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Enservco Announces Board Changes and Provides Corporate Update

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Enservco (ENSV) announced changes to its Board of Directors, appointing transportation industry investor Marc Kramer. The company aims to reduce reliance on seasonal business with the Buckshot Acquisition, transitioning into the logistics business segment. Strategic initiatives are being explored to generate year-round cash flow and growth.

Enservco (ENSV) ha annunciato cambiamenti nel suo Consiglio di Amministrazione, nominando l'investitore dell'industria dei trasporti Marc Kramer. L'azienda mira a ridurre la dipendenza dalle attività stagionali con l'acquisizione di Buckshot, passando al segmento di business della logistica. Si stanno esplorando iniziative strategiche per generare flussi di cassa e crescita durante tutto l'anno.
Enservco (ENSV) anunció cambios en su Junta Directiva, nombrando al inversor de la industria del transporte Marc Kramer. La compañía busca reducir la dependencia del negocio estacional con la Adquisición de Buckshot, transitando hacia el segmento de negocios logísticos. Se están explorando iniciativas estratégicas para generar flujo de caja y crecimiento durante todo el año.
Enservco(ENSV)는 교통산업 투자가 마크 크레이머를 이사회에 임명하면서 이사회 변경을 발표했습니다. 이 회사는 Buckshot 인수를 통해 계절적 사업 의존도를 줄이고 물류 비즈니스 부문으로 전환할 계획입니다. 연중 내내 현금 흐름과 성장을 창출하기 위한 전략적 구상이 모색되고 있습니다.
Enservco (ENSV) a annoncé des changements dans son Conseil d'Administration, en nommant l'investisseur dans l'industrie du transport Marc Kramer. L'entreprise vise à réduire sa dépendance aux activités saisonnières avec l'acquisition de Buckshot, en se tournant vers le segment des affaires logistiques. Des initiatives stratégiques sont explorées afin de générer un flux de trésorerie et une croissance tout au long de l'année.
Enservco (ENSV) hat Änderungen im Vorstand bekannt gegeben und den Investor der Transportindustrie Marc Kramer berufen. Das Unternehmen beabsichtigt, die Abhängigkeit vom saisonalen Geschäft mit der Übernahme von Buckshot zu verringern und in das Logistikgeschäftssegment überzugehen. Strategische Initiativen werden erkundet, um ganzjährige Cashflows und Wachstum zu generieren.
Positive
  • Appointment of Marc Kramer, a transportation industry investor, brings valuable experience and connections to the Enservco Board of Directors.

  • The Buckshot Acquisition offers a proven and growing foundation in an attractive year-round logistics business, providing strong cash flow without substantial new overhead or capital requirements.

  • Exploration of strategic initiatives to reduce reliance on seasonal frac heating business demonstrates proactive planning for long-term growth and stability.

Negative
  • Resignation of Mr. Steve Weyel from the Board of Directors may impact the company's leadership continuity and governance.

  • The transition away from a seasonal business to a logistics business segment may pose challenges and require careful execution to ensure successful transformation.

  • The need for approval of key proposals, including the issuance of shares related to the Buckshot Acquisition, introduces potential uncertainties and risks associated with shareholder voting.

  • Addition of Marc Kramer to Board of Directors Provides Significant Transportation and Logistics Experience as Company Begins Logistics Business Segment Operations Upon Closing of Buckshot Acquisition
  • Exploring Strategic Initiatives to Reduce Reliance on Seasonal Business

LONGMONT, Colo., May 01, 2024 (GLOBE NEWSWIRE) -- Enservco Corporation (NYSE American: ENSV) (“Enservco” or the “Company”) today announced changes to its Board of Directors and provided a corporate update. Marc Kramer was appointed to the Company’s Board of Directors on April 30, 2024 upon the recommendation of the Company’s Board of Directors. He fills the position vacated by Mr. Steve Weyel who resigned effective April 29, 2024 to focus his attention on a new business venture.

Mr. Kramer is a transportation industry investor and operator with over 30 years of investment experience. For the past seven years, he has served as executive chairman of SOAR Transportation Group, of which he is a majority owner, a provider of asset based and non-asset transportation and logistics services serving shippers throughout the United States. Mr. Kramer’s previous experience includes founding AVC Partners, which focused on investing and growing businesses in the transportation and logistics industry, and serving as managing director for both H.I.G. Capital and Fenway Partners LLC. Mr. Kramer sits on a variety of private boards which focus on logistics and investment sectors of the transportation industry. He holds a bachelor’s degree in government and economics from Dartmouth College and a master’s of business administration from Harvard University.

Rich Murphy, Chairman and CEO of Enservco, commented, “We welcome Marc to our Board. As we make the strategic shift into the logistics and transportation business, having someone of Marc’s experience and connections within the industry as a member of our Board is invaluable. We appreciate the service of Mr. Weyel to our Company and wish him the best in his new venture.”

The Company continues to explore strategic initiatives to reduce reliance upon the seasonal frac heating business. The Buckshot Acquisition will provide Enservco with a proven and growing foundation in an attractive year-round logistics business.

Rich continued, “We appreciate the ongoing support of our stockholders. There are several important proposals to be voted on, including approval of issuance of shares in relation to the Buckshot Acquisition, as well as approval of our five directors who will – as in the past – serve one-year terms. We look forward to closing the Buckshot Acquisition in the near term, with stockholder approval at our annual meeting a key step in the process. The addition of Buckshot to our existing business will prove transformational for Enservco as we transition away from a seasonal business that is subject to commodity risk, to a logistics business that generates strong year-round cash flow. The transition will not require substantial new overhead or capital. We are continuing our evaluation of strategic alternatives designed to further reduce our seasonal focus, with the underlying premise that any opportunities must be immediately accretive, generate solid cash flow, and provide visible near and long-term growth.”

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 second 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 Patterson
Chief Financial Officer
Enservco Corporation
mpatterson@enservco.com


FAQ

Who was appointed to Enservco's Board of Directors?

Marc Kramer, a transportation industry investor, was appointed to Enservco's Board of Directors.

What is the purpose of the Buckshot Acquisition for Enservco?

The Buckshot Acquisition aims to provide Enservco with a foundation in a year-round logistics business, reducing reliance on seasonal operations.

What strategic initiatives is Enservco exploring?

Enservco is exploring strategic initiatives to transition away from seasonal business, focusing on generating year-round cash flow and growth.

Why did Mr. Steve Weyel resign from the Board of Directors?

Mr. Steve Weyel resigned to focus on a new business venture, impacting Enservco's Board of Directors.

What approvals are required for the Buckshot Acquisition?

Key proposals, including the issuance of shares related to the Buckshot Acquisition, require stockholder approval.

What are the educational backgrounds of Marc Kramer?

Marc Kramer holds a bachelor's degree in government and economics from Dartmouth College and an MBA from Harvard University.

ENSERVCO CORP

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Oil & Gas Equipment & Services
Oil & Gas Field Services, Nec
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LONGMONT