Press Release

View printer-friendly version

<< Back

Basic Energy Services Reports Selected Operating Data for December 2008

MIDLAND, Texas, Jan. 13 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of December 2008. During the month, Basic added two newbuild rigs and retired two rigs leaving its well servicing rig count at 414 as of December 31, 2008. Rig hours for the month of December 2008 were 52,800, producing a rig utilization rate of 51%, a decrease from 59% and 67% in November 2008 and December 2007, respectively.

Drilling rig days for the month of December 2008 were 183, producing a rig utilization of 66%, a decrease from 83% and 88% in November 2008 and December 2007, respectively.

Basic's fluid services truck fleet changed by a net of eight trucks, bringing its total to 819 trucks as of December 31, 2008.

During the fourth quarter, Basic purchased 897,558 shares of its common stock under its repurchase program that was implemented in October 2008 at an average price of $9.82 per share, for a total of approximately $8.8 million. In December, Basic received approximately $20 million, net of expenses, from Grey Wolf, Inc. as a result of a break-up fee paid upon the completion of its acquisition transaction on December 23, 2008.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our activity levels in December declined from November even more than expected as continued uncertainty regarding the direction and level of commodity prices compounded the usual holiday effect over the last two weeks in December. Many of our customers curtailed their activity from the middle of December through the weekend following the New Year's holiday.

"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.


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 5,200 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://basicenergyservices.com.

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.

SOURCE Basic Energy Services, Inc.

CONTACT:
Alan Krenek,
Chief Financial Officer of Basic Energy Services, Inc.,
+1-432-620-5510;
or
Jack Lascar, or Sheila Stuewe, both of DRG&E,
+1-713-529-6600, for Basic Energy Services, Inc.
Web Site: http://basicenergyservices.com
(BAS)

Basic Energy Services © 2019