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Basic Energy Services Reports Selected Operating Data for January 2012

MIDLAND, Texas, Feb. 7, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of January 2012.  During the month, Basic added five well servicing rigs from an acquisition, increasing the overall count to 422. Well servicing rig hours for the month were 76,900 producing a rig utilization rate of 76%, compared to 69% and 61% in December 2011 and January 2011, respectively.

During the month, Basic's fluid service truck count increased to 899 as a result of nine new trucks being delivered at the end of the month.  Fluid service truck hours for the month were 198,300, compared to 189,100 and 167,300 in December 2011 and January 2011, respectively.

Drilling rig days for the month were 313 producing a rig utilization of 84%, compared to 89% and 91% in December 2011 and January 2011, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Relatively mild weather in January and continued strong demand in most of our markets allowed us to begin the year with an unusually strong level of activity in each business segment.  In the Permian Basin, growth in drilling and completions activity combined with a high level of maintenance activity is driving extremely high utilization of all services in that market.   During the month, we completed an acquisition of five P&A workover rig packages in our Permian Basin operation, bringing our specialized P&A rig fleet to 20 in the Permian Basin and 25 company-wide.  We expanded our fluid services fleet to address growing drilling and completion demand in the Permian region with the addition of nine fluid service trucks and 50 frac tanks during the month.   Our 2012 capital budget provides for similar monthly increases in our truck and tank fleet through the remainder of the year.

"Increased demand for pumping services reflects the increased drilling activity in our primary markets with higher costs of sand, chemicals and labor supporting firm pricing.  We have secured our sand requirements for 2012 and are evaluating our needs for 2013. Cement and chemical availability appears to be easing but acid currently remains in short supply in most markets.  To date we have been able to pass on those added costs to maintain margins at fourth quarter levels. January drilling rig utilization of 84% was lower sequentially as the two 1,200 horsepower drilling rigs that we purchased in November 2011 commenced on contract during the middle of the month.  Our drilling rig utilization rate should approximate 90% over the next several quarters as all our rigs have full work calendars well into 2012.

"Industry forecasts for stable oil and liquids prices through 2012 drive our expectations for continued strong demand in most of our market areas.  Fairly weak natural gas prices will certainly subdue activity in our gas driven markets but will have a diminishing impact as we continue to relocate equipment to our oil driven markets. Our revenue stream from oil and liquid-driven activity is approximating 70% of total revenue."

OPERATING DATA

 

 

 

Month ended

 

January 31,

 

December 31,

 

2012

2011

 

2011

 

 

 

 

 

Number of weekdays in period

22

21

 

22

 

 

 

 

 

Number of well servicing rigs:(1)

 

 

 

 

Weighted average for period

420

412

 

417

End of period

422

412

 

417

Rig hours (000s)

76.9

58.5

 

69.4

Rig utilization rate(2)

76%

61%

 

69%

 

 

 

 

 

Number of fluid service trucks:(1)

 

 

 

 

Weighted average for period

890

810

 

880

End of period

899

819

 

890

Truck hours (000s)

198.3

167.3

 

189.1

 

 

 

 

 

Number of drilling rigs:(1,3)

 

 

 

 

Weighted average for period

12

6

 

10

End of period

12

6

 

12

Drilling rig days

313

169

 

277

Drilling rig utilization

84%

91%

 

89%

 

 

(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 does not include two rigs that started on contract in January 2012.  These two rigs are included in the end of period count for December 2011.

 

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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