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Basic Energy Services Reports Selected Operating Data for March 2012

07:00 EDT Thursday, April 12, 2012

MIDLAND, Texas, April 12, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of March 2012.  During the month, Basic added nine well servicing rigs from an acquisition, increasing the overall count to 431. Well servicing rig hours for the month were 80,600 producing a rig utilization rate of 78%, compared to 76% and 70% in February 2012 and March 2011, respectively.

During the month, Basic's fluid service truck count increased by eleven to 915.  Fluid service truck hours for the month were 195,900, compared to 186,500 and 180,000 in February 2012 and March 2011, respectively.

Drilling rig days for the month were 338 producing a rig utilization of 91%, compared to 91% and 99% in February 2012 and March 2011, respectively.

Ken Huseman, Basic's President and Chief Executive Officer, stated, "We saw overall activity levels improve in March driven by seasonal factors and our large presence in oil and liquids-rich operating areas.  In our Completion and Remedial Services segment, work calendars for our frac pumping services remain full through the end of this year; however, we are seeing increased discounting as new and displaced competitors have moved more equipment into the more active markets. Demand for other services in this sub-segment such as cementing, acidizing and general pumping services continues to be at high levels with less pricing pressure.   

"Expansion capital continues to be directed to our Fluid Services segment as shown by the increased truck count. We also have four salt water disposal wells permitted to drill with seven more in the development stage.  In our Completions and Remedial Services segment, we expect the two coil tubing units we ordered last year will be in the field next month representing the bulk of expansion capital expenditures to be devoted to this segment this year.

"Utilization in our Well Servicing segment continued to move up during the first quarter as we unstacked five rigs and relocated several more from slower gas markets to busier oil markets, primarily the Permian Basin.  We expect increased spending for well maintenance and workover projects to drive demand and allow us to reduce the stacked rig count further over the course of this year.

"During March, we completed the acquisition of nine P&A workover rig packages in our South Texas operation, bringing our specialized P&A rig fleet to 34 company-wide. This is the second acquisition to date in 2012 as we continue to evaluate multiple acquisition opportunities throughout our segments and geographic regions."

OPERATING DATA

 

Month ended

March 31,

February 29,

2012

2011

2012

Number of weekdays in period

22

23

21

Number of well servicing rigs: (1)

  Weighted average for period

427

412

422

  End of period

431

412

422

Rig hours (000s)

80.6

72.9

73.8

Rig utilization rate(2)

78%

70%

76%

Number of fluid service trucks:(1)

  Weighted average for period

910

827

901

  End of period

915

830

904

Truck hours (000s)

195.9

180.0

186.5

Number of drilling rigs:(1)

  Weighted average for period

12

6

12

  End of period

12

10

12

Drilling rig days

338

185

316

Drilling rig utilization 

91%

99%

91%

(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 5,700 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 StatementThis 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, 2011 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.




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