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Basic Energy Services Reports Selected Operating Data For March 2015

FORT WORTH, Texas, April 13, 2015 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of March 2015.  Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 56,000 producing a rig utilization rate of 55%, compared to 55% and 75% in February 2015 and March 2014, respectively.

During the month, Basic's fluid service truck count decreased by 26 to 1,023. Fluid service truck hours for the month were 202,900 compared to 184,100 and 211,000 in February 2015 and March 2014, respectively.

Drilling rig days for the month were 186 producing a rig utilization of 50%, compared to 63% and 81% in February 2015 and March 2014, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "March operating activity remained relatively flat for our rig and truck operations from February levels. In early March our Permian Basin and South Texas operations experienced some weather disruptions that reduced our rig hours by approximately 200 bps. While our completion and remedial services segment saw less of a sequential reduction in activity levels compared to the previous month-over-month period, stimulation activity continues to be impacted by the drop in drilling rig count.  We continue to face fierce rate competition in the completion lines of business across all of our operating areas.

"We have maintained our strategy of protecting market share and maximizing utilization; reducing rates as necessary in all segments. We continue our efforts to lower input costs and right-size our workforce. Our overall headcount is now 19% lower than its peak of mid fourth quarter 2014. As we allocate assets into markets where activity is strongest, we continue to high-grade our marketed fleet and stack excess equipment.  We have increased our stacked well servicing rig count by 40 since year-end, and the sequential drop in truck count represents the scaling of our operations to match customer activity.

"We now expect our first quarter revenue to be approximately 34%-35% lower sequentially compared to our previous guidance of 32%-34%. In light of the continued decrease in the overall U.S. land rig drilling fleet and lower overall capital expenditures by most customers, it is still too early to predict whether or not these flattening utilization levels represent a potential floor for activity. We will discuss our second quarter revenue expectations during our first quarter earnings call later this month."

OPERATING DATA










Month ended





March 31,


February 28,





2015

2014


2015









Number of weekdays in period



22

21


20









Number of well servicing rigs: 1







  Weighted average for period 2



421

421


421

  End of period 2



421

421


421

  Rig hours (000s) 2



56.0

72.5


50.5

  Rig utilization rate 2,3



55%

75%


55%









Number of fluid service trucks: 1







  Weighted average for period



1,036

1,010


1,052

  End of period



1,023

1,012


1,049

  Truck Hours (000s)



202.9

211.0


184.1









Number of drilling rigs: 1







  Weighted average for period



12

12


12

  End of period



12

12


12

  Drilling rig days



186

301


213

  Drilling rig utilization



50%

81%


63%





(1)

Includes all rigs and trucks owned during periods presented and excludes rigs and trucks held for sale.

(2)

Basic sold its four inland barge workover rigs on March 31, 2014.  The weighted average number of rigs, number of rigs at the end of the period, rig hours and rig utilization rate for March 2014 has been recalculated as if these four rigs had been sold for that period.

(3)

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 4,700 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, 2014 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.


817-334-4100




Jack Lascar / Stephanie Smith


Dennard – Lascar Associates


713-529-6600

 

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SOURCE Basic Energy Services, Inc.

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