Basic Energy Services, Inc.
Company Summary
Description
With our extensive footprint in the nation’s most prolific basins, Basic Energy Services delivers dependable high-quality services that address a complete range of operational needs. Our geographic reach and service capacity mean customers benefit from the best servicing solutions regardless of the challenge, complexity or phase in the well lifecycle. At Basic, our services and solutions are scalable to match each customer’s unique demands. We back these with ancillary services that deliver added value, and support our offerings with some of the most experienced professionals in the industry. We’ve built our business from the ground up with local leadership. We know the field, the well, the challenges, and how to solve them. From our headquarters in Fort Worth, Texas, we support six geomarkets conducting operations in the Texas Gulf Coast region, the Central region, the Permian Basin of West Texas, California, the Appalachian region and the Rocky Mountains. Across every business segment, our regional expertise and responsiveness helps keep production flowing safely and efficiently.Website
http://www.basicenergyservices.com/about-us.htmlFinancial Data:
NYSE:BAS from Google FinanceTickers:
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BAS - New York Stock Exchange
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Company Transactions
Date: 4/28/2021
Type: Acquisition
NOTES:
Oilfield service firm Basic Energy Services has sold off some non-core assets for $6.6 million, in addition to a possible earn-out payment of $1 million. The sale included equipment such as "heavy-duty trucks, light duty vehicles, fracturing tanks and certain non-core salt water disposal wells."
Oilfield service firm Basic Energy Services has sold off some non-core assets for $6.6 million, in addition to a possible earn-out payment of $1 million. The sale included equipment such as "heavy-duty trucks, light duty vehicles, fracturing tanks and certain non-core salt water disposal wells."
REGIONS:
Lower 48
Date: 12/31/2019
Type: Acquisition
NOTES:
Basic Energy Services announced plans to divest their pumping services assets for a total of $30-$45 million through a variaty of transactions. The firm hopes that the move will allow for better focus on the core business of well servicing and water logistics. The funds will also help with the 2020-2021 capital budget plan.
Basic Energy Services announced plans to divest their pumping services assets for a total of $30-$45 million through a variaty of transactions. The firm hopes that the move will allow for better focus on the core business of well servicing and water logistics. The funds will also help with the 2020-2021 capital budget plan.
REGIONS:
United States
Date: 3/15/2017
Type: Acquisition
NOTES:
Basic Energy Services has entered into an agreement to acquire 74,000 horsepower in equipment for two frac spreads for a purchase price of $28.5 million. Basic Energy intends to have the assets available for use in May 2017 and they will be deployed to the Permian Basin.
Basic Energy Services has entered into an agreement to acquire 74,000 horsepower in equipment for two frac spreads for a purchase price of $28.5 million. Basic Energy intends to have the assets available for use in May 2017 and they will be deployed to the Permian Basin.
REGIONS:
Permian Basin
News & Press Releases
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Press Releases
- Reported revenue of $197.2 million, net loss of $27.5 million and loss per share of $1.02;
- Generated Adjusted EBITDA1 of $14.4 million and cash from operations of $1.8 million;
- Total liquidity was $130.0 million at March 31, 2019, comprised of cash and cash equivalents of $63.8 million and undrawn availability under its New ABL Facility (defined below) of $66.2 million;
- Well Servicing represented 31% of revenues, Water Logistics was 28% of revenues, and Completion & Remedial Services was 39% of revenues; and
- Well Servicing and Water Logistics continued to provide stability and growth in the quarter, with combined direct margins of $31.6 million, up $3.9 million sequentially on a $1.8 million increase in revenue.
- The financial performance of its assets without regard to financing methods, capital structure or historical cost basis;
- The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and
- Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure.
- EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments;
- EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt;
- EBITDA does not reflect income taxes;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets;
- Adjusted EBITDA does not reflect Basic's non-cash stock compensation;
- Adjusted EBITDA does not reflect Basic's professional fees related to tax recovery during the three months ended March 31, 2019;
- Adjusted EBITDA does not reflect Basic's costs for a withdrawn bond offering incurred during the three months ended March 31, 2018;
- Adjusted EBITDA does not reflect Basic's executive bonus expense attributable to the portion of executive bonuses for 2017 that were approved by the Compensation Committee of the Board of Directors and paid in 2018;
- Adjusted EBITDA does not reflect Basic's strategic consulting fees during the three months ended March 31, 2018;
- Other companies in the industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- Generated fourth quarter net loss of $46.7 million with Adjusted EBITDA (as defined and reconciled below) of $21.8 million on revenue of $230.4 million, while completing a strategic realignment initiative
- Reported full year net loss and loss per share of $144.6 million or $5.46 per share, compared to a net loss and loss per share of $96.7 million and $3.72 in 2017, with Adjusted EBITDA of $97.0 million in 2018 up from $82.8 million in 2017
- Placed $300 million of Senior Secured Notes due 2023 and increased total liquidity from $37.3 million on September 30, 2018, to $159.9 million as of December 31, 2018, and available cash to $90.3 million at December 31, 2018, up from $30.8 million at September 30, 2018
- In the fourth quarter, generated $24.0 million of net cash provided by operating activities with free cash flow (as defined and reconciled below) of $10.3 million
- The financial performance of its assets without regard to financing methods, capital structure or historical cost basis;
- The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and
- Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure.
- EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments;
- EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt;
- EBITDA does not reflect income taxes;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- Adjusted EBITDA does not reflect Basic's loss on extinguishment of debt;
- Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets;
- Adjusted EBITDA does not reflect Basic's non-cash stock compensation;
- Adjusted EBITDA does not reflect Basic's audit related sales and use tax expense recorded during the three months ended June 30, 2018;
- Adjusted EBITDA does not reflect Basic's executive retirement during the three months ended June 30, 2018;
- Adjusted EBITDA does not reflect Basic's excess bad debt due to a single customer during the three months ended June 30, 2018;
- Adjusted EBITDA does not reflect Basic's strategic realignment expense;
- Adjusted EBITDA does not reflect Basic's costs for a withdrawn bond offering incurred during the three months ended March 31, 2018;
- Adjusted EBITDA does not reflect Basic's executive bonus expense attributable to the portion of executive bonuses for 2017 that were approved by the Compensation Committee of the Board of Directors and paid in 2018;
- Adjusted EBITDA does not reflect Basic's non-cash inventory impairment;
- Adjusted EBITDA does not reflect Basic's restructuring or retention costs; and
- Adjusted EBITDA does not reflect Basic's costs for due diligence for business development activities incurred in the three months ended December 31, 2017;
- Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments;
- EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt;
- EBITDA does not reflect income taxes;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- Adjusted EBITDA does not reflect Basic's goodwill impairment;
- Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets;
- Adjusted EBITDA does not reflect Basic's retention expense;
- Adjusted EBITDA does not reflect Basic's restructuring costs;
- Adjusted EBITDA does not reflect Basic's vesting of Predecessor equity compensation;
- Adjusted EBITDA does not reflect Basic's loss on customer audit settlements; and
- Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- T.M. "Roe" Patterson - Mr. Patterson has 21 years of related industry experience. He was named our President and Chief Executive Officer and appointed as a Director in September 2013. From 2006 to September 2013, Mr. Patterson worked for Basic in positions of increasing responsibility. Prior to joining Basic, he was President of TMP Companies, Inc. He was a Contracts/Sales Manager at Patterson Drilling Company from 1996 to 2000.
- Timothy H. Day - Mr. Day is currently a private investor and director of several private companies. Prior to this, Mr. Day joined First Reserve in 2000 as a Vice President, served as Managing Director since 2007 and Co-Head of Buyout since 2012 until December 2015. Mr. Day currently serves as a director on the board of Diamond S Shipping, TNT Crane & Rigging and TPC Group. Mr. Day previously served as a Director of PBF Energy Inc. and Crestwood Midstream Partners LP. Mr. Day has been named Chairman of the Board of the Company.
- John Jackson - Mr. Jackson has served as Chief Executive Officer of Spartan Energy Partners since March 2010. Prior to that, from January 2008 through October 2009, Mr. Jackson was the Chairman and CEO of Price Gregory Services, Inc. Mr. Jackson currently sits on the board of directors of Seitel, Inc., Main Street Capital Corp. and Cone Midstream. He has previously served on the board of directors of Select Energy Services (2012 to 2015), RSH Energy (2013 to 2014), Encore Energy Partners (2009 to 2011) and Exterran Holdings, Inc. (2007 to 2009).
- James D. Kern - Mr. Kern has served as Managing Partner of Majestic Ventures 1 LLC, a consulting and investment partnership focused on early stage growth companies since May 2014. In addition, Mr. Kern has served on the board of directors of PlaySight Interactive Ltd. since May 2014. From 2010 to mid-2014, Mr. Kern was a Managing Director at Nomura Securities, serving as Head of Global Finance FIG and Specialty Finance Investment Banking for the Americas.
- Samuel E. Langford - Since January 2015, Mr. Langford has performed services as a consultant regarding upstream energy investments, strategies and management. Previously, Mr. Langford was employed by Newfield Exploration Co. as Senior Corporate Advisor-Corporate Office. In addition to Newfield, Mr. Langford has worked with Cockrell Oil & Gas, British Gas Exploration America, Tenneco Oil Company, Tenneco Inc and Exxon USA in various technical and managerial positions. TESO
- Julio Quintana - Mr. Quintana served as the President and Chief Executive Officer of Tesco Corporation, from 2005 until his retirement in January 2015 and was a member of the Tesco board from September 2004 to May 2015. Mr. Quintana brings 36 years of experience in various aspects of the oil and gas exploration and production industry. He is currently member of the board of Directors of SM Energy and Newmont Mining. Mr. Quintana has also been a board member of Pipeline Pressure Isolation LLC, a private company, since April 2016.
