Basic Energy Services Reports Selected Operating Data For February 2016

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Mar 07, 2016, 04:30 ET

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 rate²	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