LONGMONT — Enservco Corp. (NYSE American: ENSV), a Longmont-based provider of specialized well-site services to the oil and gas industry, turned around last year’s first quarter loss, posting positive results in early 2022.
Revenue increased 67% year over year to $8.6 million from $5.1 million due to increased customer demand based largely on higher commodity prices, according to Enservco’s delayed first quarter earnings report.
Net income in the quarter was $3.1 million, or $0.27 per basic and diluted share, compared to a net loss of $3.9 million, or $0.42 per basic and diluted share, in the first quarter of 2021.
“As previously announced, first quarter revenue showed significant improvement year over year due to increased customer demand and continued growth of our East Texas operation,” Enservco executive chairman Rich Murphy said in a prepared statement. “We continue to believe the outlook for the oil and gas industry remains favorable, and we are excited about our growth prospects.
Enservco attributes its reversal in fortune to “a $4.3 million gain on extinguishment of debt related to the company’s first quarter 2022 debt refinancing.”
In early 2022, the company decided to delay filing its quarterly disclosures with the U.S. Securities and Exchange Commission to restate financial statements on three quarterly reports for 2021 to adjust for its utilization of certain deferred tax liabilities in 2021.
“Because Enservco is not currently in compliance with the continued listing standards of the NYSE American Exchange, the company applied for and was granted an extension of its listing until such time as it files its Form 10-Q for the second quarter ended June 30, 2022,” Enservco said this week. “The company expects to file such Form 10-Q on or about Nov. 11, 2022.”