Basic Energy Services Completes Acquisition of Five Salt Water Disposal Facilities in Bakken Shale
FORT WORTH, Texas, Dec. 20, 2012 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) announced today that it has completed the acquisition of substantially all of the assets of Saltwater Disposal of North Dakota, LLC (“SWDND”) for a total cash consideration of $43 million. SWDND was founded in 2010 to develop, build and operate salt water disposal facilities in Mountrail County, North Dakota. The purchase of the assets of SWDND includes five salt water disposal facilities and eight residential housing units.
Basic expects this acquisition to be accretive to earnings and contribute revenue of approximately $14 million in 2013. As of the date of the acquisition, SWDND employed 16 people. With this purchase, Basic now owns 72 salt water disposal facilities in Texas, Oklahoma, North Dakota, New Mexico and Louisiana.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “We are pleased to announce the purchase of this well-placed network of disposal wells, which we believe to be among the newest and most efficient in the Williston Basin. These facilities augment our existing fluid services operations in the area and anchor the expansion of our integrated fluid services capabilities in a large and growing portion of the Bakken Shale market. We look forward to the SWDND management team’s guidance as we continue to build our salt water disposal capabilities in the Bakken Shale.”
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 5,600 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.