Basic Energy Services Reports Selected Operating Data For March 2013
FORT WORTH, Texas, April 15, 2013 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today reported selected operating data for the month of March 2013. Basic’s well servicing rig count remained unchanged at 425. Well servicing rig hours for the month were 72,200 producing a rig utilization rate of 74%, compared to 71% and 78% in February 2013 and March 2012, respectively.
During the month, Basic’s fluid service truck count increased by five trucks to 967. Fluid service truck hours for the month were 192,300 compared to 177,600 and 195,900 in February 2013 and March 2012, respectively.
Drilling rig days for the month were 293 producing a rig utilization of 79%, compared to 79% and 91% in February 2013 and March 2012, respectively.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “Overall activity levels increased from February as we benefited from better weather and the increasing daylight hours in March. Well servicing utilization increased in March due to seasonal factors but was impacted by one to two percentage points because of the decreased hours worked during the Easter holiday week. Truck hours per fluid service truck per calendar day were slightly down in March from February due to the lower activity during the Easter holiday week. Our Completion and Remedial Services segment, particularly stimulation services, showed improvement from February as we saw an increase in completion activity during March while pricing remained consistent with prior months’ levels.
“We expect our first quarter revenue to be approximately 1% higher sequentially, slightly less than the previous guidance of 2% to 3%. Although the U.S. land drilling rig count has been fairly static since the beginning of the year, we are encouraged by the recent improvement in the rig count, particularly in our Permian Basin market. In addition, our operations in the second quarter will benefit from the seasonal factors of increasing daylight hours and better weather as we progress through the spring. Based on these factors and discussions with our customers, our current expectation is that our second quarter revenue will be approximately 10% higher than the first quarter.
“We have closely monitored our capital spending since the beginning of the year and we are on track at this point with our 2013 capital budget of $185 million, which excludes acquisitions. There are a number of acquisition opportunities across our footprint and service lines; however, we are being very selective in giving serious consideration to only those with compelling valuations that fit within our core businesses.”
OPERATING DATA Month ended ----------- March 31, February 28, 2013 2012 2013 ---- ---- ---- Number of weekdays in period 21 22 20 Number of well servicing rigs: (1) Weighted average for period 425 427 425 End of period 425 431 425 Rig hours (000s) 72.2 80.6 66.4 Rig utilization rate 2 74% 78% 71% Number of fluid service trucks: Weighted average for period 965 910 963 End of period 967 915 962 Truck Hours (000s) 192.3 195.9 177.6 Number of drilling rigs: Weighted average for period 12 12 12 End of period 12 12 12 Drilling rig days 293 338 265 Drilling rig utilization 79% 91% 79%
(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 States.
Additional information on Basic Energy Services is available on Basic’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. 817-334-4100 Jack Lascar/Sheila Stuewe Dennard-Lascar Associates 713-529-6600
SOURCE Basic Energy Services, Inc.