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Basic Energy Services Announces Strong Fourth Quarter Results
         Revenues Up 46% to $197 Million; Diluted EPS Up 52% to $0.70

MIDLAND, Texas, March 12 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today announced its financial and operating results for the fourth quarter and year ended December 31, 2006.

Basic reported net income of $27.3 million, or $0.70 per diluted share, for the fourth quarter of 2006, compared to $15.9 million, or $0.46 per diluted share, in the same period in 2005. During the fourth quarter of 2006, revenues increased 46% to $197.5 million compared to $135.4 million in the same period last year. The effective tax rate of 32.2% in the fourth quarter of 2006 was lower than expected because of the annualized benefit of lower state effective tax rates. EBITDA (defined as net income before interest, taxes, depreciation and amortization) for the fourth quarter of 2006 was $62.2 million, or 32% of revenue, compared to $39.7 million, or 29% of revenue, in the same period in 2005. EBITDA, which is not a measure determined in accordance with generally accepted accounting principles ("GAAP"), is defined and reconciled in note 2 under the accompanying financial tables.

For the year, Basic reported net income of $98.8 million in 2006, or $2.56 per diluted share, compared to $44.8 million, or $1.35 per diluted share, in the same period in 2005. Net income in 2006 included an after-tax loss of $1.7 million, or $0.05 per diluted share, associated with the early extinguishment of debt. Revenues increased 59% to $730.1 million in 2006, compared to $459.8 million in the same period in 2005. EBITDA rose to $231.2 million in 2006, or 32% of revenue, compared to $121.3 million, or 26% of revenue, during the same period in 2005.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our solid results for the fourth quarter capped an exceptional year for the company. Strong demand for our services allowed us to improve margins over the prior year while we added substantial size and scope to the company through a combination of internally generated capital projects and acquisitions.

"During the year, we invested approximately $86 million in expansion capital projects and completed ten acquisitions for total consideration of approximately $136 million. The largest and most important single expenditure in 2006 was the asset purchase of G&L Tools, Ltd. in February which established our presence in the rental and fishing tool business. The rental and fishing tool business provides an opportunity for additional growth as we expand this service into our other established markets.

"While we did not grow our pressure pumping and wireline operations at the same rate as our other operations, we continue to like our position in this market. We recently announced plans to substantially increase our market presence with the JetStar acquisition which is discussed later under Recent Events. This acquisition increases our combined pressure pumping fleet to 95,000 horsepower with an additional 10,000 horsepower to be delivered later in 2007.

"In our well servicing segment, we added 31 newbuild well servicing rigs to our fleet during the year and have now received 55% of our planned 120-rig newbuild program. The flow of new rigs into our fleet has allowed us to expand our market share, enter new markets and replace some of the oldest rigs we kept in service during the exceptionally strong market conditions experienced over the last several years. The newbuild rigs combined with our internal refurbishment program is equipping the company with one of the most modern fleets among the larger competitors in the industry, providing a tool for retaining customers and employees while supporting strong operating margins.

"Although currently included in our well servicing segment, we invested approximately $18 million in 2006 to add two newbuild shallow drilling rigs bringing our drilling rig count to four at the end of the year. We believe the continuing demand for drilling to maintain production and develop reserves provides an opportunity to expand our drilling operations in several markets.

"The growth in our fluid services segment in 2006 was the result of expansion capital expenditures of approximately $17 million as well as two sizable acquisitions which filled gaps in our markets in east Texas and the Permian Basin. This business segment continues to show steady margins but experienced competitive pressures in our east and south Texas markets as new entrants drove wages up in an effort to gain market positions.

"We are proud of the work performed at all levels of our organization as we completed our first full-year as a public company, integrated ten acquisitions and absorbed substantial amounts of new equipment. Our management team and employees have done an outstanding job of managing that growth while producing strong operating, safety and financial performance. Basic begins 2007 with the organization and financial position to support continued growth in each of our segments."

