Basic Energy Services Inc. (fka BASXQ)

[hamilton]

S&P GLOBAL KEEPS HOLD OPINION ON SHARES OF BASIC ENERGY SERVICES INC.

11:04 am ET July 22, 2016 (S&P Capital IQ)
We narrow our projected operating loss per share by $0.01 to $5.30, but widen '17's by $0.02 to $4.21. Our 12-month target of $1, cut by $2, reflects relative metrics of market cap to forward revenues, which are near the bottom of BAS' five-year range. A Q2 loss per share of $1.34, vs. a loss per share of $1.13, was $0.07 narrower than the Capital IQ consensus. BAS said it has retained counsel for creditor-related discussions. We think achieving cash flow neutrality will be difficult unless a significant increase in activity occurs, although we do think the cycle has bottomed.