Press Release

View printer-friendly version

<< Back

Basic Energy Services Reports Selected Operating Data for December 2010

MIDLAND, Texas, Jan. 12, 2011 /PRNewswire via COMTEX/ --

Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of December 2010. During the month, Basic added six well servicing rigs from its acquisition of Platinum Pressure Services, Inc. and transferred three 1,000 horsepower carrier-mounted rigs from its contract drilling fleet, increasing its well servicing fleet to 412 as of December 31, 2010. Well servicing rig hours for the month of December 2010 were 54,200 producing a rig utilization rate of 53%, a decrease from 54% in November 2010 and an increase from 39% in December 2009.

During the month, Basic's fluid service truck count increased to 800 as the result of 21 new trucks being delivered at the end of the month. Fluid service truck hours for the month of December 2010 were 159,300, an increase from 157,400 and 145,600 in November 2010 and December 2009, respectively.

As a result of transferring three of its contract drilling rigs to the well servicing fleet at the end of December, Basic decreased its contract drilling rig fleet to six rigs as of December 31, 2010. Drilling rig days for the month of December 2010 were 180 producing a rig utilization of 97%, a decrease from 98% and an increase from 91% for November 2010 and December 2009, respectively. It should be noted that the utilization rates for November 2010 and December 2009 have been recalculated as if the three transferred rigs had been reclassified for those periods.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "December activity levels closed out the year on a favorable note with strong demand and mild winter weather offsetting the normal disruptions of the Christmas and New Year holiday period. Each of our segments experienced some of the highest utilization levels of the year despite seasonal factors which usually depress activity at year end. Our well servicing segment, anchored by our significant presence in the Permian Basin, continued to benefit from increasing demand throughout oil-oriented markets. In the week prior to the Christmas week, we recorded the highest number of rig hours for any week of 2010. We continue to reposition and reactivate idle well servicing rigs to our busier markets.

"Our fluid services segment and completion and remedial services segment experienced activity levels consistent with October and November as drilling and frac activity continues to grow in the Permian Basin, Bakken Shale and the Eagle Ford play in South Texas, where we have well-established operating bases. We are responding to increased demand with additions to the fleet in both segments, which should drive revenue growth throughout 2011. In our fluid services segment, we added 50 frac tanks and 21 fluid trucks near the end of the month, and have another 65 trucks and 300 frac tanks scheduled for delivery early this year. Components of our 25,000 hhp frac spread, scheduled for full deployment in the Permian Basin by the end of the first quarter, are being delivered on schedule and this frac spread has a full work calendar for the remainder of 2011. Demand for pumping services remains strong with rates trending higher. Revenue per fluid service truck is increasing driven by higher utilization and pricing for the various components comprising that segment.

"The six-rig drilling fleet is currently scheduled into the fourth quarter of 2011, with half of the rigs under term contracts and the other three pursuing well-to-well opportunities with several operators. Dayrates have improved during the month as companies seek to access rigs for oil producing targets at all depths throughout the Permian Basin. We anticipate increased demand for recompletion and heavy workover projects in this market which drove our decision to re-assign the three 1,000 horsepower carrier-mounted rigs, formerly classified as drilling rigs to the well servicing segment. Those three carrier-mounted rigs are better suited to recompletion activity and will supplement the two similar 24-hour workover rigs we operate in the Permian Basin that are currently fully utilized and have good visibility for continued strong demand for the near term.

"Overall, we are very pleased with the performance of our organization in 2010 as we responded to increased customer demand. We currently anticipate much improved market conditions in 2011."

OPERATING DATA





Month ended





December 31,


November 30,





2010


2009


2010










Number of weekdays in period


23


23


22










Number of well servicing rigs (1),(3)







Weighted average for period


409


404


406

End of period



412


408


406

Rig hours (000s)



54.2


39.1


52.8

Rig utilization rate (2),(3)



53%


39%


54%










Number of fluid service trucks (1)







Weighted average for period


779


792


782

End of period



800


791


779

Truck hours (000s)



159.3


145.6


157.4










Number of drilling rigs (1),(3)







Weighted average for period


6


6


6

End of period



6


6


6

Drilling rig days



180


169


177

Drilling utilization (3)



97%


91%


98%










(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.

(3) Basic transferred three of its contract drilling rigs to the well servicing fleet at the end of December 2010. The weighted average number of rigs, number of rigs at the end of period and the rig utilization rate for December 2009 and November 2010 and have been recalculated as if these three rigs had been reclassified for those periods.

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 4,500 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.


432-620-5510




Jack Lascar/Sheila Stuewe


DRG&L / 713-529-6600

SOURCE Basic Energy Services, Inc.

Basic Energy Services © 2019