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 October 13, 2015 - 6:15 PM EDT
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Basic Energy Services Reports Selected Operating Data For September 2015

FORT WORTH, Texas, Oct. 13, 2015 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of September 2015.  Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 46,800 producing a rig utilization rate of 46%, compared to 53% and 71% in August 2015 and September 2014, respectively.

During the month, Basic's fluid service truck count remained flat at 1,015. Fluid service truck hours for the month were 183,400, compared to 188,100 and 215,800 in August 2015 and September 2014, respectively.

Drilling rig days for the month were 97 producing a rig utilization of 27%, compared to 23% and 91% in August 2015 and September 2014, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, commented, "Rig hours and utilization fell from August to September, primarily due to the Labor Day holiday period and competitive market conditions.  Fluid service hours in September on an average per truck per calendar basis were consistent with August activity despite the Labor Day holiday impact. Completion activity in our completion and remedial segment continues to be impacted by the lower drilling rig count and volatile oil price environment. As a result of the continued weakness in commodity prices, pricing in all of our markets and lines of business is being lowered in order to maintain activity levels and protect market share as much as possible. Recently, in a few selected markets, stimulation pricing has fallen to levels where cash margins at the field level do not support regular maintenance capital expenditures on equipment. In these instances, we have either temporarily stacked our equipment or relocated frac spreads to other markets.

"Pricing in our production-related businesses remains competitive but we have seen more stable utilization rates. Of these lines of business, our fluid services business has been the most resilient because of our salt water disposal well network, especially in markets like the Permian Basin. Concentrating our produced water hauls on our company-owned disposal facilities allows us to keep costs low and efficiencies high. Seasonal impacts and low commodity prices will weigh on our production-related businesses in the near term, but we expect them to perform better than drilling and completion-related businesses until the drilling rig count rebounds.

"Based on our September performance, we expect that our third quarter 2015 revenues to be in line with our previous guidance of 4 to 5% lower sequentially.  We will discuss our third quarter performance and fourth quarter expectations during our third quarter earnings call later this month."

OPERATING DATA






Month ended





September 30,


August 31,





2015

2014


2015









Number of weekdays in period



22

22


21









Number of well servicing rigs: 1







  Weighted average for period 



421

421


421

  End of period



421

421


421

  Rig hours (000s) 



46.8

71.8


51.9

  Rig utilization rate 2



46%

71%


53%









Number of fluid service trucks: 1







  Weighted average for period



1,015

1,035


1,011

  End of period



1,015

1,045


1,015

  Truck Hours (000s)



183.4

215.8


188.1









Number of drilling rigs: 1







  Weighted average for period



12

12


12

  End of period



12

12


12

  Drilling rig days



97

327


86

  Drilling rig utilization



27%

91%


23%



(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 4,200 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.

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, 2014 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 / Stephanie Zhadkevich


Dennard – Lascar Associates


713-529-6600

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/basic-energy-services-reports-selected-operating-data-for-september-2015-300159172.html

SOURCE Basic Energy Services, Inc.


Source: PR Newswire (October 13, 2015 - 6:15 PM EDT)

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