FORT WORTH, Texas, Jan. 12, 2015 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic") today reported selected
operating data for the month of December 2014. Basic's well
servicing rig count remained unchanged at 421. Well servicing rig
hours for the month were 64,300 producing a rig utilization rate of
60%, compared to 67% and 58% in November
2014 and December 2013,
respectively.
During the month, Basic's fluid service truck count increased by
five to 1,047. Fluid service truck hours for the month were 218,200
compared to 210,400 and 192,400 in November
2014 and December 2013,
respectively.
Drilling rig days for the month were 324 producing a rig
utilization of 87%, compared to 83% and 72% in November 2014 and December
2013, respectively.
Roe Patterson, Basic's President and Chief Executive Officer,
stated, "December activity unfolded much as we had anticipated with
most customers staying very busy up to the start of the holiday
period. As expected, some customers used the holiday period to
shut-down some projects due to weakening commodity prices, which
reduced activity beyond the seasonal impact. Severe winter weather
also came into play in the last week of the month, particularly in
the Mid Continent and the Permian Basin, which are our largest
operating markets. This adverse winter weather has continued into
January and will impact the first quarter as well.
"Based on the activity levels we experienced in December, we
still expect our revenue for the fourth quarter to be generally
flat sequentially. However, margins will be impacted by the
combination of weather interruptions and pricing discounts given to
our customers in response to lower demand in competitive markets.
These discounts began in early December across most lines of
business.
"We reacted quickly in October of 2014 to anticipated lower
spending by our customers in 2015. Our strategy is focused on
preserving liquidity by substantially reducing capital
expenditures, maximizing utilization to protect market share and
reducing expenses to adjust our cost structure to the expected
level of demand. We have employed these strategies in previous down
cycles with success. Combined with the strength of our current
financial position, these strategies should allow us to withstand
the effects of a prolonged downturn in activity.
"We expect our capital spending for 2015 to be mainly for
maintenance and replacement projects. Based on our current view, we
project that the 2015 plan for maintenance and replacement projects
will be under $100 million. Expansion
projects will be very limited. We will continue to evaluate our
2015 capital plan and make adjustments as the operating environment
dictates.
"In late December, we reactivated our share repurchase
program. We repurchased approximately 1,435,000 shares since
the reinstatement at an average price of $6.85 per share, leaving $10.5 million under our approved share repurchase
plan."
OPERATING
DATA
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Month
ended
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December
31,
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November
30,
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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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23
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22
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20
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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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64.3
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59.5
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62.3
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Rig
utilization rate 2,3
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60%
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58%
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67%
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Number of fluid
service trucks: 1
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Weighted
average for period
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1,045
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996
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1,041
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End of
period
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1,047
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1,003
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1,042
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Truck Hours
(000s)
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218.2
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192.4
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210.4
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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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324
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267
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298
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Drilling rig
utilization
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87%
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72%
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83%
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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 December 2013 have 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 5,700 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, 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-december-2014-300018884.html
SOURCE Basic Energy Services, Inc.