Note 10 - Segment Reporting

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 10 – Segment Reporting

Enservco’s reportable operating 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 oiling trucks and acidizing units to provide maintenance services to the domestic oil and gas industry. These services include hot oiling services and acidizing services. Hot oiling is utilized by customers to remove paraffins from wellbores, pipes and vessels. Acidizing services are utilized by customers to clean reservoir surfaces and increase flow rates.

Completion and Other Services

This segment utilizes a fleet of frac water heating units to provide frac water heating services and related support services to the domestic oil and gas industry. These services also include other services for other industries, which consist primarily of hauling and transport of materials and heat treating for customers. Frac water heating is utilized by customers during the completion of oil and gas wells.

Unallocated

This segment 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
For the Year Ended December 31, 2021:
Revenues	$	9,012		$	6,325		$	-	$	15,337
Cost of revenues		9,734			7,605			-		17,339
Segment loss	$	(722	)	$	(1,280	)	$	-	$	(2,002	)
Depreciation and amortization	$	2,397		$	2,415		$	403	$	5,215
Capital expenditures	$	306		$	276		$	11	$	593
Identifiable assets(1)	$	12,357		$	9,007		$	505	$	21,869
For the Year Ended December 31, 2020:
Revenues	$	7,714		$	7,969		$	-	$	15,683
Cost of revenues		8,410			8,801			-		17,211
Segment loss	$	(696	)	$	(832	)	$	-	$	(1,528	)
Depreciation and amortization	$	2,378		$	2,512		$	392	$	5,282
Capital expenditures	$	176		$	185		$	-	$	361
Identifiable assets(1)	$	12,353		$	13,050		$	939	$	26,342

(1) Identifiable assets is calculated by summing the balances of accounts receivable, net; inventories; property and equipment, net; net right-of-use lease assets; assets held for sale; and other assets.

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

	For the Year Ended December 31,
	2021			2020
Segment loss	$	(2,002	)	$	(1,528	)
Sales, general and administrative expenses		(4,185	)		(5,002	)
Severance and transition costs		(7	)		(145	)
Gain (loss) from disposal of equipment		124			(47	)
Impairment loss		(128	)		(733	)
Depreciation and amortization		(5,215	)		(5,282	)
Loss from operations	$	(11,413	)	$	(12,737	)

Geographic Areas

The Company only conducts business in the United States, in what it believes are three geographically diverse regions. The following table sets forth revenues from operations for the Company’s three geographic regions during the years ended December 31, 2021 and 2020 (in thousands):

	For the Year Ended December 31,
	2021		2020
BY GEOGRAPHY:
Production Services:
Rocky Mountain Region(1)	$	2,213	$	2,689
Central USA Region(2)		6,158		4,552
Eastern USA Region(3)		641		473
Total Production Services		9,012		7,714
Completion and Other Services:
Rocky Mountain Region(1)		4,521		6,601
Central USA Region(2)		128		108
Eastern USA Region(3)		1,676		1,260
Total Completion and Other Services		6,325		7,969
Total Revenues	$	15,337	$	15,683

(1) Includes the DJ 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 Oilfield 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).