MIDLAND, Texas, May 10, 2010 /PRNewswire via COMTEX/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of April 2010. During the month, Basic's well servicing rig count remained unchanged at 404 as of April 30, 2010. Well servicing rig hours for the month of April 2010 were 50,600 producing a rig utilization rate of 52%, a decrease from 53% in March 2010 and an increase from 37% in April 2009.
Drilling rig days for the month of April 2010 were 169, producing a rig utilization of 63%, an increase from 58% and 33% for March 2010 and April 2009, respectively.
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Basic's fluid services truck fleet increased to 793 trucks as of April 2010 from 791 at the end of last month.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "We continued to experience increased demand in all our business lines in April as longer work days and strong oil fundamentals offset weak gas activity. Well servicing rig hours and utilization were down compared to March due to one less weekday and the impact of the Easter weekend, which essentially resulted in a three day weekend in most of our markets. Adjusting for those factors, well servicing hours averaged 2,409 hours per day, an increase of more than 2% from the March average of 2,357 hours per day.
"Pricing continues to be firm throughout our markets and we have implemented rate increases in the busiest markets as our customers focus on the availability of their preferred personnel and equipment to support their expanding work schedules. Labor cost increases will likely promote the first significant region-wide pricing move before the end of this quarter as competition for qualified personnel is intensifying.
"Our utilization should show further improvement across all business segments through the summer due to seasonal factors, as well as the impact of reactivating and relocating our equipment to our established oil-oriented markets to meet drilling and workover demand. We have particularly been stretching our pumping and fluid services capacity to accommodate oil drilling activity in the Permian Basin and the Williston Basin." OPERATING DATA Month ended ----------- April 30, March 31, 2010 2009 2010 ---- ---- ---- Number of weekdays in period 22 22 23 Number of well servicing rigs: (1) Weighted average for period 404 414 404 End of period 404 414 404 Rig hours (000s) 50.6 36.6 54.2 Rig utilization rate(2) 52% 37% 53% Number of drilling rigs:(1) Weighted average for period 9 9 9 End of period 9 9 9 Drilling rig days 169 89 163 Drilling utilization 63% 33% 58% Number of fluid service trucks: Weighted average for period 792 810 792 End of period 793 807 791 (1) Includes all rigs owned during periods presented and excludes rigs 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 4,000 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 States.
Additional information on Basic Energy Services is available on the Company's website at http://www.basicenergyservices.com.
Safe Harbor Statement This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Basic has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including (i) changes in demand for our services and any related material impact on our pricing and utilizations rates, (ii) Basic's ability to execute, manage and integrate acquisitions successfully and (iii) changes in our expenses, including labor or fuel costs and financing costs. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Form 10-K for the year ended December 31, 2009 and subsequent Form 10-Qs filed with the SEC. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that anticipated future results will be achieved. Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise.
Contacts: Alan Krenek, Chief Financial Officer Basic Energy Services, Inc.
432-620-5510 Jack Lascar/Sheila Stuewe DRG&E / 713-529-6600 SOURCE Basic Energy Services, Inc.
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