Basic Energy Services Reports Selected Operating Data For October 2013

PR Newswire

FORT WORTH, Texas, Nov. 13, 2013 /PRNewswire/ -- Basic Energy Services, Inc. (BAS) ("Basic") today reported selected operating data for the month of October 2013.  Basic's well servicing rig count remained unchanged at 425. Well servicing rig hours for the month were 76,500 producing a rig utilization rate of 71%, compared to 71% and 72% in September 2013 and October 2012, respectively.

During the month, Basic's fluid service truck count increased by 14 to 983. Fluid service truck hours for the month were 201,900 compared to 189,600 and 194,700 in September 2013 and October 2012, respectively.

Drilling rig days for the month were 255 producing a rig utilization of 69%, compared to 74% and 85% in September 2013 and October 2012, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "Activity levels for October were fairly consistent with what we had expected for our three largest business segments.  We experienced lower sequential utilization during October for our contract drilling rig fleet due to delays in projects for our mid to lower horsepower rigs that are operating on a well-to-well basis. Recent contract activity for these rigs has improved and utilization rates should remain flat with third quarter.

"Calendars for our pumping division and utilization rates for our well servicing and fluid services segments remained fairly steady in October. Yet the normal fourth quarter seasonal slowdown for all of our business lines has begun.

"We still expect our fourth quarter revenue to be 6% to 7% lower than the third quarter and our fourth quarter segment margins to decline accordingly with the lower revenue. We continue to receive positive feedback from our customers with respect to 2014 and we currently anticipate next year to unfold as we have recently discussed."

 

OPERATING DATA






Month ended





October 31,


September 30,





2013

2012


2013









Number of weekdays in period



23

23


21









Number of well servicing rigs: 1







  Weighted average for period



425

431


425

  End of period



425

431


425

  Rig hours (000s)



76.5

78.6


69.3

  Rig utilization rate 2



71%

72%


71%









Number of fluid service trucks: 1







  Weighted average for period



977

946


970

  End of period



983

951


969

  Truck Hours (000s)



201.9

194.7


189.6









Number of drilling rigs: 1







  Weighted average for period



12

12


12

  End of period



12

12


12

  Drilling rig days



255

315


267

  Drilling rig utilization



69%

85%


74%

(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 5,400 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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