Drilling rig days for the month of
Basic's fluid services truck fleet decreased by a net of four trucks
bringing its total to 815 trucks as of
"Lower demand has resulted in pricing pressure as we have positioned ourselves to protect our market share in all segments, especially in the more production maintenance-intensive areas in the Permian Basin and Mid-Continent regions. We expect that the pricing in our other markets will feel downward pressure as the drilling activity continues to slide and the backlog of completion-related activity is worked off.
"We continue to monitor local demand throughout our segments to right-size our work force and active fleet in each of our service points while controlling operating expenses on a daily basis during these times of lower business activity. Our blend of new and older assets allows us to stack the most inefficient equipment while spending minimal capital and expense to operate our newer assets and we expect to continue generating significant cash from operations. We are well capitalized to weather a protracted slow period and will preserve our liquidity until we see a bit more clarity in the demand for our services."
OPERATING DATA Month ended January 31, December 31, 2009 2008 2008 Number of weekdays in period 22 23 23 Number of well servicing rigs: (1) Weighted average for period 413 385 413 End of period 414 393 414 Rig hours (000s) 49.3 69.2 52.8 Rig utilization rate(2) 49% 71% 51% Number of drilling rigs: (1) Weighted average for period 9 9 9 End of period 9 9 9 Drilling rig days 123 179 183 Drilling utilization 44% 64% 66% Number of fluid service trucks: Weighted average for period 817 643 815 End of period 815 640 819 (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
Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600
Web Site: http://basicenergyservices.com