FORT WORTH, Texas, Feb. 11, 2015 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic") today reported selected
operating data for the month of January
2015. Basic's well servicing rig count remained unchanged at
421. Well servicing rig hours for the month were 57,400 producing a
rig utilization rate of 56%, compared to 60% and 67% in
December 2014 and January 2014, respectively.
During the month, Basic's fluid service truck count increased by
seven to 1,054. Fluid service truck hours for the month were
208,100, compared to 218,200 and 207,400 in December 2014 and January
2014, respectively.
Drilling rig days for the month were 275 producing a rig
utilization of 74%, compared to 87% and 69% in December 2014 and January
2014, respectively.
Roe Patterson, Basic's President and Chief Executive Officer,
stated, "Operating activity in January was affected by a declining
drilling rig count and reduced customer spending, as well as
adverse weather conditions early in the month mainly in the Permian
Basin and Mid-Continent regions. Icy conditions in January reduced
well servicing utilization by approximately 400 basis points and
fluid service hours by 5 percent. Stimulation services experienced
minimal impact during that time as most of the equipment was
already on location and service time was generally not disrupted.
While utilization in our completion and remedial services segment
was steady in January, this segment saw the largest reduction in
rate as service assets oriented toward drilling and completion
activity were oversupplied in most markets.
"The reduction in customer spending has been swift, and we have
reacted quickly to this changing environment. We continue to
aggressively protect our market share by reducing prices while
simultaneously working with our vendors to offset reduced pricing
with lower input costs. Current pricing concessions are in the
15%-20% range for stimulation services and contract drilling and in
the 10%-15% range for well servicing and fluid services.
Negotiations to lower costs for sand, chemicals, fuel, supplies and
other input costs with our vendors and suppliers have been
successful and are ongoing.
"In order to offset as much of the pricing concessions as we
can, we have worked proactively to control personnel costs as well.
Our headcount has declined by approximately 400, or 7% of our work
force, since its peak in November
2014. Wages in the field have been adjusted down to reflect
lower rates for our services. Additionally, we have implemented
salary reductions for all of our management and administrative
employees and have made changes to some of our benefit programs.
Our primary focus in 2015 is to maximize cash flow and preserve
liquidity through lowering costs and drastically reducing capital
expenditures. We were fortunate to have very few pieces of
equipment on order when we quickly tapered down spending in October
of 2014. We're pleased with our operating and financial position
heading into what looks to be a prolonged down-cycle.
"During the month of January, we reclassified 29 well servicing
rigs to our stacked rig inventory making the total stacked rig
inventory 57 at month-end. This allows us to better control cost by
ensuring that our newer and more efficient assets remain in the
field working. We will discuss our near-term expectations for 2015
during our fourth quarter 2014 earnings call next week."
OPERATING
DATA
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|
|
|
|
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Month
ended
|
|
|
|
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January
31,
|
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December
31,
|
|
|
|
|
2015
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
Number of weekdays in
period
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|
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22
|
23
|
|
23
|
|
|
|
|
|
|
|
|
Number of well
servicing rigs: 1
|
|
|
|
|
|
|
Weighted
average for period 2
|
|
|
421
|
421
|
|
421
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End of period
2
|
|
|
421
|
421
|
|
421
|
Rig hours
(000s) 2
|
|
|
57.4
|
71.8
|
|
64.3
|
Rig
utilization rate 2,3
|
|
|
56%
|
67%
|
|
60%
|
|
|
|
|
|
|
|
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Number of fluid
service trucks: 1
|
|
|
|
|
|
|
Weighted
average for period
|
|
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1,051
|
1,003
|
|
1,045
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End of
period
|
|
|
1,054
|
1,003
|
|
1,047
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Truck Hours
(000s)
|
|
|
208.1
|
207.4
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218.2
|
|
|
|
|
|
|
|
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Number of drilling
rigs: 1
|
|
|
|
|
|
|
Weighted
average for period
|
|
|
12
|
12
|
|
12
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End of
period
|
|
|
12
|
12
|
|
12
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Drilling rig
days
|
|
|
275
|
258
|
|
324
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Drilling rig
utilization
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|
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74%
|
69%
|
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87%
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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.
|
(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 January 2014 has been
recalculated as if these four rigs had been sold for that
period.
|
(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.
|
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 5,400 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
|
|
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
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/basic-energy-services-reports-selected-operating-data-for-january-2015-300034185.html
SOURCE Basic Energy Services, Inc.