Enservco (ENSV, Financial) has taken significant steps towards restructuring its operations and addressing its financial liabilities. On April 1, 2025, the company finalized the sale of its subsidiary, Buckshot Trucking. The transaction involved the transfer of all membership interests back to the previous owners, effectively canceling promissory notes valued at $2,025,000 and $675,000, which were originally due by the end of 2024. This move also included refinancing Buckshot’s obligations with Pathward, National Association, and Libertas Funding, thereby relieving Enservco from related financial guarantees.
In another strategic move, Enservco’s subsidiary, Heat Waves Hot Oil Service, has restructured its lease agreement with Utica Leaseco. The new agreement, which takes effect from May 2025, reduces the previous Master Lease Agreement from $6,225,000 to $2,895,000, subsequently lowering monthly payments from $168,075 to $78,165 through September 2029. The facility includes a deferred payment of $289,500, due at the end of the term or in case of default. The company has the option to prepay after 16 months with penalties that decrease after 24 months.
Additionally, Enservco has settled a previous agreement with Libertas Funding, cutting monthly interest and principal payments by $92,000. However, the company has not filed its Form 10-K for the fiscal year ending December 31, 2024. This decision was made to conserve cash flow, delaying compliance with SEC reporting obligations. Consequently, the company's stock faces possible removal from the OTCQB if they do not file this form by May 15, 2025. Without an engaged auditor, Enservco is unlikely to meet this deadline, jeopardizing its OTCQB listing.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Enservco Corp (ENSV, Financial) is $5.00 with a high estimate of $5.00 and a low estimate of $5.00. The average target implies an upside of 19,130.77% from the current price of $0.03. More detailed estimate data can be found on the Enservco Corp (ENSV) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Enservco Corp's (ENSV, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
