Current BAS Stock Info

Basic Energy Services Breakout Notes

Roe Patterson, president and CEO of Basic Energy Services, (ticker: BAS) presented today at EnerCom’s The Oil & Gas Conference® 22.

Basic Energy Services provides oilfield service through every stage of a well’s life, and operates in nearly every major U.S. play. In line with current trends in industry activity, the majority of Basic’s recent operations have taken place in the Permian basin.

During its second quarter, the company increased revenue by 17%, up to $213.3 million from Q1’s revenue of $182.0 million. Basic’s president and CEO, Roe Patterson, noted that increased activity was spreading from the Permian and SCOOP/STACK plays into the Niobrara, California, and Eagle Ford markets. Half of the company’s new 74,000 HHP was put into service at the end of Q2. The company will be changing the name of its Fluid Services segment to Water Logistics.

During the company’s breakout session, management was asked the following questions:

  • Can you provide some guidance, is it just prominently activity based or is there a pricing that you are factoring into that?
  • We have heard a lot about rigs are drilled faster, what’s happening on the completion side? Is water or oil produced 28 days after the well was spudded and now is only 14 days after the well was spudded?
  • How is your equipment holding up?
  • How is everybody’s utilization dynamics for their equipment?
  • You mentioned $45 is the key price where customers may tap breaks underneath, does that mean customers will have their calendar pushed out if they have to have something to get done?
  • What’s your plan in water business?
  • Does Canada’s legal issues make that more challenging in certain areas?
  • Are you guys staffing up? Are you doing that with employee at Basics?
  • Could you comment on what got you excited so far from your presentation?
  • We hear about silicon dust regulation at launch. Is Basics doing anything with that?
  • Consider your need on the extra horsepower on site. Can you get paid for that? Does that reduce your overall utilization potential because you got a pile of equipment sitting around?
  • Can you touch on the market of M&A?
  • You talked about flexibility on water. Are you pretty much the only one that’s as flexible as you are? Is that why you have such high volume of work?
  • If frac price stays flat here on, how much more revenue per fleet do you think you all can do just on efficiencies?
  • Is there any new technologies you might add to your service offering in the near future?
  • Can you touch on ATM?

Basic presented at EnerCom’s 2017 The Oil & Gas Conference®.

You can listen to the company’s presentation by clicking here.

You can view the company’s Q2 update by clicking here.

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