Paul, One of the things I liked about ENSV is that senior management owns
45% of the stock - so there is an alignment of interests there with their
stockholders. The Chairman of the Board, Mike Herman owns 40% of
the company.
Here is a link to the company's April 2014 presentation:
edg1.precisionir.com
According to additional reports I read, half of their business comes the
Rockies.
From the an interview/article with Paul Juskowicz/The Energy Report:
>" I don't want readers to come away thinking that ENSERVCO is a company that
is solely tied to new drilling and industry activity and, therefore, subject to the
boom/bust cycle of the oilfield service and oil industry.
While half of what the company does is in fact tied to new wells, the other half is
servicing wells throughout the well life, for example stimulating older wells to
produce again with acidizing and reducing paraffin buildup with hot oiling.
Therefore, ENSERVCO isn't as cyclical as a typical oilfield service company
may be, as it provides its services throughout the well's life.
TER: Has ENSERVCO expanded geographically in recent years?
PJ: In addition to the agreements it has made to service companies that are
targeting the Utica formation, the company recently announced that it is
going to be entering Texas. I think that it's going to do that in a smaller way,
without risking too much invested capital there. Just based on the company's
history, I believe that it will not enter a market unless it has some indications
of interest either from new customers or from existing customers that also
operate in a different region.
Most of the companies that ENSERVCO services are national E&P companies
with operations in Texas as well, companies like Anadarko Petroleum (APC)
and Noble Energy (NBL). <<
As far as local competition to their services, expansion is being
driven by customer requests - from the first post from Maxim Group:
> "We believe revenue growth has been strong & entirely organic,
driven by capacity additions from customer requests"<
Also ENSV signs master service agreements with the E&P companies
they are doing business with.
Just some additional background info and me "talking" my book.
[ENSV up 12% today (so far). Wish all my picks would do so well.]
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