A. Lee Graham
Basic Energy Services Inc. of Fort Worth has reported higher revenue in first-quarter 2014, rising 9 percent to $336.8 million from $308 million in fourth quarter 2013 and 11 percent from $304.4 million from first quarter 2013.
Meanwhile, the oil and gas well-services company reported a net loss of $1.9 million, or 5 cents per basis and diluted share, in first quarter 2014 compared to a net loss of $7.4 million, or 18 cents per basic and diluted share reported in fourth quarter 2013. In the first quarter of 2013, the company reported a net loss of $8.8 million, or 22 cents per basic and diluted share.
Adjusted earnings before interest, taxes, depreciation and amortization rose 10 percent to $65.4 million, or 19 percent of revenue, in the first quarter compared to $59.5 million, or 19 percent, in fourth quarter 2013. Adjusted EBITDA is net income before interest, taxes, depreciation and amortization, and the net gain or loss from disposing assets.
“Our first quarter results continued to benefit from the strong activity that began in the fourth quarter of 2013,” said president and CEO Roe Patterson in a news release.
“Healthy oil prices, and relatively stable natural gas prices, drove demand for our services across our footprint,” Patterson said.
Those factors primarily affected company operations in the Permian Basin, where Patterson said oil-directed drilling rig counts rose “significantly” during the first quarter.
“We expect our second quarter revenue to be up 5 percent to 6 percent sequentially as we anticipate demand for our services to benefit from increased customer spending aided by better weather and longer daylight hours,” Patterson said.
Well servicing revenues rose 11 percent to $92.9 million during first quarter 2014 compared to $84 million in the prior quarter, which the company credits to higher activity levels in the Permian Basin and Mid-Continent, as well as improvements due to seasonal factors.
As of March 31, 2014, the firm’s well servicing rig count totaled 421, down from 425 at the end of the prior quarter. Rig hours increased 9 percent to 217,400 in first quarter 2014, compared to 199,400 in the previous quarter, and rose 3 percent from 210,800 in the comparable quarter of last year.
Rig utilization totaled 73 percent in first quarter 2014, compared to 66 percent in the prior quarter and 69 percent in the first quarter of 2013.
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 5,500 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.