Basic Energy Services Reports Selected Operating Data For September 2013

PR Newswire

FORT WORTH, Texas, Oct. 15, 2013 /PRNewswire/ -- Basic Energy Services, Inc. (BAS) ("Basic") today reported selected operating data for the month of September 2013.  Basic's well servicing rig count remained unchanged at 425. Well servicing rig hours for the month were 69,300 producing a rig utilization rate of 71%, compared to 77% and 71% in August 2013 and September 2012, respectively.

During the month, Basic's fluid service truck count decreased by one to 969.  Fluid service truck hours for the month were 189,600 compared to 200,300 and 175,000 in August 2013 and September 2012, respectively.

Drilling rig days for the month were 267 producing a rig utilization of 74%, compared to 75% and 80% in August 2013 and September 2012, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "Activity declined in each of our operating segments compared to August due to a combination of one less weekday and the Labor Day holiday. In addition, wet conditions in our Rocky Mountain and South Texas operating areas slowed activity late in the month. Although competition continued to be intense, we were able to hold pricing flat in most markets.

"We expect our third quarter revenue and segment profit margin to be similar to second quarter results, consistent with our previous guidance. Our outlook for the fourth quarter indicates that revenue will be down about 6% to 7% sequentially due to the seasonal factors, which typically occur in the fourth quarter of each year. Due to the seasonal slowdown, lower utilization levels could increase competitive pressure in some markets that are already crowded. Pricing and margins could be impacted as we compete to maintain market share."

OPERATING DATA






Month ended





September 30,


August 31,





2013

2012


2013









Number of weekdays in period



21

20


22









Number of well servicing rigs: 1







  Weighted average for period



425

431


425

  End of period



425

431


425

  Rig hours (000s)



69.3

67.5


79.2

  Rig utilization rate 2



71%

71%


77%









Number of fluid service trucks: 1







  Weighted average for period



970

937


970

  End of period



969

940


970

  Truck Hours (000s)



189.6

175.0


200.3









Number of drilling rigs: 1







  Weighted average for period



12

12


12

  End of period



12

12


12

  Drilling rig days



267

289


279

  Drilling rig utilization



74%

80%


75%


(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 5,500 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 States.

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, 2012 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


Dennard – Lascar Associates


713-529-6600

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