MIDLAND, Texas, Aug 09, 2010 /PRNewswire via COMTEX/ --
Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of July 2010. Basic's well servicing rig count remained unchanged at 404 as of July 31, 2010. Well servicing rig hours for the month of July 2010 were 49,400 producing a rig utilization rate of 51%, a decrease from 55% in June 2010 and an increase from 38% in July 2009.
During the month, Basic retired nine fluid service trucks, decreasing its fluid service truck count to 787 as of July 31, 2010. Fluid service truck hours for the month of July 2010 were 157,100, a decrease from 158,500 in June 2010 and an increase from 140,300 in July 2009.
Drilling rig days for the month of July 2010 were 177 producing a rig utilization of 63%, a decrease from 65% in June 2010 and an increase from 45% in July 2009.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Favorable oil-related demand continued to drive the gradual improvement we have experienced during the last year across all our business segments. The 4th of July holiday, as expected, resulted in sequentially lower rig hours in our production-oriented well servicing segment. Utilization in our other segments was fairly flat sequentially as drilling and completion-related work was less affected by the holiday.
"Activity in all our segments is expected to show growth through the remainder of 2010 before we see the usual seasonal decline midway through the fourth quarter. Pricing is showing modest gains primarily to fund wage increases as we work to retain and attract the most qualified people in our busiest markets. We are confident that our leadership positions in the largest oil and gas producing markets in the country will provide an excellent platform for expansion of our services over the foreseeable future."
Month ended ----------- July 31, June 30, 2010 2009 2010 ---- ---- ---- Number of weekdays in period 22 23 22 Number of well servicing rigs (1) Weighted average for period 404 414 404 End of period 404 414 404 Rig hours (000s) 49.4 40.2 53.4 Rig utilization rate (2) 51% 38% 55% Number of fluid service trucks (1) Weighted average for period 792 805 800 End of period 787 805 796 Truck hours (000s) 157.1 140.3 158.5 Number of drilling rigs (1) Weighted average for period 9 9 9 End of period 9 9 9 Drilling rig days 177 126 176 Drilling utilization 63% 45% 65%
(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.
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 4,100 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&E / 713-529-6600
SOURCE Basic Energy Services, Inc.