T. M. ‘Roe’ Patterson, President, Chief Executive Officer and Director of Basic Energy Services Inc. (NYSE: BAS), presented today at EnerCom’s The Oil & Gas Conference® 20.
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 4,400 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.
The company is high grading its rig fleet and is on the lookout for acquisition targets and excess equipment that can be purchased in the current market environment. Additional consolidations are expected in the second half of 2015.
During the company’s breakout session, management was asked the following questions:
- Can you tell us about your recent M&A activity?
- Are you still interested in auctions in the near future?
- Are you moving assets out of the markets?
- Can you tell us why so many small businesses are struggling right now?
- Do you think this industry downtrend will persist? And what’s your expectation for the pricing of the industry?
- How long could you feasibly maintain your business assuming the current level of pricing?
- Given recent oil market price concession, how will you react and maintain your business in the near future?
- Is production following the downward trend in pricing, and by how much?
- Some questions on the financials. To which level will you reallocate your CAPEX to maintain the business? Are there any tax refunds? Are you done with working capital benefit coverage?
- Are your looking for new business lines? How complimentary are they with your existing lines of business?
- What’s the overall market utilization right now?
- There doesn’t seem to be any orders for new equipment. How do you look at the future development on that issue?
- Are you fully right-sizing your business right now? What’s your plan for the next 6-month period?