Basic Energy Services Reports Selected Operating Data for September 2012
FORT WORTH, Texas, Oct. 16, 2012 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today reported selected operating data for the month of September 2012. Basic’s well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 67,500 producing a rig utilization rate of 71%, compared to 75% and 74% in August 2012 and September 2011, respectively.
During the month, Basic’s fluid service truck count increased by seven trucks to 940. Fluid service truck hours for the month were 175,000 compared to 191,800 and 186,500 in August 2012 and September 2011, respectively.
Drilling rig days for the month were 289 producing a rig utilization of 80%, compared to 91% and 89% in August 2012 and September 2011, respectively.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “Activity declined in each of our operating segments compared to August due to fewer workdays and the Labor Day holiday. Our well servicing segment, which predominantly provides production maintenance services, was impacted most severely with an estimated three percentage point reduction in utilization due to the Labor Day holiday. Although competition continues to intensify as completion-related demand has declined, we have been able to hold well servicing pricing flat.
Our fluid services truck hours declined sequentially despite the addition of a few more trucks in our Permian Business Unit. Increased competition in the form of startups and continued equipment migration from slower markets has put pressure on rates in our oilier markets. Our Completion and Remedial Services segment, particularly our stimulation services, experienced lower activity and pricing levels along the lines we had expected. Contract Drilling utilization in September dropped to 80% from 91% in August due to delays on several of our rigs that are on a well to well basis. We also used one of our rigs on an internal project in our fluid services segment, which negatively impacted utilization.
“We expect that revenue for the third quarter will be down five to six percent sequentially, which is a larger decline than our previous guidance of three percent. We continue to anticipate that revenue in the fourth quarter will be down three to five percent sequentially, resulting in margins declining about 200 basis points. We currently expect a gradual reduction in activity and pricing into the first part of 2013.”
OPERATING DATA September 30, August 31, 2012 2011 2012 ---- ---- ---- Number of weekdays in period 20 22 23 Number of well servicing rigs: (1) Weighted average for period 431 417 431 End of period 431 417 431 Rig hours (000s) 67.5 74.3 81.5 Rig utilization rate(2) 71% 74% 75% Number of fluid service trucks:(1) Weighted average for period 937 872 930 End of period 940 872 933 Truck hours (000s) 175.0 186.5 191.8 Number of drilling rigs:(1) Weighted average for period 12 10 12 End of period 12 10 12 Drilling rig days 289 266 338 Drilling rig utilization 80% 89% 91%
((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. 817-334-4100 Jack Lascar/Sheila Stuewe DRG&L / 713-529-6600
SOURCE Basic Energy Services, Inc.