Basic Energy Services Reports Selected Operating Data For February 2015

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Mar 13, 2015, 06:00 ET

FORT WORTH, Texas, March 13, 2015 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of February 2015. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 50,500 producing a rig utilization rate of 55%, compared to 56% and 71% in January 2015 and February 2014, respectively.

During the month, Basic's fluid service truck count decreased by five to 1,049. Fluid service truck hours for the month were 184,100 compared to 208,100 and 189,000 in January 2015 and February 2014, respectively.

Drilling rig days for the month were 213 producing a rig utilization of 63%, compared to 74% and 78% in January 2015 and February 2014, respectively.

Roe Patterson, Basic's President and Chief Executive Officer, stated, "February operating activity was affected by severe weather conditions in the last week of the month, particularly in our Permian Basin and Mid-Continent operating areas. Weather impact in February reduced well servicing utilization by approximately 600 basis points and fluid service hours by five percent. Icy conditions also prevented several of our stimulation crews from reaching job locations, resulting in the loss of approximately one day of activity. Furthermore, the decline in contract drilling utilization reflects our customers' reduction in drilling plans.

"The operating environment continues to be challenging and we are reacting quickly to our customers' requests for lower pricing for our services. Stimulation services pricing concessions have increased to 25%-30%, which is up from the 15%-20% range we experienced earlier in the first quarter. Pricing concessions for our other services remain consistent with what we reported in our January operating update. We continue to maximize utilization and protect market share with rate reductions when and where possible. We continue our efforts to reduce costs and scale down our operations to match customer activity. Negotiations to lower costs for sand, chemicals, fuel, supplies, etc. with our vendors and suppliers are ongoing, and we continue to make progress.

"Preserving liquidity is our main focus and our efforts to reduce capital spending have been successful. Our headcount is now down by 14% since its peak in November 2014 and we continue to adjust personnel costs to mitigate pricing concessions.

"Adverse weather has affected activity to date in March throughout our footprint. With the weather impact we experienced in February, and so far in March, combined with the increase in price concessions for stimulation services, we now expect first quarter revenue to be 32%-34% lower sequentially compared to our previous guidance of 21%-26% lower."

OPERATING DATA

	Month ended
	February 28,		January 31,
	2015	2014	2015

Number of weekdays in period	20	20	22

Number of well servicing rigs: ¹
Weighted average for period²	421	421	421
End of period ²	421	421	421
Rig hours (000s)²	50.5	65.4	57.4
Rig utilization rate^2,3	55%	71%	56%

Number of fluid service trucks: ¹
Weighted average for period	1,052	1,006	1,051
End of period	1,049	1,008	1,054
Truck Hours (000s)	184.1	189.0	208.1

Number of drilling rigs:¹
Weighted average for period	12	12	12
End of period	12	12	12
Drilling rig days	213	262	275
Drilling rig utilization	63%	78%	74%


⁽¹⁾	Includes all rigs and trucks owned during periods presented and excludes rigs and trucks held for sale.
⁽²⁾	Basic sold its four inland barge workover rigs on March 31, 2014. The weighted average number of rigs, number of rigs at the end of the period, rig hours and rig utilization rate for February 2014 has been recalculated as if these four rigs had been sold for that period.
⁽³⁾	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.

Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs more than 5,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, and the Rocky Mountain and Appalachian regions.

Additional information on Basic Energy Services is available on the Company's website at http://www.basicenergyservices.com.

Safe Harbor Statement

This release includes forward-looking statements and projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Basic has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release, including (i) changes in demand for our services and any related material impact on our pricing and utilizations rates, (ii) Basic's ability to execute, manage and integrate acquisitions successfully and (iii) changes in our expenses, including labor or fuel costs and financing costs. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Form 10-K for the year ended December 31, 2014 and subsequent Form 10-Qs filed with the SEC. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that anticipated future results will be achieved. Basic assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by Basic, whether as a result of new information, future events, or otherwise.

Contacts:	Alan Krenek, Chief Financial Officer
	Basic Energy Services, Inc.
	817-334-4100

	Jack Lascar / Stephanie Smith
	Dennard – Lascar Associates
	713-529-6600