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Basic Energy Services Reports Selected Operating Data For May 2015

FORT WORTH, Texas, June 12, 2015 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of May 2015.  Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 48,200 producing a rig utilization rate of 50%, compared to 50% and 70% in April 2015 and May 2014, respectively.

During the month, Basic's fluid service truck count decreased by two to 1,006. Fluid service truck hours for the month were 189,900 compared to 190,600 and 213,400 in April 2015 and May 2014, respectively.

Drilling rig days for the month were 96 producing a rig utilization of 26%, compared to 34% and 89% in April 2015 and May 2014, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "Our May activity levels, excluding weather interruptions, were generally consistent with what we experienced in April. A record amount of rain-fall across our primary operating footprints substantially hampered each of our primary service lines during May. We estimate heavy rains reduced well servicing utilization by 500 basis points and fluid service truck hours by five percent, and also significantly impacted both our stimulation and rental tool service lines. The Memorial Day holiday reduced our well servicing utilization and fluid service truck hours by 200 basis points and two percent, respectively.

"Completion-oriented business lines, such as stimulation services, continue to experience fierce competition given the declining drilling rig count. However, price concessions are starting to stabilize in most of our operating markets. Well servicing and fluid services utilization appears to have reached steady levels with potential for slight improvement as we experience longer daylight hours and anticipate better weather through the summer months. The first part of June has reflected this initial stabilization.

"In our first quarter earnings call on April 24, we had projected that our second quarter revenues were going to be 10% to 15% lower sequentially. With drilling rig count decreases and pricing competition being greater than anticipated, combined with unprecedented adverse weather conditions, we now expect our second quarter revenue to be approximately 22% to 24% lower sequentially. We estimate that approximately 40% of this change in revenue projection is due to weather impact that occurred subsequent to our first quarter earnings call.

"Our cost cutting measures and right-sizing efforts in each of our geographic footprints have been successful and remain ongoing. I would like to commend our employees at all levels of the company for their quick and effective actions to protect our market share and control costs."

OPERATING DATA





Month ended




May 31,


April 30,




2015

2014


2015








Number of weekdays in period


21

22


22








Number of well servicing rigs: 1






  Weighted average for period 


421

421


421

  End of period


421

421


421

  Rig hours (000s) 


48.2

71.3


50.7

  Rig utilization rate 2


50%

70%


50%








Number of fluid service trucks: 1






  Weighted average for period


1,007

1,016


1,017

  End of period


1,006

1,017


1,008

  Truck Hours (000s)


189.9

213.4


190.6








Number of drilling rigs: 1






  Weighted average for period


12

12


12

  End of period


12

12


12

  Drilling rig days


96

332


124

  Drilling rig utilization


26%

89%


34%



(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 4,500 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


Dennard – Lascar Associates


713-529-6600

 

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SOURCE Basic Energy Services, Inc.

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