Service & Supply | Oilfield Services | Job Cuts / Downsize / Layoff | Capital Markets | Capital Expenditure | Capex Decrease | Capital Expenditure - 2020

Basic Energy Services Planning Staff Cuts, Location Closures

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   |    Monday,March 30,2020

Basic Energy Services, Inc. is implementing several cost control and capital preservation measures in response to the market uncertainty.

In addition to reducing projected 2020 capital expenditures 60% from the previously announced $43 million to $17 million and suspending all new capital lease additions, the Company expects to reduce annual run-rate costs by approximately $20 million by taking the following actions immediately:

• Enact cost controls across all business lines, including adjusting staffing to current activity levels and furloughs of all executive, office, and administrative staff

• Consolidate certain regional district operations and centralize specific business processes

• Initiate the closure of selected, lower-performing locations.

Keith Schilling, President and Chief Executive Officer, said: "In this period of extreme volatility, we are focused foremost on protecting our employees through a tiered-action plan of response to best limit the potential threat posed by COVID-19. At the same time, we have acted decisively to counteract the rapidly changing market conditions. We will continue to be vigilant and act aggressively to match our costs to market activity levels and to preserve liquidity. Meanwhile, the integration of C&J continues, and while we are in the early days of that process, we continue to be impressed by C&J's organization and personnel. We believe we can potentially outperform the previously-stated cost and capital synergies of $23 million from the acquisition in 2020."