Forbes Energy Services Reports 2013 Second Quarter Financial Results

Forbes Energy Services Reports 2013 Second Quarter Financial Results

ALICE, Texas, Aug. 9, 2013 (GLOBE NEWSWIRE) -- Forbes Energy Services Ltd.
(Nasdaq:FES) today announced financial and operating results for the three
months ended June 30, 2013.

Consolidated revenues for the second quarter of 2013 were approximately $103.7
million, compared to $101.7 million for the first quarter of 2013.

Highlights for the quarter ended June 30, 2013:

  oGross profit increased to $26.7 million, or 25.8% of revenues, in the
    second quarter of 2013, compared to $24.0 million, or 23.6%, in the first
    quarter of 2013.
  oGAAP net loss attributable to common shares was $0.9 million, or $0.04 per
    diluted share, for the second quarter of 2013, compared to net loss
    attributable to common shares of $2.8 million, or $0.13 per diluted share
    for the first quarter of 2013.
  oAdjusted EBITDA from U.S. Operations* totaled $20.0 million in the second
    quarter of 2013, a 15% increase as compared to $17.4 million in the first
    quarter of 2013.

^* Adjusted EBITDA from U.S. Operations, a non-GAAP financial measure, is
defined by the Company as income (loss) from continuing operations before
interest, taxes, depreciation, amortization, loss on early extinguishment of
debt, non-cash stock based compensation, and litigation settlement. For a
reconciliation of such measure to net income, please see the disclosures at
the end of this release and on the Company's Website.

Overview

Forbes' president and chief executive officer, John Crisp, stated, "Our second
quarter ended with a positive force as the momentum we experienced in the
latter part of the first quarter continued.

"Gross profit increased in our well servicing business relative to the first
quarter, while our fluid management business yielded a slight increase in
gross profit for the second consecutive quarter. We believe these operating
results are admirable considering the competitive pressures in the market,
particularly in the transportation-related arena.

"We anticipate these pressures to continue until the disparities in the
supply/demand ratio are corrected. We are moving into the second part of the
year with confidence and intend to maintain focus on the areas that have the
greatest potential impact to our bottom line."

Business Segment Results

Well Servicing Segment

In the second quarter of 2013, Well Servicing segment revenues increased 8.9%
to $54.6 million, compared to $50.2 million in the first quarter of 2013.
Segment gross profit totaled $12.1 million, or 22.2% of revenues, in the
second quarter of 2013 compared to $9.8 million, or 19.6% of revenues, for the
first quarter of 2013.

The Company recorded approximately 107,345 well service rig hours for the
second quarter of 2013, compared to 99,271 in the first quarter of 2013.
Capital expenditures in the Well Servicing segment for the quarter ended June
30, 2013 were approximately $3.4 million.

As of June 30, 2013, the Company had 162 well service rigs, nine tubing
testing systems, four pump-down units and five coiled tubing spreads.

Fluid Logistics Segment

In the second quarter of 2013, Fluid Logistics segment revenues decreased $2.5
million, or 4.9%, to $49.0 million, compared to $51.6 million in the first
quarter of 2013. Gross operating profit for the Fluid Logistics segment
totaled $14.6 million, or 29.8% of revenues, in the second quarter of 2013,
compared to $14.1 million, or 27.4% of revenues, in the first quarter of 2013.

The Company recorded 307,952 truck hours during the second quarter of 2013,
compared to 324,337 hours in the first quarter of 2013. The Company's heavy
truck fleet totaled 578 at June 30, 2013, which included 473 vacuum trucks.
Capital expenditures for the Fluid Logistics segment were approximately $7.0
million for the quarter ended June 30, 2013, and consisted of specialized
rental equipment and other associated products.

Liquidity and Capital Resources

As of June 30, 2013, the Company had $27.2 million in unrestricted cash and
$1.4 million of restricted cash. As of August 6, 2013, the Company had $32.2
million in unrestricted cash and the newly amended and expanded $90.0 million
secured credit facility remained undrawn, except for the letters of credit in
the amount of $2.9 million. The Company also had $280.0 million of 9.0% Senior
Notes and $18.8 million of other notes outstanding.

Conference Call

The Company will host a conference call to discuss its second quarter results
at 10:00 a.m. Eastern Time (9:00 a.m. Central) Friday, August 9, 2013. To
access the call, please dial 877-303-1298 and provide the Conference ID:
28121877. The conference call also will be broadcast live via the Internet and
will be accessible through the "Investor Relations" page of the Company's
Website, www.forbesenergyservices.com.

At the conclusion of the call, a replay will be available until August 22,
2013.To access the replay of the call, dial (855) 859-2056 and provide the
same Conference ID.A webcast archive will be available at
www.forbesenergyservices.com shortly after the call and will be accessible for
approximately 14 days.

About Forbes Energy Services

Forbes Energy Services Ltd. is an independent oilfield services contractor
that provides a broad range of drilling-related and production-related
services to oil and natural gas companies, primarily onshore in Texas,
Mississippi and Pennsylvania.More information on the Company can be found by
visiting www.forbesenergyservices.com.

