MIDLAND, Texas, June 5 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today it has acquired all of the outstanding capital stock of Wildhorse Services, Inc and purchased substantially all of the operating assets of Eagle Frac Tank Rentals, LP in two separate transactions for a total combined consideration of $19.0 million in cash, excluding working capital acquired. Combined projected full-quarter revenues and EBITDA (earnings before interest, taxes, depreciation and amortization) for the acquired businesses are expected to be approximately $3.1 million and $1.2 million, respectively.
Wildhorse Services, located in Woodward, Oklahoma, provides rental and fishing tool services to the northwestern Oklahoma and Texas Panhandle markets. This business operation will become Basic's 20th location in its Rental and Fishing Tool Services Division within its Completion and Remedial Services segment.
The Eagle Frac Tank assets include 103 frac tanks located in the Permian Basin market of west Texas. The fleet of frac tanks will be added to the company's existing fluid services truck and tank fleet within its Permian Basin operating regions.
Ken Huseman, President and CEO, commented: "These two transactions reflect the deals we continue to find at reasonable valuations that allow us to increase the level of service to our customers and build value for our shareholders. The Wildhorse Services operation improves our coverage of the active western Anadarko Basin market with high quality people and equipment. The virtually new equipment from the acquisition of Eagle Frac Tank immediately expands our tank fleet in the area by more than 35% to take advantage of the increasing frac activity in the Permian Basin market."
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs approximately 4,400 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain states.
Additional information on Basic Energy Services is available on the Company's website at http://www.basicenergyservices.com.
Safe Harbor Statement:
Statements made during the presentation may include forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Basic has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including Basic's ability to successfully execute, manage and integrate acquisitions. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise.
Contacts: Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600
SOURCE Basic Energy Services, Inc.