 Company Updates Investors on Progress Toward Refinancing Debt, Including Recent East West Bank Grant of 45 Day Extension to Senior Secured Revolving Credit Facility Chairman Rich Murphys Investment Fund Plans to Convert Approximately 1.5 Million of Subordinated Debt into Enservco Common StockDENVER, Aug. 14, 2020 GLOBE NEWSWIRE -- Enservco Corporation NYSE American: ENSV, a diversified national provider of specialized well-site services to the domestic onshore conventional and unconventional oil and gas industries, today reported financial results for its second quarter and six-month period ended June 30, 2020.As expected, second quarter results reflected reduced customer activity due to lower commodity prices and the economic slowdown related to the COVID-19 pandemic. We have taken decisive steps to bring our cost structure in line with lower revenue levels and year to date have taken more than 4.0 million in annualized costs out of the business, said Rich Murphy, chairman and acting CEO. The slowdown has continued into the third quarter, but we are now preparing for an expected increase in customer activity in our upcoming heating season and have taken advantage of the downturn to redeploy assets to stronger markets. Consequently, we are well positioned to meet demand from our customer base.We continue our efforts to refinance our bank debt in seeking to strengthen our balance sheet, Murphy added. We have been working diligently with East West Bank and potential new funding sources to secure a debt refinancing package that would include a combination of debt and equity with the goal of substantially reducing our overall debt and increasing shareholders equity, Murphy continued. This refinancing process is ongoing and there is no assurance of a successful outcome. However, we are encouraged by our progress and the effort being invested by all involved parties, including East West Bank, which, in order to support negotiations, on August 10, 2020, granted Enservco a 45-day extension on the maturity date of our senior secured revolving credit facility.In addition, in order to increase shareholders equity and reduce debt, my investment firm, Cross River Partners, has agreed to convert approximately 1.5 million in subordinated debt and accrued interest into unregistered Enservco common stock at a 50 premium to the August 13, 2020, closing price as agreed with our independent directors.Second Quarter Results Total revenue in the second quarter ended June 30, 2020, was 2.1 million versus 6.3 million in the same quarter last year.Production services revenue declined to 1.4 million from 3.8 million year over year and generated a segment loss of 431,000 compared to a segment profit of 492,000.Completion services revenue declined to 758,000 from 2.5 million year over year and generated a segment loss of 758,000 versus a segment loss of 594,000.Total operating expenses in the second quarter declined to 6.0 million from 9.3 million due to lower costs of providing production and completion services and to the Companys across the board cost reduction efforts, partially offset by severance costs and fees incurred with the Companys debt refinancing efforts. In total, the Company has taken approximately 4.0 million in annualized costs out of the business since the first of the year. Sales, general and administrative expense declined to 1.2 million from 1.5 million year over year. Depreciation and amortization expense decreased to 1.3 million from 1.4 million.Net loss in the second quarter was 4.4 million, or 0.08 per diluted share, versus a net loss of 3.2 million, or 0.06 per diluted share, in the same quarter last year. Adjusted EBITDA in the second quarter was a negative 2.1 million compared to a negative 1.5 million in the same quarter last year.Six Month Results Total revenue for the six-month period ended June 30, 2020, was 11.5 million versus 31.2 million in the same period a year ago.Production services revenue declined to 4.6 million from 8.0 million year over year and had a segment loss of 723,000 compared to a segment profit of 1.3 million in the prior year.Completion services revenue declined to 6.9 million from 23.2 million in the same period last year and generated a segment profit of 455,000, down from a segment profit 8.1 million year over year.Total operating expenses in the first six months of 2020 decreased to 17.7 million from 27.8 million in the same period last year due to lower costs of providing services combined with a sharp reduction in overhead expense, partially offset by severance and debt refinancing costs. Sales, general and administrative expenses decreased slightly year over year to 3.0 million from 3.1 million. Depreciation and amortization expense decreased to 2.7 million from 2.8 million.Net loss for the six-month period was 7.2 million, or 0.13 per diluted share, compared to net income of 1.1 million, or 0.02 per diluted share, in the prior year period.Adjusted EBITDA was a negative 2.6 million versus a positive 6.5 million in the prior year.Enservco used 882,000 in cash from operations compared to 5.9 million net cash provided by operations in the same period in 2019.Conference Call Information Management will hold a conference call today to discuss these results. The call will begin at 7:00 a.m. Mountain Time 9:00 a.m. Eastern and will be accessible by dialing 844-369-8770 862-298-0840 for international callers. No passcode is necessary. A telephonic replay will be available through August 28, 2020, by calling 877-481-4010 919-882-2331 for international callers and entering the Conference ID 35807. To listen to the webcast, participants should go to the Enservco website at and link to the Investors page at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available until September 14, 2020. The webcast also is available at the following link: Enservco Through its various operating subsidiaries, Enservco provides a wide range of oilfield services, including hot oiling, acidizing, frac water heating and related services. The Company has a broad geographic footprint covering seven major domestic oil and gas basins and serves customers in Colorado, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming and West Virginia. Additional information is available at on non-GAAP Financial Measures This press release and the accompanying tables include a discussion of EBITDA and Adjusted EBITDA, which are non-GAAP financial measures provided as a complement to the results provided in accordance with generally accepted accounting principles GAAP. The term EBITDA refers to a financial measure that we define as earnings net income or loss plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation and, when appropriate, other items that management does not utilize in assessing Enservcos operating performance as further described in the attached financial schedules. None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure. We have reconciled Adjusted EBITDA to GAAP net income in the Consolidated Statements of Operations table at the end of this release. We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.Cautionary Note Regarding Forward-Looking Statements This news release contains information that is forward-looking in that it describes events and conditions Enservco reasonably expects to occur in the future. Expectations for the future performance of Enservco are dependent upon a number of factors, and there can be no assurance that Enservco will achieve the results as contemplated herein. Certain statements contained in this release using the terms may, expects to, and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond Enservcos ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in Enservcos annual report on Form 10-K for the year ended December 31, 2019, and subsequently filed documents with the SEC. Forward looking statements in this news release that are subject to risk include the Companys ability to refinance its bank debt, decrease total debt and increase stockholders equity; the conversion of Cross River sub debt into equity; and expectations for an increase in customer activity. It is important that each person reviewing this release understand the significant risks attendant to the operations of Enservco. Enservco disclaims any obligation to update any forward-looking statement made herein.Contact:Jay Pfeiffer Pfeiffer High Investor Relations, Inc. Phone: 303-880-9000 Email: Hargrave Chief Financial Officer Enservco Corporation mhargraveenservco. 