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Zacks Small-Cap Research has updated coverage on Enservco Corp. (NYSE MKT: ENSV)

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Following the release of the 2nd quarter results, analyst Steven Ralston reiterated his outperform rating, raising his 6-month target price to $3.45, a premium of 15% to the $3.01 price on August 15th, the day the report was issued. Through its various operating subsidiaries, Enservco has emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac-water heating and fluid management services.

Additional Information:

Company: Enservco Corp.
Website: http://www.enservco.com/
Stock Symbol: NYSE MKT: ENSV
Date Published: Aug 19, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch media

Zacks Small-Cap Research has updated coverage on Enservco Corp, symbol ENSV on the NYSE MKT.

Following the release of the 2nd quarter results, analyst Steven Ralston reiterated his outperform rating, raising his 6-month target price to $3.45, a premium of 15% to the $3.01 price on August 15th, the day the report was issued.

Through its various operating subsidiaries, Enservco has emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac-water heating and fluid management services.

The company owns and operates a fleet of more than 230 specialized trucks, trailers, frac tanks and related well-site equipment.

Frac water heating is the process of heating water used to frac oil and natural gas wells, which prevents water from freezing prior to entering well bore and ensures frac solutions are warm enough to blend properly.

New well completion designs can involve heating frac fluids to as high as 85‐90 degrees, with these higher temperatures extending the heating season in many basins.

Hot oiling involves heating and circulating oil or similar fluids down a well bore, where the fluid dissolves and dislodges paraffin and other hydrocarbon deposits.

It is also used to heat the contents of oil storage tanks, a process that 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.

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, used for increasing permeability throughout the formation, cleaning formation damage near the wellbore and
removing the buildup of materials restricting the flow in the formation, is a recurring, maintenance‐related service, and can be performed throughout the life of a producing well.

The company reports that 45%‐50% of revenue is derived from recurring, maintenance-related work.

Enservco serves some of the biggest customers in the industry in seven major domestic oil and gas fields, and operates in Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West Virginia.

Rick Kasch, President & CEO stated: “We made considerable progress on our growth initiatives during the second quarter, despite the short-term setback in the DJ Basin.

Revenue from year-round well enhancement services continued to improve, with hot oiling revenue up 52% and acidizing revenue increasing 11% versus last year's second quarter.

We are in the process of initiating multiple year-round well maintenance programs for several new and existing customers in our Rocky Mountain region and in Texas, and these should add several million dollars in incremental revenue.

These programs should also result in a meaningful improvement in our third quarter financial results versus last year's third quarter.”

Analyst Steven Ralston stated: “Revenues are expected to increase significantly this winter season with record top-line and earnings per share expected in the fourth quarter of 2014 and first quarter of 2015.”

The shares are trading at $3.05, and with 36.7 million shares outstanding, the company is capitalized at $111.9 million.

For more information, please visit the company’s website www.enservco.com.

Investor relations is handled by Geoff High of Pfeiffer High Investor Relations, Inc., who can be contacted at 303-393-7044 or by email at geoff@pfeifferhigh.com.

I’m Samantha Deutscher for Investmentpitch media
For more video news, and to view our disclaimer, please visit our website at www.investmentpitch.comThis video is for information purposes only and it not a recommendation to buy or sell any securities.