By December 14, 2015 Read More →

Basic Energy Services: Thanksgiving affects Nov. operation results

“Basic Energy Services well servicing operations lost approximately 500 basis points of utilization in November due to seasonal factors.”

Basic Energy Services

FORT WORTH, Texas – Well servicing company Basic Energy Services says the Thanksgiving holiday is largely responsible for a decline in rig and fluid service truck utilization during Nov.

“As expected, November activity was significantly impacted by the Thanksgiving holiday period,” said CEO Roe Patterson.

In addition, wet weather in the last week of the month hindered operations in a large part of our geographic footprint.  The performance of our fluid services operations was consistent with the last several months.

Basic Energy

Roe Patterson, Basic Energy President and CEO.

Basic Energy’s well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 37,600 producing a rig utilization rate of 39%, compared to 44% and 67% in October 2015 and November 2014, respectively.

During the month, Basic’s fluid service truck count declined by five to 1,001. Fluid service truck hours for the month were 182,800, compared to 197,200 and 210,400 in October 2015 and November 2014, respectively.

Drilling rig days for the month were 59 producing a rig utilization of 16%, compared to 13% and 83% in October 2015 andNovember 2014, respectively.

“Well servicing operations lost approximately 500 basis points of utilization in November due to seasonal factors,” said Patterson in a press release.

“Well servicing and fluid services utilization post the Thanksgiving holiday period bounced back to levels equal to, or in some cases slightly higher, than prior to the holiday period. Stimulation services activity was impacted during the month by the typical seasonal factors as well as lower levels of completion activity.”

Patterson says the company will continue with its “well-developed strategy” of scaling operations and capital expenditures to fit cash flow in order to preserve its liquidity.

“We continue to stack underutilized assets while simultaneously high-grading our current marketed fleet across our footprint and in all lines of business,” said Patterson.

“We have exited markets where margins have fallen below levels that justify current sustaining capital expenditures. While we expect a slower than usual holiday period in late Dec., we do not currently anticipate any change to our previously announced guidance of fourth quarter revenues being 13-15 per cent lower sequentially.”

OPERATING DATA
Month ended
Nov. 30 Oct. 31,
2015 2014 2015
Number of weekdays in period 21 20 22
Number of well servicing rigs: 1
  Weighted average for period 421 421 421
  End of period 421 421 421
  Rig hours (000s) 37.6 62.3 44.4
  Rig utilization rate 2 39% 67% 44%
Number of fluid service trucks: 1
  Weighted average for period 1,004 1,041 1,010
  End of period 1,001 1,042 1,006
  Truck Hours (000s) 182.8 210.4 197.2
Number of drilling rigs: 1
  Weighted average for period 12 12 12
  End of period 12 12 12
  Drilling rig days 59 298 50
  Drilling rig utilization 16% 83% 13%
(1)  Includes all rigs and trucks owned during periods presented and excludes rigs and trucks held for sale.
(2) Rig utilization rate based on the weighted average number of rigs owned during the periods being reported, a 55-hour work week per rig and the number of weekdays in the periods being presented.

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