Note 12 - Segment Reporting

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12- 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 June 30, 2021:
Revenues	$	2,229		$	858		$	-	$	3,087
Cost of Revenue		2,346			1,349			-		3,695
Segment (Loss) Profit	$	(117	)	$	(491	)	$	-	$	(608	)
Depreciation and Amortization	$	572		$	661		$	104	$	1,337
Capital Expenditures	$	70		$	80		$	-	$	150
Identifiable assets (1)	$	10,592		$	12,242		$	718	$	23,552
Three Months Ended June 30, 2020:
Revenues	$	1,383		$	758		$	-	$	2,141
Cost of Revenue		1,814			1,516			-	$	3,330
Segment (Loss) Profit	$	(431	)	$	(758	)	$	-	$	(1,189	)
Depreciation and Amortization	$	647		$	567		$	96	$	1,310
Capital Expenditures	$	76		$	66		$	-	$	142
Identifiable assets (1)	$	13,228		$	15,085		$	1,135	$	29,448

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

	Production Services			Completion and Other Services			Unallocated		Total
Six Months Ended June 30, 2021:
Revenues	$	4,073		$	4,157		$	-	$	8,230
Cost of Revenue		4,313			4,491			-		8,804
Segment (Loss) Profit	$	(240	)	$	(334	)	$	-	$	(574)
Depreciation and Amortization	$	1,100		$	1,373		$	200	$	2,673
Capital Expenditures	$	89		$	106		$	-	$	195
Identifiable assets (1)	$	10,592		$	12,242		$	718	$	23,552
Six Months Ended June 30, 2020:
Revenues	$	4,585		$	6,942		$	-	$	11,527
Cost of Revenue		5,308			6,487			-	$	11,795
Segment (Loss) Profit	$	(723	)	$	455				$	(268	)
Depreciation and Amortization	$	1,317		$	1,214		$	175	$	2,706
Capital Expenditures	$	159		$	147		$	-	$	306
Identifiable assets (1)	$	13,228		$	15,085		$	1,135	$	29,448

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 June 30,
	2021			2020
Segment profit	$	(608	)	$	(1,189	)
Sales, general, and administrative expenses		(992	)		(1,247	)
Severance and transition costs		-			(139	)
Loss on disposals of equipment		(19	)		(23	)
Depreciation and amortization		(1,337	)		(1,310	)
Loss from operations	$	(2,956	)	$	(3,908	)

	Six Months Ended June 30,
	2021			2020
Segment profit	$	(574	)	$	(268	)
Sales, general, and administrative expenses		(1,997	)		(3,009	)
Severance and transition costs					(139	)
Loss on disposals of equipment		(70	)		(38	)
Depreciation and amortization		(2,673	)		(2,706	)
Loss from operations	$	(5,314	)	$	(6,160	)

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 June 30,
	2021		2020
BY GEOGRAPHY
Production Services:
Rocky Mountain Region (1)	$	588	$	348
Central USA Region (2)		1,414		943
Eastern USA Region (3)		227		92
Total Production Services		2,229		1,383
Completion and Other Services:
Rocky Mountain Region(1)		755		711
Central USA Region(2)		-		(2	)
Eastern USA Region(3)		103		49
Total Completion and Other Services		858		758
Total Revenues	$	3,087	$	2,141

	Six Months Ended June 30,
	2021		2020
BY GEOGRAPHY
Production Services:
Rocky Mountain Region (1)	$	1,032	$	1,541
Central USA Region (2)		2,654		2,816
Eastern USA Region (3)		387		228
Total Production Services		4,073		4,585
Completion and Other Services:
Rocky Mountain Region(1)		2,707		5,717
Central USA Region(2)		-		107
Eastern USA Region(3)		1,450		1,118
Total Completion and Other Services		4,157		6,942
Total Revenues	$	8,230	$	11,527

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 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).