Best Energy Announces Preliminary Results for June 30, 2010 Exceed Expectations as Revenue Increases 127% in Second Quarter

HOUSTON, Aug. 9 /PRNewswire-FirstCall/ -- Best Energy Services, Inc. (OTC Bulletin Board: BEYS) announced today its preliminary results for the three months and six months ended June 30, 2010. The operating results reported herein reflect continuing operations only. In the fourth quarter of 2009 Best discontinued operations in its housing division, geological services and at Bob Beeman drilling division. Accordingly, these results reflect only the operations of our wholly owned Liberal Kansas-based subsidiary Best Well Services ("BWS").

Best intends to file it results on SEC Form 10Q on or before August 13, 2010. Management will host a conference call for the investment community on Monday, August 16, 2010 at 3:15 EDT.

THREE MONTHS ENDED JUNE 30, 2010:

Revenues increased 127% to $1,904,878 for the three months ended June 30, 2010 from $839,912 for the three months ended June 30, 2009. The increase in revenues reflects the Company's efforts to increase market share in its existing basin, as well as a general rebound in activity in the industry. Prior guidance for the second quarter of 2009 was $1,872,000.

Direct operating expenses increased from $659,485 in the second quarter of 2009 to $862,750 in the second quarter of 2010. Direct operating expenses include direct labor, fuel and materials. Best's gross margin improved to 55% in the second quarter of 2010 from 21% in the second quarter of 2009.

Indirect operating expenses were up slightly from the second quarter 2009 at $418,933, to $480,257 for the second quarter of 2010. Indirect operating expenses include all other costs associated with operations at BWS.

Corporate G&A decreased from $564,751 for the second quarter of 2009 to $313,851 for the second quarter of 2010. G&A in the second quarter of 2010 also included non-cash stock based compensation expense of $77,995. Cash G&A for the second quarter of 2010 was thus $235,856.

Cash earnings before interest taxes and depreciation from continuing operations was $326,015 for the second quarter of 2010, compared with a net cash loss of $693,120 in the second quarter of 2009. Prior guidance for the second quarter of 2010 was $297,000.

The Table below summarizes results for the three month period ended June 30, 2010 and June 30, 2009.

The table that follows reconciles Best's Net Operating Income to Cash EBITDA from continuing operations for the three months ended June 30, 2010.

Six Months Results:

Revenues increased 20% to $3,261,414 for the six months ended June 30, 2010 from $2,717,302 for the six months ended June 30, 2009. The increase in revenues for the six months reflects the results of Best's market share initiatives and higher activity levels in the industry as a whole.

While revenues increased 20% for the six months, direct operating expenses decreased 7%, to $1,453,782 in the first half of 2010 from $1,567,655 in the first half of 2009. Direct operating expenses include direct labor, fuel and materials.  Best's gross margin improved from 42% in the first half of 2009 to 55% in the first half of 2010.  

Indirect operating expenses increased 8% to $910,913 in the first half of 2010 from $838,317 in the first half of 2009 as a consequence of stepped up marketing efforts which resulted in higher revenues for the period. Indirect operating expenses include all other costs associated with operations at BWS.

Corporate G&A decreased from $1,244,057 for the first half of 2009 to $780,892 for the first half of 2010.  G&A in the first half of 2010 also included non-cash stock based compensation expense of $380,000. Cash G&A for the first half of 2010 was thus $400,892.

Cash earnings before interest taxes and depreciation from continuing operations totaled $495,827 for the first half of 2010 versus a cash loss of $469,839 in the prior period.

The Table below summarizes results for the six month period ended June 30, 2010 and June 30, 2009.

The table that follows reconciles Best's Net Operating Income to Cash EBITDA from continuing operations for the six months ended June 30, 2010.

Commenting on the interim results Mark Harrington, Best's Chairman and CEO stated, "It is rewarding for all of us to see the results of our collective hard work in turning Best around into the Company it deserves to be. Our initiatives continue to develop in Central Kansas, possible rig relocations into the South Texas Eagle Ford, HBFP and Best Energy Ventures. I believe the fundamental soundness of our business model—safety first, value pricing, and a dedicated work force will continue to help us achieve the results we are targeting."

About Best Energy Services, Inc.

Headquartered in Houston, Texas, Best Energy Services, Inc. is a leading well service/workover provider in the Hugoton Basin. For more information, please visit www.BEYSinc.com.

Certain statements contained in this press release, which are not based on historical facts, are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995, and are subject to substantial uncertainties and risks in part detailed in the respective Company's Securities and Exchange Commission filings, that may cause actual results to materially differ from projections. Although the Company believes that its expectations are reasonable assumptions within the bounds of its knowledge of its businesses, expectations, representations and operations, there can be no assurance that actual results will not differ materially from their expectations. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the Company's ability to execute properly its business model, to raise additional capital to implement its continuing business model, the ability to attract and retain personnel – including highly qualified executives, management and operational personnel, ability to negotiate favorable current debt and future capital raises, and the inherent risk associated with a diversified business to achieve and maintain positive cash flow and net profitability. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will, in fact, occur.  

SOURCE Best Energy Services, Inc.