By January 12, 2016 Read More →

Basic Energy reports major decline in rig, truck services

Heavy snowfall in the Permian Basin, Oklahoma reduced utilization rates in Dec.

Basic EnergyFort Worth, Texas-based Basic Energy Services, Inc. is feeling the pinch of low oil and gas prices, as rig and fluid service truck utilization rates fell further at the end of 2015., the company announced Tuesday.

Basic Energy’s well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 37,900 producing a rig utilization rate of 36 per cent, compared to 39 per cent and 60 per cent in Nov. 2015 and Dec. 2014, respectively.

During the month, Basic’s fluid service truck count declined by 16 to 985.

Fluid service truck hours for the month were 177,000, compared to 182,800 and 218,200 in Nov. 2015 and Dec. 2014, respectively.

Basic Energy

Roe Patterson, Basic Energy President and CEO.

“The Dec. year-end holiday period was an exceptionally slow one. Our customers dramatically slowed their activities as they preserved cash and deferred maintenance work in response to continually weak commodity prices,” said CEO Roe Patterson.

“Operations were further impacted by extreme weather conditions in the last week of the month.  Heavy snowfall in the Permian Basin and Oklahoma caused significant downtime in all lines of business as we experienced blizzard conditions in many markets.  Current activity levels in most markets have generally resumed their pre-storm pace.”

Drilling rig days for the month were 46 producing a rig utilization of 12 per cent, compared to 16 per cent and 87 per cent in Nov. 2015 and Dec. 2014, respectively.

“Due to the impact of difficult weather conditions in late December, we expect our fourth quarter revenues to be at the higher end of the range that we had previously announced of 13 to 15 per cent lower sequentially. It is still too early to get a view of activity for the first quarter as most of our customers are still evaluating their spending plans for 2016. We will discuss our expectations for the first quarter during our next earnings call,” said Patterson.

Posted in: Energy Financial

Comments are closed.