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Basic Energy Services Reports Selected Operating Data for November 2012

FORT WORTH, Texas, Dec. 13, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of November 2012.  Basic's well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 64,400 producing a rig utilization rate of 62%, compared to 72% in both October 2012 and November 2011.

During the month, Basic's fluid service truck count increased by 6 to 957 trucks.  Fluid service truck hours for the month were 182,400 compared to 194,700 and 188,200 in October 2012 and November 2011, respectively.

Drilling rig days for the month were 272 producing a rig utilization of 76%, compared to 85% and 98% in October 2012 and November 2011, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Utilization rates in November for all business lines were reduced by the seasonal impacts of the Thanksgiving holiday and shorter daylight hours.  In addition, we saw the continued effects of our customers winding down their spending for 2012 as we approach year end.

"Our utilization trends generally matched expectations cited in our October update with stimulation a bit weaker than expected.  Well Servicing utilization dipped to the 60% level with the protracted Thanksgiving holiday week interrupting steady demand for production related activity.

"Reduced drilling activity and the resulting increase in price competition impacted our fluid services business but we were able to maintain good utilization. Average fluid service truck hours per calendar day per truck in November were 6.4 hours compared to 6.6 hours in October due mainly to the Thanksgiving holiday. Our reported Contract Drilling utilization rate in November decreased as two shallow rigs came off of multi-well programs.  We were able to use those rigs on internal projects drilling new salt water disposal wells so effective utilization for our drilling rigs was consistent with the October rate of 85%.

"Considering the current pricing environment and more severe than expected activity declines into year end, we now expect fourth quarter revenue to be 12% to 14% lower than the third quarter and weaker than the 5% to 7% previously projected sequential decline.  While we are encouraged by recently announced exploration and production capital spending plans for 2013, our first quarter expectations remain subdued as capital spending will not likely increase until the second quarter.  As a result, we remain focused on maintaining utilization and our market positions until higher demand allows service providers to be more aggressive on pricing in the middle part of the year."



OPERATING DATA



Month ended


November 30,


October 31,


2012

2011


2012






Number of weekdays in period

22

22


23






Number of well servicing rigs: 1





  Weighted average for period

431

417


431

  End of period

431

417


431

Rig hours (000s)

64.4

72.4


78.6

Rig utilization rate2

62%

72%


72%






Number of fluid service trucks:1





  Weighted average for period

954

873


946

  End of period

957

872


951

Truck hours (000s)

182.4

188.2


194.7






Number of drilling rigs:1





  Weighted average for period

12

10


12

  End of period

12

12


12

Drilling rig days

272

295


315

Drilling rig utilization 

76%

98%


85%

(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.


817-334-4100




Jack Lascar/Sheila Stuewe


DRG&L / 713-529-6600

 

SOURCE Basic Energy Services, Inc.

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