Basic Energy Services Reports Selected Operating Data For March 2016

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Apr 11, 2016, 04:30 ET

FORT WORTH, Texas, April 11, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of March 2016. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 37,000 producing a rig utilization rate of 35%, compared to 35% and 55% in February 2016 and March 2015, respectively.

During the month, Basic's fluid service truck count decreased by six to 981. Fluid service truck hours for the month were 172,800, compared to 168,100 and 202,900 in February 2016 and March 2015, respectively.

Drilling rig days for the month were 31 producing a rig utilization of 8%, compared to 8% and 50% in February 2016 and March 2015, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, commented, "Activity in the month of March, excluding the impact of the Easter holiday, remained steady for our production-related well servicing and fluid services segments. However, our completion-related services, such as our stimulation business, continue to be impacted as the volatility and uncertainty in oil prices has caused our customers to further curtail their exploration and drilling projects.

"Throughout the first quarter, we stacked additional equipment in markets where existing demand did not allow us to sustain cash breakeven or better margins. As of March 31, we had stacked 134,000 hydraulic horsepower due to lower completion demand. We also stacked eight additional well servicing rigs in March to bring our total stacked rig inventory to 127 at quarter-end. We made further progress in the first quarter to adjust our operational infrastructure to react to the prolonged weak market conditions and will make additional changes throughout this year to generate additional cost savings.

"Based on our activity in March, we now expect our first quarter revenues to be 18 to 20% lower than the fourth quarter of 2015 rather than our previous guidance of 16 to 17% lower. Weather and holiday interruptions represented approximately 4.5% of the total sequential revenue drop. We will discuss our second quarter revenue expectations during our first quarter earnings call later this month."

OPERATING DATA

	Month ended
	March 31,		February 29,
	2016	2015	2016

Number of weekdays in period	23	22	21

Number of well servicing rigs: ¹
Weighted average for period	421	421	421
End of period	421	421	421
Rig hours (000s)	37.0	56.0	34.2
Rig utilization rate²	35%	55%	35%

Number of fluid service trucks: ¹
Weighted average for period	984	1,036	986
End of period	981	1,023	987
Truck Hours (000s)	172.8	202.9	168.1

Number of drilling rigs:¹
Weighted average for period	12	12	12
End of period	12	12	12
Drilling rig days	31	186	29
Drilling rig utilization	8%	50%	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 3,400 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, 2015 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.