- Amend and restate the terms of the Company's prepetition term loan outstanding in the principal amount of approximately $165 million to provide for more flexible covenants.
- Cancel over $800 million of principal and accrued interest in outstanding Unsecured Notes. In exchange, holders of the Unsecured Notes (collectively, the "Noteholders") will receive 99.5% of reorganized Basic's equity as of the effective date of the Plan (the "Effective Date") (which will be 51.2% of the total outstanding equity in reorganized Basic upon conversion of the mandatorily convertible notes assuming such conversion occurs 36 months after the Effective Date) and eligible existing Noteholders will have the opportunity to participate in a rights offering for $125 million of new mandatorily convertible unsecured notes. This new capital commitment will be backstopped pursuant to an agreement to be entered into by certain supporting Noteholders.
- Pay all undisputed customer, employee, vendor and other trade obligations in full in the ordinary course.
- Provide the Company's existing shareholders with a recovery in the form of 0.5% of reorganized Basic's equity on the Effective Date (which will be 0.26% of the total outstanding equity in reorganized Basic upon conversion of the mandatorily convertible notes assuming such conversion occurs 36 months after the Effective Date) and 7-year warrants to acquire an additional 6% of total outstanding equity in reorganized Basic (after giving effect to the conversion of the mandatorily convertible notes).
- The financial performance of its assets without regard to financing methods, capital structure or historical cost basis;
- The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and
- Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure.
- EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments;
- EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt;
- EBITDA does not reflect income taxes;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets;
- Adjusted EBITDA does not reflect Basic's loss on customer audit settlements; and
- Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- The financial performance of its assets without regard to financing methods, capital structure or historical cost basis;
- The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and
- Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure.
- EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments;
- EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt;
- EBITDA does not reflect income taxes;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
- Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
- Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; and
- Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure.
Basic Energy Services Announces Share Repurchase Program
Source: PR Newswire
FORT WORTH, Texas, May 31, 2019 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") announced today that its Board of Directors has authorized the repurchase of up to $5.0 million of its outstanding shares of common stock from time to time in open market or private transactions, at the Company's discretion. This authorization expires on June 4, 2020. The timing and actual number of shares repurchased will depend on a variety of factors including the stock price, corporate and regulatory requirements and other market and economic conditions. The stock repurchase program may be suspended or discontinued as determined by the Board of Directors.
Commenting on the announcement, T. M. "Roe" Patterson, Basic's President and Chief Executive Officer, said, "The Board's authorization and our implementation of a stock repurchase program reflects our confidence in the long-term value of Basic's market position and financial performance, which have been severely discounted due to current conditions in financial markets. We expect the stock repurchase program to be effected without drawing on our existing ABL credit facility, and we expect our year-end cash balance to be approximately $55 - $60 million and total liquidity of approximately $130 - $135 million in the event we fully utilize the current repurchase authorization by December 31, 2019."
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating areas. The Company's operations are managed regionally and are concentrated in major United States onshore oil-producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and Colorado. Our operations are focused in liquids-rich basins that have historically exhibited strong drilling and production economics in recent years. Specifically, we have a significant presence in the Permian Basin, Powder River Basin, SCOOP/STACK, Denver-Julesburg Basin, and the Bakken and Eagle Ford shales. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information on Basic Energy Services is available on the Company's website at 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. Forward-looking statements are not statements of historical fact and reflect Basic's current views about future events. The words "believe," "estimate," "expect," "anticipate," "project," "intend," "seek," "could," "should," "may," "potential" and similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Although Basic believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions and estimates, certain risks and uncertainties could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release and the presentation. These risks and uncertainties include, without limitation, our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital and volatility in commodity prices for crude oil and natural gas. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Any forward-looking statement speaks only as of the date on which such statement is made and 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, except as required by applicable law.
Contacts: | Trey Stolz, |
VP Investor Relations | |
Basic Energy Services, Inc. | |
817-334-4100 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-share-repurchase-program-300859630.html
SOURCE Basic Energy Services, Inc.
Article Date
5/31/2019Basic Energy Services Reports First Quarter 2019 Results
Source: PR Newswire
FORT WORTH, Texas, May 9, 2019 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the first quarter ended March 31, 2019.
FIRST QUARTER 2019 HIGHLIGHTS
First quarter 2019 revenue decreased sequentially to $197.2 million from $230.4 million in the fourth quarter of 2018, primarily due to declines in pressure pumping operations, particularly frac. In the first quarter of 2018, Basic generated $234.7 million in revenue.
For the first quarter of 2019, Basic reported a net loss of $27.5 million, or a loss of $1.02 per basic and diluted share. This result is compared to a net loss of $46.7 million, or a loss of $1.76 per basic and diluted share for the fourth quarter of 2018, and a net loss of $30.5 million, or a loss of $1.16 per basic and diluted share in the first quarter of 2018.
Adjusted EBITDA1 was $14.4 million or 7% of revenues for the first quarter of 2019, compared to $21.8 million, or 10% of revenues in the fourth quarter of 2018. In the first quarter of 2018, Basic generated Adjusted EBITDA1 of $23.3 million, or 10% of revenues.
As of March 31, 2019, the Company had total liquidity of $130.0 million, which included cash and cash equivalents of $63.8 million and borrowing capacity under its senior secured revolving credit facility (the "New ABL Facility") of $66.2 million. The Company was undrawn on the New ABL Facility at the end of the first quarter of 2019.
Roe Patterson, President and CEO, stated, "First quarter results were in line with our initial expectations, and though we anticipated lower revenues from normal weather interruptions and less frac and completion work, we were pleased that our core focus on production-oriented services provided first quarter revenue stability and segment profit improvements in both Water Logistics and Well Servicing. Our production service businesses outperformed expectations in the first quarter, with margin improvement due in part to the positive impact of our recent strategic realignment initiative, which allowed our total Company's direct margin percentage to expand during the period despite the negative impact of the payroll tax reset in the first quarter. As we anticipated for first quarter, completion activity slowed.
"We remain bullish on our business for 2019 and are focused on maintaining capital flexibility and allocation discipline; therefore, we are moderating our plans for capital expenditures this year from $94 million to $69 million. Under the new capital expenditure plan, we anticipate that growth capital will be spent judiciously on long-lived water assets and equipment to support 24-hour rig packages with the expected highest return to Basic. Due to a combination of capital efficiency, timing and expected performance, we do not expect a degradation in 2019 EBITDA, while anticipating a significantly improved free cash flow generation for the year.
"Based on our new capital plan, we expect to generate EBITDA of $70 to $75 million for full year 2019, or adjusted EBITDA of $84 to $89 million which excludes $14 million of non-cash stock compensation expense. Under this scenario, we forecast a 2019 year-end cash balance of $60 to $65 million and total liquidity of $135 to $140 million, with our New ABL Facility remaining undrawn. We believe this guidance remains conservative in nature especially with respect to frac activity with significant upside potential to these projections if completion activity accelerates over the course of the year," concluded Patterson.
1Adjusted EBITDA and EBITDA are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"). See "Supplemental Non-GAAP Financial Measures" below for further explanation and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. |
First Quarter 2019 Business Segment Results
Well Servicing
Well Servicing revenues increased 3% sequentially to $60.5 million during the first quarter of 2019 compared to $58.8 million in the prior quarter due to improved utilization with pricing essentially flat. Well Servicing revenues were $57.0 million in the first quarter of 2018. Weather and holidays negatively impacted Well Servicing revenues by approximately $3.4 million in the first quarter of 2019.
The Well Servicing rig count was 310 at March 31, 2019, consistent with 310 at December 31, 2018. Rig hours were 165,000 in the first quarter of 2019, up 3% compared to 159,600 hours in the fourth quarter of 2018 and down 2% from 168,500 hours in the comparable quarter of last year. Rig utilization was 74% in the first quarter of 2019, up from 72% in the fourth quarter of 2018 and down from 76% in the first quarter of 2018 based on our current fleet of 310 service rigs. The Company averaged a total of 21 24-hour service rig rental equipment packages working for the first quarter of 2019. At the end of April 2019, the Company averaged 22 active equipment packages. During the first quarter of 2018, the Company averaged 21 active equipment packages. Revenue for the rental equipment portion of a 24-hour package is recorded in our Completion & Remedial Services segment.
Revenue per well servicing rig hour, was $367 in the first quarter of 2019 flat compared to $368 in the previous quarter and up 9% from $338 reported in the first quarter of 2018. The sequential increase in the first quarter compared to the first quarter of 2018 was mainly due to increased productivity and a lower cost structure.
Segment profit in the first quarter of 2019 increased 18% to $13.3 million, compared to $11.3 million in the prior quarter and increased 28% from $10.4 million during the same period in 2018. Segment profit margin was 22% in the first quarter of 2019, up from the 19% reported in the prior quarter, as margin improvement from our recent strategic realignment initiative more than offset the negative impact of the payroll tax reset during the quarter. In the first quarter of 2018, segment profit margin was 18% of segment revenue.
Water Logistics
Water Logistics revenue in the first quarter of 2019 was $55.6 million, flat compared to $55.6 million in the prior quarter. During the first quarter of 2018, this segment generated $56.5 million in revenue. Weather and holidays negatively impacted Water Logistics revenues by $1.4 million in the first quarter of 2019.
The weighted average number of fluid services trucks decreased 2% to 818 during the first quarter of 2019, compared to 837 during the fourth quarter of 2018 and decreased 15% from 960 during the first quarter of 2018. The decrease in the number of trucks has been driven by the structural change taking place in the industry where increasing volumes of fluids are moving through pipelines, a significantly lower-cost alternative for our customers. Truck hours of 424,100 during the first quarter of 2019 represented a decrease of 3% from the 438,500 generated in the fourth quarter of 2018 and a decrease of 12% compared to 479,600 in the same period in 2018.
