Basic Energy Services Reports Selected Operating Data For April 2012
MIDLAND, Texas, May 15, 2012 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of April 2012. Basic's well servicing rig count remained unchanged at 431. Well servicing rig hours for the month were 77,800 producing a rig utilization rate of 78%, compared to 78% and 67% in March 2012 and April 2011, respectively. Hours per weekday increased slightly despite the shortened workweek leading up to the Easter weekend.
During the month, Basic's fluid service truck count remained unchanged at 915. Fluid service truck hours for the month were 184,900, compared to 195,900 and 171,700 in March 2012 and April 2011, respectively.
Drilling rig days for the month were 321 producing a rig utilization of 89%, compared to 91% and 69% in March 2012 and April 2011, respectively.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "We maintained high utilization levels during the month of April across our business segments, supported by expanding activity in oil and liquids-rich operating areas which offset further deterioration in gas markets. As projected, April profit margins in our Fluid Services and Drilling segments snapped back to fourth quarter 2011 levels driven by strong demand in our Permian Basin operations. Also, as expected, our Completion and Remedial Services segment margins were down from first quarter levels due to aggressive discounting from increased competition in several of our more active markets.
"Well Servicing segment profit margins in April did not fully recover to fourth quarter levels as previously anticipated, due to declining utilization in several gas markets and aggressive competition in oil markets. We now expect Well Servicing segment margin to settle out slightly below the fourth quarter levels as we continue to protect and build market share with plans to activate the remainder of our stacked rigs primarily into the Permian Basin market.
"Our current 2012 capital budget has been reduced to reflect increased competition across our major service lines and is now primarily limited to sustaining our fleet. Our two new 2" coil tubing units have now been substantially completed and we expect them to be fully deployed in the Rocky Mountain market starting the first of June. These units are fully crewed and have full work calendars through the end of 2012. Other major expansion projects include ten SWD wells, which should be placed in service ratably over the remainder of the year.
"We continue to evaluate multiple acquisition opportunities throughout our segments and geographic regions but have tightened our valuation limits in response to uncertain market conditions. Even with that, we are finding compelling opportunities and may close one or two transactions by the end of the second quarter."
OPERATING DATA
Month ended
April 30, March 31,
2012 2011 2012
Number of weekdays in period 21 21 22
Number of well servicing rigs:(1)
Weighted average for period 431 412 427
End of period 431 412 431
Rig hours (000s) 77.8 64.0 80.6
Rig utilization rate(2) 78% 67% 78%
Number of fluid service trucks:(1)
Weighted average for period 915 834 910
End of period 915 838 915
Truck hours (000s) 184.9 171.7 195.9
Number of drilling rigs:(1)
Weighted average for period 12 10 12
End of period 12 10 12
Drilling rig days 321 206 338
Drilling rig utilization 89% 69% 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.
