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Note 13 - Segment Reporting
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
13
- Segment Reporting
 
Enservco
’s reportable business segments are Well Enhancement Services and Water Transfer 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.
 
Well Enhancement Services
: This segment utilizes a fleet of frac water heating units, hot oil trucks and acidizing units to provide well enhancement and completion services to the domestic oil and gas industry. These services include frac water heating, hot oil services, pressure testing, and acidizing services.
 
Water Transfer Services
: This segment utilizes a high and low volume pumps, lay flat hose, aluminum pipe and manifolds and related equipment to move fresh and/or recycled water from a water source such as a pond, lake, river, stream, or water storage facility to frac tanks at drilling locations to be used in connection with well completion activities. Also included in this segment are water treatment services whereby the Company uses patented hydropath technology under a sales agreement with HydroFLOW USA to remove bacteria and scale from water.
.
Unallocated and other 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):
 
   
Well
Enhancement
    
Water
Transfer
Services
    
Unallocated
& Other
    
Total
  
Year Ended December 31, 2018:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Revenues
   $
42,759
     $
4,160
     $
-
     $
46,919
  
Cost of Revenue
    
32,852
      
3,972
      
626
      
37,450
  
Segment Profit
   $
9,907
     $
188
 
   $
(626
)
   $
9,469
 
                                 
Depreciatio
n and Amortization
   $
4,848
     $
1,118
     $
23
     $
5,989
  
                                 
Capital Exp
enditures
   $
988
     $
724
     $
69
     $
1,781
  
                                 
Identifiable assets
(1)
   $
41,442
     $
3,080
     $
427
     $
44,949
  
                                 
                                 
Year Ended
December 31, 2017:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Revenues
   $
34,686
     $
2,128
     $
254
     $
37,068
  
Cost of Revenue
    
25,902
      
2,666
      
1,057
      
29,625
  
Segment Profit
   $
8,784
     $
(
538		 )   $
(803
)
   $
7,443
  
                                 
Depreciatio
n and Amortization
   $
4,817
     $
985
     $
31
     $
5,833
  
                                 
Capital Exp
enditures 
   $
1,184
     $
487
     $
6
     $
1,677
  
                                 
Identifiable assets
(1)
   $
37,651
     $
2,986
     $
511
     $
41,148
  
 
 
(
1
)
Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; and other assets.
 
The following table reconcile
s the segment profits reported above to the loss from operations reported in the consolidated statements of operations (in thousands):
 
   
December 31,
    
December 31,
  
   
2018
    
2017
  
                 
Segment profit 
   $
9,469
 
   $
7,443
  
Selling, general and administrative expense
    
(5,225
)
    
(4,392
)
Patent litigation defense costs
    
(80
)
    
(129
)
Severance and transition costs    
(633
 )    
(784
 )
Gain (loss) from disposal of equipment    
108
      
(62
 )
Depreciation and amortization
    
(5,989
)
    
(5,833
)
Loss from Operations
   $
(2,350
)
   $
(3,757
)
 
Geographic Areas:
 
The
Company only does business in the United States, in what it believes are
three
geographically diverse regions. The following table sets forth revenue from operations for the Company’s
three
geographic regions during the fiscal years ended
December 31, 2018 
and
2017
 (amounts in thousands):
 
   
For the Year Ended
December 31,
  
   
2018
    
2017
  
BY SERVICE LINE AND GEOGRAPHY:
  
 
 
 
  
 
 
 
Well Enhancement Services:
                
Rocky Mountain Region
(1)
   $
27,582
     $
23,514
  
Central USA Region
(2)
    
10,950
      
9,613
  
Eastern USA Region
(3)
    
4,227
      
1,813
  
Total Well Enhancement Services    
42,759
      
34,940
  
                 
Water Transfer Services:
                
Rocky Mountain Region
(1)
    
4,160
      
2,128
  
Central USA Region
(2)
    
-
      
-
  
Eastern USA Region
(3)
    
-
      
-
  
Total Water Transfer Services    
4,160
      
2,128
  
Total Revenues
   $
46,919
     $
37,068
  
 
  Notes to tables:
 
(
1
)
Includes the D-J 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 Scoop/Stack Shale in Oklahoma and the Eagle Ford Shale. 
 
(
3
)
Consists of the southern region of the Marcellus Shale formation (southwestern Pennsylvania and northern West Virginia) and the Utica Shale formation (eastern Ohio).