MIDLAND, Texas, July 6, 2010 /PRNewswire via COMTEX/ --
Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of June 2010. During the month, Basic's well servicing rig count remained the same at 404 as of June 30, 2010. Well servicing rig hours for the month of June 2010 were 53,400, producing a rig utilization rate of 55%, an increase from 53% and 39% for May 2010 and June 2009, respectively.
Drilling rig days for the month of June 2010 were 176, producing a rig utilization of 65%, unchanged from May 2010 and an increase from 41% for June 2009.
Basic's fluid services truck fleet decreased by seven trucks to 796 trucks as of June 2010.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Activity levels in each of our business segments continued to trend modestly higher through June on the strength of oil driven activity within our regional markets. Our completion and remedial services segment, led by our pumping services, continued to show particular strength with essentially full utilization and pricing gains driving higher margins. Well servicing activity in our Permian Basin remained unchanged during the month, but we were encouraged to see modest improvements in several of our other regions. Our fluid services segment generated higher utilization as recent efforts to relocate equipment to the busiest markets produced results. We believe utilization improvements, targeted price increases and continued cost control will support sequentially higher margins.
"We remain optimistic that further utilization improvements will materialize during the summer months, but we continue to have some concern over the timing and strength of improvements in gas oriented markets. In the absence of broad-based improvements in gas-related activity spurred by stronger gas prices, we expect competition to continue to place pressure on utilization and pricing. In the meantime, we will continue to focus on maximizing equipment utilization to generate incremental revenue and margin."
OPERATING DATA Month ended ----------- June 30, May 31, 2010 2009 2010 ---- ---- ---- Number of weekdays in period 22 22 21 Number of well servicing rigs: (1) Weighted average for period 404 414 404 End of period 404 414 404 Rig hours (000s) 53.4 38.9 49.9 Rig utilization rate (2) 55% 39% 53% Number of drilling rigs: (1) Weighted average for period 9 9 9 End of period 9 9 9 Drilling rig days 176 112 182 Drilling utilization 65% 41% 65% Number of fluid service trucks: Weighted average for period 800 805 798 End of period 796 805 803
(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 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.