Basic Energy Services, Inc : Basic Energy Services Reports Selected Operating Data for February 2012
03/12/2012| 06:05am US/Eastern
MIDLAND, Texas, March 12, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of February 2012. Basic's well servicing rig count remained unchanged at 422. Well servicing rig hours for the month were 73,800 producing a rig utilization rate of 76%, compared to 76% and 59% in January 2012 and February 2011, respectively.
During the month, Basic's fluid service truck count increased by five to 904. Fluid service truck hours for the month were 186,500, compared to 198,300 and 147,400 in January 2012 and February 2011, respectively.
Drilling rig days for the month were 316 producing a rig utilization of 91%, compared to 84% and 100% in January 2012 and February 2011, respectively.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "February activity levels across all business segments continued at January's pace as strong demand and relatively mild weather conditions prevailed in most of our markets. Our completions and remedial segment, driven by pumping services, is benefitting from the drilling and completions activity in our oil and liquids-rich operating areas, and work calendars for our frac pumping services remain full through the end of this year. Expansion of our fluid services truck fleet, frac tank fleet and salt water disposal well network is proceeding according to our 2012 plan.
"While our overall well servicing rig utilization rate has remained at 76% for the past two months, the utilization in our Permian Basin operations, where 43% of our well servicing rig fleet is located, has been close to 100%. Drilling rig utilization moved up above the 90% level as expected since our two 1,200 horsepower drilling rigs were fully deployed in the field in February.
"Pricing overall is firm with our well servicing segment experiencing improving rates driven by higher demand and increased labor costs. Recent discussions with our customers and their announced spending plans indicate additional drilling and workover programs this year in the oil and liquid-rich portions of our footprint. We believe currently that this demand will more than offset any decline in activity that we may see in the gas-oriented portions of our operating areas."
2012 2011 2012
---- ---- ----
Number of weekdays in
period 21 20 22
Number of well servicing
Weighted average for
period 422 412 420
End of period 422 412 422
Rig hours (000s) 73.8 53.3 76.9
Rig utilization rate (2) 76% 59% 76%
Number of fluid service
Weighted average for
period 901 822 890
End of period 904 824 899
Truck hours (000s) 186.5 147.4 198.3
Number of drilling rigs:
Weighted average for
period 12 6 12
End of period 12 6 12
Drilling rig days 316 168 313
Drilling rig utilization 91% 100% 84%
(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 5,600 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, 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.