MIDLAND, Texas, June 7, 2010 /PRNewswire via COMTEX/ --Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of May 2010. During the month, Basic's well servicing rig count remained the same at 404 as of May 31, 2010. Well servicing rig hours for the month of May 2010 were 49,900, producing a rig utilization rate of 53%, an increase from 52% and 37% for April 2010 and May 2009, respectively.
Drilling rig days for the month of May 2010 were 182, producing a rig utilization of 65%, an increase from 63% and 41% for April 2010 and May 2009, respectively.
Basic's fluid services truck fleet increased by ten trucks to 803 trucks as of May 2010.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "We experienced slightly higher activity levels in all of our business lines in May compared to April even with the extended Memorial Day weekend. The strengthening market conditions are most easily quantified in our well servicing segment where stronger activity in our oil-oriented markets offsets weaker demand in our more gas-oriented markets to boost average rig hours per weekday by more than 3% to 2,376 hours per day compared to the April average of 2,300 hours per day.
"Consistent with our comments in our first quarter earnings call and recent operating data press releases, we anticipate further utilization improvements across all business segments through the summer due to seasonal factors and the impact of reactivating and relocating our equipment to our established oil-oriented markets to meet drilling and workover demand. Pricing in all our business segments is expected to remain firm and we are targeting rate increases in those markets where demand levels allow us to achieve both margin expansion and market share growth."
OPERATING DATA Month ended --------------------------------- May 31, April 30, 2010 2009 2010 ---- ---- ---- Number of weekdays in period 21 21 22 Number of well servicing rigs:(1) Weighted average for period 404 414 404 End of period 404 414 404 Rig hours (000s) 49.9 35.0 50.6 Rig utilization rate(2) 53% 37% 52% Number of drilling rigs:(1) Weighted average for period 9 9 9 End of period 9 9 9 Drilling rig days 182 113 169 Drilling utilization 65% 41% 63% Number of fluid service trucks: Weighted average for period 798 806 792 End of period 803 805 793
(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.
Jack Lascar/Sheila Stuewe
DRG&E / 713-529-6600
SOURCE Basic Energy Services, Inc.