Basic Energy Services Reports Selected Operating Data for February 2011

Mar 07, 2011, 19:54 ET from Basic Energy Services, Inc.

MIDLAND, Texas, March 7, 2011 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of February 2011.  Basic's well servicing rig count remained constant at 412 as of February 28, 2011.  Well servicing rig hours for the month of February 2011 were 53,300, producing a rig utilization rate of 59%, a decrease from 61% in January 2011 and an increase from 46% in February 2010.

During the month, Basic's fluid service truck count increased by five to 824 as of February 28, 2011, as a result of adding seven trucks offset by two retirements.  Fluid service truck hours for the month of February 2011 were 147,400 a decrease from 167,300 in January 2011 and an increase from 134,300 in February 2010.

Drilling rig days for the month of February 2011 were 168, producing a rig utilization of 100%, an increase from 91% and 73% in January 2011 and February 2010, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "Despite the winter weather conditions that impacted our operations in early February, we experienced very strong activity levels in all of our business segments for the month.  We believe that we lost approximately 6,000 rig hours and 10,000 truck hours because of the snow, ice and extremely cold weather conditions during the first week of February.  Activity levels in our completion and remedial segment, driven by pumping services, were less affected and were similar to those achieved in January.

"We continue to deploy additional fluid service assets into our high demand areas in the Permian Basin, Bakken Shale and the Eagle Ford play in South Texas. Our 25,000 hhp frac spread designated for the Wolfberry play in the Permian Basin is substantially completed and is on schedule to be fully deployed by April 1.

"Demand across all segments continues to be strong in oil-related markets, allowing for moderate price increases.  Gas markets are generally weak but stable.  With the first quarter two-thirds complete and improving activity thus far in March, we currently project sequential improvements in revenue, margins and profitability for the first quarter. The prevailing demand environment and our improved results increase our confidence that we should be able to achieve quarterly improvement in our operating and financial performance through the current year."

OPERATING DATA

Month ended

February 28,

January 31,

2011

2010

2011

Number of weekdays in period

20

20

21

Number of well servicing rigs (1),(3)

 Weighted average for period

412

408

412

 End of period

412

408

412

Rig hours (000s)

53.3

41.7

58.5

Rig utilization rate (2),(3)

59%

46%

61%

Number of fluid service trucks (1)

 Weighted average for period

822

790

810

 End of period

824

792

819

Truck hours (000s)

147.4

134.3

167.3

Number of drilling rigs (1),(3)

 Weighted average for period

6

6

6

 End of period

6

6

6

Drilling rig days

168

123

169

Drilling utilization (3)

100%

73%

91%

(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 February 2010 has been recalculated as if these three rigs had been reclassified for February 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 4,600 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, 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://www.basicenergyservices.com