Basic Energy Services Reports Selected Operating Data For April 2013
FORT WORTH, Texas, May 15, 2013 /PRNewswire/ — Basic Energy Services, Inc. (NYSE: BAS) (“Basic”) today reported selected operating data for the month of April 2013. Basic’s well servicing rig count remained unchanged at 425. Well servicing rig hours for the month were 73,700 producing a rig utilization rate of 72%, compared to 74% and 78% in March 2013 and April 2012, respectively.
During the month, Basic’s fluid service truck count increased by seven trucks to 974. Fluid service truck hours for the month were 188,800 compared to 192,300 and 184,900 in March 2013 and April 2012, respectively.
Drilling rig days for the month were 269 producing a rig utilization of 75%, compared to 79% and 89% in March 2013 and April 2012, respectively.
Ken Huseman, Basic’s President and Chief Executive Officer, stated, “Monthly well servicing utilization declined in April after three months of sequential increases. Late spring snow storms disrupted oilfield activity in early April in the northern portion of our footprint and later in the month softness developed in the less productive, higher cost portions of our Permian Basin market. Fluid Services hours per truck per calendar day inched upward with steady utilization throughout our markets and strong performance by our Gulf Coast Region. Pricing remained flat despite fierce competition among providers of both services.
“Our Completion and Remedial Services segment performed at similar levels to March. Pricing for those service lines has stabilized with customers’ content to maintain the continuity of service providers rather than trying out new competitors. Our drilling rig utilization declined reflecting the stacking of one Super Single rig due to the reduction in vertical well demand.
“Despite oil prices remaining at the upper end of the historical range, oil related activity, particularly in our Permian market, has not moved up as expected this spring. Our conversations with customers continue to indicate plans for a higher rate of spending for our services as the year progresses, but we have not yet seen that reflected in the active rig count and in field activity to this point. With the quarter now essentially half completed, we’re reducing the expectation for the 10% sequential increase in revenue projected in our March update to 5% to 7%.”
OPERATING DATA Month ended ----------- April 30, March 31, 2013 2012 2013 ---- ---- ---- Number of weekdays in period 22 21 21 Number of well servicing rigs: (1) Weighted average for period 425 431 425 End of period 425 431 425 Rig hours (000s) 73.7 77.8 72.2 Rig utilization rate 2 72% 78% 74% Number of fluid service trucks: Weighted average for period 971 915 965 End of period 974 915 967 Truck Hours (000s) 188.8 184.9 192.3 Number of drilling rigs: Weighted average for period 12 12 12 End of period 12 12 12 Drilling rig days 269 321 293 Drilling rig utilization 75% 89% 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 5,600 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. 817-334-4100 Jack Lascar/Sheila Stuewe Dennard-Lascar Associates /713- 529-6600
SOURCE Basic Energy Services, Inc.