Business Segment Results

Well Servicing

Well servicing revenues increased 37% to $87.9 million during the fourth quarter of 2006 compared to $64.1 million in the same period last year. During the fourth quarter of 2006, Basic added 11 newbuild rigs and retired three rigs, bringing its well servicing rig count to 365 as of December 31, 2006. Revenue per rig hour increased 22% to $401 during the fourth quarter of 2006 compared to $329 in the same period in 2005. The full-fleet rig utilization rate declined slightly to 84.6% in the fourth quarter of 2006 compared to 86.3% in the same period in 2005. Rising oil and gas prices and mild weather conditions in the fourth quarter of 2005 resulted in higher than normal seasonal demand for the Company's services during that period. During the fourth quarter of 2006, the utilization rate was more indicative of typical seasonal fourth quarter activity levels. Operating segment profit in the fourth quarter of 2006 was $37.0 million, or 42% of revenue, compared to $26.1 million, or 41% of revenue, in the same period in 2005. The slight decline in operating segment profit margin from the third quarter of 2006 mainly reflects the effects of lower utilization in the fourth quarter of 2006.

Fluid Services

Fluid services revenues in the fourth quarter of 2006 increased 40% to $51.9 million compared to $37.1 million in the same period in 2005. During the fourth quarter of 2006, Basic added a net of 11 fluid services trucks, bringing the total number of fluid services trucks to 646 as of December 31, 2006. Average revenue per fluid services truck increased by 3% to $81,000 in the fourth quarter of 2006 compared to $79,000 in the same period in 2005. Operating segment profit in the fourth quarter of 2006 was $20.4 million, or 39% of revenue, compared to $14.8 million, or 40% of revenue, in the same period in 2005.

Drilling & Completion Services

Drilling and completion services revenues during the fourth quarter of 2006 increased 123% to $43.9 million compared to $19.7 million in the same period in 2005. Operating segment profit in the fourth quarter of 2006 was $22.5 million, or 51% of revenue, compared to $9.7 million, or 50% of revenue, in the same period in 2005. The year-over-year improvement was the result of several acquisitions in 2006 as well as improved utilization and pricing of our services.

Well Site Construction Services

Well site construction services revenues in the fourth quarter of 2006 declined 5% to $13.7 million compared to $14.4 million in the same period in 2005. Operating segment profit in the fourth quarter of 2006 was $4.6 million, or 33% of revenue, compared to $4.8 million, or 34% of revenue, in the same period in 2005.

Capital Expenditures

During 2006, Basic invested $131.0 million for capital expenditures, including capital leases and excluding acquisitions. This amount included $85.6 million for expansion capital expenditures, including $56.3 million for the well servicing segment, $16.8 million for the fluid services segment and $11.1 million for the drilling and completion services segment. Maintenance capital expenditures amounted to approximately $45.4 million, or 6% of revenues, for 2006.

    Recent Events
     *  January 3, 2007 - Basic acquired two barge-mounted workover rigs and
        related equipment from Parker Drilling Company ("Parker Barge Rigs")
        for total consideration of $20.5 million in cash.  The acquired rigs
        will operate in the inland waters of Louisiana and Texas as part of
        Basic Marine Services.

     *  January 17, 2007 - Basic acquired substantially all of the operating
        assets of Davis Tool Company, Inc. ("Davis Tool") for total
        consideration of $4.9 million in cash.

     *  February 6, 2007 -  We amended and restated our existing credit
        agreement by entering into a Fourth Amended and Restated Credit
        Agreement with a syndicate of lenders (the "2007 Credit Facility").
        The amendments included increasing the total revolving commitments
        from $150 million to $225 million, improving the applicable margins
        and amending certain covenants that will allow us additional
        flexibility. We will record a charge of approximately $0.9 million in
        the first quarter of 2007 to write-off a portion of unamortized debt
        issuance costs in connection with the 2007 Credit Facility.

     *  March 6, 2007 - Basic acquired all of the outstanding capital stock of
        JetStar Consolidated Holdings, Inc. ("JetStar") for a total
        acquisition price, net of estimated working capital, of approximately
        $118 million. The total acquisition price is comprised of
        approximately 1.9 million shares of Basic common stock, $45 million in
        cash to JetStar's shareholders, and $38 million for repayment of
        JetStar's outstanding debt.

    2007 Outlook

We plan to provide 2007 full-year operating guidance in May in connection with our first quarter 2007 earnings release.

