Basic Energy Services Reports Selected Operating Data For February 2013
FORT WORTH, Texas, March 15, 2013 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today reported selected operating data for the month of February 2013. Basic’s well servicing rig count remained unchanged at 425. Well servicing rig hours for the month were 66,400 producing a rig utilization rate of 71%, compared to 67% and 76% in January 2013 and February 2012, respectively.
During the month, Basic’s fluid service truck count decreased by two trucks to 962. Fluid service truck hours for the month were 177,600 compared to 185,700 and 186,500 in January 2013 and February 2012, respectively.
Drilling rig days for the month were 265 producing a rig utilization of 79%, compared to 79% and 91% in January 2013 and February 2012, respectively.
In late February, Basic acquired substantially all of the operating assets of Atlas Equipment Company (“Atlas”) for $13 million in cash with an additional $9 million of contingent earn-out consideration if certain thresholds are attained. Assets include four mobile water treatment plants that are used for de-watering heavy mud. Three of these plants are located in North Dakota and one in Texas.
In addition, we purchased substantially all of the operating assets of Petroleum Water Solutions LLC (“Petro Water”) for $3.3 million with an additional $3.3 million of contingent earn-out consideration if certain thresholds are attained. Petro Water provides electrocoagulation and filtration services to treat produced salt water and frac flowback water.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “Our well servicing and fluid services operations performed at increased levels from January despite weather interruptions in the latter half of February. Our Mid-Continent operations were impacted by snow and ice and our Permian Basin operations were hindered by high winds during the month. Activity in our completion and remedial segment were at expected levels in February. Overall, pricing remains at 2012 year-end levels.
“Our customers continue to plan for higher levels of activity than we have seen since last fall. We believe we will see the industry ramp up spending significantly in the second quarter, but activity can be curtailed by weather, as we experienced in February.
“The operations and expertise gained in the Atlas and Petro Water acquisitions have been combined with our existing chlorine dioxide technology to form a new Water Solutions Services Division within our Fluid Services segment. This new group will have a broad range of capabilities to address the full spectrum of oilfield waste water streams from de-watering drilling fluids to processing frac flowback and produced water for reuse. We intend to build on our market presence and local knowledge within our existing fluid services operations to identify and capitalize on the growing need for waste water processing and recycling to minimize the need for fresh water and waste water disposal around the country.
“Our extensive network of service points, large truck and tank fleets, and well-placed salt water disposal facilities will help economically deploy water processing capability throughout our footprint. While revenue for our existing chlorine dioxide operations was only $2 million in 2012, we expect the Water Solutions Services Division to generate quarterly revenue of approximately $8 million by the fourth quarter of this year as we build and deploy additional processing equipment.”
Month ended ----------- February 28/29, January 31, 2013 2012 2013 ---- ---- ---- Number of weekdays in period 20 21 23 Number of well servicing rigs: (1) Weighted average for period 425 422 425 End of period 425 422 425 Rig hours (000s) 66.4 73.8 72.2 Rig utilization rate 2 71% 76% 67% Number of fluid service trucks: Weighted average for period 963 901 960 End of period 962 904 964 Truck Hours (000s) 177.6 186.5 185.7 Number of drilling rigs: Weighted average for period 12 12 12 End of period 12 12 12 Drilling rig days 265 316 292 Drilling rig utilization 79% 91% 79%
(1) Includes all rigs and trucks owned during periods presented and excludes rigs and trucks held for sale. 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 (2) 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, 2012 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.
Jack Lascar/Sheila Stuewe
Dennard – Lascar Associates
SOURCE Basic Energy Services, Inc.