Total pipeline water volumes disposed at Basic-owned saltwater disposal wells ("Basic SWDs") decreased 6% to 3.0 million barrels during the first quarter of 2019 compared to 3.2 million barrels during the fourth quarter of 2018. Pipeline disposal volumes to Basic SWDs in the Permian Basin continue to maintain at 58% of total water disposal volumes in the Permian Basin, flat from 58% for the fourth quarter of 2018 and up from 33% in the first quarter of 2018.
Segment profit in the first quarter of 2019 increased by 12% to $18.3 million, compared to a profit of $16.3 million in the fourth quarter of 2018. Segment profit margin increased sequentially by approximately 350 basis points to 33% due to increases in higher margin pipeline disposal. Segment profit in the same period in 2018 was $15.6 million, or 28% of segment revenue.
Completion & Remedial Services
Completion & Remedial Services revenue decreased 29.5% to $76.8 million in the first quarter of 2019 from $108.9 million in the prior quarter. The decrease in revenue was primarily due to lower frac activity and pricing as customers curtailed completion activity due to lower oil prices in late 2018 and in early first quarter of 2019, as well as weather impact. In the first quarter of 2018, this segment generated $117.6 million in revenue. Weather negatively impacted revenues by $1.6 million in the first quarter.
At March 31, 2019, Basic had approximately 489,000 hydraulic horsepower ("HHP"), down slightly from 513,000 in the previous quarter and down from 523,000 at March 31, 2018. Weighted average HHP for the first quarter of 2019 decreased to 503,000 from fourth quarter of 2018 levels of 513,000.
Segment profit in the first quarter of 2019 decreased to $13.4 million compared to $23.1 million in the prior quarter. Segment margin for the first quarter of 2019 decreased 380 basis points to 17% compared to 21% during the previous quarter. The decrease in segment gross profit was due to the decremental impact of lower revenue in the frac segment and pricing pressure in the earlier part of the quarter. During the first quarter of 2018, segment gross profit was $27.9 million, or 24% of segment revenue.
Other Services
During the first quarter of 2019, Basic created an "Other Services" segment, which combines our previous Contract Drilling segment with our manufacturing entity. This change is effective January 1, 2019, and retrospectively for all periods presented. Other Services revenue decreased by 40% to $4.3 million during the first quarter of 2019 from $7.1 million in the prior quarter. During the first quarter of 2018, after giving effect to Basic's realigned segments, this segment generated $3.6 million in revenue. The decline from fourth quarter 2018 to first quarter 2019 is related to decreased third-party sales in our manufacturing entity. Basic marketed 11 drilling rigs during the first quarter of 2019, and the first and fourth quarter of 2018. Revenue per drilling day in the first quarter of 2019 was up 10% to $24,200 compared to $22,100 in the previous quarter and up 40% from $17,300 in the first quarter of 2018, due to higher rates.
Rig operating days during the first quarter of 2019 decreased by 38% to 115 compared to 184 in the prior quarter, resulting in rig utilization of 12% during the first quarter of 2019 compared to 18% during the prior quarter, due to decreased activity. In the comparable period in 2018, rig operating days were 175, resulting in a utilization rate of 18%.
Other Services segment profit in the first quarter of 2019 was $338,000 compared to $808,000 in the prior quarter and a segment loss of $615,000 in the first quarter of 2018. Segment margin for the first quarter of 2019 was 8% of segment revenues compared to 11% in the prior quarter. Last year in the comparable period, segment loss margin was 17%. The margin decline is mainly due to decreased revenues in the manufacturing line of business within the segment. Contract drilling stand-alone margins were 22% in the first quarter of 2019 essentially flat with 23% in the fourth quarter of 2018 and up from 16% in the first quarter of 2018.
General & Administrative Expense
Reported general and administrative ("G&A") expense was flat at $35.5 million for the first quarter of 2019 compared to $35.5 million in the fourth quarter of 2018 and down from $41.0 million in the first quarter of 2018. Non-cash stock compensation, included in G&A, was $3.3 million for the first quarter of 2019, compared to $5.0 million in the fourth quarter of 2018. First quarter 2018 non-cash stock compensation, included in G&A, was $6.8 million.
Interest Expense
Net interest expense for the first quarter of 2019 was $10.5 million, which included interest on Basic's Senior Secured Notes, the New ABL Facility, capital leases and other financings. Net interest expense in the fourth quarter of 2018 was $10.7 million, and $11.3 million in the first quarter of 2018.
Income Taxes
Tax benefit for the first quarter of 2019 was $1.9 million. The effective tax benefit rate was 6.3% in the first quarter of 2019 compared to a tax expense rate of 0.2% in the prior quarter. The tax benefit of $0.1 million in the first quarter of 2018 translated into an effective tax benefit rate of 0.2%.
During the first quarter of 2019, Basic filed an amended 2007 federal tax return under Sections 172(b)(1)(C) and 172(f) of the Internal Revenue Code of 1986, as amended, which allowed the Company to carryback workers' compensation expenses in years we had Net Operating Losses ("NOL") for up to 10 years. We carried back approximately $5.3 million of expense to 2007, which allowed Basic to claim a refund of $1.9 million of 2007 taxes. The net effect of this transaction was a tax benefit and a reduction of our NOL of $1.9 million in the quarter ended March 31, 2019.
As of March 31, 2019, the Company had approximately $809.5 million of net operating loss carryforwards for federal income tax purposes. The Company provides a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. As of March 31, 2019, a valuation allowance of $177.9 million was recorded against the Company's net deferred tax assets for all jurisdictions that are not expected to be realized.
Cash and Total Liquidity
On March 31, 2019, Basic had total liquidity of $130.0 million, comprised of cash and cash equivalents of approximately $63.8 million and availability under the New ABL Facility of $66.2 million. Basic reported cash and cash equivalents of $90.3 million and availability under the New ABL facility of $69.6 million at December 31, 2018, and reported cash and cash equivalents of $30.8 million and availability under its prior ABL facility of $0.5 million at March 31, 2018. Basic had no borrowings outstanding under its New ABL Facility as of March 31, 2019.
During the quarter ended March 31, 2019, cash provided by operations was $1.8 million, compared to cash provided by operations of $4.5 million in the quarter ended March 31, 2018. We used $20.5 million to decrease accounts payable in the first quarter of 2019, compared to $6.0 million used to decrease accounts payable in the first quarter of 2018. Cash used in investing activities was $16.2 million in the quarter ended March 31, 2019, compared to cash used in investing activities of $15.2 million in the quarter ended March 31, 2018. Cash used in financing activities during the quarter ended March 31, 2019 was $12.1 million compared to cash provided by financing activities of $6.0 million in the quarter ended March 31, 2018. Payments on capital leases during the first quarter of 2019 were $11.4 million, compared to payments on capital leases of $13.7 million in the comparative quarter of 2018.
Capital Expenditures
Total capital expenditures during the first quarter of 2019 were approximately $24 million, including $6 million for capital leases, and a reduction in accounts payable related to capital expenditures of approximately $1 million. Additionally, we booked $2.7 million in proceeds from dispositions during the quarter, partially offsetting our cash capital expenditures. We currently anticipate 2019 capital expenditures of approximately $69 million, including approximately $28 million of expansion capital, of which $8 million will be funded by capital leases and other financings. The focus of our expansion capital will be strengthening our position in the growing and attractive water disposal midstream services line of business. Approximately 70% of our 2019 growth capital is expected to be directed to long-lived water midstream infrastructure projects as these projects are expected to continue delivering improvements in disposal water volumes, Basic SWD utilization and high margin contribution as oil production and residual water disposal demand in our operating areas continues to increase.
Conference Call
Further details are provided in the presentation for our quarterly conference call to review the first quarter 2019 results, available in the investor relations section of our corporate website. The Company will host a conference call to discuss its first quarter 2019 results on Friday, May 10, 2019, at 9:00 a.m. Eastern Time (8:00 a.m. Central Time). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of the Company's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until May 17, 2019, and may be accessed by calling (201) 612-7415 and using pass code 13689470#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating areas. The Company's operations are managed regionally and are concentrated in major United States onshore oil-producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and Colorado. Our operations are focused in liquids-rich basins that have historically exhibited strong drilling and production economics in recent years. Specifically, we have a significant presence in the Permian Basin, Powder River Basin, and the Bakken, Eagle Ford, and Denver-Julesburg shales. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information on Basic Energy Services is available on the Company's website at 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. Forward-looking statements are not statements of historical fact and reflect Basic's current views about future events. The words "believe," "estimate," "expect," "anticipate," "project," "intend," "seek," "could," "should," "may," "potential" and similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Although Basic believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions and estimates, certain risks and uncertainties could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release and the presentation. These risks and uncertainties include, without limitation, our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital and volatility in commodity prices for crude oil and natural gas. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of the Company's most recent Annual Report on Form 10-K and other fillings with the Securities and Exchange Commission. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Any forward-looking statement speaks only as of the date on which such statement is made and 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, except as required by applicable law.
