Note

- Segment Reporting

2019

we reorganized our business segments to align with how the oil and gas industry and our management team evaluates the business.

Enservco’s reportable business segments are Production Services and Completion 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 oil trucks and acidizing units to provide maintenance services to the domestic oil and gas industry. These services include hot oil services and acidizing services.

Completion Services:

This segment utilizes a fleet of frac water heating units to provide frac water heating services to the domestic oil and gas industry.

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 tables set forth certain financial information with respect to Enservco

’s reportable segments (in thousands):

	Production Services		Completion Services		Unallocated & Other		Total
Year Ended December 31, 2019:
Revenues	$	14,704	$	28,322	$	-	$	43,026
Cost of Revenue		13,575		21,032		-		34,607
Segment Profit	$	1,129	$	7,290	$	-	$	8,419

Depreciatio n and Amortization	$	2,648	$	2,922	$	122	$	5,692

Capital Exp enditures	$	399	$	419	$	373	$	1,191

Identifiable assets (1)	$	18,233	$	19,121	$	1,420	$	38,774


Year Ended December 31, 2018:
Revenues	$	14,538	$	28,222	$	-	$	42,760
Cost of Revenue		12,864		20,614		-		33,478
Segment Profit	$	1,674	$	7,608	$	-	$	9,282

Depreciatio n and Amortization	$	2,308	$	2,550	$	13	$	4,871

Capital Exp enditures (Excluding Acquisitions)	$	460	$	524	$	74	$	1,058

Identifiable assets (1)	$	20,229	$	21,213	$	428	$	41,870

(

)

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,
	2019			2018

Segment profit	$	8,419		$	9,282
Sales, general and administrative expenses		(6,153	)		(5,193	)
Patent litigation defense costs		(10	)		(80	)
Severance and transition costs		(83	)		(633	)
Gain (loss) from disposal of equipment		73			104
Impairment		(127	)		-
Depreciation and amortization		(5,692	)		(4,871	)
Loss from Operations	$	(3,573	)	$	(1,391	)

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, 2019

and

2018

(amounts in thousands):

	For the Year Ended December 31,
	2019		2018
BY GEOGRAPHY:
Production Services:
Rocky Mountain Region (1)	$	6,515	$	6,205
Central USA Region (2)		7,449		7,560
Eastern USA Region (3)		740		773
Total Production Services		14,704		14,538

Completion Services:
Rocky Mountain Region (1)		21,535		21,393
Central USA Region (2)		3,223		3,390
Eastern USA Region (3)		3,564		3,439
Total Completion Services		28,322		28,222
Total Revenues	$	43,026	$	42,760

Notes to tables:

(

)

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).

(

)

Includes the Scoop/Stack Shale in Oklahoma and the Eagle Ford Shale - in Texas.

(

)

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