Energy Services of America Corporation Common Stock 17th Annual Midwest IDEAS Conference

Doug? Thank you, and thank you, John.

You started to steal my thunder there about my presentation today, but I think there is still enough left. The great philosopher Meat Loaf once said, "I want you, I need you, but there ain't no way I am ever going to love you. So do not be sad because two out of three ain't bad." I would tell you, for ESOA, we are very much that way. I think we are a great growth company. I think we got great value. But our name sometimes puts us in the wrong boxes of how people think about our company and think about what we are trying to accomplish. I wish if we would have had a name and been smarter, or the people that were here before I would have given us a cool name like Quanta or Primoris. Maybe we would have their multiple and not our multiple.

You came here today to learn about new companies and things maybe flying under the radar and why there is a value someplace versus somewhere else. What is funny is we come to these meetings, and one of the first things, if you punch our name into any screener, like you go on Seeking Alpha and you hit peers, it shows up energy, oil field services is what it pops up as. If you do Yahoo, you do the same thing. You look at our multiple and it is like, okay, we would be a normal multiple in those businesses. But that is not really what we do. You say, "We do construction." I wish my friend Tom was here from Atlanta. What is his last name, Tom?

Claugus. Claugus. Tom came over and we met with him six times.

He says, usually after the first couple of meetings, he goes, "I just do not like construction. It is just construction." Construction is one of those things that very much has a connotation with people. What is funny is I am in the construction business. We were in the construction business. My wife, she is in the religious business. She is a pastor, and we have youth events at our house all the time. These young people come over and in West Virginia, they come up to our trailer park and it is really nice place in the trailer park.

They say, "Gosh, Mr. Reynolds, what do you do?" If I tell them I am a construction worker, my wife sort of gets aggravated with me, says, "Why do you always want to mess with people?" I am like, "I think that is the best description." She says, "No, you are a lawyer." I said, "Well, I have not been to court in 10 years, so I am not really a lawyer." The funny thing is, we have this little debate going game. One day I am sitting there and I said. I use ChatGPT and punch things into it. I asked ChatGPT, I said, "Make a cartoon based on everything you know about me," and this is what it came up with.

After that, I sent this to her and said, "I have finally won." If ChatGPT and the stock screeners and everybody else has this connotation about what we do, construction, what does that mean? Capital intensive, labor intensive, weather dependent, very regulated, all these things that can make a project have incredibly volatile earnings. If the market believes that and those sources think that, then the market values are going to indicate that. I think that really just is not what we do, actually. We base in West Virginia. We do a lot more business, what I would call industrial services. We are inside plants, not necessarily capital intensive in those industries.

We do multiple year, multi blanket type pricing with customers in the regulated utility sector where today we are fixing a station up for American Water, and tomorrow we are taking up some pipe for the gas company, putting it back in. As we get into the numbers real quick, just at a real quick glance, you look at our value. We have had a heck of a run the last 10 years. As I said, we went away from that high, capital intensive energy business, gas transmission business. That several years ago was, say, 75% of our business. Nowadays, it is about 25%. That business has really been challenged for a lot of years. You look forward and say, okay, looks like we are at the new part of a cycle in that business. We have had incredible growth on the top line of our businesses, backlogs increasing.

Most importantly, it is kind of the theme of my thing today is two out of three ain't bad. We have financial matrices that compare favorably to most of our larger rivals, and we trade at considerably lower multiples, and we have consistently done that. The good part for you today is I usually come to these meetings and I think our stock was about $7 or $8. I like to come to these meetings where our stock has went up 30% in these meetings, and it really does not matter what I say. I say, "Hey, look, if you would have bought six months ago, you would have been up 30% or 40%." We have actually had a little bit of a drawdown in our stock. Even Tom, who has never bought our stock after meetings. You missed it when it is up 30%, 40%.

Again, as I said, we were almost $20 a few months ago. We had a great run coming out of our capital raise in February. There was a lot of enthusiasm. Had a great quarter for the second quarter compared to previous years. I didn't think the third quarter was that bad a quarter. There was two estimates out there, and we came in in between them. Market's traded down a little bit lately, but I still feel really strong about the long term value and what we're trying to accomplish. Most of you all, many of you all hadn't heard about our company. You're very well acquainted with that probably represents 95% of our revenue on that sheet. We work on the electrical side, we work a lot for Toyota. It's our biggest customer. Work for large on the transmission side, TransCanada, Marathon Petroleum Corporation, and on the distribution side, water, the private and public water sectors.

Again, this shows you the growth sector of this business, and it doesn't go back to 2015, 2016, but if you would've looked at this in that time, that dark blue at the bottom would have been 75%. As you can tell, over the years, we've really grown that light blue, which is the gas and water distribution business, which is, in my opinion, our best risk-adjusted returns. Regulated utilities, generally speaking on the private side especially, water, gas distribution, blanket contracts, multiple years. Rarely do we have a super large project. Probably the average project in that area is probably $50,000 or $100,000. So a lot of chance to hit a lot of singles.

As you can tell, that dark blue has been really in a terrible downturn for a lot of years. We feel like that business is just starting to turn, and there's a different attitude than there was a few years ago in the gas transmission business. It used to be, "Hey, we've got to keep our heads down," and gas was seen as the bridge fuel to a renewable future. Today it's very much like, "Hey, we're going to have all this energy need. We better get the gas to these data centers, to these different need points, and we're going to have an increased demand in gas." If that is the case, I really feel like all three of our businesses are really going to be hitting on all cylinders in the next five or 10 years.

Again, the only criticism I got from our last quarter really directly is someone said, "Oh, your backlog's down from the March quarter." Most of our businesses are based in the Mid-Atlantic, and so our December to March quarter, we're usually not burning a lot of backlog. We're booking a lot of the businesses. Right now, we're really looking at mostly work for 2027, other than last things that we fit in or emergency work or smaller things. But our bigger things we're looking for right now, we're already booking calendar year 2027 work for our bigger things. So I don't see that the backlog is really down. If you compare it to where we were in 2025 at this time, it's above where we were both at nine, or ahead of where we were at this time in 2025.