Moderating oil and gas prices reduced the demand for our services in the fourth quarter of 2006 as compared to the same period in 2005. In addition, harsher weather in the fourth quarter of 2006 hampered our ability to mobilize our people and equipment in several markets. The above factors continue to play a role thus far in the first quarter of 2007. As oil and gas prices stabilize and we move into warmer weather and longer days, we expect utilization to move up to levels experienced over the last several years. Please refer to the monthly operating data information that the Company publicly releases.

For the acquisitions that we completed in the first quarter 2007, we project additional full-quarter revenues of $16.0 million from JetStar, $3.5 million from the Parker Barge Rigs purchase and $400,000 from the Davis Tool purchase. We expect that each of these transactions will be accretive to our 2007 earnings per share. JetStar and Davis Tool will operate in the drilling and completion line of business and the Parker Barge Rigs will be included in the well servicing line of business.

We expect that the effective tax rate for 2007 will be between 37% and 38%.

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 4,100 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.

For more information, please visit Basic's website at http://www.basicenergyservices.com .

Conference Call

Basic will host a conference call to discuss its 2006 fourth quarter and year end results on Tuesday, March 13, 2007, at 10:00 a.m. Eastern Time (9:00 a.m. Central). To access the call, please dial (303) 262-2211 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, http://www.basicenergyservices.com .

A telephonic replay of the conference call will be available until March 27, 2007 and may be accessed by calling (303) 590-3000 and using the pass code 11085168. A webcast archive will be available at http://www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days. For more information, please contact Donna Washburn at DRG&E at (713) 529-6000 or email at dmw@drg-e.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.

                              -Tables to Follow-



                           Basic Energy Services, Inc.
          Consolidated Statements of Operations and Comprehensive Income
                 (Dollars in thousands, except per share amounts)

                                     Three Months Ended       Year Ended
                                          Dec. 31,              Dec. 31,
                                       2006      2005       2006       2005
                                          (Unaudited)    (Unaudited)
     Revenues:
       Well servicing                 $87,885   $64,130   $330,725   $221,993
       Fluid services                  51,912    37,133    194,636    132,280
       Drilling and completion
        services                       43,909    19,673    154,412     59,832
       Well site construction services 13,748    14,414     50,375     45,647

           Total revenues             197,454   135,350    730,148    459,752

     Expenses:
       Well servicing                  50,898    38,027    186,428    137,392
       Fluid services                  31,499    22,351    118,378     82,551
       Drilling and completion
        services                       21,425     9,943     74,981     30,900
       Well site construction
        services                        9,190     9,565     35,067     32,000
       General and
        administrative (1)             22,262    15,004     81,318     55,411
       Depreciation and
        amortization                   17,422    10,867     62,087     37,072
       (Gain) loss on disposal
        of assets                         (30)      179        277       (222)

           Total expenses             152,666   105,936    558,536    375,104

             Operating income          44,788    29,414    171,612     84,648

     Other income (expense):
       Interest expense                (4,947)   (3,707)   (17,466)   (13,065)
       Interest income                    445       126      1,962        405
       Loss on early
        extinguishment of debt            ---      (627)    (2,705)      (627)
       Other income                        39        72        169        220

     Income from continuing operations
      before income taxes              40,325    25,278    153,572     71,581

     Income tax expense               (12,991)   (9,380)   (54,742)   (26,800)

     Net income                       $27,334   $15,898    $98,830    $44,781

     Earnings per share of
      common stock:
       Basic                            $0.73     $0.54      $2.87      $1.57

       Diluted                          $0.70     $0.46      $2.56      $1.35

     Comprehensive Income:
     Net income                       $27,334   $15,898    $98,830    $44,781
         Unrealized gains (losses)
          on hedging activities           ---      (181)      (236)       193
     Comprehensive Income:            $27,334   $15,717    $98,594    $44,974



     Other Financial Data:
     EBITDA (2)                       $62,249   $39,726   $231,163   $121,313
     Capital expenditures:
       Acquisitions, net of cash
        acquired                       $2,715   $13,764   $135,568    $25,378
       Property and equipment         $29,017   $25,267   $104,574    $83,095



