ENSERVCO Corp.
When U.S. energy companies need fluid-related services, they look for dependable firms that operate with a high degree of safety. After only seven years, ENSERVCO Corp. has earned a reputation in its industry for such reliability, President Rick Kasch says.
“Our quality of service, quality of equipment [and] safety record are very important in attracting and retaining customers,” he says. “If you look at our customer list, it’s kind of a who’s who [of the industry].”
Based in Denver, ENSERVCO’s services include hot oiling, frac heating, acidizing and water hauling for clients across the United States. The firm’s history goes back to 2006, when Kasch and Chairman and CEO Mike Herman acquired Heat Waves Hot Oil Service LLC.
The following year, Kasch and Herman grew the company by acquiring a water-hauling business in the Hugoton Basin in southwest Kansas and adding more equipment. In 2010, ENSERVCO completed a reverse merger with an oil and gas firm and became a public company trading under the symbol “ENSV.”
Today, ENSERVCO provides its services through two divisions: Heat Waves and Dillco Fluid Service Inc.
Together, the divisions have locations in North Dakota, Kansas, Colorado, Wyoming and Pennsylvania, covering six of the nation’s most active oil and gas fields.
ENSERVCO’s client base includes most of the major domestic E&P companies, including Anadarko Petroleum Corp., Chesapeake Energy Corp., ExxonMobil, Noble Energy and Newfield Exploration Co. ENSERVCO has master service agreements (MSAs) with many of its clients, including ExxonMobil.
The MSAs are a particular source of pride, Kasch says. “These agreements are like gold,” he admits, noting that they reflect the client’s confidence in ENSERVCO. “You only get the MSA if somebody in the company really wants you, and you meet the quality of service and safety requirements.”
ENSERVCO also is the only national firm that provides such services as frac heating, hot oiling and acidizing, Kasch says. “The rest of the country is very fragmented with mom-and-pop [companies],” he says, noting that the smaller firms serve only specific basins.
A Hot Market
ENSERVCO is enjoying strong demand in its markets, Kasch says. Although the firm occasionally sees an ebb and flow in activity between the oil and gas markets, it is equipped to adapt to it.
“Our equipment fleet is mobile,” Kasch says. “We can follow the E&Ps very easily with our equipment as they go from a gas field to an oil field.”
At the moment, oil is stronger. The firm’s clients continue to identify “new formations where they’re finding oil,” he says.
Additionally, the U.S. Energy Information Association has predicted 2013 will be the fastest year on record for domestic oil output growth. With so much activity, “We’ve committed nearly $5 million toward the fabrication of more frac heaters and hot oil trucks this year,” Kasch says.
Taking Care
ENSERVCO employees have a challenging job, but the firm has nurtured a low turnover rate by creating an environment where it takes care of them, Kasch says. “It’s like a family.”
For instance, ENSERVCO drivers get a percentage of the revenues generated at its yards. “We’re cognizant of everybody on the team and what they contribute to our success,” Kasch says.
The firm also takes steps to ensure its employees stay safe, and subsidizes the purchases of everything from steel-toed boots to parkas specially designed for the challenging weather conditions in areas like North Dakota’s Bakken Shale formation. “Our employees are our greatest asset, and we care about the people who work for us.”
Built to Last
ENSERVCO plans for growth, which will include expanding its fleet and potentially making more acquisitions, Kasch says. “We’ll continue to be a substantial player in the industry not only in the niche we’re currently in, [but] I see us expanding into other service lines,” he says.
Those could include water transfer services, Kasch says. “We even looked at fracking at one point,” he recalls. “We look for services that are essential to the operations of the [industry].”