Basic Energy Services Reports Selected Operating Data For December 2012
FORT WORTH, Texas, Jan. 14, 2013 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today reported selected operating data for the month of December 2012. Basic’s well servicing rig count decreased by six to 425 mainly due to rig retirements in December. Well servicing rig hours for the month were 60,000 producing a rig utilization rate of 61% (60% including retired rigs), compared to 62% and 69% in November 2012 and December 2011, respectively.
During the month, Basic’s fluid service truck count decreased by two trucks to 955. Fluid service truck hours for the month were 178,100 compared to 182,400 and 189,100 in November 2012 and December 2011, respectively.
Drilling rig days for the month were 305 producing a rig utilization of 82%, compared to 76% and 89% in November 2012 and December 2011, respectively.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “December activity for each of our business segments developed as anticipated with the seasonal impact of the holidays, less daylight hours and our customers winding down their 2012 spending. Pricing remains competitive as excess capacity continues to plague each segment although it appears that discounting leveled off during the fourth quarter.
“We retired nine of our stacked well servicing rigs in the month as they were deemed not to be candidates for refurbishment. Those rigs were carried at or close to salvage value so there will be minimal financial impact from their retirement. We have 29 rigs remaining in our stacked fleet that can be refurbished and re-activated as market conditions improve. As shown with the three new rigs added in December, we have the capability to continually upgrade and expand our well servicing fleet through newbuilds from our Taylor Manufacturing facility in Tulsa, Oklahoma.
“Capital spending surveys for this year indicate industry spending levels similar to 2012 with real growth in most oil-oriented markets. Many of our customers have yet to announce field level budgets and plans for 2013, leading us to expect a slow ramp of activity into the second quarter. As we await those announced plans to materialize, we will continue to focus on maximizing utilization of our services to retain market share in each our operating areas.
“Although not yet approved by our board of directors, we anticipate a capital budget for 2013 of approximately $185 million, with roughly two-thirds directed to maintaining our existing equipment and capability. The majority of the growth capital will be used for the expansion of our salt water disposal facility network. We can increase or decrease those spending plans as our operating results and view of market demand develops.
“The preliminary 2013 capital budget does not include acquisitions that we expect to complete over the course of the year. Current deal flow offers attractive opportunities in each of our segments and geographic regions. We expect to complete several acquisitions during the first half of this year.
“The relocation of our corporate headquarters to Fort Worth was completed in December with the final staffing and personnel moves. This process was successfully completed with minimal disruption to our operations, and we are now in a better position to provide support to our operations and facilitate future growth of the Company.”
OPERATING DATA Month ended ----------- December 31, November 30, 2012 2011 2012 ---- ---- ---- Number of weekdays in period 21 22 22 Number of well servicing rigs: (1) Weighted average for period 425 417 431 End of period 425 417 431 Rig hours (000s) 60.0 69.4 64.4 Rig utilization rate 2 61% 69% 62% Number of fluid service trucks: 1 Weighted average for period 956 880 954 End of period 955 890 957 Truck Hours (000s) 178.1 189.1 182.4 Number of drilling rigs:(1) Weighted average for period 12 10 12 End of period 12 12 12 Drilling rig days 305 277 272 Drilling rig utilization 82% 89% 76%
((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 5,600 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 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, 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.