Basic Energy Services Reports Selected Operating Data for August 2011

Sep 12, 2011, 07:00 ET from Basic Energy Services, Inc.

MIDLAND, Texas, Sept. 12, 2011 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of August 2011.  During the month, Basic added five well servicing rigs from its acquisition of Pat's P&A, Inc., increasing its well servicing fleet to 417 as of August 31, 2011. Well servicing rig hours for the month of August 2011 were 78,800 producing a rig utilization rate of 75%, an increase from 73% and 57% in July 2011 and August 2010, respectively.

During the month Basic's fluid service truck count increased to 872 as of August 31, 2011. Fluid service truck hours for the month of August 2011 were 194,000, an increase from 183,400 and 160,700 in July 2011 and August 2010, respectively.

Drilling rig days for the month of August 2011 were 257 producing a rig utilization of 83%, a decrease from 90% and 92% in July 2011 and August 2010, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Activity levels in our largest three segments rebounded from July due to strong demand and the absence of a holiday during the month. The well servicing rig utilization rate and rig hours in August were the highest achieved since August 2008. Both our Fluid Services and Completion and Remedial Services segments continued to improve from strong drilling and frac activity.  Our drilling rig utilization declined from July as we transitioned two rigs from term contracts to well-to-well projects and experienced delays in mobilization between wells due to a shortage of rig moving equipment in the Permian Basin.  Pricing in all business segments remains firm to improving and is sufficient to offset labor and other cost increases.

"Last week, we closed the purchase of the assets of CryoGas Services LLP ("CryoGas"), a company based in Duncan, Oklahoma, focused on nitrogen pumping services in the Mid-Continent market.  The CryoGas acquisition adds five nitrogen pumping units and two nitrogen transports, and significantly expands our current nitrogen pumping capability within our Completion and Remedial Services segment.  We expect the acquired assets to produce full-year revenue and EBITDA of approximately $10.0 million and $3.5 million, respectively, and will be reflected in our Completion and Remedial Services segment.

"We expect the operating environment to be strong through the end of this year and it now appears that these activity levels will continue throughout 2012. We are currently evaluating a number of internal and acquisition opportunities to build our positions across all our regional markets and business segments to take advantage of these opportunities."

OPERATING DATA

Month ended

August 31,

July 31,

2011

2010

2011

Number of weekdays in period

23

22

21

Number of well servicing rigs: (1)

 Weighted average for period

417

407

412

 End of period

417

407

412

 Rig hours (000s)

78.8

55.9

69.0

 Rig utilization rate (2)

75%

57%

73%

Number of fluid service trucks:

 Weighted average for period

871

789

863

 End of period

872

790

871

 Truck Hours (000s)

194.0

160.7

183.4

Number of drilling rigs: (3)

 Weighted average for period

10

6

10

 End of period

10

6

10

 Drilling rig days

257

171

279

 Drilling rig utilization

83%

92%

90%

(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.

(3) Basic transferred three of its contract drilling rigs to the well servicing fleet at the end of December 2010. The weighted average number of rigs, number of rigs at the end of period and the rig utilization rate for August 2010 has been recalculated as if these three rigs had been reclassified for August 2010.

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 States.

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, 2010 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.

432-620-5510

Jack Lascar/Sheila Stuewe

DRG&L / 713-529-6600

SOURCE Basic Energy Services, Inc.



RELATED LINKS

http://basicenergyservices.com