Basic Energy Services Reports Selected Operating Data for November 2010

Dec 06, 2010, 07:00 ET from Basic Energy Services, Inc.

MIDLAND, Texas, Dec. 6, 2010 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of November 2010.  Basic's well servicing rig count remained unchanged at 403 as of November 30, 2010.  Well servicing rig hours for the month of November 2010 were 52,800 producing a rig utilization rate of 54%, a decrease from 62% in October 2010 and an increase from 41% in November 2009.

During the month Basic's fluid service truck count decreased by five to 779 as of November 30, 2010.  Fluid service truck hours for the month of November 2010 were 157,400, a decrease from 159,400 in October 2010 and an increase from 138,400 in November 2009.

Drilling rig days for the month of November 2010 were 177 producing a rig utilization of 66%, an increase from 64% and 48% for October 2010 and November 2009, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "We maintained relatively strong sequential operating performance in November in each of our business segments considering the effect of the Thanksgiving holiday and reduced daylight hours.  The utilization rate in our well servicing segment in November reflected the expected Thanksgiving holiday impact but activity levels in the non-holiday weeks were consistent with October. Adjusting for the two and a half days of holiday effect, well servicing rig hours per day for November were 2,708 compared to 2,733 in October.  Overall pricing strengthened as a result of rate increases in our busier oil-related markets.

"Activity levels in our completion and remedial segment, driven by pumping services, were very similar to those achieved in October.  Our smallest segment, contract drilling, showed a slight increase in drilling days reflecting the improving Permian Basin demand for rigs of all capacities.  Pricing continues to strengthen in both of those segments as drilling and extensive frac programs are filling work schedules through the end of 2011.

"Our fluid services truck hours showed a sequential drop of only one percent from the prior month despite one less calendar day and the impact of the Thanksgiving holiday. This segment continues to benefit from the growing frac activity in the Permian Basin, Bakken Shale and Eagle Ford play where we have been focusing on expanding our asset base and pushing pricing above labor cost increases.

"With favorable weather thus far in the fourth quarter and continued strong demand in most of our markets offsetting the usual seasonal slowdown, we expect revenues in the fourth quarter to be moderately higher than our third quarter performance."

OPERATING DATA

Month ended

November 30,

October 31,

2010

2009

2010

Number of weekdays in period

22

21

21

Number of well servicing rigs (1)

 Weighted average for period

403

414

403

 End of period

403

413

403

Rig hours (000s)

52.8

39.2

57.4

Rig utilization rate (2)

54%

41%

62%

Number of fluid service trucks (1)

 Weighted average for period

782

792

785

 End of period

779

792

784

Truck hours (000s)

157.4

138.4

159.4

Number of drilling rigs (1)

 Weighted average for period

9

9

9

 End of period

9

9

9

Drilling rig days

177

130

179

Drilling utilization

66%

48%

64%

(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 4,200 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, 2009 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