The decrease in revenue is attributed to less than projected projects in the industry resulting from tight capital markets, reduced capital expenditures in the industry and lower oil and natural gas prices. Enterprise Oilfield had EBITDAS of $488,000 during the three month period ended March 31, 2009, compared with EBITDAS of $3.3 million for the three month period ended March 31, 2008. The decrease of EBITDAS is partly attributable to costs relating to the downsizing of the company’s Wainwright operation joined with start-up and integration costs of the Peace River facilities maintenance operation. The company expects positive results from these changes through to the end of 2009.
Enterprise Oilfield persists to update its equipment fleet, buying new equipment and selling older or underutilized equipment in order to maintain a more efficient fleet. The new equipment bought for the quarter ending March 31, 2009 accounted $337,000 net of financing, while proceeds on disposal of equipment accounted $37,000 for the same period.
Additionally to updating the company’s equipment fleet, it continued with aggressive repayment of Enterprise Oilfield long term debt, repaying $897 thousand in the first quarter of 2009. The company is presently re-negotiating its long term debt, credit facilities and linked covenants with its lender in an effort to have a more conventional debt repayment plan, which will result in raised cash flow and will enable the company the flexibility to implement its strategic initiatives as well as preserve cash. Recent discussions with its lenders have showed Enterprise Oilfield’s needed principal payments on long term debt will be reduced by about $160,000 a month, with a projected effective date in early June 2009.
