Basic Energy Services issues February report

Basic Energy Services Inc.’s well-servicing rig count has remained unchanged at 421, according to the Fort Worth company’s newly released selected operating data for February 2016.

Meanwhile, well-servicing rig hours for the month totaled 37,200, producing a rig utilization rate of 35 percent, compared to 38 percent and 55 percent in January 2016 and February 2015, respectively.

During the month, the firm’s fluid service truck count increased by one to 987. Fluid service truck hours for the month totaled 168,100 compared to 180,800 and 184,100 in January 2016 and February 2015, respectively.

Drilling rig days for February totaled 29, producing a rig utilization of 8 percent, compared to 8 percent and 63 percent in January 2016 and February 2015, respectively.

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“February activity remained soft on continued low levels of spending by our customers, including spending for maintaining existing oil wells, which reduced well-servicing utilization,” said president and CEO Roe Patterson, commenting in a news release.

In its fourth-quarter earnings call, the company said it estimated that first-quarter revenues would be in the range of 10 percent lower, sequentially. It anticipated more maintenance and workover projects being deferred in late 2015, with customers indicating many of those would be complete in the first quarter.

“This inventory has indeed growth, but our customers’ reactions to sub-$30 dips in WTI [West Texas Intermediate oil] pricing have been swift and drastic, thereby postponing several of these projects,” Patterson said.

Basic Energy Services, which provides oil and gas well-site services, employs more than 3,500 workers in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain and Appalachian regions. More information is available at www.basicenergyservices.com.