MIDLAND, Texas, Sept. 9 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of August 2009. During the month, Basic's well servicing rig count remained unchanged at 414. Well servicing rig hours for the month of August 2009 were 41,400 producing a rig utilization rate of 43%, an increase from 38% in July 2009 and a decrease from 82% in August 2008.
Drilling rig days for the month of August 2009 were 146 producing a rig utilization of 52%, an increase from 45% in July 2009 and a decrease from 93% in August 2008.
Basic's fluid services truck fleet remained unchanged at 805 trucks as of August 31, 2009.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our activity levels improved across all of our service lines in August, consistent with recent months, as the modest improvements in oil-driven markets more than offset the continued weakness in gas markets. Pricing was generally stable, but still pressured as there remains substantially more equipment available than required by demand in our markets. Although we are seeing attrition in the marketed industry equipment fleet and in the number of competitors, we anticipate extremely tough market conditions to prevail until gas-driven markets show increasing rather than declining activity levels."
August 31, July 31,
2009 2008 2009
---- ---- ----
Number of weekdays in
period 21 21 23
Number of well
servicing rigs: (1)
Weighted average for
period 414 412 414
End of period 414 413 414
Rig hours (000s) 41.4 77.9 40.2
rate(2) 43% 82% 38%
Number of drilling
Weighted average for
period 9 9 9
End of period 9 9 9
days 146 259 126
utilization 52% 93% 45%
Number of fluid service
Weighted average for
period 805 679 805
End of period 805 678 805
(1) Includes all rigs owned during periods presented and excludes rigs
held for sale.
(2) Rig utilization rate based on the weighted average number of rigs
owned during the periods being reported, a 55-hour work week per rig and
the number of weekdays in the periods being presented.
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 3,800 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) changes in demand for Basic's 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, 2008, and subsequent Form 10-Q's filed with the SEC. While we make these statements and projections in good faith, neither Basic Energy Services 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.
Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600
SOURCE Basic Energy Services, Inc.