Basic Energy Services Reports Selected Operating Data For June 2012
MIDLAND, Texas, July 13, 2012
MIDLAND, Texas, July 13, 2012 /PRNewswire/ --Basic Energy Services, Inc.
(NYSE: BAS) ("Basic") today reported selected operating data for the month of
June 2012. Basic's well servicing rig count remained unchanged at 431. Well
servicing rig hours for the month were 76,100 producing a rig utilization rate
of 76%, compared to 72% and 74% in May 2012 and June 2011, respectively.
During the month, Basic's fluid service truck count increased by six trucks to
926. Fluid service truck hours for the month were 178,400, compared to
189,100 and 178,300 in May 2012 and June 2011, respectively.
Drilling rig days for the month were 329 producing a rig utilization of 91%,
compared to 96% and 85% in May 2012 and June 2011, respectively.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "We saw
our Well Servicing rig utilization rate in June increase to 76% as activity
rebounded from the extended Memorial Day holiday weekend in late May. Fluid
Services hours on a calendar day basis were very similar to what we achieved
in May and our drilling rig utilization rate continues to be higher than 90%.
Our Completion and Remedial segment experienced some softening late in the
month with several frac jobs postponed until after the Fourth of July
holiday. In addition to a flattening of activity, we are still seeing more
equipment being repositioned into the more active markets causing competitive
pricing pressures. We now expect our second quarter revenue to be
approximately 2.5% lower than the first quarter, rather than the one to two
percent guidance that we gave in our May operating report.
"We expect the U.S. land drilling rig count to decline in the latter part of
this year and accordingly, our services related to completion activity are
expected to also decline. If commodity prices stay at current levels, we
believe that the seasonal decline in the fourth quarter will be more severe
than the fourth quarter of 2011. In response to anticipated lower levels of
activity, the majority of our capital expenditures in the second half of 2012
will be directed to projects in process and to those expenditures that are
required to maintain and sustain our existing fleets. Any expansion projects
will require a higher degree of review before we make a commitment.
"At June 30, our cash balance was approximately $100 million and our revolver
was undrawn. We have been repurchasing shares of our stock since the
reinstatement of our stock repurchase plan on May 23. As of July 12, we have
repurchased 791,862 shares at an average cost of $9.42 per share."
June 30, May 31,
2012 2011 2012
Number of weekdays in period 21 22 23
Number of well servicing rigs: (1)
Weighted average for period 431 412 431
End of period 431 412 431
Rig hours (000s) 76.1 73.6 78.6
Rig utilization rate (2) 76% 74% 72%
Number of fluid service trucks: (1)
Weighted average for period 923 838 917
End of period 926 838 920
Truck hours (000s) 178.4 178.3 189.1
Number of drilling rigs: (1)
Weighted average for period 12 10 12
End of period 12 10 12
Drilling rig days 329 256 357
Drilling rig utilization 91% 85% 96%
(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 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,
2011 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.
Jack Lascar/Sheila Stuewe
DRG&L / 713-529-6600
SOURCE Basic Energy Services, Inc.
Press spacebar to pause and continue. Press esc to stop.