Basic Energy Services Reports Selected Operating Data for September 2010

Oct 12, 2010, 07:00 ET from Basic Energy Services, Inc.

MIDLAND, Texas, Oct. 12 /PRNewswire-FirstCall/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of September 2010.  Basic's well servicing rig count declined by one rig to 403 as of September 30, 2010 from 404 on August 31, 2010.  Well servicing rig hours for the month of September 2010 were 54,100 producing a rig utilization rate of 55%, a decrease from 57% in August 2010 and an increase from 41% in September 2009.

During the month, Basic retired five fluid service trucks, decreasing its fluid service truck count to 785 as of September, 30, 2010.  Fluid service truck hours for the month of September 2010 were 157,400, a decrease from 160,700 in August 2010 and an increase from 142,200 September 2009.

Drilling rig days for the month of August 2010 were 175 producing a rig utilization of 65%, an increase from 61% and 44% in August 2010 and September 2009, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "September activity was sequentially lower due to the shorter calendar month and at least one less workday due to the Labor Day holiday.  Excluding the holiday impact, which effects our production-related well servicing segment to a greater degree than our other more drilling related segments, we experienced improving demand and pricing across all segments during the month.

"We expect oil-related demand to continue to improve through the remainder of the year with the potential to recover additional pricing in those markets. On the other hand, gas-driven activity will likely remain weak well into next year, which will dampen company-wide utilization. While our substantial footprint across the major producing oil and gas basins allows us to improve overall utilization levels by relocating idle assets to our busier areas, we intend to remain price competitive elsewhere to preserve our position for the longer term, poised to benefit from future improvement in those markets."

OPERATING DATA

Month ended

September 30,

August 31,

2010

2009

2010

Number of weekdays in period

22

22

22

Number of well servicing rigs 1

 Weighted average for period

404

414

404

 End of period

403

414

404

Rig hours (000s)

54.1

41.3

55.9

Rig utilization rate 2

55%

41%

57%

Number of fluid service trucks 1

 Weighted average for period

787

805

789

 End of period

785

805

790

Truck hours (000s)

157.4

142.2

160.7

Number of drilling rigs 1

 Weighted average for period

9

9

9

 End of period

9

9

9

Drilling rig days

175

119

171

Drilling utilization

65%

44%

61%

(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://www.basicenergyservices.com