BASIC ENERGY SERVICES, INC FORT WORTH, Texas, May 11, 2015 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of April 2015. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 50,700 producing a rig utilization rate of 50%, compared to 55% and 70% in March 2015 and April 2014, respectively.
During the month, Basic's fluid service truck count decreased by 15 to 1,008. Fluid service truck hours for the month were 190,600 compared to 202,900 and 212,200 in March 2015 and April 2014, respectively.
Drilling rig days for the month were 124 producing a rig utilization of 34%, compared to 50% and 81% in March 2015 and April 2014, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Excluding the impact of the weather and the Easter Holiday, we experienced a modest reduction in customer activity from our March levels as the U.S. drilling rig count continued to decline, albeit at a decelerating pace. We estimate heavy rains throughout the majority of our operating areas reduced our well servicing utilization by approximately 200 basis points. The Easter holiday period impact in April in our well servicing and fluid services segments was approximately 100 basis points and one percent, respectively. Our stimulation services operations were moderately impacted by heavy rains in our West Texas and Oklahoma markets and by several delays in frac jobs that were due to customer well issues beyond our control. Contract drilling utilization was lower as our two 1200 horsepower rigs came off contract at the end of March and we were not able to secure commitments for them during April.
"As our customers focus on maintaining their own liquidity, coupled with an oversupply of stimulation equipment considering current drilling programs, we continue to see a reduction in demand for our completion services. Pricing reductions for stimulation services seems to be moderating, but utilization continues to decline along with the drilling rig count; furthering margin degradation. Our well servicing and fluid services segments have seen a decreasing amount of pricing pressure and utilization decline due to the higher proportion of work that is production related.
"Our strategy for managing through this downturn remains unchanged as we offer competitive bids to our customers in order to maximize utilization for all our lines of business and work with our vendors to further reduce costs. We continue to evaluate and right-size our operations in order to meet our customers' needs while maximizing cash flow. We are also on pace to meet our reduced capital spending projection of approximately $75 million based on current activity levels."
OPERATING DATA
Month ended
-----------
April 30, March 31,
2015 2014 2015
---- ---- ----
Number of weekdays in period 22 22 22
Number of well servicing rigs: (1)
Weighted average for period 421 421 421
End of period 421 421 421
Rig hours (000s) 50.7 71.3 56.0
Rig utilization rate 2 50% 70% 55%
Number of fluid service trucks: (1)
Weighted average for period 1,017 1,013 1,036
End of period 1,008 1,014 1,023
Truck Hours (000s) 190.6 212.2 202.9
Number of drilling rigs: 1
Weighted average for period 12 12 12
End of period 12 12 12
Drilling rig days 124 293 186
Drilling rig utilization 34% 81% 50%
(1) Includes all rigs and trucks
owned during periods
presented and excludes rigs
and trucks held for sale.
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
(2) 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 4,600 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 Smith
Dennard - Lascar Associates
713-529-6600
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SOURCE Basic Energy Services, Inc.
