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Basic Energy Services reports 1Q revenue decline

🕐 2 min read

Basic Energy Services Inc. of Fort Worth has reported lower revenue in first-quarter 2016, dropping 19 percent to $130.4 million from $161 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 $261.7 million in revenue generated in first quarter 2015.

“Our first quarter results continue to reflect the impact of the ongoing decline in all oilfield-related services,” said president and CEO Roe Patterson in a news release.

“While our production-related activities appeared to have begun stabilizing at the end of the first quarter, our completion-related services continue to be impacted as the volatility and uncertainty in oil prices caused our customers to further curtail their exploration and drilling projects as the quarter unfolded,” Patterson said.

In the quarter ended March 31, 2016, the oil and gas well-services company reported a net loss of $83.3 million, or $2 per basic and diluted share. The quarter included a tax-effected, non-cash charge of $1.3 million, or 3 cents per share, for what the company called early extinguishment of deferred debt costs related to the amendment of its revolving credit facility and a non-cash charge of $27.3 million, or 66 cents per share, related to a defrerred tax valuation allowance on federal net operating losses.

The company reported a net loss of $54.8 million, or a loss of $1.32 per basic and diluted share. That compared to a net loss of $55.2 million, or a loss of $1.36 per basic and diluted share, in the fourth quarter of 2015.

Adjusted earnings before interest, taxes, depreciation and amortization dropped to $11.1 million, or 9 percent of revenues, for first-quarter 2016 from $7.5 million, or 5 percent of revenues, in fourth quarter of 2015. 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 32 percent to $39.7 million in first quarter 2016 from $58.5 million in the prior quarter.

Well servicing revenues dropped 6 percent to $38.9 million during first-quarter 2016 compared to $41.5 million in the prior quarter.

As of March 31, 2016, the firm’s well servicing rig count totaled 421, the same as the end of the prior quarter. Rig hours totaled 108,400 in first-quarter 2016, down 10 percent from 120,000 in the previous quarter and down 34 percent from 163,900 hours in same period last year.

Rig utilization totaled 36 percent in first-quarter 2016, compared to 39 percent in the prior quarter and 55 percent in the first 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 3,400 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.

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