Basic Energy Services, Inc.
BAS ("Basic") today reported selected operating data for the month of
November 2014. Basic's well servicing rig count remained unchanged at 421.
Well servicing rig hours for the month were 62,300 producing a rig utilization
rate of 67%, compared to 73% and 61% in October 2014 and November 2013,
respectively.
During the month, Basic's fluid service truck count increased by two to 1,042.
Fluid service truck hours for the month were 210,400 compared to 234,800 and
185,100 in October 2014 and November, 2013 respectively.
Drilling rig days for the month were 298 producing a rig utilization of 83%,
compared to 88% and 72% in October 2014 and November 2013, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "We were
generally pleased with our November results. While we experienced the normal
impact from the extended Thanksgiving holiday and some rainy conditions early
in the month, overall activity levels were slightly above our expectations. We
experienced similarly strong demand in our completion and remedial services
segment as we have all year. Stimulation and coil tubing calendars remain
steady through year end and some customers have recently reconfirmed their
dates for the first quarter of 2015.
The Permian Basin and Mid-Continent operations were most impacted by the wet
weather. Well servicing operations lost about 200 basis points of utilization,
while fluid services were only slightly impacted by the wet conditions.
Contract drilling utilization was lower in November as one of our rigs was
transitioning between jobs.
"Based on current commodity price forecasts for the near term, and the
possibility of a prolonged period of lower oil prices, we anticipate lower
capital spending by our customers in 2015. Therefore, we have initiated plans
to deal with an environment for decreasing business conditions. We have in
place a well-established operating strategy to deal with this environment,
which includes reducing capital spending, scaling back operations to fit cash
flow, protecting our market share and preserving liquidity. Our 2014 capital
campaign was relatively frontloaded, and we have no significant capital
obligations remaining for 2014, thus enhancing our liquidity. We expect to
have a significant reduction in our 2015 capital expenditure plan, shifting
primarily to a maintain-and-sustain revenue mode only. We will provide more
details on our 2015 capital plans in our December operating data press release
in early January."
OPERATING DATA
Month ended
November 30, October 31,
2014 2013 2014
Number of weekdays in period 20 21 23
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 62.3 59.3 77.8
Rig utilization rate ^ 2,3 67% 61% 73%
Number of fluid service trucks: ^1
Weighted average for period 1041 986 1043
End of period 1042 989 1040
Truck Hours (000s) 210.4 185.1 234.8
Number of drilling rigs: ^ 1
Weighted average for period 12 12 12
End of period 12 12 12
Drilling rig days 298 259 326
Drilling rig utilization 83% 72% 88%
^(1) Includes all rigs and trucks owned during periods presented and excludes
rigs and trucks held for sale.
Basic sold its four inland barge workover rigs on March 31, 2014. The
^(2) weighted average number of rigs, number of rigs at the end of the period,
rig hours and rig utilization rate for November 2013 has been
recalculated as if these four rigs had been sold for that period.
Rig utilization rate based on the weighted average number of rigs owned
^(3) 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 5,800 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.
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