shares
Held
Cross
River
Capital
Management
5,183,117
Granahan
Investment
Management
2,240,681
Wellington
Management
1,051,762
Hunter
Associates
1,000,000
BlackRock
Fund
Advisors
532,990
North
Star
Investment
Management
493,856
Morgan
Stanley
455,822
Vanguard
388,790
Blue
Clay
Capital
Management
384,855
William
Blair
Investment
Management
332,067
Edmunds
White
Partners
325,755
USAA
Investment
Management
301,300
Advisory
Research
216,600
PerriU
Capital
Management
139,400
GSA
Capital
Partners
137,413
Clioon
Park
Capital
Management
95,600
Deutsche
Bank
Securi,es
80,300
5. Company
Overview
! Leading
provider
of
well
s,mula,on
and
fluid
management
services
to
domes,c
onshore
conven,onal
and
unconven,onal
oil
and
gas
customers
! Primary
Services:
Frac
Water
Hea,ng
•
Hot
Oiling
•
Acidizing
•
Fluid
Mgmt.
! Only
na,onal
provider
of
frac
water
hea,ng,
hot
oiling
and
well
acidizing
! Opera,ons
in
seven
of
na,on’s
most
ac,ve
oil
and
gas
fields
! 45%
of
revenue
derived
from
recurring,
maintenance-‐related
work
! Master
service
agreements
(MSAs)
with
many
of
America’s
leading
explora,on
and
produc,on
companies
! Mobile
equipment
fleet
allows
for
rapid
redeployment
to
address
regional
shios
in
demand
! Strong
rela,onship
with
PNC
Bank
supports
growth
6. Investment
Considera,ons
! Only
na,onal
provider
of
hot
oiling,
acidizing
and
frac
water
hea,ng
services
! Strong,
underleveraged
balance
sheet
posi,ons
Company
to
weather
oil
price
vola,lity
! Capacity
and
geographic
expansion
ini,a,ves
underway
! Focused
on
reducing
seasonality
with
more
balanced,
high-‐margin
revenue
model
emphasizing
recurring,
year-‐round
maintenance
work
7. Rick
Kasch
–
President
and
CEO;
Co-‐Founder
• Responsible
for
ENSERVCO
opera,ons
since
Company
incep,on
in
2006
• Executed
acquisi,ons
of
ENSERVCO’s
predecessor
businesses
• Extensive
opera,ng,
financial
management,
capital
forma,on
and
public
company
experience
with
companies
ranging
from
startups
to
NYSE
listed
Aus,n
Peitz
–
Vice
President,
Field
Opera,ons
• More
than
18
years
of
opera,onal
experience
with
ENSERVCO
• Responsible
for
all
Heat
Waves
and
Dillco
field
opera,ons
• Designed
proprietary
hea,ng
systems
used
in
ENSERVCO’s
frac
water
heaters
and
hot
oiling
trucks
• Managed
opening
of
all
Company
loca,ons
Bob
Devers
–
Chief
Financial
Officer
• Joined
Company
in
2013
with
more
than
20
years
of
financial
management
experience
• Broad
industry
background
includes
oil
and
gas
and
natural
resource
sectors
• Spent
2007
-‐
2011
as
CFO
of
mineral
explora,on
Company
traded
on
NYSE
MKT
• Formerly
senior
director
of
financial
analysis
and
internal
audit
of
The
Broe
Companies
Inc.,
a
mul,-‐
billion
dollar
interna,onal
holding
company
with
investments
in
real
estate,
transporta,on,
mining,
and
oil
and
gas
explora,on.
Experienced
Leadership
Team
8. Notable
Events
in
Company
History
! Becomes
a
public
company
! Commences
opera,ons
in
Marcellus
Shale
region
Acquisi,on
of
35-‐year-‐old
Dillco
Fluid
Services,
the
leading
provider
of
water
hauling,
fluid
disposal,
frac
tank
rental,
and
well-‐site
construc,on
services
in
the
Hugoton
Basin
2006
2007
2010
2011
Opens
major
opera,on
centers
in
Bakken
Shale
and
northern
Niobrara
Shale
fields
Service
territory
expanded
into
U,ca
Shale
and
Mississippi
Lime
regions
2012
Acquisi,on
of
Heat
Waves
Hot
Oil
Service,
a
10-‐year-‐old
provider
of
hot
oiling,
frac
water
hea,ng,
acidizing,
pressure
tes,ng
&
water
hauling
2013
! Full-‐year
revenue
up
48%
YOY
to
record
$46.5
million
! Full-‐year
adjusted
EBITDA
up
121%
to
record
$10.9
million
! Service
territory
expanded
into
Wyoming’s
Jonah
Field,
Powder
River
&
Green
River
Basins
2014
! Company
achieves
record
revenue
($56.6M)
and
adjusted
EBITDA
($11.5M)
! $16
million
Capex
program
facilita,ng
major
expansion
of
service
fleet
! $3.7
million
asset
acquisi,on
expands
fleet
&
footprint
into
northern
Bakken
Shale
! Commercializes
LNG,
CNG
and
well-‐gas
fueling
op,ons
for
frac
water
hea,ng
units
! PNC
Bank
approves
$40
million
credit
facility
! Up-‐listed
to
NYSE
MKT;
named
Rocky
Mountain
Region’s
Service
Company
of
the
Year
for
2013
9. Opera,ng
Subsidiaries
! 88%
of
2013
consolidated
revenue
! Primary
services:
•
Frac
water
hea,ng
•
Hot
oiling
•
Acidizing
•
Pressure
tes,ng
! Service
area:
Colorado,
Pennsylvania,
North
Dakota,
Montana,
Wyoming,
Nebraska,
West
Virginia,
Ohio,
Kansas,
New
Mexico,
Oklahoma,
Texas
&
Nevada
! 12%
of
2013
consolidated
revenue
! Primary
services:
•
Fluid
hauling
•
Fluid
disposal
•
Frac
tank
rental
•
Well-‐site
construc,on
! Service
area:
Colorado,
Kansas,
Oklahoma
&
Texas
Heat
Waves
Hot
Oil
Service
Dillco
Fluid
Service
10. Service
Overview
–
Frac
Water
Hea,ng
Frac
water
hea,ng
is
the
process
of
hea,ng
the
water
used
to
hydraulically
fracture
oil
and
natural
gas
wells.
