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Basic Energy Services Announces A $50 Million Increase In Its 2014 Capital Budget

FORT WORTH, Texas, May 29, 2014 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today that its Board of Directors recently approved an increase of $50 million in its 2014 capital expenditure plan for the purchase of approximately 60,000 hydraulic horsepower ("HHP") of frac equipment. The total 2014 capital expenditure plan including this increase now stands at $285 million, which includes $155 million for expansion projects.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "Due to the improving environment of completion activity and the increase in customer demand, we decided to take advantage of these positive trends to expand our pumping services fleet.  Profit margins for these services have been stable and have recently begun to improve with increased utilization. We believe the fundamentals and competitive returns we're experiencing justify adding more growth capital at this time. This increase in our capital plan includes adding a 100 bpm frac spread in our Permian Basin operations and adding additional HHP to build-out two 100 bpm frac spreads in our Mid-Continent operations.

"We project that this equipment will be in the field by September and will generate approximately $24 million of revenue in 2014. We now expect to have a total of 400,000 HHP of pumping equipment by the end of this year."

Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area.  The company employs more than 5,500 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 and Appalachian regions.

Additional information on Basic Energy Services is available on the Company's website at http://www.basicenergyservices.com.

Safe Harbor Statement

This release includes 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 (i) changes in demand for our services and any related material impact on our pricing and utilizations rates, (ii) Basic's ability to execute, manage and integrate acquisitions successfully and (iii) changes in our expenses, including labor or fuel costs and financing costs.  Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Form 10-K for the year ended December 31, 2013 and subsequent Form 10-Qs filed with the SEC.  While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee 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.


817-334-4100




Jack Lascar/Sheila Stuewe


Dennard – Lascar Associates


713-529-6600

 

SOURCE Basic Energy Services, Inc.

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