Enservco Corp., an oil and gas field services provider, has recently announced its acquisition of Buckshot Trucking for $5 million. Buckshot Trucking, founded in 2017, offers hot shot, dedicated, and less-than-truckload services to the oil and gas industry, primarily in the Rocky Mountain region with additional operations in North Dakota and Texas. The company serves over 100 customers and is known for its year-round operations, less affected by inclement weather compared to Enservco’s services.
This acquisition is expected to diversify Enservco’s business and provide revenue stability. Enservco, which primarily serves the shale industry, sees Buckshot as a strong complement to its current offerings, especially in terms of operational and financial visibility. The deal, subject to ordinary closing conditions and shareholder approval, includes a potential earnout of $500,000 based on future growth and financial performance.
Last year, Buckshot generated $8.2 million in revenue and $2.3 million in earnings before interest, taxes, depreciation, and amortization. The deal, valued at just north of two times EBITDA and less than one times annual revenue, is considered to be on the low end of recent transaction valuations. The acquisition is expected to be immediately accretive to Enservco’s earnings due to Buckshot being a higher margin business.
The founders and staff of Buckshot will continue to operate within the company after the acquisition. With plans to expand their business into new areas, Buckshot’s founder, Tony Sims, looks forward to leveraging Enservco’s operational footprint and customer base for future growth opportunities.
