Enterprise Oilfield Group, Inc. Announces Third Quarter Results

Nov 14, 2008 12:28 ETEnterprise Oilfield Group, Inc. Announces Third Quarter Results
ST. ALBERT, ALBERTA--(Marketwire - Nov. 14, 2008) - Enterprise Oilfield Group, Inc. ("Enterprise") (TSX:E). Consolidated revenue for the three months ended September 30, 2008 was $8.7 million versus $8.5 million for the comparable period in 2007. The Company had EBITDAS_ of $1.6 million and a net income of $0.6 million for the three month period ended September 30, 2008 versus EBITDAS of $1.4 million and a net income of $0.9 million for the comparable period in 2007.

For the nine month period ended September 30, 2008 consolidated revenue was $28.1 million versus $32.1 million for the comparable period in 2007. The Company had EBITDAS of $4.2 million and a net income of $1.3 million for the nine month period ended September 30, 2008 versus EBITDAS of $4.5 million and a net income of $2.0 million for the comparable period in 2007. The Interim Financial Statements and the Management Discussion and Analysis have been filed and can be viewed at www.SEDAR.com.

Outlook

Management believes the long term outlook for its business segments is positive. Although year to date operational results have been positive in the face of volatile commodity prices, global financial and economic turmoil has added to near-term uncertainty for commodity prices. Weaker commodity prices have however been buffered to a large extent by the devaluation of the Canadian dollar relative to the US dollar. Continuing credit market instability will likely adversely affect the energy industry during 2009. However, Enterprise is positioned well due to the diversity of its business and strong performance of its infrastructure services division. Enterprise has a history of success due to the commitment of its field staff to provide excellent service to its customers regardless of industry conditions, and the commitment of its management to prudent financial management. Consequently, Enterprise will continue to actively pursue opportunities to enter new geographic territories and make strategic acquisitions. While the Company is uncertain of near-term movements in the financial markets, we are well-positioned to continue generating positive growth relative to our peers. Enterprise has positioned itself for improved levels of demand for its services and will continue to pursue opportunistic growth initiatives. Management is very encouraged with its high quality people, modern equipment, and service locations. Enterprise's position in the current market place is exceptional and believes that the remainder of 2008 and into 2009 holds tremendous opportunities for continued revenue growth. From the beginning, the Company's goal has been to increase the level of customer service with the best and safest practices, the newest equipment and the best field staff. And the plan is working with great success. Enterprise has paid down over $2.4 million in long term debt during the current year through its accelerated debt repayment plan, has purchased several pieces of new equipment for the operations and is selling off older equipment in order to maintain a new, efficient and cost effective fleet. Additionally, the Company's expansion into the Peace River area has opened the door to very profitable, year round, infrastructure and facilities maintenance opportunities, smoothing out the cyclical effects of the traditional pipeline industry. As well, Peace River holds tremendous potential for pipeline services work due to all of the heavy oil production in the area.

Energy and Construction Services

Although commodity prices have been volatile in the third and fourth quarters of 2008, field activity levels in our oilfield energy and construction services division remains strong. We continue to look at growth opportunities from both an internal perspective and from an acquisition perspective.

Utility and Directional Drilling Services

A number of the Company's clients have significant backlogs of outstanding maintenance orders to replace miles of underground cable. Significant infrastructure investment from all levels of government and the Company's focus on organic growth within this sector will prove to be meaningful contributor to revenues and profitability. The Company's continued efforts to broaden its infrastructure services to a larger regional footprint have been met with success. The outlook for this sector remains strong.

Conclusion

Management believes that balanced and diversified positions in both the infrastructure and energy services sectors are the best path to generating shareholder value. The Company has hired additional management experienced in infrastructure projects to spearhead more civic-related construction and maintenance as there are inherent synergies related to the heavy equipment and crews of both sectors. Enterprise expects to continue distancing itself from its peers by delivering profits in a challenging operating environment. Over the last few quarters, Enterprise's competitive landscape has shrunk with some competing companies choosing to cease operations and exit the industry, while others were forced to file for creditor protection. Our Company will continue to exercise fiscal and operational prudence. Enterprise remains confident in its strategic and operational plans and has a seasoned leadership team to guide the Company. Enterprise is committed to the further expansion of its customer base in central and northern Alberta and strives to provide excellent customer service. Management is excited about Enterprise's future prospects.

(1) EBITDAS = Earnings Before Income Tax, Depreciation, Amortization, and Stock Based Compensation.

Forward Looking Statements

This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

For more information, please contact

Enterprise Oilfield Group, Inc.
Leonard D. Jaroszuk
President & CEO
(780) 418-4400 or Toll Free: 1-888-303-3361
(780) 418-1941 (FAX)

or

Enterprise Oilfield Group, Inc.
Desmond O'Kell
Vice President, Corp. Development
(780) 418-4400 or Toll Free: 1-888-303-3361
(780) 418-1941 (FAX)
Email: contact@EnterpriseOil.ca
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