Contacts: | Trey Stolz |
VP Investor Relations | |
Basic Energy Services, Inc. | |
817-334-4100 |
-Tables to Follow-
Basic Energy Services, Inc. | ||||||
Consolidated Statements of Operations and Other Financial Data | ||||||
(in thousands, except per share amounts) | ||||||
Three months ended March 31, | ||||||
2019 | 2018 | |||||
(Unaudited) | ||||||
Income Statement Data: | ||||||
Revenues: | ||||||
Completion & Remedial Services | $ | 76,834 | $ | 117,597 | ||
Water Logistics | 55,601 | 56,509 | ||||
Well Servicing | 60,515 | 56,951 | ||||
Other Services | 4,252 | 3,608 | ||||
Total revenues | 197,202 | 234,665 | ||||
Expenses: | ||||||
Completion & Remedial Services | 63,433 | 89,659 | ||||
Water Logistics | 37,299 | 40,923 | ||||
Well Servicing | 47,196 | 46,511 | ||||
Other Services | 3,914 | 4,223 | ||||
General and administrative(a) | 35,522 | 40,978 | ||||
Depreciation and amortization | 27,498 | 30,235 | ||||
(Gain) loss on disposal of assets | 1,455 | 1,779 | ||||
Total expenses | 216,317 | 254,308 | ||||
Operating loss | (19,115) | (19,643) | ||||
Other income (expense): | ||||||
Interest expense | (10,756) | (11,283) | ||||
Interest income | 245 | 27 | ||||
Other income | 299 | 309 | ||||
Loss before income taxes | (29,327) | (30,590) | ||||
Income tax benefit (expense) | 1,851 | 59 | ||||
Net loss | $ | (27,476) | $ | (30,531) | ||
Loss per share of common stock: | ||||||
Basic share | $ | (1.02) | $ | (1.16) | ||
Diluted share | $ | (1.02) | $ | (1.16) | ||
Other Financial Data: | ||||||
EBITDA1 | $ | 8,682 | $ | 10,901 | ||
Adjusted EBITDA1 | 14,361 | 23,285 | ||||
Capital expenditures: | ||||||
Property and equipment | 18,885 | 15,412 | ||||
Capital leases | 6,144 | 3,321 | ||||
As of | ||||||
March 31, | December 31, | |||||
2019 | 2018 | |||||
(Unaudited) | (Audited) | |||||
Balance Sheet Data: | ||||||
Cash and cash equivalents | $ | 63,796 | $ | 90,300 | ||
Net property and equipment | 442,092 | 448,801 | ||||
Total assets | 743,220 | 761,777 | ||||
Total long-term debt | 322,358 | 322,701 | ||||
Total stockholders' equity | 194,884 | 219,428 | ||||
1 Adjusted EBITDA and EBITDA are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"). See "Supplemental Non-GAAP Financial Measures" below for further explanation and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. | |||||||
(a) Includes approximately $3,288,000 and $6,789,000 of non-cash compensation expense for the three months ended March 31, 2019 and 2018, respectively. |
Basic Energy Services, Inc. | ||
Segment Data | ||
Three months ended March 31, | ||
2019 | 2018 | |
Segment Data: | (Unaudited) | |
Completion & Remedial Services | ||
Total hydraulic horsepower (HHP) (000's) | 489 | 523 |
Total frac HHP (000's) | 361 | 413 |
Coiled tubing units | 17 | 18 |
Rental and fishing tool stores | 15 | 16 |
Segment profits as a percent of revenue | 17% | 24% |
Water Logistics | ||
Weighted average number of fluid service trucks | 818 | 960 |
Truck hours (000's) | 424.1 | 479.6 |
Pipeline volumes (000's) | 3,050 | 1,551 |
Segment revenues (000's) | $55,601 | $56,509 |
Segment profits as a percent of revenue | 33% | 28% |
Well Servicing | ||
Weighted average number of rigs | 310 | 310 |
Rig hours (000's) | 165 | 169 |
Rig utilization rate | 74% | 76% |
Revenue per rig hour, excluding manufacturing | $367 | $338 |
Well servicing rig profit per rig hour | $81 | $62 |
Segment profits as a percent of revenue | 22% | 18% |
Other Services | ||
Weighted average number of rigs | 11 | 11 |
Rig operating days | 115 | 175 |
Drilling utilization rate | 12% | 18% |
Revenue per day (000's) | $24.2 | $17.3 |
Segment profits as a percent of revenue | 8% | (17%) |
Basic Energy Services, Inc.
Supplemental Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
This earnings release contains references to the non-GAAP financial measure of earnings (net income) [before interest, which includes losses on debt extinguishment, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, the gain or loss on disposal of assets, non-cash stock compensation, executive bonus payments, strategic consulting and realignment costs, costs for a withdrawn bond offering and professional fees for tax consulting, or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, the Company believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess:
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include:
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include:
Basic Energy Services, Inc. | ||||
Supplemental Non-GAAP Financial Measures (Cont'd.) | ||||
The following table presents a reconciliation of net loss to EBITDA (unaudited, in thousands): | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
Reconciliation of Net Loss to EBITDA: | ||||
Net loss | $ | (27,476) | $ | (30,531) |
Income tax benefit | (1,851) | (59) | ||
Net interest expense | 10,511 | 11,256 | ||
Depreciation and amortization | 27,498 | 30,235 | ||
EBITDA | $ | 8,682 | $ | 10,901 |
The following table presents a reconciliation of net loss to Adjusted EBITDA (unaudited, in thousands): | ||||
Three Months Ended March 31, | ||||
2019 | 2018 | |||
Reconciliation of Net Loss to Adjusted EBITDA: | ||||
Net loss | $ | (27,476) | $ | (30,531) |
Income tax benefit | (1,851) | (59) | ||
Net interest expense | 10,511 | 11,256 | ||
Depreciation and amortization | 27,498 | 30,235 | ||
(Gain) loss on disposal of assets | 1,455 | 1,779 | ||
Non cash stock compensation | 3,288 | 6,798 | ||
Professional fees | 936 | — | ||
Costs for withdrawn bond offering | — | 1,753 | ||
Executive bonus | — | 1,604 | ||
Strategic consulting and realignment | — | 450 | ||
Adjusted EBITDA | $ | 14,361 | $ | 23,285 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-first-quarter-2019-results-300847680.html
SOURCE Basic Energy Services, Inc.
Article Date
5/9/20194/16/2019 - Basic Energy Services Announces First Quarter 2019 Earnings Release And Conference Call Schedule
Basic Energy Services Announces First Quarter 2019 Earnings Release And Conference Call Schedule
Source: PR Newswire
FORT WORTH, Texas, April 16, 2019 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its first quarter 2019 financial results after the market closes on Thursday, May 9, 2019. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, May 10, 2019, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
What: | Basic Energy Services First Quarter 2019 Earnings Conference Call |
When: | Friday, May 10, 2019 – 9:00 a.m. Eastern Time |
How: | Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
Live over the Internet - Log on to the web at the address below. | |
Where: | www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through May 17, 2019 by calling 201-612-7415 and using pass code 13689470#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating areas. The Company's operations are managed regionally and are concentrated in major United States onshore oil producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and Colorado. Our operations are focused on liquids-rich basins that have historically exhibited strong drilling and production economics in recent years. Specifically, we have a significant presence in the Permian Basin and the Bakken, Eagle Ford, and Denver-Julesburg shales. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Contacts: | Trey Stolz, VP Investor Relations |
Basic Energy Services, Inc. | |
817-334-4100 | |
Sandy Martin / Zach Vaughan | |
Dennard Lascar Investor Relations | |
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-first-quarter-2019-earnings-release-and-conference-call-schedule-300832968.html
SOURCE Basic Energy Services, Inc.
Article Date
4/16/20193/15/2019 - Basic Energy Services to Participate in the Scotia Howard Weil 47th Annual Energy Conference
Basic Energy Services to Participate in the Scotia Howard Weil 47th Annual Energy Conference
Source: PR Newswire
FORT WORTH, Texas, March 15, 2019 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its senior management will participate in the Scotia Howard Weil 47th Annual Energy Conference in New Orleans, LA, on March 26 - 27. An updated investor presentation will be made available in the Investor Relations section of the company's website at www.basicenergyservices.com.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating areas. The Company's operations are managed regionally and are concentrated in major United States onshore oil producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and Colorado. Our operations are focused on liquids-rich basins that have historically exhibited strong drilling and production economics in recent years. Specifically, we have a significant presence in the Permian Basin and the Bakken, Eagle Ford, and Denver-Julesburg shales. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and during the Scotia Howard Weil conference may include forward-looking statements and projections made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and reflect Basic's current views about future events. The words "believe," "estimate," "expect," "anticipate," "project," "intend," "seek," "could," "should," "may," "potential" and similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Although Basic believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions and estimates, certain risks and uncertainties could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release and the presentation. These risks and uncertainties include, without limitation, our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital and volatility in commodity prices for crude oil and natural gas. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved. Any forward-looking statement speaks only as of the date on which such statement is made and 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, except as required by applicable law.
Contacts: | Trey Stolz, VP Investor Relations | |
Basic Energy Services, Inc. | ||
817-334-4100 | ||
Jack Lascar / Sandy Martin | ||
Dennard-Lascar Associates | ||
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-participate-in-the-scotia-howard-weil-47th-annual-energy-conference-300812643.html
SOURCE Basic Energy Services, Inc.
Article Date
3/15/2019Basic Energy Services Reports Fourth Quarter And Full Year 2018 Results
Source: PR Newswire
FORT WORTH, Texas, Feb. 28, 2019 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the fourth quarter and full year ended December 31, 2018.
FOURTH QUARTER AND FULL YEAR 2018 HIGHLIGHTS
FOURTH QUARTER 2018 HIGHLIGHTS
Fourth quarter 2018 revenue decreased sequentially to $230.4 million from $246.3 million in the third quarter of 2018 as a result of multiple factors, including deferred work due to holidays and unusually harsh weather, lower sand sales from a trend of direct sourcing, and the divestment of certain yards as part of our strategic realignment initiative. In the fourth quarter of 2017, Basic generated $235.3 million in revenue. During the quarter, the Company issued $300 million Senior Secured Notes in October and generated cash from operating activities of $24.0 million and free cash flow of $10.3 million. Free cash flow is not a measure determined in accordance with United States generally accepted accounting principles ("GAAP"). See "Supplemental Non-GAAP Financial Measures" for a discussion of free cash flow and a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP.
For the fourth quarter of 2018, Basic reported a net loss of $46.7 million, or a loss of $1.76 per basic and diluted share. This is compared to a net loss of $27.3 million, or a loss of $1.03 per basic and diluted share for the third quarter of 2018, and a net loss of $20.3 million, or a loss of $0.78 per basic and diluted share in the fourth quarter of 2017.
