Basic Energy Services Inc. of Fort Worth has reported lower revenue in second-quarter 2016, dropping 8 percent to $120 million from $130.4 million in the prior quarter as volatile energy prices and inclement weather led customers to postpone projects, according to the company.
The newly released numbers compare to $193.6 million in revenue generated in second quarter 2016.
“While revenue came in slightly better than our modified guidance and we believe activity levels probably reached the bottom of this cycle during the month of May, our second-quarter results continued to reflect the uncertainty and volatility in oil prices,” said president and CEO Roe Patterson in a news release.
For second quarter 2016, the oil and gas well-services company reported a net loss of $89.9 million, or $2.11 per basic and diluted share. The quarter included a non-cash charge of $32.9 million, or 77 cents per basic and diluted share, related to what the company called a valuation allowance on federal deferred tax assets.
Excluding that valuation allowance, Basic reported a net loss of $57 million, or $1.34 per basic and dilted share for second-quarter 2016.
Adjusted earnings before interest, taxes, depreciation and amortization dropped to $11.5 million, or 10 percent of revenues, for second-quarter 2016 from $11.1 million, or 9 percent of revenues, in first quarter 2016. Adjusted EBITDA is net income before interest, taxes, depreciation and amortization, and the net gain or loss from disposing assets.
Completion and remedial services revenue dropped by 9 percent to $36.2 million in second quarter 2016 from $39.7 million in the prior quarter.
Well servicing revenues dropped 5 percent to $36.8 million during second-quarter 2016 compared to $38.9 million in the prior quarter.
As of June 30, 2016, the firm’s well servicing rig count totaled 421, the same as the end of the prior quarter. Rig hours totaled 113,700 in second-quarter 2016, up 5 percent from 108,400 in the previous quarter and down 27 percent from 154,700 hours in same period last year.
Rig utilization totaled 38 percent in second-quarter 2016, compared to 36 percent in the prior quarter and 51 percent in the second quarter of 2015.
Rig utilization rates determine what percentage of a company’s rigs is in use.
Basic Energy Services, which provides oil and gas well-site services, employs more than 3,300 workers in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain and Appalachian regions. More information about the company and its latest quarterly results is available at www.basicenergyservices.com.