Enservco acquires frac water heating services provider Rapid Hot
Enservco Corporation, a diversified national provider of specialized well-site services to the U.S. onshore oil and gas industries, has announced the acquisition of Rapid Hot’s assets. The all-stock transaction is valued at approximately $1.06 million. Headquartered in Washington, Pennsylvania, Rapid Hot is a leading provider of frac water heating services in Ohio, Pennsylvania, and West Virginia, serving E&P customers in the Appalachian Basin.
New Financing and Leadership Changes Announced
Alongside the acquisition, Enservco also disclosed the closing of a $1,625,000 convertible debt financing deal. The financing included participation from lead investors of Rapid Hot, an Enservco board member, and Cross River Partners. “This acquisition substantially strengthens Enservco’s position in the Marcellus shale and our working capital as we approach the 2023-24 heating season,” said Rich Murphy, spokesperson for Enservco.
Rapid Hot’s Mike Lade Joins Enservco Management
Further fortifying the team, Mike Lade, the President and CFO of Rapid Hot, will join Enservco as Chief of Staff. “Mike Lade strengthens our management team and we look forward to his contributions,” stated Rich Murphy.
Steve Weyel Added to Enservco’s Board of Directors
The company also announced the addition of Steve Weyel to Enservco’s Board of Directors. With more than four decades in the energy sector, Weyel brings a wealth of experience to the Board. He was the founder, CEO, and Chairman of EnVen Energy Corporation, a company that recently merged in a deal valued at nearly $1.3 billion. “We look forward to benefiting from Steve’s deep experience in identifying and closing attractive M&A opportunities,” Murphy added.
In summary, these strategic moves position Enservco strongly in the oil and gas sector, particularly in the Appalachian Basin. With the acquisition of Rapid Hot and new leadership additions, the company aims for robust growth and expansion.