                                                             As of
                                                  December 31,    December 31,
                                                    2006              2005
     Balance Sheet Data:                         (Unaudited)
     Cash and cash equivalents                     $51,365           $32,845
     Net property and equipment                    475,431           309,075
     Total assets                                  795,693           496,957
     Total long-term debt                          250,742           119,241
     Total stockholders' equity                    379,250           258,575



                                            Three months           Year
                                         Ended December 31, Ended December 31,
    Segment Data:                            2006     2005     2006     2005

    Well Servicing
    Weighted average number of rigs           362      316      346      305
    Rig hours (000's)                       218.9    195.0    879.8    760.7
    Rig utilization rate                    84.6%    86.3%    88.9%    87.1%
    Revenue per rig hour                     $401     $329     $376     $292
    Segment profits per rig hour             $169     $134     $164     $111
    Segment profits as a percent of
     revenue                                42.1%    40.7%    43.6%    38.1%

    Fluid Services
    Weighted average number of fluid
     services trucks                          640      472      588      455
    Revenue per fluid services truck
     (000's)                                  $81      $79     $332     $291
    Segment profits per fluid services
     truck (000's)                            $32      $31     $130     $109
    Segment profits as a percent of
     revenue                                39.3%    39.8%    39.2%    37.6%

    Drilling and Completion Services
    Segment profits as a percent of
     revenue                                51.2%    49.5%    51.5%    48.4%

    Well Site Construction Services
    Segment profits as a percent of
     revenue                                33.1%    33.6%    30.5%    29.9%


    (1)  Includes approximately $954,000 and $759,000 of non-cash compensation
         expense for the three months ended December 31, 2006 and 2005,
         respectively. For the twelve months ended December 31, 2006 and 2005,
         it includes approximately $3.4 million and $2.9 million of non-cash
         compensation expense, respectively.

    (2)  This earnings release contains references to the non-GAAP financial
         measure of earnings (net income) before interest, taxes, depreciation
         and amortization or EBITDA.  EBITDA should not be considered in
         isolation or as a substitute for operating income, net income or
         loss, cash flows provided by operating, investing and financing
         activities, or other income or cash flow statement data prepared in
         accordance with GAAP.  However, Basic believes EBITDA is a useful
         supplemental financial measure used by its management and directors
         and by external users of its financial statements, such as investors,
         to assess:
          - The financial performance of its assets without regard to
            financing methods, capital structure or historical cost basis;
          - The ability of its assets to generate cash sufficient to pay
            interest on our indebtedness; and
          - Its operating performance and return on invested capital as
            compared to those of other companies in the well servicing
            industry, without regard to financing methods and capital
            structure.

         EBITDA has limitations as an analytical tool and should not be
         considered an alternative to net income, operating income, cash flow
         from operating activities or any other measure of financial
         performance or liquidity presented in accordance with GAAP.  EBITDA
         excludes some, but not all, items that affect net income and
         operating income, and these measures may vary among other companies.
         Limitations to using EBITDA as an analytical tool include:
          - EBITDA does not reflect its current or future requirements for
            capital expenditures or capital commitments;
          - EBITDA does not reflect changes in, or cash requirements necessary
            to service interest or principal payments on, its debt;
          - EBITDA does not reflect income taxes;
          - Although depreciation and amortization are non-cash charges, the
            assets being depreciated and amortized will often have to be
            replaced in the future, and EBITDA does not reflect any cash
            requirements for such replacements; and
          - Other companies in its industry may calculate EBITDA differently
            than Basic does, limiting its usefulness as a comparative measure.

    The following table presents a reconciliation of EBITDA to net income,
which is the most comparable GAAP performance measure, for each of the periods
indicated:


                                          Three months            Year
                                        Ended December 31,  Ended December 31,
                                          2006      2005      2006      2005
    Reconciliation of EBITDA to Net   (unaudited)(unaudited)(unaudited)
    Income:
    Net Income                           $27,334   $15,898    $98,830  $44,781
       Income taxes                       12,991     9,380     54,742   26,800
       Net interest expense                4,502     3,581     15,504   12,660
       Depreciation and amortization      17,422    10,867     62,087   37,072
    EBITDA                               $62,249   $39,726   $231,163 $121,313


Contacts: Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
432-620-5510

Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600

SOURCE Basic Energy Services, Inc.

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