Drilling rig days for the month of
Basic's fluid services truck fleet changed by a net of eight trucks,
bringing its total to 819 trucks as of
During the fourth quarter, Basic purchased 897,558 shares of its common
stock under its repurchase program that was implemented in
"We projected during our third quarter earnings call in early November that total revenue for the fourth quarter of 2008 would be four to six percent below that of the prior quarter. Based on the utilization levels experienced in November and December, we now project fourth quarter revenue will be approximately eleven percent below the third quarter.
"Given the current weak demand for our services and the ample availability of equipment to meet the needs of our customers, we are reducing rates in order to protect our market share as well as stacking our less efficient and underutilized equipment as dictated by regional demand. Our capital spending in the first six months of this year will, for the most part, be limited to those expenditures required to sustain a competitive fleet. We remain focused on controlling expenses and preserving liquidity to enable us to react to the many opportunities we expect to be available as this cycle develops."
OPERATING DATA Month ended ----------- December 31, November 30, 2008 2007 2008 ---- ---- ---- Number of weekdays in period 23 21 20 Number of well servicing rigs: (1) Weighted average for period 413 385 412 End of period 414 387 414 Rig hours (000s) 52.8 59.8 53.6 Rig utilization rate (2) 51% 67% 59% Number of drilling rigs: (1) Weighted average for period 9 10 9 End of period 9 10 9 Drilling rig days 183 274 225 Drilling utilization 66% 88% 83% Number of fluid service trucks: Weighted average for period 815 646 803 End of period 819 645 811 (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.
Additional information on
Safe Harbor Statement:
Statements made in this press release may include 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 our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. 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.
Chief Financial Officer of
Jack Lascar, or Sheila Stuewe, both of DRG&E,
Web Site: http://basicenergyservices.com