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Drilling rig days for the month of September 2009 were 119 producing a rig utilization of 44%, a decrease from 52% and 99% in August 2009 and September 2008, respectively.
Basic's fluid services truck fleet remained unchanged at 805 trucks as of September 30, 2009.
Ken Huseman, Basic's President and Chief Executive Officer, stated, "Our September well servicing utilization rate when adjusted for the day or day and a half impact of the Labor Day holiday was consistent with our August performance. Demand for our services continues to show modest improvement in our oil-oriented markets but remains flat in the gas-prone markets. Pricing has generally stabilized across all of our business lines.
"While we see continued, steady improvement in oil-related activity, we anticipate tough market conditions to prevail until gas-driven activity increases to help more fully absorb the excess service capacity in each of our markets and segments."
OPERATING DATA
Month ended
-----------
September 30, August 31,
2009 2008 2009
---- ---- ----
Number of weekdays in
period 22 22 21
Number of well
servicing rigs: (1)
Weighted average for
period 414 413 414
End of period 414 413 414
Rig hours (000s) 41.3 74.9 41.4
Rig utilization rate( 2) 41% 75% 43%
Number of drilling
rigs: (1)
Weighted average for
period 9 9 9
End of period 9 9 9
Drilling rig days 119 268 146
Drilling utilization 44% 99% 52%
Number of fluid service
trucks:
Weighted average for
period 805 697 805
End of period 805 790 805
(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 3,800 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 States.
Additional information on Basic Energy Services is available on the Company's website at http://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 Basic's 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, 2008, and subsequent Form 10-Q's filed with the SEC. While we make these statements and projections in good faith, neither Basic Energy Services nor its management can guarantee that the transactions will be consummated or 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.
http://basicenergyservices.com
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