v3.22.2.2
Note 10 - Segment Reporting
 3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 10 – Segment Reporting

 

Enservco’s reportable operating segments are Production Services and Completion and Other Services. These segments have been selected based on management’s resource allocation and performance assessment in making decisions regarding the Company. The following is a description of the segments.

 

Production Services

 

This segment utilizes a fleet of hot oiling trucks and acidizing units to provide maintenance services to the domestic oil and gas industry. These services include hot oiling services and acidizing services. Hot oiling is utilized by customers to remove paraffins from wellbores, pipes and vessels. Acidizing services are utilized by customers to clean reservoir surfaces and increase flow rates.

 

Completion and Other Services

 

This segment utilizes a fleet of frac water heating units to provide frac water heating services and related support services to the domestic oil and gas industry. These services also include other services for other industries, which consist primarily of hauling and transport of materials and heat treating for customers. Frac water heating is utilized by customers during the completion of oil and gas wells.

 

Unallocated

 

This segment includes general overhead expenses and assets associated with managing all reportable operating segments which have not been allocated to a specific segment.

 

The following table sets forth certain financial information with respect to Enservco’s reportable segments (in thousands):

 

  

Production

Services

  

Completion and Other

Services

  

Unallocated

  

Total

 

For the Three Months Ended March 31, 2022:

                

Revenues

 $2,747  $5,836  $-  $8,583 

Cost of revenue

  2,584   4,710   -   7,294 

Segment profit

 $163  $1,126  $-  $1,289 
                 

Depreciation and amortization

 $487  $557  $99  $1,143 

Capital expenditures

 $32  $37  $-  $69 
    Identifiable assets(1) $10,761  $12,335  $392  $23,488 
                 

For the Three Months Ended March 31, 2021:

                

Revenues

 

$

1,844

  $

3,299

  $-  $5,143 

Cost of revenue

  1,967   3,142   -   5,109 

Segment (loss) profit

 $(123) $157  $-  $34 
                 

Depreciation and amortization

 $528  $712  $96  $1,336 

Capital expenditures

 $19  $26  $-  $45 
    Identifiable assets (1)
 $10,842  $14,636  $829  $26,307 

 

 

(1)

Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; net right-of-use lease assets; assets held for sale; and other assets.

 

The following table reconciles the segment profit reported above to the loss from operations reported in the condensed consolidated statements of operations (in thousands): 

 

  

For the Three Months Ended

 
  March 31, 
  

2022

  

2021

 

Segment profit

 $1,289  $34 

Sales, general, and administrative expenses

  (1,111)  (1,005)
Loss on disposal of equipment  (35)  (51)

Depreciation and amortization

  (1,143)  (1,336)

Loss from operations

 $(1,000) $(2,358)

 

Geographic Areas

 

The Company only conducts business in the USA, in what it believes are three geographically diverse regions. The following table sets forth revenue from operations for the Company’s three geographic regions (in thousands):

 

  

For the Three Months Ended

 
  March 31, 
  

2022

  

2021

 

BY GEOGRAPHY

        
         
Production Services:        

Rocky Mountain Region(1)

 $532  $444 

Central USA Region(2)

  2,047   1,240 

Eastern USA Region(3)

  168   160 
Total Production Services  2,747   1,844 
         
Completion and Other Services:        
Rocky Mountain Region (1)
  4,678   1,952 
Central USA Region(2)  111   - 
Eastern USA Region(3)  1,047   1,347 
Total Completion and Other Services  5,836   3,299 
         

Total Revenues

 $8,583  $5,143 

 

Notes to table:

 

(1)

Includes the DJ Basin/Niobrara field (northeastern Colorado and southeastern Wyoming), the San Juan Basin (southeastern Colorado and northeastern New Mexico), the Powder River and Green River Basins (northeastern and southwestern Wyoming), the Bakken area (western North Dakota and eastern Montana).
 

(2)

Includes the Eagle Ford Shale in Southern Texas and the East Texas Oil Field beginning during the second quarter of 2021.
 

(3)

Consists of the southern region of the Marcellus Shale formation (southwestern Pennsylvania and northern West Virginia) and the Utica Shale formation (eastern Ohio).