Basic Energy Services Reports Selected Operating Data For June 2014

PR Newswire

FORT WORTH, Texas, July 11, 2014 /PRNewswire/ -- Basic Energy Services, Inc. (BAS) ("Basic") today reported selected operating data for the month of June 2014.  Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 71,600 producing a rig utilization rate of 74%, compared to 70% and 79% in May 2014 and June 2013, respectively.

During the month, Basic's fluid service truck count decreased by one to 1,016. Fluid service truck hours for the month were 205,300 compared to 213,400 and 185,400 in May 2014 and June 2013, respectively.

Drilling rig days for the month were 317 producing a rig utilization of 88%, compared to 89% and 79% in May 2014 and June 2013, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "Activity in June for our major business lines was consistent with the momentum that we saw throughout the second quarter of this year. We did experience a slight impact from rainy conditions throughout our Texas and Oklahoma footprint which had some effect on all business lines in those markets, particularly our fluid service truck hours. Demand for our pumping services and coil tubing operations during the month continued at a strong pace due to the high level of completion activity. In addition, our well servicing utilization increased from April and May, mainly due to the absence of a holiday in June as well as continued modest improvements in busier well servicing markets like the Permian Basin and Eagle Ford.

"We now expect our second quarter revenue to be approximately 6% to 7% higher sequentially compared to our previous guidance of 5% to 6%.  This improvement is mainly attributable to the better than expected activity in our completion and remedial segment, particularly from stimulation services.  We will discuss our third quarter revenue expectations during our second quarter earnings call later this month.

"With the improving market environment, we are evaluating multiple organic and acquisition growth opportunities across all business lines. We expect to close on a few small acquisitions in the near term and we remain confident in the potential for some larger deals to close before year-end as well."

OPERATING DATA





Month ended




June 30,


May 31,




2014

2013


2014








Number of weekdays in period



21

20


22








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



71.6

72.7


71.3

  Rig utilization rate 2,3



74%

79%


70%








Number of fluid service trucks: 1







  Weighted average for period



1,017

971


1,016

  End of period



1,016

968


1,017

  Truck Hours (000s)



205.3

185.4


213.4








Number of drilling rigs: 1







  Weighted average for period



12

12


12

  End of period



12

12


12

  Drilling rig days



317

285


332

  Drilling rig utilization



88%

79%


89%





(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 June 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 5,600 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


Dennard – Lascar Associates


713-529-6600

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