By November 12, 2015 Read More →

Basic Energy Services reports decline in drilling, servicing rigs compared to 2014

October saw an increase in fluid service hours, as utilization remained strong in Permian Basin

Basic Energy

Basic Energy Services, Inc. today reported selected operating data for the month of Oct. 2015.  Basic’s well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 44,400 producing a rig utilization rate of 44%, compared to 46% and 73% in Sept. 2015 and Oct. 2014, respectively.

During the month, Basic’s fluid service truck count declined by nine to 1,006. Fluid service truck hours for the month were 197,200, compared to 183,400 and 233,300 in September 2015 and October 2014, respectively.

“October saw an increase in our fluid service hours, despite a decrease in our total number of trucks, as utilization remained strong in our Permian Basin operations,” said Roe Patterson, Basic Energy Services President and CEO.

Basic Energy

Roe Patterson, President and CEO, Basic Energy Services.

“However, our well servicing utilization was lower in October, primarily due to significant wet weather conditions in Texas and Oklahoma during the last part of the month.”

Drilling rig days for the month were 50 producing a rig utilization of 13%, compared to 27% and 88% in September 2015 andOctober 2014, respectively.

“Activity in our completion and remedial segment picked up slightly, especially in our coil tubing operations, but stimulation services continue to be impacted by the lower drilling rig count,” said Patterson.

“Pricing in all of our markets and lines of business remains competitive, and we are working to maintain current activity levels. We have stacked or relocated equipment where cash margins do not support maintenance capital expenditures.

Patterson says Basic Energy stacked an additional 17,000 hydraulic horsepower during the month, for a total of 60,000 stacked HHP at Oct. 30, 2015.

“Our outlook on the remainder of the fourth quarter remains unchanged,” he said.

Posted in: Energy Financial

Comments are closed.