Basic Energy Services Reports Selected Operating Data For August 2012
MIDLAND, Texas, Sept. 13, 2012 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today reported selected operating data for the month of August 2012. Basic’s well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 81,500 producing a rig utilization rate of 75%, compared to 74% and 75% in July 2012 and August 2011, respectively.
During the month, Basic’s fluid service truck count increased by six trucks to 933. Fluid service truck hours for the month were 191,800, compared to 184,800 and 194,000 in July 2012 and August 2011, respectively.
Drilling rig days for the month were 338 producing a rig utilization of 91%, compared to 89% and 83% in July 2012 and August 2011, respectively.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “Hours and utilization both improved sequentially due to one additional weekday and the absence of the holiday impact compared to July. Demand across our segments and geographic markets remained stable but increased competition continues to put pressure on revenue rates and wages. As stated in our July commentary, we are focused on retaining our market position and our August activity levels confirm our success to date.
“Our outlook for remainder of the year is unchanged from July. Despite recent improvement in crude oil prices, customers have not resumed the robust activity levels we experienced earlier in the year. Current gas prices are not expected to support higher activity levels. As a result, we expect a gradual reduction in activity and pricing into 2013.”
OPERATING DATA Month ended ----------- August 31, July 31, 2012 2011 2012 ---- ---- ---- Number of weekdays in period 23 23 22 Number of well servicing rigs: (1) Weighted average for period 431 417 431 End of period 431 417 431 Rig hours (000s) 81.5 78.8 77.4 Rig utilization rate(2) 75% 75% 74% Number of fluid service trucks:(1) Weighted average for period 930 871 926 End of period 933 872 927 Truck hours (000s) 191.8 194.0 184.8 Number of drilling rigs:(1) Weighted average for period 12 10 12 End of period 12 10 12 Drilling rig days 338 257 330 Drilling rig utilization 91% 83% 89%
((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. 432-620-5516 Jack Lascar/Sheila Stuewe DRG&L / 713-529-6600
SOURCE Basic Energy Services, Inc.