Press Release

View printer-friendly version

<< Back

Basic Energy Services Reports Selected Operating Data For July 2012

MIDLAND, Texas, Aug. 13, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of July 2012.  Basic's well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 77,400 producing a rig utilization rate of 74%, compared to 76% and 73% in June 2012 and July 2011, respectively.

During the month, Basic's fluid service truck count increased by one truck to 927.  Fluid service truck hours for the month were 184,800, compared to 178,400 and 183,400 in June 2012 and July 2011, respectively.

Drilling rig days for the month were 330 producing a rig utilization of 89%, compared to 91% and 90% in June 2012 and July 2011, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "July activity levels produced slightly higher well servicing and fluid services truck hours compared to June despite a mid-week July 4th holiday which tends to depress activity for the entire week.  Demand continued strong in oil markets and our small Appalachian well servicing fleet saw its activity recover a bit from the extremely low levels recorded in June.  Our drilling rig fleet continued at essentially full utilization throughout the month.  Service lines in our Completion and Remedial Services segment, particularly our stimulation services, experienced slightly lower activity and pricing levels along the lines we have previously projected.

"Notwithstanding the relatively stable activity generated in July, we expect activity and pricing to gradually deteriorate in all service lines through the balance of the year.  Equipment and service companies relocating from extremely slow dry gas markets and deliveries of equipment ordered earlier in the year are competing for a flattening level of demand in our oilier markets and creating downward pressure on pricing and upward pressure on wages.  Protecting our market share, restricting capital spending and controlling costs remain our priorities in the current operating environment.  With total liquidity of more than $335 million at the end of July, we have the ability to take advantage of any fallout this competitive market may create."

OPERATING DATA







Month ended


July 31,


June 30,


2012

2011


2012






Number of weekdays in period

22

21


21






Number of well servicing rigs: 1





  Weighted average for period

431

412


431

  End of period

431

412


431

Rig hours (000s)

77.4

69.0


76.1

Rig utilization rate2

74%

73%


76%






Number of fluid service trucks:1





  Weighted average for period

926

863


923

  End of period

927

871


926

Truck hours (000s)

184.8

183.4


178.4






Number of drilling rigs:1





  Weighted average for period

12

10


12

  End of period

12

10


12

Drilling rig days

330

279


329

Drilling rig utilization 

89%

90%


91%







(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 5,700 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, 2011 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.


432-620-5516



Jack Lascar/Sheila Stuewe


DRG&L / 713-529-6600

 

SOURCE Basic Energy Services, Inc.

Basic Energy Services © 2019