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Basic Energy Services Reports Selected Operating Data For November 2014

FORT WORTH, Texas, Dec. 9, 2014 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of November 2014.  Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 62,300 producing a rig utilization rate of 67%, compared to 73% and 61% in October 2014 and November 2013, respectively.

During the month, Basic's fluid service truck count increased by two to 1,042. Fluid service truck hours for the month were 210,400 compared to 234,800 and 185,100 in October 2014 and November, 2013 respectively.

Drilling rig days for the month were 298 producing a rig utilization of 83%, compared to 88% and 72% in October 2014 and November 2013, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "We were generally pleased with our November results. While we experienced the normal impact from the extended Thanksgiving holiday and some rainy conditions early in the month, overall activity levels were slightly above our expectations. We experienced similarly strong demand in our completion and remedial services segment as we have all year. Stimulation and coil tubing calendars remain steady through year end and some customers have recently reconfirmed their dates for the first quarter of 2015.

The Permian Basin and Mid-Continent operations were most impacted by the wet weather. Well servicing operations lost about 200 basis points of utilization, while fluid services were only slightly impacted by the wet conditions. Contract drilling utilization was lower in November as one of our rigs was transitioning between jobs.

"Based on current commodity price forecasts for the near term, and the possibility of a prolonged period of lower oil prices, we anticipate lower capital spending by our customers in 2015. Therefore, we have initiated plans to deal with an environment for decreasing business conditions. We have in place a well-established operating strategy to deal with this environment, which includes reducing capital spending, scaling back operations to fit cash flow, protecting our market share and preserving liquidity. Our 2014 capital campaign was relatively frontloaded, and we have no significant capital obligations remaining for 2014, thus enhancing our liquidity. We expect to have a significant reduction in our 2015 capital expenditure plan, shifting primarily to a maintain-and-sustain revenue mode only.  We will provide more details on our 2015 capital plans in our December operating data press release in early January."

OPERATING DATA






Month ended





November 30,


October 31,





2014

2013


2014









Number of weekdays in period



20

21


23









Number of well servicing rigs: 1







  Weighted average for period 2



421

421


421

  End of period 2



421

421


421

  Rig hours (000s) 2



62.3

59.3


77.8

  Rig utilization rate 2,3



67%

61%


73%









Number of fluid service trucks: 1







  Weighted average for period



1041

986


1043

  End of period



1042

989


1040

  Truck Hours (000s)



210.4

185.1


234.8









Number of drilling rigs: 1







  Weighted average for period



12

12


12

  End of period



12

12


12

  Drilling rig days



298

259


326

  Drilling rig utilization



83%

72%


88%








(1)

Includes all rigs and trucks owned during periods presented and excludes rigs and trucks held for sale.

(2)

Basic sold its four inland barge workover rigs on March 31, 2014. The weighted average number of rigs, number of rigs at the end of the period, rig hours and rig utilization rate for November 2013 has been recalculated as if these four rigs had been sold for that period.

(3)

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 5,800 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, 2013 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 / Stephanie Smith


Dennard – Lascar Associates


713-529-6600

 

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SOURCE Basic Energy Services, Inc.

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