FORT WORTH, Texas, July 11, 2014 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of June 2014. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 71,600 producing a rig utilization rate of 74%, compared to 70% and 79% in May 2014 and June 2013, respectively.
During the month, Basic's fluid service truck count decreased by one to 1,016. Fluid service truck hours for the month were 205,300 compared to 213,400 and 185,400 in May 2014 and June 2013, respectively.
Drilling rig days for the month were 317 producing a rig utilization of 88%, compared to 89% and 79% in May 2014 and June 2013, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Activity in June for our major business lines was consistent with the momentum that we saw throughout the second quarter of this year. We did experience a slight impact from rainy conditions throughout our Texas and Oklahoma footprint which had some effect on all business lines in those markets, particularly our fluid service truck hours. Demand for our pumping services and coil tubing operations during the month continued at a strong pace due to the high level of completion activity. In addition, our well servicing utilization increased from April and May, mainly due to the absence of a holiday in June as well as continued modest improvements in busier well servicing markets like the Permian Basin and Eagle Ford.
"We now expect our second quarter revenue to be approximately 6% to 7% higher sequentially compared to our previous guidance of 5% to 6%. This improvement is mainly attributable to the better than expected activity in our completion and remedial segment, particularly from stimulation services. We will discuss our third quarter revenue expectations during our second quarter earnings call later this month.
"With the improving market environment, we are evaluating multiple organic and acquisition growth opportunities across all business lines. We expect to close on a few small acquisitions in the near term and we remain confident in the potential for some larger deals to close before year-end as well."
OPERATING DATA | ||||||
Month ended | ||||||
June 30, | May 31, | |||||
2014 | 2013 | 2014 | ||||
Number of weekdays in period | 21 | 20 | 22 | |||
Number of well servicing rigs: 1 | ||||||
Weighted average for period 2 | 421 | 421 | 421 | |||
End of period 2 | 421 | 421 | 421 | |||
Rig hours (000s) 2 | 71.6 | 72.7 | 71.3 | |||
Rig utilization rate 2,3 | 74% | 79% | 70% | |||
Number of fluid service trucks: 1 | ||||||
Weighted average for period | 1,017 | 971 | 1,016 | |||
End of period | 1,016 | 968 | 1,017 | |||
Truck Hours (000s) | 205.3 | 185.4 | 213.4 | |||
Number of drilling rigs: 1 | ||||||
Weighted average for period | 12 | 12 | 12 | |||
End of period | 12 | 12 | 12 | |||
Drilling rig days | 317 | 285 | 332 | |||
Drilling rig utilization | 88% | 79% | 89% | |||
(1) | Includes all rigs and trucks owned during periods presented and excludes rigs and trucks held for sale. |
(2) | Basic sold its four inland barge workover rigs on March 31, 2014. The weighted average number of rigs, number of rigs at the end of the period, rig hours and rig utilization rate for June 2013 has been recalculated as if these four rigs had been sold for that period. |
(3) | 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 5,600 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, 2013 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. | |
817-334-4100 | |
Jack Lascar | |
Dennard - Lascar Associates | |
713-529-6600 |
SOURCE Basic Energy Services, Inc.
