Enservco Corporation

Greetings and welcome to the Inserveco third quarter 2023 earnings conference call. At this time, all participants are on a listen only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Rich Murphy. Sir, you may begin.

Hello, and welcome to InserveCo's 2023 third quarter conference call. Presenting on behalf of the company today are Rich Murphy, Executive Chairman, and Mark Patterson, Chief Financial Officer. As a reminder, matters discussed during this call may include forward-looking statements that are based on management's estimates, projections, and assumptions as of today's date and are subject to risks and uncertainties disclosed in the company's most recent 10-K as well as other filings with the SEC. The company's business is subject to certain risks that could cause actual results that differ materially from those anticipated in its forward-looking statements. NSERVCO assumes no obligation to update forward-looking statements that become untrue because of subsequent events. I'll also point out that management's ability to respond to questions during this call is limited by SEC Reg FD, which prohibits selective disclosure of material nonpublic information. A webcast replay of today's call will be available at NSERVCO.com after the call. In addition, a telephone replay will be available beginning approximately two hours after the call. Instructions for accessing the webcast or replay are available in today's news release. With that, I'll turn the call over to Rich Murphy. Rich, please go ahead.

Thanks, Jay. Good morning, and welcome to our third quarter earnings call. Yesterday, we announced financial results for the third quarter and nine-month period ended September 30, 2023. You may recall that up until this quarter, Insurco had reported nine consecutive quarters of year-over-year revenue increases. This quarter that trend ended, but for what we believe was in our best interest for the long term. Specifically, we shut down our North Dakota operations in a strategic move to reallocate assets to more productive operating areas that offer more potential for revenue and profit growth. Our former North Dakota operations generated 1.1 million of revenue for the first nine months of last year. As a result, third quarter revenue was down slightly on a year-over-year basis and the streak was broken. As we now move into our more active quarters, and with oil prices and customer demand where they are, we remain quite optimistic about our chances of starting and maintaining a new streak. And despite our quarter three revenue decline, we are still 3% ahead of last year's revenue pace for the nine month period. As I mentioned, the North Dakota exit was a calculated move to focus our resources in more active areas. It is also expected to have the additional benefit of allowing us to convert underutilized assets to working capital to fund the heating season activities. We are in discussions with a third party to acquire North Dakota real estate and equipment that's expected to generate in the vicinity of 1 million cash that will further strengthen our balance sheet. In any case, we're excited to be moving into fall and winter when cooler temperatures drive increased demand for our heating services. As you know, our fourth and first quarters are when we generate the bulk of our revenue and profitability. So we're looking forward to seeing what we can accomplish over the next six months or so. This quarter and going forward, we're also going to benefit from the addition of Rapid Hot Operations in our eastern operating area, the Marcellus Shale. Rapid Hot provides frack water heating services to E&Ps in the Appalachian Basin, encompassing Ohio, Pennsylvania, and West Virginia. We acquired the company late in the third quarter, so we didn't get much revenue impact in that period, but that's going to change in Q4 when we'll begin enjoying the full benefit of RapidHot operations. We also believe we can continue to take market share across all our entire operating footprint. In addition to strengthening our existing position in the region and contributing incremental revenue, RapidHot had the added benefit of providing more depth to our management team. Specifically, Mike Lade, the former president and CFO of RapidHot, joined in SERFCO as chief of staff Mike is a CPA who brings more than 30 years of executive experience with private and nicely listed companies, including extensive work in the energy sector in operations, corporate development, M&A, and capital formation for emerging growth companies. Mike is also an accomplished turnaround specialist who understands how to drive profitable growth and pursue opportunistic M&A activity. We further strengthened our team with the addition of RapidHot managing member Steve Wild, who encircles board of directors, Weil is a 40-year energy executive, having served as an executive, board director, and chairman of private and public energy companies. He was the founder, CEO, and chairman of Enven Energy Corp., a deep water exploration company that earlier this year was merged in a transaction valued at nearly $1.3 billion. His energy leadership encompasses global oil services, commodities, deregulated power, and upstream oil and gas. He has successfully managed to close more than $20 billion in M&A transactions and financing projects. Steve is the second new director to join our board in the past seven months, and we are building a team capable of managing and directing a much larger enterprise, which is what we intend to do. We are steadily building momentum across our businesses. We are encouraged by improving margins and continued joint activity in our operating bases. Based on customer feedback, we expect further demand growth for our services and believe we are well positioned to meet that demand. So with that, I'm going to hand the call over to Mark Patterson, our CFO, to take you through some of the numbers before I provide a few closing comments. Mark?