This
process
ensures
fluid
temperatures
meet
the
requirements
of
the
customer’s
frac
design.
A
majority
of
ENSERVCO’s
burner
boxes
are
bi-‐fuel,
meaning
they
can
be
fueled
with
propane,
liquefied
natural
gas,
compressed
natural
gas
or
dry
well-‐gas
with
the
flip
of
a
switch.
Bi-‐fuel
capability
is
a
compe,,ve
advantage,
offering
customers
a
“green”
alterna,ve
and
lower
opera,ng
costs.
Trucks
come
configured
as
single
burners
(bobtail),
double-‐burners
and
“mega”
heaters
(pictured).
11. Service
Overview
–
Hot
Oiling
Hot
oiling
involves
hea,ng
and
circula,ng
oil
or
similar
fluids
down
a
well
bore,
where
the
fluid
dissolves
and
dislodges
paraffin
and
other
hydrocarbon
deposits.
Hot
oiling
is
also
used
to
heat
the
contents
of
oil
storage
tanks,
a
process
that
melts
ice
and/or
eliminates
water
and
other
soluble
waste
that
can
reduce
the
operator’s
revenue
at
the
refinery.
Hot
oiling
is
a
recurring,
maintenance-‐related
service,
and
is
performed
throughout
the
life
of
a
well.
ENSERVCO’s
hot
oilers
are
capable
of
genera,ng
up
to
12
million
BTUs,
and
are
also
used
in
pressure
tes,ng
applica,ons.
12. Service
Overview
–
Acidizing
Acidizing
involves
pumping
specially
formulated
acids
and/or
chemicals
into
a
well
to
dissolve
materials
blocking
the
flow
of
the
oil
or
natural
gas.
Acidizing
is
used
for
increasing
permeability
throughout
the
forma,on,
cleaning
forma,on
damage
near
the
wellbore
and
removing
the
buildup
of
materials
restric,ng
the
flow
in
the
forma,on.
Acidizing
is
a
recurring,
maintenance-‐
related
service,
and
can
be
performed
throughout
the
life
of
a
producing
well.
13. Fluid
Management
Services
ENSERVCO’s
Fluid
Management
business
transports
water
to
fill
frac
tanks
or
reservoirs
at
well
loca,ons,
transports
contaminated
produc,on
water
to
disposal
wells,
moves
drilling
and
comple,on
fluids
to
and
from
well
loca,ons,
and
transports
flow-‐back
fluids
from
the
well
site
to
disposal
wells.
The
Fluid
Management
services
are
u,lized
during
both
the
drilling
and
long-‐term
maintenance
of
a
well.
14. Service
Assets
and
Capex
Ini,a,ves
! August
2014
appraisal
of
rolling
stock
+
2014
Capex
+
North
Dakota
asset
acquisi,on
total
$50
million
in
fair
market
value
(excluding
real
estate)
! 2014
Capex
Program
essen,ally
doubled
the
size
of
the
Company’s
fleet
! 2015
Capex
plan
will
be
formulated
in
Q2
aoer
discussion
with
key
customers
Fleet
Expansion
Overview
End
of
2013/2014
Season
End
of
2014/2015
Season*
Frac
Water
Hea,ng
Unit
Equivalents**
42
81
Hot
Oiling
units
27
59
Acid
Transport
3
7
*
Includes
equipment
commissioned
under
the
2014
capital
expenditure
plan
and
effects
of
November
2014
asset
acquisi,on
**
Mega
Frac
Water
Heaters
have
twice
the
hea,ng
and
revenue
capacity
of
a
standard
hea,ng
unit,
and
therefore
are
counted
as
two
units.
15. 8
Service
Territory
–
Demand-‐driven
Expansion
Colorado
1.