Forward-Looking Statements and Regulation G Reconciliation

This press release contains "forward-looking statements," as contemplated by
the Private Securities Litigation Reform Act of 1995, in which the Company
discusses factors it believes may affect its performance in the future. These
statements include, in particular, statements regarding the acquisition and
benefit of new capital assets and market conditions and outlook.The accuracy
of the Company's assumptions, expectations, beliefs and projections depend on
events or conditions that change over time and are thus susceptible to change
based on actual experience, new developments of known and unknown risks. The
Company gives no assurance that the forward-looking statements will prove to
be correct and does not undertake any duty to update them. The Company's
actual future results might differ from the forward-looking statements made in
this press release for a variety of reasons, which include: supply and demand
for oilfield services and the level of oil and natural gas prices; the timing
of spending by customers in relation to their exploratory budgets; the
continued uncertainty in the global financial markets and its effect on
domestic spending in the oil and natural gas industry; the Company's ability
to maintain or improve pricing of its core services; the potential for excess
capacity in the industry; and levels of competition. Additional factors that
should be considered are set forth in detail in the Risk Factors section of
the Company's Annual Report on Form 10-K for the year ended December 31, 2012,
as well as other filings the Company has made with the Securities and Exchange
Commission. Should one or more of the foregoing risks or uncertainties
materialize, or should the Company's underlying assumptions prove incorrect,
the Company's actual results may vary materially from those anticipated in its
forward-looking statements, and the Company's business, financial condition
and results of operations could be materially and adversely affected.

The Company's financial statements and management's discussion and analysis of
financial condition and results of operations will be found in the Company's
quarterly report on Form 10-Q for the quarter ended June 30, 2013, which will
be submitted for filing later today with the Securities and Exchange
Commission and posted on the Company's Website.

This press release also contains references to the non-GAAP financial measure
of Adjusted EBITDA from U.S. Operations. For a reconciliation of such measure
to net income, please see the table at the end of this release. Management's
opinion regarding the usefulness of Adjusted EBITDA from U.S. Operations to
investors and a description of the ways in which management uses such measure
can be found on the "Investor Relations" page of the Company's Website.

All numbers herein are related to continuing operations only and exclude
operations in Mexico which were sold in January of 2012.


Forbes Energy Services Ltd.
Selected Statement of Operations Data (unaudited)
(in thousands, except per share amounts)
                                                                
                                    Three Months Ended SixMonths Ended
                                     June 30,           June 30,
                                    2013      2012      2013       2012
Revenues                                                         
Well servicing                       $54,633 $51,315 $104,797 $103,554
Fluid logistics                      49,049   68,470   100,623   147,715
Total revenues                       103,682  119,785  205,420   251,269
Expenses                                                         
Well servicing                       42,504   37,453   82,842    76,541
Fluid logistics                      34,445   49,354   71,878    104,210
General and administrative           7,617    8,075    14,951    18,745
Depreciation and amortization        13,195   12,465   26,197    23,886
Total expenses                       97,761   107,347  195,868   223,382
Operating income                     5,921    12,438   9,552     27,887
Other income                                                     
Interest expense, net                (7,021)  (6,842)  (14,012)  (13,713)
Income (loss) from continuing        (1,100)  5,596    (4,460)   14,174
operations before taxes
Income tax expense (benefit)         (434)    2,950    (1,195)   6,317
Income (loss) from continuing        (666)    2,646    (3,265)   7,857
operations
Income (loss) from discontinued
operations, net of tax expense       (109)    (1,626)  (236)     (494)
(benefit) of ($59), ($426), ($126),
and $378 respectively
Net income (loss)                    (775)    1,020    (3,501)   7,363
Preferred shares dividends           (194)    (194)    (388)     (388)
Net income (loss) attributable to    $(969)  $826    $(3,889) $6,975
common shareholders
Income (loss) per share of common                                
stock from continuing operations
Basic                                $(0.04) $0.12   $(0.17)  $0.36
Diluted                              $(0.04) $0.10   $(0.17)  $0.30
Income (loss) per share of common                                
stock from discontinued operations
Basic                                $(0.01) $(0.08) $(0.01)  $(0.02)
Diluted                              $(0.01) $(0.06) $(0.01)  $(0.02)
Income (loss) per share of common                                
stock
Basic                                $(0.05) $0.04   $(0.18)  $0.33
Diluted                              $(0.05) $0.04   $(0.18)  $0.28
Weighted average number of shares                                
outstanding
Basic                                21,364   21,056   21,331    21,021
Diluted                              21,364   26,625   21,331    26,621

                                                                   
                                                                   
Forbes Energy Services Ltd.                                       
Selected Balance Sheet Data (unaudited)                           
(in thousands, except per share amounts)                          
                                                                 
                                  June 30,  December 31,           
                                  2013    2012                 
Cash                             $27,191 $17,619              
Accounts receivable, net         81,792   92,596                
Working capital                  82,557   79,547                
Other intangibles, net           26,584   28,015                
Total assets                     500,159  512,701               
Total debt                       298,821  306,347               
Deferred tax liability           25,344   26,587                
Shareholders' equity             129,850  132,168               
                                                                 
                                                                 
Forbes Energy Services Ltd.                                         
Selected Operating Data                                             
                                                                 
                                  Three Months Ended    SixMonths Ended
                                   June 30,              June 30,
                                  2013    2012       2013     2012
Working days                     64       65          128       129
                                                                 
Rig hours                        107,345  114,308     206,616   231,941
                                                                 
Truck hours                      307,952  427,369     632,289   889,693
                                                                 
                                                                 
Forbes Energy Services Ltd.
Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA
(Unaudited)                                                     
                                                                 
                                  Three Months Ended    SixMonths Ended
                                   June 30,              June 30,
                                  2013    2012       2013     2012
Net Income (loss) from continuing  $(666)  $2,646     $(3,265) $7,857
operations
Depreciation and amortization      13,195   12,465      26,197    23,886
Interest expense, net              7,021    6,842       14,012    13,713
Income tax expense (benefit)       (434)    2,950       (1,195)   6,317
Share-based compensation           878      1,871       1,628     3,638
Adjusted EBITDA from U. S.         $19,994 $26,774    $37,377  $55,411
Operations

CONTACT: Casey Stegman
         Investor Relations
         214-987-4121