Basic Energy Services CEO Buys 15,000 Shares

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Aug 20, 2015

Roe Patterson (Insider Trades), CEO and president of Basic Energy Services Inc. (BAS), bought 15,000 shares of the company on Aug. 19. The average price per share was $4.32, for a total transaction of $64,800. Basic Energy Services provides well site services essential to maintaining production from oil and gas wells. The company’s market cap is $176.49 million and P/S ratio is 0.14.

Patterson bought 22,800 shares of Basic Energy in four transactions, and 33,000 shares in 15 transactions since March 2011. Basic Energy Vice President, Controller, and CAO, Cody Bissett (Insider Trades), also bought 5,000 shares of the company at $4.28 per share on Aug. 19. On the same day, Basic Energy Directors Steven Webster (Insider Trades) and Thomas Moore (Insider Trades) bought 50,000 and 20,000 shares of the company at $4.21 and $4.28 per share, respectively. The number and volume of insider buys of Basic Energy Services decreased from 14 transactions of 448,570 shares in 2012, to two transactions of 13,500 shares in 2014. The number and volume of insider buys increased within the same period of time, from five insider sells of 22,500 shares in 2012, to 78 insider sells of 7,255,155 shares in 2014. 03May20171011121493824272.png 03May20171011131493824273.png For more information about insider transactions with Basic Energy Services Inc., click here.

Basic Energy Services reported a net loss of $48.295 million, or $1.20 per share in the second quarter of 2015; net income in the second quarter of 2015 decreased 26% compared to a net income of $2.444 million or $0.06 per share in the corresponding quarter of 2014. Total revenue decreased in the same period of time from $359.662 million to $193.596 million; however, annual revenue is up 15.59% since 2010. 03May20171011131493824273.png Patterson commented that the second quarter results “reflect the continuing impact of the decline in the U.S. drilling rig count,” and also the reduced demand on the company’s services. Patterson also stated the company expects “third quarter revenue to be flat or slightly higher sequentially,” in comparison to July because of better weather and longer daylight hours. The company also announced a partnership with Quantum in the works. Bill Montgomery, Quantum managing director, commented that Quantum will “plan on utilizing our combined resources to continue Basic’s growth strategy and success.” According to GuruFocus.com information, Basic Energy Services Inc. has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.

One guru increased while another decreased their stake in Basic Energy during the second quarter of 2015. Jim Simons (Trades, Portfolio) (Trades, Portfolio) of Renaissance Technologies LLC bought 872,600 shares at an average price of $8.53 after having sold out 761,200 shares at an average price of $6.58 per share in the previous quarter. Chuck Royce (Trades, Portfolio) (Trades, Portfolio) of Royce and Associates LLC sold 140,695 shares at an average price of $8.53 per share. Royce sold 728,695 shares in six consecutive quarters since the first quarter of 2014. For more information about guru transactions with BAS, click here.

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