MIDLAND, Texas, Jan. 30 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it has acquired all of the outstanding capital stock of Xterra Fishing and Rental Tools Co. ("Xterra") and purchased substantially all of the operating assets of Lackey Construction L.L.C. ("Lackey") for a total combined consideration of $23.3 million in cash, excluding working capital acquired. The acquisitions are anticipated to be accretive to earnings in 2008.
Xterra located in Odessa, Texas, will further expand Basic's rental and fishing operations in the Permian Basin market. The projected first-year revenue for this acquisition is expected to be approximately $14.0 million.
The five well service rigs obtained in the Lackey acquisition will be added to the existing fleet of workover rigs in the North Texas portion of Basic's Mid Continent Region and are expected to add approximately $4.5 million in first year revenue.
Ken Huseman, President and CEO, stated, "The companies acquired are excellent examples of the type of businesses that we find attractive and continue to be available throughout our markets. Each has excellent management and operating personnel, modern and well maintained equipment and a solid customer base. We look forward to the contribution of these organizations in expanding our footprint and capabilities."
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://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
Web site: http://basicenergyservices.com