Press Release

View printer-friendly version

<< Back

Basic Energy Services Reports Selected Operating Data For May 2012

MIDLAND, Texas, June 15, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of May 2012.  Basic's well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 78,600 producing a rig utilization rate of 72%, compared to 78% and 68% in April 2012 and May 2011, respectively.

During the month, Basic's fluid service truck count increased by five trucks to 920. Fluid service truck hours for the month were 189,100, compared to 184,900 and 175,700 in April 2012 and May 2011, respectively.

Drilling rig days for the month were 357 producing a rig utilization of 96%, compared to 89% and 81% in April 2012 and May 2011, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our activity levels, especially in our well servicing segment, in May were impacted by a combination of factors, including the extended Memorial Day holiday weekend, further deterioration of natural gas markets and competitive pressures in our more active oil-oriented markets.  Recent declines in oil and natural gas liquids (NGL) prices will reduce cash flow and likely cause some of our customers to reevaluate their remaining 2012 drilling programs.  We have seen limited impact to this point, but will react accordingly to maintain our market share and utilization levels

"In the first two weeks of June, we have seen well servicing utilization return to near the April level of 78%, but we may not achieve the levels previously projected for mid-summer.  Current discounting of pricing for our frac pumping services is within the guidance of up to 10% that we gave during our first quarter earnings call with utilization holding steady. Our fluid services activity remains steady but competition has restrained pricing power. With most of the second quarter completed, we are now projecting that revenues for the second quarter will be one to two percent lower than the first quarter, with the completion and remedial services and fluid services segments being affected the most.  Pricing improvements, while sufficient to offset higher input costs in the more active markets, likely won't offset reduced utilization and pricing in the weaker markets.  The combination of those factors is expected to reduce second quarter EBITDA to slightly less than first quarter levels.  

"During May, we purchased the operating assets of Surface Stac, Inc. ("Surface Stac"), a provider of surface well control rental equipment, for $27.9 million. Surface Stac has well-established positions in the Permian Basin and the Eagle Ford and Barnett shale operating areas and provides an extension of our capabilities into the frac related rental equipment and potential vertical integration with our pumping services. We expect this acquisition to contribute annualized revenue and EBITDA of approximately $13 million and $6 million respectively within our Completion and Remedial Services segment. 

"On June 4, we announced that we are moving our corporate office to Fort Worth, Texas by the end of 2012. In connection with this move, we expect to incur expenses in the range of $7 million to $8 million for severance, retention, relocation and other transition costs with the majority of these costs being incurred in the third and fourth quarters."

 

OPERATING DATA

 





May 31,


April 30,





2012

2011


2012









Number of weekdays in period


23

22


21









Number of well servicing rigs: 1






  Weighted average for period


431

412


431

  End of period



431

412


431

Rig hours (000s)



78.6

68.1


77.8

Rig utilization rate2



72%

68%


78%









Number of fluid service trucks:1






  Weighted average for period


917

838


915

  End of period



920

838


915

Truck hours (000s)



189.1

175.7


184.9









Number of drilling rigs:1






  Weighted average for period


12

10


12

  End of period



12

10


12

Drilling rig days



357

252


321

Drilling rig utilization 



96%

81%


89%









 

(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.


432-620-5510

 


Jack Lascar/Sheila Stuewe


DRG&L / 713-529-6600

 

SOURCE Basic Energy Services, Inc.

Basic Energy Services © 2019