Rapid Hot serves E&P customers in the Appalachian Basin and is a leading provider of frac water heating services in Ohio, Pennsylvania and West Virginia
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, announced it has acquired all of the assets of oilfield services provider Rapid Hot in an all-stock transaction valued at $1,057,500.
Headquartered in Washington, PA, Rapid Hot serves E&P customers in the Appalachian Basin and is a leading provider of frac water heating services in Ohio, Pennsylvania and West Virginia.
“This acquisition substantially strengthens Enservco’s position in the Marcellus shale and also strengthens our management team with the addition of Mike Lade, Rapid Hot’s president and CFO, who joins Enservco as chief of staff,” said Rich Murphy. “We are also pleased to announce the closing of a $1,625,000 convertible debt financing that included participation from lead investors of Rapid Hot, an Enservco board member and Cross River Partners. The financing strengthens our working capital position as we approach our 2023-24 heating season, which is expected to benefit from anticipated cooler winter temperatures.”
Enservco also announced the addition of Steve Weyel to the Company’s Board of Directors. Weyel joins the Board with more than 40 years of experience as a senior executive, board director and chairman of private and public energy companies. He was the founder, CEO and Chairman of EnVen Energy Corporation, a deepwater 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 driven and closed dozens of M&A transactions and financings in excess of $20 billion.
“We look forward to benefitting from Steve’s deep experience in the energy space and ability to identify and close attractive M&A opportunities,” said Murphy. “In the last five months we have added two new directors to our Board, whose oversight and support of our management team will be essential as we expand our business.”
Weyel added, “I look forward to joining the Enservco Board and supporting management’s efforts to capitalize on organic and acquisitive growth opportunities. Enservco has made great progress in recent years reducing debt and taking costs out of the business, and I’m excited to join the Board at this stage of the Company’s evolution.”
Source: Company Press Release