FORT WORTH, Texas, Dec. 9, 2014 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic") today reported selected
operating data for the month of November 2014. Basic's well
servicing rig count remained unchanged at 421. Well servicing rig
hours for the month were 62,300 producing a rig utilization rate of
67%, compared to 73% and 61% in October
2014 and November 2013,
respectively.
During the month, Basic's fluid service truck count increased by
two to 1,042. Fluid service truck hours for the month were 210,400
compared to 234,800 and 185,100 in October
2014 and November, 2013 respectively.
Drilling rig days for the month were 298 producing a rig
utilization of 83%, compared to 88% and 72% in October 2014 and November
2013, respectively.
Roe Patterson, Basic's President and Chief Executive Officer,
stated, "We were generally pleased with our November results. While
we experienced the normal impact from the extended Thanksgiving holiday and some rainy conditions
early in the month, overall activity levels were slightly above our
expectations. We experienced similarly strong demand in our
completion and remedial services segment as we have all year.
Stimulation and coil tubing calendars remain steady through year
end and some customers have recently reconfirmed their dates for
the first quarter of 2015.
The Permian Basin and Mid-Continent operations were most
impacted by the wet weather. Well servicing operations lost about
200 basis points of utilization, while fluid services were only
slightly impacted by the wet conditions. Contract drilling
utilization was lower in November as one of our rigs was
transitioning between jobs.
"Based on current commodity price forecasts for the near term,
and the possibility of a prolonged period of lower oil prices, we
anticipate lower capital spending by our customers in 2015.
Therefore, we have initiated plans to deal with an environment for
decreasing business conditions. We have in place a well-established
operating strategy to deal with this environment, which includes
reducing capital spending, scaling back operations to fit cash
flow, protecting our market share and preserving liquidity. Our
2014 capital campaign was relatively frontloaded, and we have no
significant capital obligations remaining for 2014, thus enhancing
our liquidity. We expect to have a significant reduction in our
2015 capital expenditure plan, shifting primarily to a
maintain-and-sustain revenue mode only. We will provide more
details on our 2015 capital plans in our December operating data
press release in early January."
OPERATING
DATA
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Month
ended
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November
30,
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October
31,
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2014
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2013
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2014
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Number of weekdays in
period
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20
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21
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23
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Number of well
servicing rigs: 1
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Weighted
average for period 2
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421
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421
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421
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End of period
2
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421
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421
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421
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Rig hours
(000s) 2
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62.3
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59.3
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77.8
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Rig
utilization rate 2,3
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67%
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61%
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73%
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Number of fluid
service trucks: 1
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Weighted
average for period
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1041
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986
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1043
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End of
period
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1042
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989
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1040
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Truck Hours
(000s)
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210.4
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185.1
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234.8
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Number of drilling
rigs: 1
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Weighted
average for period
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12
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12
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12
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End of
period
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12
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12
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12
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Drilling rig
days
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298
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259
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326
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Drilling rig
utilization
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83%
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72%
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88%
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(1)
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Includes all rigs and
trucks owned during periods presented and excludes rigs and trucks
held for sale.
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(2)
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Basic sold its four
inland barge workover rigs on March 31, 2014. The weighted average
number of rigs, number of rigs at the end of the period, rig hours
and rig utilization rate for November 2013 has been recalculated as
if these four rigs had been sold for that period.
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(3)
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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.
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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 5,800 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, 2013 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:
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Alan Krenek, Chief
Financial Officer
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Basic Energy
Services, Inc.
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817-334-4100
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Jack Lascar /
Stephanie Smith
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Dennard – Lascar
Associates
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713-529-6600
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/basic-energy-services-reports-selected-operating-data-for-november-2014-300006689.html
SOURCE Basic Energy Services, Inc.