Adjusted EBITDA was $21.8 million, or 9.5% of revenues for the fourth quarter of 2018, compared to $24.9 million, or 10.1% of revenues for the third quarter of 2018. In the fourth quarter of 2017, Basic generated Adjusted EBITDA of $28.8 million, or 12% of revenues. Adjusted EBITDA is not a measure determined in accordance with GAAP. See "Supplemental Non-GAAP Financial Measures" for a discussion of EBITDA and Adjusted EBITDA and a reconciliation of each to the most directly comparable financial measure calculated and presented in accordance with GAAP. As of December 31, 2018, the Company had total liquidity of $159.9 million, compared to $30.8 million at the end of the third quarter.
"It was clear early in 2018, the year was going to be one of far more challenges than the market had previously envisioned," said Roe Patterson, Chief Executive Officer. "Despite the volatility we experienced throughout the industry, we were able to deliver a 12% increase in revenues, an 18% increase in Adjusted EBITDA while maintaining direct margins essentially flat at 22.5%. During the year, the narrative for our customers shifted from robust growth to maximizing free cash flow. Simultaneously, we enacted our own set of strategic initiatives to streamline our businesses, create efficiencies and maximize our own free cash flow. Growth remains a priority, but creating capital has been our focus and the Company is positioned well for whatever 2019 brings.
"The strategic realignment we launched earlier in 2018 to exit non-core markets and non-core business segments and relocate our assets to operating areas with our busiest customers was essentially complete by the end of the year. While the relocation of some assets and the divestiture of certain yards caused short term disruptions to our top line, we believe the benefits of higher margins, reduced capital expenditure requirements and the overall streamlining of our fleet, footprint and strategy will far outweigh any temporary downside results.
"Through these realignment investments in 2018, our strategic emphasis has shifted to production-oriented services where we are better positioned from a competitive standpoint. Our market share is considerable in these production business lines, and we will build on that scale in 2019.
"Our fourth quarter results were impacted by typical seasonal slowdowns, material weather-related impact on working hours, as well as a decline in oil prices that began in mid-fourth quarter and didn't recover until mid-first quarter of 2019. We estimate revenues were reduced by approximately $10 million due to these fourth quarter impacts. October 2018 set a record for the wettest month on record for the state of Texas, according to the National Oceanic and Atmospheric Administration. Weather and holidays aside, activity in our production services segments like rental tools and well servicing remained stable throughout the fourth quarter. Midstream Water Logistics results improved throughout the year and further improved in the fourth quarter. Margin expansion in this business continued in the fourth quarter as the percentage of water disposal volumes coming via pipeline continues to grow. Contrarily, sequential quarterly activity and pricing declines were pronounced in our pressure pumping service line due to the overabundance of frac equipment, which appeared to have peaked in the fourth quarter.
"The Well Servicing segment experienced slightly lower utilization due largely to heavy rains in October, asset relocations as part of our strategic realignment, and typical seasonality around the holidays and shorter daylight hours. Despite the expectedly lower utilization, we managed to deliver an increase in revenue per rig hour as service rig pricing remains firm. Segment margin declined slightly due to asset movements. Demand for 24-hour packages remained stable during the quarter and the outlook for our 24-hour packages remains strong in early 2019, as this equipment is required for maintenance, workover, and completion of long lateral well bores. Customers seeking the optimal revenue source to maximize cash flow have turned to these rigs for existing well enhancement projects. We currently plan to increase by another two to four packages during the first half of 2019 to meet this escalating demand.
"The midstream business within our Water Logistics segment continues to perform well as the amount of total water disposal volumes via higher-margin pipeline during the quarter increased 27% sequentially, representing a new high of 33% of all disposal water volumes. In addition, our Permian Basin operations moved almost 60% of its saltwater disposal volumes via pipeline in the fourth quarter of 2018, another new record. Total water volumes for fourth quarter were also a new quarterly record, totaling 9.9 million barrels, an increase of 5% from the previous quarter. As we believe this segment contains significant potential, we are announcing plans to build multiple discrete gathering and infrastructure projects within our existing saltwater disposal network. These midstream projects will include additional disposal wells in the Permian Basin, long-term contracted pipeline water commitments and the opening of several of our disposal wells to selected third party truck volumes. We expect these growth projects to require $25-$30 million dollars in 2019, representing over 75% of our full year growth capital expenditures.
"On the completion and remedial services side, our coiled tubing, rental tools and snubbing businesses were stable throughout the fourth quarter with the exception of some weather impacts. As stated earlier, declining oil prices and an overbuild of frac horsepower led to a reduction in pressure pumping activity and pricing. In addition, we are experiencing a decline in sand revenue as customers procure directly from sand providers; however, this transition improves overall margins as we mark up this 'pass-through' sand very little. We saw competitor pricing fall below cash breakeven levels in some markets which we deem as unacceptable even in the short term. In response, we have stacked three of our eight active frac spreads during fourth quarter and first quarter of 2019 until market conditions improve. Defensively, we are also moving some idled frac pumps to our Well Service segment to work as mud pumps on larger workover and completion projects.
"It is clear that the significant and unexpected decline in oil prices during the fourth quarter of 2018 is impacting our customers' drilling and completion plans in the early part of 2019. Most customers were slow to kick off their 2019 budgets. In fact, activity levels in our production services segments did not return to the levels we experienced in third quarter and early fourth quarter of 2018 until mid-February 2019. While this is a good indication of healthy activity levels for the remainder of 2019, the slow start to the year will be a drag on first quarter results. In the meantime, our midstream water business continues to improve as saltwater volumes across the industry build. Margins in this business continue to improve as we invite more volumes through pipeline and we begin to build out our own gathering systems. Meanwhile, the frac business remains in a difficult state. Calendars are beginning to fill with booked projects, but the weak pricing environment and seemingly soft customer resolve to ramp up frac activity will impact first quarter revenue and margins. Overall for 2019, we feel the slow start to the year will cause first quarter revenues to lower by 11-14% sequentially, but first quarter exit rates suggest that the full year will be flat with 2018 on the top line. Margins for 2019 should improve overall versus the previous year due to the streamlining and realignment actions taken in 2018. Even for the first quarter and the slow start to the year, we should expect margin resilience in production services with the exception of the reset of payroll taxes. "Our focus will be on free cash flow generation for the remainder of 2019. We are also anticipating a gradual easing of the takeaway capacity challenges in the Permian Basin during 2019, which should have a material, positive impact on all of our Permian assets, especially for our larger well service rigs. Customers may accelerate completions of drilled but uncompleted wells as the year progresses.
"Finally, our improved liquidity position, after the placement of our new five-year term $300 million of Senior Secured Notes and the New ABL Facility, is allowing us to operate from a position of strength, as we have ample liquidity to fund our current growth plans. The Company is in an advantageous liquidity position to remain flexible, execute our plans, and take advantage of opportunities that may present themselves. With over 75% of our planned growth capex allocated to expanding our midstream water disposal business, and the remainder focused on the more stable rental and well servicing equipment, we remain committed to our market-leading position as the service provider of choice for production-oriented business lines."
Full Year Highlights
Revenues during 2018 rose 12% to $964.7 million from $864.0 million in 2017. In 2018, the Company reported a net loss of $144.6 million, or $5.46 per basic and diluted share, compared to a net loss of $96.7 million, or $3.72 per basic and diluted share in 2017.
Adjusted EBITDA for 2018 was $97.0 million, or 10.1% of revenues, excluding $23.4 million of non-cash stock compensation, compared to $82.8 million, or 9.6% of revenues, excluding $23.0 million of non-cash stock compensation for 2017.
During the year, the Company issued $300 million of Senior Secured Notes in October. We generated $75.0 million in cash from operating activities and free cash flow of $23.2 million. As a result, the Company increased its available cash balance to $90.3 million at year end, up from $38.5 million at December 31, 2017.
2018 Business Segment Results
Well Servicing
Well Servicing revenues decreased 8% to $61.8 million during the fourth quarter of 2018 compared to $67.2 million in the prior quarter led by decreased rig activity and utilization while pricing was essentially flat sequentially. Well Servicing revenues were $54.5 million in the fourth quarter of 2017. Weather and holidays negatively impacted well Servicing revenues by approximately $6.6 million in the fourth quarter.
The Well Servicing rig count was 310 at December 31, 2018, consistent with 310 at December 31, 2017. Rig hours were 159,600 in the fourth quarter of 2018, down 11% compared to 180,300 hours in the third quarter of 2018 and essentially flat from 159,500 hours in the comparable quarter of last year. Rig utilization was 72% in the fourth quarter of 2018, down from 82% in the third quarter of 2018 and flat at 72% in the fourth quarter of 2017 based on our current fleet of 310 service rigs. Basic averaged a total of 23 24-hour rental equipment packages working for the fourth quarter of 2018. At the end of January 2019, the Company averaged between 20-25 active equipment packages. During the fourth quarter of 2017, the Company averaged only 20 active equipment packages. Revenue for the rental equipment portion of a 24-hour package is recorded in our Completion and Remedial segment.
Revenue per well servicing rig hour, net of Taylor Manufacturing revenue, was up 3% to $368 in the fourth quarter of 2018, compared to $357 in the previous quarter and up 9% from $339 reported in the fourth quarter of 2017. The sequential increase in the fourth quarter was mainly due to better productivity and a lower cost structure.
Segment profit in the fourth quarter of 2018 decreased 8% to $11.2 million, compared to $12.1 million in the prior quarter and increased 3% from $10.5 million during the same period in 2017. Net of Taylor Manufacturing revenue, segment profit in the fourth quarter of 2018 decreased 11% from the third quarter of 2018 to $10.4 million. Segment profit margin was 18.1% (or 18.3% net of Taylor) in the fourth quarter of 2018, flat relative to the 18.1% (20% net of Taylor) reported in the prior quarter as billable time lost due to asset relocations, as well as holiday and weather disruptions, particularly during October, negatively impacted margins. In the fourth quarter of 2017, segment profit margin was 19% of segment revenue.
