Operational Updates | Service & Supply | Oilfield Services | Capital Markets | Private Equity Activity
Basic's Service Activities Flat for March; Slight Dip in Fluid Services
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Basic Energy Services, Inc. reported selected operating data for the month of March 2015.
Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 56,000 producing a rig utilization rate of 55%, compared to 55% and 75% in February 2015 and March 2014, respectively.
During the month, Basic's fluid service truck count decreased by 26 to 1,023. Fluid service truck hours for the month were 202,900 compared to 184,100 and 211,000 in February 2015 and March 2014, respectively.
Drilling rig days for the month were 186 producing a rig utilization of 50%, compared to 63% and 81% in February 2015 and March 2014, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "March operating activity remained relatively flat for our rig and truck operations from February levels. In early March our Permian Basin and South Texas operations experienced some weather disruptions that reduced our rig hours by approximately 200 bps. While our completion and remedial services segment saw less of a sequential reduction in activity levels compared to the previous month-over-month period, stimulation activity continues to be impacted by the drop in drilling rig count. We continue to face fierce rate competition in the completion lines of business across all of our operating areas.
"We have maintained our strategy of protecting market share and maximizing utilization; reducing rates as necessary in all segments. We continue our efforts to lower input costs and right-size our workforce. Our overall headcount is now 19% lower than its peak of mid fourth quarter 2014. As we allocate assets into markets where activity is strongest, we continue to high-grade our marketed fleet and stack excess equipment. We have increased our stacked well servicing rig count by 40 since year-end, and the sequential drop in truck count represents the scaling of our operations to match customer activity.
"We now expect our first quarter revenue to be approximately 34%-35% lower sequentially compared to our previous guidance of 32%-34%. In light of the continued decrease in the overall U.S. land rig drilling fleet and lower overall capital expenditures by most customers, it is still too early to predict whether or not these flattening utilization levels represent a potential floor for activity. We will discuss our second quarter revenue expectations during our first quarter earnings call later this month."