Basic Energy Services Reports Selected Operating Data for October 2012
FORT WORTH, Texas, Nov. 15, 2012 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today reported selected operating data for the month of October 2012. Basic’s well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 78,600 producing a rig utilization rate of 72%, compared to 71% and 78% in September 2012 and October 2011, respectively.
During the month, Basic’s fluid service truck count increased by 11 trucks to 951. Fluid service truck hours for the month were 194,700 compared to 175,000 and 193,500 in September 2012 and October 2011, respectively.
Drilling rig days for the month were 315 producing a rig utilization of 85%, compared to 80% and 90% in September 2012 and October 2011, respectively.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “Due to additional operating days and the absence of a holiday in October, we generated sequentially higher rig and truck hours. Well service rig utilization began feeling the seasonal effect of shorter workdays during October with a full hour less of daylight available each day compared to September. We expect that well servicing utilization will decline to the mid-60% range in November and December as the result of declining daylight hours, and the impact of Thanksgiving and year end holidays, as well as the possibility of weather interruptions. Our average fluid service hours per calendar day per truck in October of 6.6 hours compared to 6.2 hours in September due to the absence of the holiday.
“In general, the operating and pricing landscape continues to be competitive across all business segments. Customers are winding down their 2012 capital spending and will likely take advantage of extended holiday breaks, which will substantially reduce demand at year end. Customer plans for 2013 are starting to be announced, but there are still no indication as to the timing of their expenditures for next year. Our guidance for the fourth quarter and the beginning of 2013 remains the same as provided in our third quarter earnings release and conference call.”
OPERATING DATA Month ended ----------- October 31, September 30, 2012 2011 2012 ---- ---- ---- Number of weekdays in period 23 21 20 Number of well servicing rigs: (1) Weighted average for period 431 417 431 End of period 431 417 431 Rig hours (000s) 78.6 75.3 67.5 Rig utilization rate(2) 72% 78% 71% Number of fluid service trucks:(1) Weighted average for period 946 873 937 End of period 951 874 940 Truck hours (000s) 194.7 193.5 175.0 Number of drilling rigs:(1) Weighted average for period 12 10 12 End of period 12 10 12 Drilling rig days 315 279 289 Drilling rig utilization 85% 90% 80%
(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.