Water Logistics
Water Logistics revenue in the fourth quarter of 2018 declined to $55.6 million compared to $59.5 million in the prior quarter. During the fourth quarter of 2017, this segment generated $55.5 million in revenue. Weather and holidays negatively impacted water logistics revenues by $2.3 million in the fourth quarter.
The weighted average number of fluid services trucks decreased 4% to 837 during the fourth quarter of 2018, compared to 870 during the third quarter of 2018 and decreased 13% compared to 967 during the fourth quarter of 2017. The decrease in the number of trucks has been driven by the structural change taking place in the industry where increasing volumes of fluids are moving through pipelines, a significantly lower-cost alternative for our clients and higher-margin vis-à-vis transportation via trucks. Truck hours of 438,500 during the fourth quarter of 2018 represented a decrease of 2% from the 448,200 generated in the third quarter of 2018 and a decrease of 11% compared to 492,800 in the same period in 2017.
Total pipeline water volumes disposed at Basic-owned saltwater disposal wells ("Basic SWDs") increased 27% to 3.2 million barrels during the fourth quarter of 2018 compared to 2.5 million barrels during the third quarter of 2018. Pipeline disposal volumes to Basic SWDs in the Permian Basin continue to grow and have now reached 59% of total water disposal volumes in the Permian Basin, up from 49% for the third quarter of 2018 and up from 32% in the fourth quarter of 2017.
Segment profit in the fourth quarter of 2018 decreased by 2% to $16.3 million, compared to a profit of $16.8 million in the third quarter of 2018. Segment profit margin increased sequentially by approximately 100 basis points to 29% due to increases in higher margin pipeline disposal. Segment profit in the same period in 2017 was $11.3 million, or 20% of segment revenue.
Completion and Remedial Services
Completion and Remedial Services revenue decreased 6.1% to $108.9 million in the fourth quarter of 2018 from $116.0 million in the prior quarter. The decrease in revenue was primarily due to lower frac activity and pricing as customers curtailed completion activity due to lower oil prices later in the quarter, as well as due to the impact of weather and holidays. In the fourth quarter of 2017, this segment generated $122.0 million in revenue. Weather and holidays negatively impacted revenues by $1.0 million in the fourth quarter.
At December 31, 2018, Basic had approximately 513,000 hydraulic horsepower ("HHP"), down slightly from the previous quarter and down from 523,000 at December 31, 2017. Weighted average HHP for the fourth quarter of 2018 decreased to 513,000 from third quarter of 2018 levels of 516,000.
Segment profit in the fourth quarter of 2018 decreased 12% to $23.1 million compared to $26.2 million in the prior quarter. Segment margin for the fourth quarter of 2018 decreased 140 basis points to 21% compared to 23% during the previous quarter. The decrease in segment gross profit was due to the decremental impact of lower revenue in the frac segment and pricing pressure in the latter part of the quarter. During the fourth quarter of 2017, segment gross profit was $36.7 million, or 30% of segment revenue.
Contract Drilling
Contract Drilling revenues increased by 14% to $4.1 million during the fourth quarter of 2018 from $3.6 million in the prior quarter. During the fourth quarter of 2017, this segment generated $3.3 million in revenue. Basic marketed 11 drilling rigs during the third and fourth quarter of 2018, and the fourth quarter of 2017. Revenue per drilling day in the fourth quarter of 2018 was down 20% to $22,100 compared to $27,700 in the previous quarter and down from $23,500 in the fourth quarter of 2017, due to lower rates.
Rig operating days during the fourth quarter of 2018 increased by 43% to 184 compared to 129 in the prior quarter, resulting in rig utilization of 18% during the fourth quarter of 2018 compared to 13% during the prior quarter, due to increased activity. In the comparable period in 2017, rig operating days were 139, resulting in a utilization rate of 9%.
Segment profit in the fourth quarter of 2018 was $947,000 compared to $840,000 in the prior quarter and $352,000 in the fourth quarter of 2017. Segment margin for the fourth quarter of 2018 was 23% of segment revenues compared to 24% in the prior quarter. The slight margin decline is due to decreases in rig moving activity, and increased transportation expense. Last year in the comparable period, segment margin was 11%.
General & Administrative Expense
Reported general and administrative ("G&A") expense decreased to $35.5 million for the fourth quarter of 2018 from $39.6 million in the third quarter of 2018 and consistent with $30.2 million in the fourth quarter of 2017. Basic's G&A expense for the full year ending on December 31, 2018 increased to $167.5 million, compared to $146.5 million in 2017.
Interest Expense
Net interest expense for the fourth quarter of 2018 was $10.9 million, which includes interest on Basic's Senior Secured Notes, the New ABL facility, capital leases and other financings. Net interest expense in the third quarter of 2018 was $10.9 million, and $10.3 million in the fourth quarter of 2017.
Loss on Extinguishment of Debt
Extinguishment of debt expenses related to the pay-down of our Term Loan facility were $26.4 million in 2018. Expenses included $17.6 million of make whole premium, $7.4 million of Term Loan discount write-offs and $1.4 million of deferred debt cost write-offs.
Income Taxes
Tax expense for the third and fourth quarters of 2018 was $0. The effective tax rate was 0.15% in the fourth quarter of 2018 compared to 0% in the prior quarter. The effective tax benefit of $0.3 million in the fourth quarter of 2017 translated into an effective tax benefit rate of 2%. As of December 31, 2018, the Company had approximately $783.3 million of net operating loss carryforwards, for federal income tax purposes. The Company provides a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. As of December 31, 2018, a valuation allowance of $174.5 million was recorded against the Company's net deferred tax assets for all jurisdictions that are not expected to be realized.
Cash and Total Liquidity
On December 31, 2018, Basic had cash and cash equivalents of approximately $90.3 million, compared to $38.5 million at December 31, 2017 and $30.8 million on September 30, 2018.
On October 2, 2018, the Company issued in a private placement offering $300 million aggregate principal amount of 10.75% senior secured notes due 2023 (the "Senior Secured Notes") at 99.042% of par and entered into a new $150 million senior secured revolving credit facility, subject to borrowing base capacity (the "New ABL Facility"). In connection with the closing of the Senior Secured Notes, the Company repaid the balances outstanding under its prior ABL facility and term loan in their entirety and terminated both facilities. The Company's availability under the New ABL Facility at December 31, 2018 was $69.6 million and its cash balance stood at $90.3 million, bringing total liquidity to $159.9 million.
Capital Expenditures
Total capital expenditures during the fourth quarter of 2018 were approximately $19.6 million (including capital leases and other financing of $3.6 million), comprised of $1.0 million for expansion projects, $17.9 million for sustaining and replacement projects and $0.7 million for other projects. We currently anticipate 2019 capital expenditures of approximately $94.1 million, including approximately $30 million of expansion capital and $15.6 million of capital leases and other financings. The focus of our expansion capital will be strengthening our position in the more stable and attractive disposal water-oriented midstream services. Approximately 70% of our 2019 growth capital is expected to be directed to long-lived water midstream infrastructure projects as these projects are expected to continue delivering improvements in volume, utilization and margin for the next several years.
Conference Call
Further details are provided in the presentation for our quarterly conference call to review the fourth quarter and full year 2018 results, available in the investor relations section of our corporate website. The Company will host a conference call to discuss its fourth quarter and full year 2018 results on Friday, March 1, 2019, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of the Company's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until March 15, 2019 and may be accessed by calling (201) 612-7415 and using pass code 13687330#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating areas. The Company's operations are managed regionally and are concentrated in major United States onshore oil producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and Colorado. Our operations are focused on liquids-rich basins that have historically exhibited strong drilling and production economics in recent years. Specifically, we have a significant presence in the Permian Basin and the Bakken, Eagle Ford, and Denver-Julesburg shales. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information on Basic Energy Services is available on the Company's website at 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. The words "believe," "estimate," "expect," "anticipate," "project," "intend," "seek," "could," "should," "may," "potential" and similar expressions are intended to identify forward-looking statements. The Company 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) the Company's ability to execute, manage and integrate acquisitions successfully, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of the Company's Form 10-K for the year ended December 31, 2017 and subsequent Form 10-Qs filed with the SEC. While the Company makes these statements and projections in good faith, neither the Company nor its management can guarantee that anticipated future results will be achieved. the Company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the Company, whether as a result of new information, future events, or otherwise.
