Enservco sells Colorado assets to HP Oilfied Services for $1.695M

Enservco has sold to HP Oilfield Services certain Colorado based assets of Heat Waves Hot Oil Service, LLC, a wholly owned subsidiary of Enservco. Transaction consideration from HP was $1,695,000, including $1,221,625, in cash and a short-term note of $473,375. The Note will be paid ratably over five months from October 1, 2024 to February 1, 2025. The Transaction’s net proceeds are targeted for retirement of debt, specifically borrowings under the Company’s Utica Facility. The Company also announced that it is nearing completion of the previously announced acquisition of Buckshot Tucking, LLC with closing expected within days. Sale of Colorado frac water heating assets is consistent with strategy of being less reliant on seasonal-focused business; Net proceeds to be used to pay down certain of the Company’s debt obligations, specifically its Utica Facility. Following the pay down, the Company expects to restructure the remaining Utica Facility; Divesting the heating business allows Enservco to redirect its resources, both financial and managerial, towards the transportation and logistics market servicing the broad energy sector; Includes the previously announced and pending Buckshot Acquisition, which is expected to be immediately accretive and strategically transform the Company by entering the logistics market via a business with substantial operational and financial visibility; and The Company will continue to provide both frac water heating and hot oil services across the Marcellus/Utica basins, where last year’s Rapid Hot acquisition contributed to significantly improved operating results in the region.