Enservco has agreed to acquire Buckshot Trucking, the company announced last week.
Enservco, which provides well site services to the oil and gas industry, said the purchase creates a new revenue stream and launches its entry into logistics. The $5 million deal, which is expected to close in Q2, includes $3.75 million in cash and $1.25 million in Enservco stock, according to the announcement.
“Buckshot provides a strong complement to our current service offerings with the added benefit of not being winter weather dependent,” Enservco Chairman and CEO Richard Murphy said in a statement. “Buckshot will also provide a substantial improvement in operational and financial visibility, which benefits our business, shareholders, and other stakeholders.”
The acquisition creates a new operating division for Enservco, which the company says allows it to expand its customer base beyond oil and natural gas businesses.
Buckshot’s 2023 unaudited EBITA is estimated at $2.3 million on revenues of $8.2 million, nearly double the carrier’s revenues since 2021, according to the release.
Enservco said it must raise additional capital either through equity or debt, or both, to fund the $3.75 million cash payment due at closing.
Buckshot’s owners, Tony Sims and Jim Fate, will remain with the trucking business. The Fort Lupton, Colorado-based carrier was founded in 2017 and has operations in North Dakota, Texas and Utah, and a key base of operations in Casper, Wyoming.
Sims recognizes the combination creates growth opportunities for both companies.
“In addition to our identified list of potential expansion targets in current markets, we look forward to expanding our business into other areas based on Enservco’s extensive operational footprint and customer base,” Sims said in the release.
