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Basic Energy Services Reports Selected Operating Data for December 2011

MIDLAND, Texas, Jan. 10, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of December 2011.  Basic's well servicing rig count remained unchanged at 417. Well servicing rig hours for the month were 69,400 producing a rig utilization rate of 69%, compared to 72% and 53% in November 2011 and December 2010, respectively.

During the month, Basic's fluid service truck count increased by 18 to 890.  Fluid service truck hours for the month were 189,100, compared to 188,200 and 159,300 in November 2011 and December 2010, respectively.

Drilling rig days for the month were 277 producing a rig utilization of 89%, compared to 98% and 97% in November 2011 and December 2010, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Continued strong demand partially offset the extended Christmas and New Year's holiday period, as well as intermittent cold and wet weather in several of our operating regions during December. We posted sequentially higher fluid services truck hours in the month due to growth in the truck fleet; however, when adjusting for the three or four days lost due to the holidays, our average hours per day matched, if not exceeded, October's level of utilization. Our well servicing activity generated similarly strong results as average hours per day in December continued to be at high levels despite fewer daylight hours and adverse weather compared to October, driven primarily by increasing activity in our Permian Basin market.

"Our drilling utilization declined due to one of our rigs being down for repair, but all of our rigs have full work calendars well into 2012.  The two 1,200 horsepower drilling rigs purchased in November will be in the field this month.  One of the rigs commenced drilling during the first week in January and we expect the other rig to be drilling by the middle of the month.   

Each subsegment in our Completion and Remedial operations enjoyed strong demand during the month with brief interruptions during the holiday period.   Pricing in all our segments continued to be firm to higher driven by a tight labor market.  

"Based on oil and gas price forecasts and discussions with customers, we expect continued strong demand for our services in oil and liquids-driven markets throughout 2012 but gas-related regions will likely remain subdued into 2013. We are finalizing our capital expenditure plan for 2012. Although not yet approved, we anticipate that our capital budget will be approximately $250 million, similar to the amount we spent in 2011. We also anticipate completing several acquisitions as the current deal flow offers opportunities in each of our segments and geographic regions."

OPERATING DATA

 

 

 

Month ended

 

 

December 31,

 

November 30,

 

 

2011

2010

 

2011

 

 

 

 

 

 

 

Number of weekdays in period

 

22

23

 

22

 

 

 

 

 

 

Number of well servicing rigs: (1)

 

 

 

 

 

  Weighted average for period

 

417

409

 

417

  End of period

 

417

412

 

417

Rig hours (000s)

 

69.4

54.2

 

72.4

Rig utilization rate(2)

 

69%

53%

 

72%

 

 

 

 

 

 

Number of fluid service trucks:(1)

 

 

 

 

 

  Weighted average for period

 

880

779

 

873

  End of period

 

890

800

 

872

Truck hours (000s)

 

189.1

159.3

 

188.2

 

 

 

 

 

 

Number of drilling rigs:(1),(3)

 

 

 

 

 

  Weighted average for period

 

10

6

 

10

  End of period

 

12

6

 

12

Drilling rig days

 

277

180

 

295

Drilling rig utilization 

 

89%

97%

 

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)  Weighted average number of drilling rigs for December 2011 and November 2011 do not include two rigs that start on contract in January 2012.  These two rigs are included in the end of period count for both of 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 5,600 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 and Appalachian regions.

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, 2010 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.

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