MIDLAND, Texas, Aug. 1 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) (Basic) announced today it has recently acquired all of the outstanding capital stock of Hennessey Rental Tools, Inc. ("Hennessey Rental Tools") and purchased substantially all of the operating assets of Stimulation Services, LLC ('Stimulation Services") and Hydro-Static Tubing Testers, Inc. ("Hydro-Static Tubing"), for a combined total consideration of approximately $13.0 million in cash, excluding working capital acquired. Projected full- quarter revenues and EBITDA (earnings before interest, taxes, depreciation and amortization) for the combined transactions are expected to be approximately $3.4 million and $1.1 million, respectively.
Hennessey Rental Tools provides well servicing and rental and fishing tool services in north central Oklahoma. This acquisition includes three well servicing rigs, three swab rigs and an array of rental equipment increasing Basic's well servicing fleet count to 352 as of July 31, 2006.
Stimulation Services, located in Kilgore, Texas, provides acidizing services to the eastern Texas and the western Louisiana oil and gas markets. This transaction increases Basic's rated horsepower in its pressure pumping operations by 4,300, bringing Basic's total rated horsepower to 53,000 as of August 1, 2006.
Hydro-Static Tubing Testers operates five tubing testers in the Williston Basin and offers nitrogen and helium testing of pipe.
Basic Energy Services, with a fleet of more than 350 well servicing rigs, provides a range of well site services to oil and gas drilling and producing companies throughout the major oil and gas regions in Texas, Louisiana, Oklahoma, New Mexico and the Rocky Mountain States.
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 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.