Basic Energy cuts 3Q outlook, gets SEC subpoena
FORT WORTH, Texas -- Basic Energy Services, which provides services for oil and gas wells, lowered its third-quarter revenue forecast Tuesday, as some of its September results came in weaker than expected.
The news comes a day after the company announced that it received a subpoena from the Securities and Exchange Commission.
In a regulatory filing Basic Energy said that it believes the SEC is investigating whether it may have violated federal securities laws when it reported some of its June operating data.
Basic Energy said that it plans to fully cooperate with the SEC inquiry.
The company now expects third-quarter revenue to drop 5 to 6 percent from the second quarter. It previously predicted a 3 percent decline. The company maintained its guidance for fourth-quarter revenue falling 3 to 5 percent from the third-quarter.
Basic Energy Services Inc.'s well servicing rig utilization rate dropped slightly in September on fewer workdays and the inclusion of the Labor Day holiday. The 71 percent rate for the month compares with 74 percent a year ago and 75 percent in August.
Drilling rig days for September totaled 289, which resulted in a contract drilling rig utilization of 80 percent. That compares with 89 percent a year ago and August's 91 percent. Basic Energy said the decline was due to delays at some of its rigs and also because it used a rig on an internal project.
Shares of Basic Energy Services rose 32 cents, or 2.8 percent, to $11.62 in morning trading amid a broader market rally.