Contacts: | Trey Stolz, |
VP Investor Relations | |
Basic Energy Services, Inc. | |
817-334-4100 | |
Jack Lascar | |
Dennard ▪ Lascar Associates | |
713-529-6600 |
-Tables to Follow-
Basic Energy Services, Inc. | |||||||||||||
Consolidated Statements of Operations and Other Financial Data | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Income Statement Data: | |||||||||||||
Revenues: | |||||||||||||
Completion and remedial services | $ | 108,934 | $ | 121,984 | $ | 469,456 | $ | 433,450 | |||||
Water logistics | 55,556 | 55,505 | 231,283 | 208,784 | |||||||||
Well servicing | 61,801 | 54,509 | 250,991 | 210,811 | |||||||||
Contract drilling | 4,060 | 3,268 | 12,990 | 10,996 | |||||||||
Total revenues | 230,351 | 235,266 | 964,720 | 864,041 | |||||||||
Expenses: | |||||||||||||
Completion and remedial services | 85,812 | 85,259 | 365,775 | 318,191 | |||||||||
Water logistics | 39,210 | 44,221 | 166,926 | 168,621 | |||||||||
Well servicing | 50,608 | 43,974 | 203,585 | 169,905 | |||||||||
Contract drilling | 3,113 | 2,916 | 10,130 | 9,733 | |||||||||
General and administrative (1) | 35,477 | 36,982 | 167,515 | 146,458 | |||||||||
Depreciation and amortization | 32,267 | 31,362 | 126,417 | 112,209 | |||||||||
(Gain) loss on disposal of assets | (6,489) | 938 | (2,598) | 274 | |||||||||
Total expenses | 239,998 | 245,652 | 1,037,750 | 925,391 | |||||||||
Operating loss | (9,647) | (10,386) | (73,030) | (61,350) | |||||||||
Other income (expense): | |||||||||||||
Loss on Extinguishment of Debt | (26,429) | — | (26,429) | — | |||||||||
Interest expense | (10,868) | (10,291) | (45,489) | (37,472) | |||||||||
Interest income | 189 | 28 | 364 | 51 | |||||||||
Other income | 86 | 75 | 578 | 419 | |||||||||
Loss before income taxes | (46,669) | (20,574) | (144,370) | (98,352) | |||||||||
Income tax benefit (expense) | (8) | 312 | (227) | 1,678 | |||||||||
Net loss | $ | (46,677) | $ | (20,262) | $ | (144,597) | $ | (96,674) | |||||
Loss per share of common stock: | |||||||||||||
Basic share | $ | (1.76) | $ | (0.78) | $ | (5.46) | $ | (3.72) | |||||
Diluted share | $ | (1.76) | $ | (0.78) | $ | (5.46) | $ | (3.72) | |||||
Other Financial Data: | |||||||||||||
EBITDA (2) | $ | 22,706 | $ | 21,051 | $ | 53,965 | $ | 51,278 | |||||
Adjusted EBITDA (2) | 21,787 | 28,825 | 96,972 | 82,760 | |||||||||
Capital expenditures: | |||||||||||||
Property and equipment | 19,616 | 15,071 | 68,709 | 63,361 | |||||||||
Capital leases | 3,632 | 6,470 | 20,197 | 67,510 | |||||||||
As of | |||||||||||||
December 31, | December 31, | ||||||||||||
2018 | 2017 | ||||||||||||
(Unaudited) | Audited | ||||||||||||
Balance Sheet Data: | |||||||||||||
Cash and cash equivalents | $ | 90,300 | $ | 38,520 | |||||||||
Net property and equipment | 448,801 | 502,579 | |||||||||||
Total assets | 761,777 | 820,480 | |||||||||||
Total long-term debt | 322,701 | 259,242 | |||||||||||
Total stockholders' equity | 219,428 | 338,653 | |||||||||||
Three months ended December 31, | Twelve months ended | |||
2018 | 2017 | 2018 | 2017 | |
Segment Data: | (unaudited) | |||
Completion and Remedial Services | ||||
Total hydraulic horsepower (HHP) | 513,000 | 522,565 | 513,000 | 522,565 |
Total frac HHP | 386,000 | 413,300 | 386,000 | 413,300 |
Coiled tubing units | 17 | 18 | 17 | 18 |
Rental and fishing tool stores | 15 | 16 | 15 | 16 |
Segment profits as a percent of revenue | 21% | 30% | 22% | 27% |
Water Logistics | ||||
Weighted average number of fluid service trucks | 837 | 967 | 891 | 948 |
Truck hours (000's) | 438.5 | 492.8 | 1,853.10 | 1,933.90 |
Revenue per fluid services truck (000's) | $67 | $57 | $260 | $220 |
Segment profits per fluid services truck (000's) | $19 | $12 | $27.80 | $42 |
Segment profits as a percent of revenue | 29% | 20% | 28% | 19% |
Well Servicing | ||||
Weighted average number of rigs | 310 | 421 | 310 | 421 |
Rig hours (000's) | 159.6 | 159.5 | 690 | 644.6 |
Rig utilization rate | 72% | 53% | 78% | 54% |
Revenue per rig hour, excluding manufacturing | $368 | $339 | $353 | $324 |
Well servicing rig profit per rig hour | $65 | $63 | $68 | $63 |
Segment profits as a percent of revenue | 18% | 19% | 19% | 19% |
Contact Drilling | ||||
Weighted average number of rigs | 11 | 11 | 11 | 11 |
Rig operating days | 184 | 139 | 579 | 457 |
Drilling utilization rate | 18.20% | 9% | 14.48% | 9% |
Revenue per day | $22,100 | $23,500 | $22,400 | $24,100 |
Drilling rig profit per day | $4,800 | $2,500 | $4,900 | $2,800 |
Segment profits as a percent of revenue | 23% | 11% | 22% | 11% |
(1) Includes approximately $5,258,000 and $6,689,000 of non-cash compensation expense for the three months ended December 31, 2018 and 2017, respectively, and $27,252,000 and $24,437,000 for the twelve months ended December 31, 2018 and 2017. | ||||
(2) Non-GAAP financial measure. See "Supplemental Non-GAAP Financial Measures" below, |
Supplemental Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, which includes losses on debt extinguishment, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, the gain or loss on disposal of assets, non-cash stock compensation, audit related sales and use tax, executive retirement, executive bonus payments, bad debt expense, strategic consulting and realignment costs, costs for a withdrawn bond offering, impairment expense, retention expense, restructuring expense, and due diligence for business development activities, or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, the Company believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess:
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include:
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include:
Free Cash Flow
We define free cash flow as net cash provided by operating activities in a period minus capital expenditures for sustaining and replacement projects made in that period.
Free cash flow is a non-GAAP financial measure. Management believes that free cash flow, which measures our ability to generate cash from our operations, is an important performance measure. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations, or payments made for growth or acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to the Consolidated Statements of Cash Flows. We believe that free cash flow is also useful to investors as the basis for comparing our performance with other companies in our industry, although our measure of free cash flow may not be directly comparable to similar measures used by other companies.
The following table presents a reconciliation of net loss to EBITDA (in thousands): | |||||||||||||
Three months ended | Twelve months ended | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Reconciliation of Net Loss to EBITDA: | |||||||||||||
Net loss | $ | (46,677) | $ | (20,262) | $ | (144,597) | $ | (96,674) | |||||
Income taxes | 8 | (312) | 227 | (1,678) | |||||||||
Loss on Extinguishment of Debt | 26,429 | — | 26,429 | — | |||||||||
Net interest expense | 10,679 | 10,263 | 45,489 | 37,421 | |||||||||
Depreciation and amortization | 32,267 | 31,362 | 126,417 | 112,209 | |||||||||
EBITDA | $ | 22,706 | $ | 21,051 | $ | 53,965 | $ | 51,278 | |||||
The following table presents a reconciliation of net loss to Adjusted EBITDA (in thousands): | |||||||||||||
Three months ended | Twelve months ended | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Reconciliation of Net Loss to Adjusted EBITDA: | |||||||||||||
Net loss | $ | (46,677) | $ | (20,262) | $ | (144,597) | $ | (96,674) | |||||
Income taxes | 8 | (312) | 227 | (1,678) | |||||||||
Loss on Extinguishment of Debt | 26,429 | — | 26,429 | — | |||||||||
Net interest expense | 10,679 | 10,263 | 45,489 | 37,421 | |||||||||
Depreciation and amortization | 32,267 | 31,362 | 126,417 | 112,209 | |||||||||
(Gain) loss on disposal of assets | (6,489) | 938 | (2,598) | 274 | |||||||||
Non cash stock compensation | 5,025 | 6,340 | 23,426 | 22,954 | |||||||||
Audit-related state sales and use tax | — | — | 5,983 | — | |||||||||
Executive retirement | — | — | 3,855 | — | |||||||||
Bad debt | — | — | 3,100 | — | |||||||||
Strategic consulting and realignment | 304 | — | 4,938 | — | |||||||||
Costs for withdrawn bond offering | — | — | 1,753 | — | |||||||||
Executive bonus | — | — | 1,604 | — | |||||||||
Impairment expense | 241 | — | 946 | — | |||||||||
Retention expense | — | — | — | 1,357 | |||||||||
Restructuring expense | — | — | — | 2,664 | |||||||||
Due diligence for business development activities | — | 496 | — | 4,233 | |||||||||
Adjusted EBITDA | $ | 21,787 | $ | 28,825 | $ | 96,972 | $ | 82,760 | |||||
The following table presents a reconciliation of net cash provided by operating activities to free cash flow (in thousands): | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2018 | December 31, 2018 | ||||||
Net cash provided by operating activities | $ | 24,013 | $ | 74,982 | |||
Payments for sustaining and replacing property and equipment (capital expenditures) | (13,731) | (51,761) | |||||
Free cash flow | $ | 10,282 | $ | 23,221 | |||
Net cash used in investing activities | $ | (9,689) | $ | (50,924) | |||
Net cash provided (used) in by financing activities | $ | 132 | $ | (19,981 | |||
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-fourth-quarter-and-full-year-2018-results-300804702.html
SOURCE Basic Energy Services, Inc.
Article Date
3/1/2019Basic Energy Services Announces Fourth Quarter And Year End 2018 Earnings Release And Conference Call Schedule
Source: PR Newswire
FORT WORTH, Texas, Feb. 6, 2019 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its fourth quarter and year end 2018 financial results after the market closes on Thursday, February 28, 2019. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, March 1, 2019, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
What: | Basic Energy Services Fourth Quarter 2018 Earnings Conference Call | |
When: | Friday, March 1, 2019 – 9:00 a.m. Eastern Time | |
How: | Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. | |
Live over the Internet - Log on to the web at the address below. | ||
Where: | www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through March 15, 2019 by calling 201-612-7415 and using pass code 13687330#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs approximately 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Contacts: | Trey Stolz, VP Investor Relations |
Basic Energy Services, Inc. | |
817-334-4100 | |
Jack Lascar/Sandy Martin | |
Dennard-Lascar Investor Relations | |
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-fourth-quarter-and-year-end-2018-earnings-release-and-conference-call-schedule-300790955.html
SOURCE Basic Energy Services, Inc.
