Enservco Announces Agreement to Acquire Accretive Energy Logistics Business to Diversify the Company

• Addition of Buckshot Trucking to Provide New Logistics Service Offerings Through Growing and Historically Profitable Business
• Acquisition to Generate Increased Operational and Financial Flexibility with Year-Round Business Not Dependent on Weather
• Buckshot’s Founders and Team to Remain in Place to Support Integration and Drive Further Growth in Overall Business
  

LONGMONT, Colo., March 20, 2024 (GLOBE NEWSWIRE) -- Enservco Corporation (NYSE American: ENSV) (“Enservco” or the “Company”), a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industry, today announced an agreement to acquire Buckshot Trucking LLC (“Buckshot”), which is headquartered in Fort Lupton, Colorado, subject to usual closing conditions (the “Transaction”). Consideration due at closing is $5.0 million consisting of a combination of $3.75 million in cash and the balance in Enservco common stock before usual closing and post-closing adjustments. The closing date of the Transaction is expected before the end of the second quarter.

TRANSACTION RATIONALE & KEY HIGHLIGHTS

• When completed, will strategically transform the Company by entering the logistics business with immediately accretive acquisition of Buckshot:
  • Adds higher margin business that has historically generated strong growth and cash generation without substantial new overhead;
  • Provides year-round prospective growth with operational and financial visibility;
  • Provides incremental services for the Company’s existing and expanded customer base while providing pathway for earnings and cash flow growth and improved predictability;
  • Creates new operating division that complements and expands current strong market position in hot oiling and acidizing services and frac water heating services, in addition to non-oil & natural gas customers;
• Buckshot founder and current owners Tony Sims and Jim Fate will continue to lead their business;

• Buckshot’s 2023 unaudited EBITDA (earnings before interest, tax and depreciation) is approximately $2.3 million on revenue of approximately $8.2 million, a near doubling of Buckshot’s revenue since 2021;