Drilling rig days for the month of January 2010 were 134, producing a rig utilization of 48%, a decrease from 61% in December 2009 and an increase from 44% recorded in January 2009.
Basic's fluid services truck fleet count as of January 31, 2010 was 788 trucks.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Demand for our services strengthened through the month of January in each segment and geographic market despite adverse weather in most of our operating areas. Extreme cold in the Rocky Mountain states exacerbated the usual seasonally restrained activity in that region with the notable exception of the Williston Basin, where drilling in the Bakken Shale continued to ramp up despite the weather. Unusually cold and wet weather hampered E&P companies from carrying out their planned activities in the Permian and Mid-Continent regions, where approximately 50% of our fleet is located. The combined impact of the weather delays likely caused our reported rig hours to be more than 2,000 hours or 5% less than demand supported. The sequential drop in reported drilling days reflects one of the six marketed rigs being idle between projects.
"We are becoming more enthusiastic regarding the near term outlook as we see a sense of urgency developing among the full range of E&P customers. Oil markets are showing significant increases in demand while gas-oriented markets are improving at a more subdued rate. Weather will likely be an issue through February, but work is being scheduled by our customers in a more typical manner with less concern for rates than for availability of qualified personnel and reliable equipment."
Month ended ----------- January 31, December 31, 2010 2009 2009 ---- ---- ---- Number of weekdays in period 21 22 23 Number of well servicing rigs: (1) Weighted average for period 405 413 401 End of period 405 414 405 Rig hours (000s) 39.8 49.3 39.1 Rig utilization rate(2) 43% 49% 39% Number of drilling rigs:(1) Weighted average for period 9 9 9 End of period 9 9 9 Drilling rig days 134 123 169 Drilling utilization 48% 44% 61% Number of fluid service trucks: Weighted average for period 790 817 792 End of period 788 815 791 (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 3,800 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:
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 Basic's 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, 2008, and subsequent Form 10-Q's filed with the SEC. While we make these statements and projections in good faith, neither Basic Energy Services 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.
Contacts: Alan Krenek, Chief Financial Officer Basic Energy Services, Inc. 432-620-5510 Jack Lascar/Sheila Stuewe DRG&E / 713-529-6600
SOURCE Basic Energy Services, Inc.