Press Release

View printer-friendly version

<< Back

Basic Energy Services Reports Selected Operating Data For May 2009
MIDLAND, Texas, June 15, 2009 /PRNewswire-FirstCall via COMTEX/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of May 2009. The well servicing rig count was unchanged at 414 at May 31, 2009. Well servicing rig hours for the month of May 2009 were 35,000 producing a rig utilization rate of 37%, unchanged from April 2009 and down from 76% in May 2008.

Drilling rig days for the month of May 2009 were 113 producing a rig utilization of 41%, an increase from 33% in April 2009 and a decrease from 88% in May 2008.

Basic's fluid services truck fleet decreased by a net of two trucks bringing its total to 805 trucks as of May 31, 2009.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Utilization of our well servicing fleet in May was essentially flat with April as increased activity in our oil markets offset a modest decline in our gas-prone markets. We experienced a further decline in activity in our fluid services segment and in our completion and remedial services segment due to continued weakness in our natural gas-related markets. Our Permian Basin-based drilling segment posted a significant increase in drilling days reflecting the improving fundamentals for oil-related activity. Pricing for all of our services remained competitive in May but seemed to have reached a leveling point.

"We are currently projecting that revenues for the second quarter will be 23-25% lower than the first quarter with each of our major business segments being equally affected.

"Our expectations for the balance of 2009 are for modest monthly improvement in our overall utilization as demand in our oil-oriented markets offsets continued weakness in our gas-related markets. We are seeing our customers starting to resume normal levels of maintenance activity and expect their capital spending to increase for workover and development drilling projects in most areas assuming commodity prices hold at current levels. Pricing will continue to be pressured through year-end as the industry markets substantially more equipment than demand currently supports. We expect the pace of attrition of the active fleet and of weaker competitors to pick up speed through the end of the year which should set the stage for higher utilization and firmer pricing beginning sometime in 2010."

                              OPERATING DATA

                                                        Month ended
                                                    May 31,        April 30,
                                                2009      2008       2009

    Number of weekdays in period                  21        22         22

    Number of well servicing rigs: (1)
      Weighted average for period                414       399        414
      End of period                              414       408        414
      Rig hours (000s)                          35.0      73.4       36.6
      Rig utilization rate(2)                    37%       76%        37%

    Number of drilling rigs: (1)
      Weighted average for period                  9         9          9
      End of period                                9         9          9
      Drilling rig days                          113       246         89
      Drilling utilization                       41%       88%        33%

    Number of fluid service trucks:
      Weighted average for period                806       673        810
      End of period                              805       675        807

    (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 3,900 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://basicenergyservices.com.

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.

http://basicenergyservices.com

Basic Energy Services © 2019