MIDLAND, Texas, Sept. 29 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it has purchased substantially all of the operating assets of Azurite Services Company, Inc., Azurite Leasing Company, LLC and Freestone Disposal, L.P. (collectively known as "Azurite") for approximately $60 million in cash. Projected revenue for the first twelve months from these assets is expected to be $51 million and the transaction is anticipated to be accretive to earnings in 2008.
Assets purchased include 98 fluid handling trucks, 632 frac tanks and six disposal facilities which serve market areas in the eastern portion of Texas including the Haynesville Shale and Barnett Shale.
Ken Huseman, President and CEO, commented, "The Azurite companies are a prime example of the type of businesses we focus on acquiring. Azurite's employee base is first-rate, its asset base is fairly new and the company enjoys strong relationships with its customers. In addition, Azurite's service area is complementary to ours allowing us to further strengthen our position in the active east Texas markets, which include the fast-growing Haynesville Shale area where we are already positioned as one of the leading fluid services providers. The combination of Azurite's sizable truck and tank fleet, and their disposal facilities, along with Basic's existing fleet of 169 trucks and our disposal well network in that market, will allow us to provide comprehensive coverage to meet the needs of our customers throughout east and north Texas."
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 5,000 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://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) Basic's ability to successfully execute, manage and integrate acquisitions, (ii) changes in demand for services and any related material impact on our pricing and utilizations rates and (iii) changes in our expenses, including labor or fuel costs. 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.