Basic Energy Services Reports Selected Operating Data For December 2014

News provided by

Jan 12, 2015, 06:00 ET

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

	Month ended
	December 31,		November 30,
	2014	2013	2014

Number of weekdays in period	23	22	20

Number of well servicing rigs: ¹
Weighted average for period²	421	421	421
End of period ²	421	421	421
Rig hours (000s)²	64.3	59.5	62.3
Rig utilization rate^2,3	60%	58%	67%

Number of fluid service trucks: ¹
Weighted average for period	1,045	996	1,041
End of period	1,047	1,003	1,042
Truck Hours (000s)	218.2	192.4	210.4

Number of drilling rigs:¹
Weighted average for period	12	12	12
End of period	12	12	12
Drilling rig days	324	267	298
Drilling rig utilization	87%	72%	83%


⁽¹⁾	Includes all rigs and trucks owned during periods presented and excludes rigs and trucks held for sale.
⁽²⁾	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.
⁽³⁾	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 5,700 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:	Alan Krenek, Chief Financial Officer
	Basic Energy Services, Inc.
	817-334-4100

	Jack Lascar / Stephanie Smith
	Dennard – Lascar Associates
	713-529-6600