FORT WORTH, Texas, March 7, 2016 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic") today reported selected
operating data for the month of February 2016. Basic's well
servicing rig count remained unchanged at 421. Well servicing rig
hours for the month were 37,200 producing a rig utilization rate of
35%, compared to 38% and 55% in January
2016 and February 2015,
respectively.
During the month, Basic's fluid service truck count increased by
one to 987. Fluid service truck hours for the month were 168,100,
compared to 180,800 and 184,100 in January
2016 and February 2015,
respectively.
Drilling rig days for the month were 29 producing a rig
utilization of 8%, compared to 8% and 63% in January 2016 and February
2015, respectively.
Roe Patterson, Basic's President and Chief Executive Officer,
commented, "February activity remained soft on continued low levels
of spending by our customers, including spending for maintaining
existing oil wells, which reduced well servicing utilization.
Our pumping services utilization was impacted by several projects
being delayed by our customers. Our fluid services business,
anchored by our extensive network of salt-water disposal wells,
continues to operate at stable levels despite the current
environment as we benefit from protected market share and a low
cost structure.
"As of February 29, we have
stacked 119,000 hydraulic horsepower due to lower completion
demand. We also stacked nine additional well servicing rigs
in February to bring our total stacked rig inventory to 119 at
month end. We will continue to adjust our operations and
structure to adapt to the current market environment.
"In our fourth quarter earnings call, we had said that we
believed that revenues for the first quarter of 2016 would be in
the range of 10% lower sequentially. We had anticipated a growing
inventory of maintenance and workover projects being deferred at
the end of 2015, and our customers indicated many of these would be
completed in the first quarter. This inventory has indeed grown,
but our customers' reactions to sub-thirty dollar dips in WTI
pricing have been swift and drastic, thereby postponing several of
these projects. Visibility as to when these projects will be
completed is currently unclear, though we still believe they offer
the lowest cost per barrel of all capex options available to our
clients. These jobs are typically much cheaper than new drills and
can be quickly activated. However, because of this near term
uncertainty, and these very recent delays, we are guiding first
quarter revenue to 16% to 17% lower sequentially."
OPERATING
DATA
|
|
|
|
|
Month
ended
|
|
|
|
February
29/28,
|
|
January
31,
|
|
|
|
2016
|
2015
|
|
2016
|
|
|
|
|
|
|
|
Number of weekdays in
period
|
|
21
|
20
|
|
21
|
|
|
|
|
|
|
|
Number of well
servicing rigs: 1
|
|
|
|
|
|
Weighted
average for period
|
|
421
|
421
|
|
421
|
End of
period
|
|
421
|
421
|
|
421
|
Rig hours
(000s)
|
|
34.2
|
50.5
|
|
37.2
|
Rig
utilization rate 2
|
|
35%
|
55%
|
|
38%
|
|
|
|
|
|
|
|
Number of fluid
service trucks: 1
|
|
|
|
|
|
Weighted
average for period
|
|
986
|
1,052
|
|
985
|
End of
period
|
|
987
|
1,049
|
|
986
|
Truck Hours
(000s)
|
|
168.1
|
184.1
|
|
180.8
|
|
|
|
|
|
|
|
Number of drilling
rigs: 1
|
|
|
|
|
|
Weighted
average for period
|
|
12
|
12
|
|
12
|
End of
period
|
|
12
|
12
|
|
12
|
Drilling rig
days
|
|
29
|
213
|
|
31
|
Drilling rig
utilization
|
|
8%
|
63%
|
|
8%
|
|
|
(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 3,500 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, 2014 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 /
Stephanie Zhadkevich
|
|
Dennard – Lascar
Associates
|
|
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-february-2016-300231939.html
SOURCE Basic Energy Services, Inc.