Note 11 - Segment Reporting

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note

11

- Segment Reporting

Enservco's reportable business 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 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 and Other Services

: This segment utilizes a fleet of frac water heating units to provide frac water heating services to the domestic oil and gas industry. These services also include other services, which consists primarily of hauling and transport of materials for customers.

Unallocated 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 and Other Services		Unallocated		Total
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
Three Months Ended March 31, 2020:
Revenues	$	3,202		$	6,184	$	-	$	9,386
Cost of Revenue		3,494			4,971			$	8,465
Segment (Loss) Profit	$	(292	)	$	1,213	$		$	921
Depreciation and Amortization	$	671		$	647	$	78	$	1,396
Capital Expenditures	$	83		$	81	$	-	$	164
Identifiable assets  (1)	$	17,662		$	17,033	$	1,278	$	35,973

( 1 ) Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; and other assets.

The following table reconciles the segment profits reported above to the income from operations reported in the consolidated statements of operations (in thousands): 

	Three Months Ended March 31,
	2021			2020
Segment profit	$	34		$	921
Sales, general, and administrative expenses		(1,005	)		(1,762)
Loss on disposals of equipment		(51	)		(15	)
Depreciation and amortization		(1,336	)		(1,396	)
Loss from operations	$	(2,358	)	$	(2,252	)

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 (amounts in thousands):

	Three Months Ended March 31,
	2021		2020
BY GEOGRAPHY
Production Services:
Rocky Mountain Region (1)	$	444	$	1,193
Central USA Region (2)		1,240		1,873
Eastern USA Region (3)		160		136
Total Production Services		1,844		3,202
Completion and Other Services:
Rocky Mountain Region (1)		1,952		5,006
Central USA Region (2)		-		110
Eastern USA Region (3)		1,347		1,068
Total Completion and Other Services		3,299		6,184
Total Revenues	$	5,143	$	9,386

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 in Texas.

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