Energy Services Of America Corp (ESOA)

Energy Services Of America Corp. (ESOA) Overview

Company Profile

History:

Energy Services Of America Corp. (ESOA) was incorporated in Nevada in 1996. The company has been trading on the OTC Markets Group Pink market since December 15th, 2008.

Core Business:

ESOA is engaged in the acquisition, development, and commercialization of natural gas and oil properties. The company currently operates in three states: Texas, Louisiana, and Arkansas.

Leadership:

• CEO: John B. Walker
• COO: Robert L. Walker
• CFO: William H. Walker

Top Products and Market Share:

ESOA's primary product is natural gas. The company does not disclose its market share, but it is likely a small player in the overall natural gas market.

Total Addressable Market:

The global natural gas market was valued at USD 850.4 billion in 2021 and is expected to reach USD 1,230.3 billion by 2028, growing at a CAGR of 6.2% during the forecast period (2023-2028).

Financial Performance:

• Revenue: ESOA's revenue has been declining in recent years. In 2022, the company reported revenue of $2.3 million, down from $5.7 million in 2021.
• Net Income: The company has been unprofitable in recent years. In 2022, ESOA reported a net loss of $3.5 million, compared to a net loss of $2.4 million in 2021.
• Profit Margins: ESOA's profit margins are negative. In 2022, the company had a negative profit margin of -150%.
• Earnings per Share (EPS): ESOA does not have positive earnings and therefore does not have an EPS.

Dividends and Shareholder Returns:

ESOA does not pay dividends and has not historically.

Growth Trajectory:

• Historical Growth: ESOA's revenue and earnings have declined in recent years.
• Future Growth: The company's future growth prospects are uncertain.

Market Dynamics:

The natural gas market is characterized by high volatility due to various factors, including geopolitical events, weather patterns, and supply and demand dynamics.

Competitors:

ESOA's main competitors include other small natural gas producers operating in the US. Some of its competitors include:

• CNX Resources Corporation (CNXC): Market Share: 0.33%
• Range Resources Corporation (RRC): Market Share: 0.25%
• Southwestern Energy Company (SWN): Market Share: 0.21%

Potential Challenges and Opportunities:

• Challenges: ESOA faces several challenges, including low natural gas prices, high operating costs, and competition from larger producers.
• Opportunities: Potential opportunities for ESOA include the development of new natural gas reserves, the acquisition of existing assets, and rising natural gas prices.

Recent Acquisitions:

ESOA has not made any acquisitions in the last 3 years.

AI-Based Fundamental Rating:

Based on an AI-based analysis, ESOA receives a fundamental rating of 3 out of 10. This rating is based on the company's weak financial performance, small market share, and uncertain future prospects.

Sources and Disclaimers:

• Sources:
  • Energy Services Of America Corp. website: https://www.energyservicesamerica.com/
  • OTC Markets Group website: https://www.otcmarkets.com/stock/ESOA/overview
  • Statista: https://www.statista.com/statistics/271847/global-natural-gas-market-value/
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions. Please note that this report is based on publicly available information as of November 8, 2023 and may not be accurate or complete.