MIDLAND, Texas, Sept 07, 2010 /PRNewswire via COMTEX/ --
Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of August 2010. Basic's well servicing rig count remained unchanged at 404 as of August 31, 2010. Well servicing rig hours for the month of August 2010 were 55,900, producing a rig utilization rate of 57%, an increase from 51% and 43% from July 2010 and August 2009, respectively.
During the month, Basic's fluid service truck count increased by three to 790 as of August 31, 2010. Fluid service truck hours for the month of August 2010 were 160,700, an increase from 157,100 and 146,300 in July 2010 and August 2009, respectively.
Drilling rig days for the month of August 2010 were 171, producing a rig utilization of 61%, a decrease from 63% in July 2010 and an increase from 52% in August 2009.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Activity levels in our largest three segments rebounded from July due to continued strong demand, favorable weather conditions and the absence of a holiday during the month. Our completion and remedial segment, led by our pumping services, exhibited the strongest demand in the month with full work schedules now stretching into 2011. Pricing in this segment improved as customers seek firm availability with less concern for pricing. Fluid services truck hours moved up modestly driven by higher demand in oil-oriented markets, partially offset by some weakness in gas markets. Frac schedules are driving higher truck and frac tank utilization, generating improved pricing in those markets.
"Well servicing rig utilization showed the most significant month-over-month improvement, producing the largest number of rig hours since October 2008. Oil-oriented markets drove most of the increase due to a greater sense of urgency for service work and expanding workover budgets, with improved pricing being achieved in our more active markets. The modest decline in our drilling days on our six active drilling rigs was the result of days lost during the derrick recertification process which was completed in August. These rigs have visible demand through the end of the year and we are currently seeing moderate day rate increases.
"We expect continued strong demand through the remainder of 2010 driven by our substantial market positions in oil-driven markets throughout our footprint. Pricing is likely to accelerate in those busier markets in response to this higher demand and the competitive labor environment."
Month ended ----------- August 31, July 31, 2010 2009 2010 ---- ---- ---- Number of weekdays in period 22 21 22 Number of well servicing rigs (1) Weighted average for period 404 414 404 End of period 404 414 404 Rig hours (000s) 55.9 41.4 49.4 Rig utilization rate (2) 57% 43% 51% Number of fluid service trucks (1) Weighted average for period 789 805 792 End of period 790 805 787 Truck hours (000s) 160.7 146.3 157.1 Number of drilling rigs (1) Weighted average for period 9 9 9 End of period 9 9 9 Drilling rig days 171 146 177 Drilling utilization 61% 52% 63%
(1) Includes all rigs and trucks owned during periods presented and excludes rigs and trucks 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 4,200 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://www.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 our 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, 2009 and subsequent Form 10-Qs filed with the SEC. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee 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.