Enservco Closes Agreement with Lender to Amend its Senior Revolving Credit Facility, Substantially Reduce Debt and Strengthen its Balance Sheet

Total bank debt reduced by $16 million – from approximately $33 million to approximately $17 million

Transaction results in $17.5 million increase in stockholders’ equity when included with Chairman’s recent investment fund conversion of $1.5 million of subordinated debt and accrued interest into Enservco restricted common stock

Company preparing for expected seasonal increase in activity during upcoming heating season

Enservco Corporation (NYSE American: ENSV), a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries, today announced it has closed its refinancing agreement with East West Bank (“EWB”).

The refinancing significantly strengthens Enservco’s balance sheet by cutting its bank debt nearly in half and increasing shareholders’ equity by approximately $17.5 million. 

“We are extremely pleased to have finalized this transformational agreement with EWB that not only creates a more viable financial structure, but also adds EWB as a major equity holder,” said Executive Chairman Rich Murphy, whose investment firm, Cross River Partners, is Enservco’s largest shareholder. “With this lengthy process now behind us, we are excited to re-focus our full attention on building our business. We are gearing up to meet an expected seasonal increase in demand during our fourth quarter of 2020 and first quarter of 2021 when Enservco generates the majority of its revenue and profitability.”

The new financing includes a $17 million term loan and a $1 million working capital revolving line of credit with no initial balance – both of which have October 15, 2021, maturity dates. The term loan is interest only with potential for principal payments in the event Enservco reaches certain profit metrics. In return for the $16 million in debt reduction, Enservco issued to EWB eight million shares of restricted common stock that will not be tradeable for six months and 15 million common stock purchase warrants exercisable at $0.25 per share beginning October 15, 2021, through October 15, 2026. Complete details of the refinancing are available on the Form 8-K filed by Enservco with the SEC on September 28, 2020.

About Enservco

Through its various operating subsidiaries, Enservco provides a wide range of oilfield services, including hot oiling, acidizing, frac water heating and related services. The Company has a broad geographic footprint covering seven major domestic oil and gas basins and serves customers in Colorado, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West Virginia. Additional information is available at www.enservco.com.

Contacts:

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
Phone: 303-880-9000
Email: jay@pfeifferhigh.com

Marjorie Hargrave
Chief Financial Officer
Enservco Corporation
mhargrave@enservco.com