Denver
Headquarters
2.
Plaaeville
D-‐J
Basin
&
Niobrara
Shale
Kansas
3.
Garden
City
Mississippi
Lime
North
Texas
4.
Hugoton
North
Dakota
5.
Killdeer
6.
Tioga
Bakken
Shale
Pennsylvania
7.
Carmichaels
Marcellus
Shale
&
U-ca
Shale
Wyoming
8.
Rock
Springs
Jonah
Field
&
Powder
River
Basin
9.
Casper
Powder
River
Basin
Texas
10.
San
Antonio
Eagle
Ford
Shale
Nevada
11.
Elko
County
ENSERVCO
Loca,ons
Colorado
Pennsylvania
North
Dakota
Kansas
Wyoming
1
2
3
4
5
7
9
Exis,ng
territories
Expansion
opportunity
10
11
6
All locations are serviced by Heat Waves with the
exception of Hugoton, which is serviced by Dillco.
16. Revenue
by
Service
Territory
Replace with bar chart
Bars
reflect
12-‐month
periods
from
April
1
-‐
March
31,
encompassing
a
full
hea,ng
season
$
in
millions
$-‐
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2009/10
2010/11
2011/12
2012/13
2013/14
Hugoton/Miss.
Lime
Marcellus/U,ca
Bakken
DJ
-‐
Niobrara
Powder
River/Green
River
Other
18. Compe,,ve
Landscape
! Industry
consists
primarily
of
small
“mom
and
pop”
and
regionally
focused
service
providers
! Many
providers
operate
aging
equipment
with
limited
capacity
! ENSERVCO’s
Compe,,ve
Advantages:
" Only
na,onal
provider
of
hot
oiling,
well
acidizing,
frac
water
hea,ng
" Modern
equipment
fleet
outperforms
most
compe,ng
providers
" MSAs
with
leading
explora,on
and
produc,on
companies
" Low
employee
turnover
" Under-‐leveraged
with
strong
balance
sheet
and
cash
flows
and
excellent
banking
rela,onship
19.
$
in
thousands
2012
2013
2014*
Revenue
$31,498
$46,473
$56,564
%
growth
32%
48%
22%
Gross
profit
$7,953
$14,603
$15,306
%
margin
25%
31%
27%
Opera,ng
income
$1,701
$8,249
$6,948
Income
aoer
tax
$401
$4,301
$4,006
Adjusted
EBITDA
$4,940
$11,000
$11,476
%
margin
16%
24%
20%
Financial
Highlights
* 2014 revenue and profit growth reduced by impact of propane price fluctuations, customer
stand-downs and unseasonably warm weather. Please see the Company’s press releases for
additional information.
20. Financial
Highlights
(con,nued)
$
in
thousands
December
31,
2014
December
31,
2013
Cash
&
Accts.
Rec.
$15,634
$13,554
Current
assets
$19,476
$15,129
Total
assets
$58,283
$33,422
Working
capital
$13,663
$8,174
LT
debt,
net
of
current
por,on*
$29,436
$11,200
Total
liabili,es
$40,241
$20,577
Total
liabili,es/equity
2.2:1
1.6:1
LT
debt/equity
1.6:1
0.9:1
21. Growth
Strategy
! Two
pronged
approach
–
Organic
and
Acquisi,ons
!
Parameters
1. Balance
revenue
streams
between
recurring
maintenance
and
drill
bit
2. Reduce
seasonality
3. Diversify
service
offerings
4. Maintain
high
gross
profit
margins
!
Organic
•
CAPEX
–
e.g.
2014
Plan
•
Geographic
expansion
–
e.g.
Wyoming,
Texas
•
Both
sa,sfy
parameters
1,
2,
4
!
Acquisi,ons
•
Opportunis,c
but
prudent
approach
in
current
oil
price
environment
•
Recent
$3.7M
asset
acquisi,on
sa,sfied
parameters
1,
2,
4
•
Strong
balance
sheet,
bank
rela,onship,
cash
flow
22. Execu,on
of
Growth
Strategy
! Capitalize
on
con,nued
increase
in
strong
demand
for
well
enhancement
services
in
Rocky
Mountain
and
Northeastern
service
territories
! Leverage
early-‐mover
status
with
LNG,
CNG
and
well-‐gas
fueling
op,ons
for
frac
water
heaters
! Pursue
expansion
into
new
regions,
including
Texas
and
Nevada,
where
opportuni,es
exist
with
current
customers
! Leverage
MSAs
to
capture
new
business
as
E&Ps
narrow
their
vendor
lists
23. Jay
Pfeiffer
Pfeiffer
High
Investor
Rela,ons
303-‐393-‐7044
jay@pfeifferhigh.com
Contacts:
Rick
Kasch
President
&
CEO
ENSERVCO
Corpora,on
303-‐333-‐3678
rkasch@enservco.com
Bob
Devers
Chief
Financial
Officer
ENSERVCO
Corpora,on
720-‐974-‐3408
bdevers@enservco.com
