FORT WORTH, Texas, May 29, 2014 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic") announced today that its Board
of Directors recently approved an increase of $50 million in its 2014 capital expenditure plan
for the purchase of approximately 60,000 hydraulic horsepower
("HHP") of frac equipment. The total 2014 capital expenditure plan
including this increase now stands at $285
million, which includes $155
million for expansion projects.
Roe Patterson, Basic's President and Chief Executive Officer,
stated, "Due to the improving environment of completion activity
and the increase in customer demand, we decided to take advantage
of these positive trends to expand our pumping services
fleet. Profit margins for these services have been stable and
have recently begun to improve with increased utilization. We
believe the fundamentals and competitive returns we're experiencing
justify adding more growth capital at this time. This increase in
our capital plan includes adding a 100 bpm frac spread in our
Permian Basin operations and adding additional HHP to build-out two
100 bpm frac spreads in our Mid-Continent operations.
"We project that this equipment will be in the field by
September and will generate approximately $24 million of revenue in 2014. We now expect to
have a total of 400,000 HHP of pumping equipment by the end of this
year."
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 5,500 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:
|
Alan Krenek, Chief
Financial Officer
|
|
Basic Energy
Services, Inc.
|
|
817-334-4100
|
|
|
|
Jack Lascar/Sheila
Stuewe
|
|
Dennard – Lascar
Associates
|
|
713-529-6600
|
SOURCE Basic Energy Services, Inc.