Basic Energy Services Inc. (fka BASXQ)

[eastunder]

Barclays Cuts Estimates & PT on Basic Energy Services (BAS); Good Buyback, But Q2 Still Missed

Barclays maintains an 'Equalweight' on Basic Energy Services (NYSE: BAS) price target of $23.00 (from $24.00).

http://www.streetinsider.com/Analyst+Comments/Barclays+Cuts+Estimates+%26+PT+on+Basic+Energy+Services+%28BAS%29%3B+Good+Buyback%2C+But+Q2+Still+Missed/7614316.html

Analyst, James C. West, thinks Basic Energy will benefit from the continued shift toward drilling and activity in oil and liquids-rich plays (Permian Basin). However, for 2012, a slow decline in N.A. rig counts may make earnings expansion difficult. But, heading into 2013, BAS should be poised for significant recovery.

BAS has repurchased 1.1 million shares (through July 25) of its stock and West feels that's the best use of cash at this point. However, despite the buybacks, Q2 earnings were disappointing (misses by $0.02 on light revenues). Therefore, West lowers FY12 EPS estimate from $1.80 to $1.70 and FY13 from $1.95 to $1.90.