Article Date
2/6/2019Basic Energy Services to Participate in Upcoming Investor Conferences
Source: PR Newswire
FORT WORTH, Texas, Nov. 28, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its senior management will participate in two upcoming investor conferences, the 2018 Bank of America Merrill Lynch Leveraged Finance Conference in Boca Raton, FL, on December 5, 2018 and the Capital One Securities 13th Annual Energy Conference in New Orleans, LA, on December 5-6, 2018.
David Schorlemer, Senior Vice President and Chief Executive Officer, is scheduled to present at the Bank of America Merrill Lynch conference on Wednesday, December 5, at approximately 11:30 a.m. Eastern Time (10:30 a.m. Central Time). A link to the live webcast and replay for this presentation will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. Roe Patterson, President and Chief Executive Officer, will be participating in one-on-one meetings at the Capital One Securities 13th Annual Energy Conference on December 5-6. The accompanying slide presentation for both conferences will also be made available in the Investor Relations section of Basic Energy Services' website.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs approximately 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and during the Stephens Summit may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: | Trey Stolz, VP Investor Relations |
Basic Energy Services, Inc. | |
817-334-4100 | |
Jack Lascar / Kaitlin Ross | |
Dennard-Lascar Associates | |
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-participate-in-upcoming-investor-conferences-300756440.html
SOURCE Basic Energy Services, Inc.
Article Date
11/28/2018Basic Energy Services Reports Third Quarter 2018 Results
Source: PR Newswire
FORT WORTH, Texas, Nov. 1, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the third quarter ended September 30, 2018.
THIRD QUARTER 2018 HIGHLIGHTS
Third quarter 2018 revenue decreased to $246.3 million from $253.4 million in the second quarter of 2018 with $6.0 million of the sequential drop due to lower sand volumes as we relocated our Permian and Delaware Basin frac equipment to the Mid-Continent and SCOOP/STACK, with an additional $2.6 million of revenue decline due to the closure and divestment of certain yards as part of our strategic realignment initiative, as discussed in further detail below. In the third quarter of 2017, Basic generated $233.5 million in revenue.
For the third quarter of 2018, Basic reported a net loss of $27.3 million, or a loss of $1.03 per basic and diluted share. This is compared to a net loss of $40.1 million, or $1.51 per basic and diluted share for the second quarter of 2018, and a net loss of $13.8 million, or $0.53 per basic and diluted share in the third quarter of 2017.
Adjusted EBITDA was $24.9 million, or 10.1% of revenues, excluding $5.6 million in non-cash stock compensation, for the third quarter of 2018, compared to $27.0 million, or 10.7% of revenues, excluding $6.0 million of non-cash stock compensation in the second quarter of 2018. Special items included in Adjusted EBITDA in the third quarter of 2018 consisted of $2.2 million of strategic consulting and realignment costs related to our strategic realignment initiative, which is discussed in further detail below, and $0.7 million of impairment expense. In the third quarter of 2017, Basic generated Adjusted EBITDA of $32.4 million, or 13% of revenues, excluding $5.9 million of non-cash stock compensation. EBITDA and Adjusted EBITDA are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"). See Note 2 under the accompanying financial tables for a discussion of EBITDA and Adjusted EBITDA and a reconciliation of each to the most directly comparable financial measure calculated and presented in accordance with GAAP. As of October 2, 2018, we have $167.0 million in liquidity, compared to $45.4 million at the end of the second quarter.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Our third quarter results unfolded much as we had anticipated. We were pleased to benefit from increased revenues and utilization from production-related services, expanded margins in both the Completion and Remedial and Water Logistics segments, and increased penetration of water disposal volumes through our pipeline system. Though our third quarter revenues were lower sequentially by over $7 million due to interruptions from our previously announced strategic realignment initiative and a larger-than-expected weather impact, we were nevertheless able to maintain total direct company margins flat at 22.7%.
"The strategic realignment we launched during the second quarter to exit non-core markets and business segments and relocate our assets to operating areas with our busiest customers is proceeding as planned. The process should be fully implemented by year-end. This important initiative is already having a positive impact on our margins, and we anticipate that going forward it will accelerate profitability and free cash flow through improved utilization, cost efficiencies, and preferred pricing across all of our business segments. We have already relocated frac assets from the Permian Basin, placing this equipment into the Mid-Continent where our current operating scale facilitates higher utilization rates. We have also relocated rental tools, water trucks and well servicing rigs from regions that have not recovered from the downturn as anticipated to core markets like the Permian Basin, SCOOP/STACK and Eagle Ford where we have market leading positions. All of these moves are resulting in steadier utilization of assets with higher gross margin potential. We also made some divestitures, including ceasing operations in August of our mining and construction yard in La Barge, Wyoming, in preparation for its eventual sale, which closed in October. While these relocations and divestitures caused short term disruptions to our top line, we believe the benefits of higher margins, reduced capital expenditure requirements and the overall streamlining of our fleet, footprint and strategy will far outweigh any temporary downside results.
"Weather interruptions delayed projects in several markets, but the most severe impacts were felt in the Permian Basin, Mid-Continent and Texas Gulf Coast regions. Unseasonal rainfall amounts stranded our assets and forced some customers to postpone scheduled work. As an example, Midland, TX, which is in the heart of the Permian Basin, received more than 100% of its annual rain fall average between the months of June and late October. October 2018 has already become the sixth wettest month on record for the city of Midland. Encouragingly, as these markets have dried out, they have returned to their healthy levels of activity.
"The Well Servicing segment experienced strong utilization based on current available labor, and as a result we are seeing additional rate traction in the mid-single digit range for the remainder of 2018. Segment margin declined due to asset movements as part of the realignment initiative, as well as weather/holiday impact. Margins should return to normal levels in the fourth quarter excluding any additional seasonality. Demand for 24-hour packages remained stable, averaging 23 active packages for the quarter (with rental equipment revenue booked in our Completion and Remedial segment). This average is down one from the second quarter due to the transit of two 24-hour rig packages from Appalachia to the Mid-Continent region. We expect this positive trend to improve as soon as our customers release their 2019 budget plans. Our fleet is uniquely equipped to handle this demand as we combine our high-spec well servicing rigs with our rental assets to form these larger packages preferred by our customers. We have deployed additional 1,000 horsepower pumps and will continue to add incremental ancillary equipment to our best-in-class fleet of rental equipment to address the burgeoning demand in the oilfield for all-in-one providers of service rigs and associated equipment packages that address the needs of today's long lateral wells.
"The Water Logistics segment continues to perform very well as the amount of total water disposal volumes via higher-margin pipeline during the quarter increased 22% sequentially to represent a new high of 28% of all disposal water volumes. In addition, our Permian Basin operations moved almost 50% of its salt water disposal volumes via pipeline in the third quarter of 2018, another new record. As water disposal volumes via pipeline continue to swell, we are reducing the number of active fluid trucks by replacing fewer at lease expiration. Excluding the impact of revenue lost from the cessation of operations of our La Barge yard, which represented approximately $1.2 million per month of revenue in this segment, segment revenue would have increased sequentially, despite the relocation of assets and closing of several yards in non-core markets.
"In our Completion and Remedial Services segment, we are already benefiting from the strategic realignment as the segment delivered a 180-basis points improvement in margin as the Mid-Continent markets provided steadier utilization and greater cost efficiencies from our scale. The coiled tubing and rental businesses saw improved sequential results as well.
"We currently expect the fourth quarter to be very similar to the third quarter in terms of pricing. However, shorter daylight hours and normal seasonal impacts of weather and holidays will hold utilization rates lower. In addition, we will be implementing the final phases of our strategic realignment initiative which should impact segment revenues slightly. General customer feedback suggests there will be a normal winding down of capital budgets through the end of the fourth quarter. In contrast, a few customers have already scheduled additional projects before year end. Considering all of these factors, we anticipate a typical fourth quarter revenue decrease of mid-to-high single digits on a sequential percentage basis. We believe the strategic realignment initiative into core markets, along with an improved pricing outlook across all segments, is contributing to the offset of the seasonal drop in working days.
"Customer commentary on 2019 planned capital expenditures remains very promising. We are also anticipating a gradual easing of the takeaway capacity challenges in the Permian Basin during 2019, which should have a material, positive impact on our completion-oriented assets, including our larger well service rigs, in the second half of 2019. Overall, we currently expect first half of 2019 to deliver revenue growth in the high single-digit percentage range compared to the first half of 2018."
2018 First Nine Months Highlights
Revenues for the first nine months of 2018 rose 17% to $734.4 million from $628.8 million in the first nine months of 2017. For the nine months ended September 30, 2018, Basic reported a net loss of $97.9 million, or $3.70 per basic and diluted share, compared to a net loss of $76.4 million, or $2.94 per basic and diluted share, for the first nine months of 2017.
Adjusted EBITDA for the first nine months of 2018 was $75.2 million, or 10.2% of revenues, excluding $18.4 million of non-cash stock compensation, compared to $53.9 million, or 8.6% of revenues, excluding $16.6 million of non-cash stock compensation for the first nine months of 2017. EBITDA and Adjusted EBITDA are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"). See Note 2 under the accompanying financial tables for a discussion of EBITDA and Adjusted EBITDA and a reconciliation of each to the most directly comparable financial measure calculated and presented in accordance with United States GAAP.
Business Segment Results
Well Servicing
Well Servicing revenues increased 4% to $67.2 million during the third quarter of 2018 compared to $64.4 million in the prior quarter led by increased rig activity and utilization as well as improved pricing late in the quarter. Well Servicing revenues were $54.6 million in the third quarter of 2017. Weather and holidays negatively impacted well servicing revenues by approximately $2.0 million in the third quarter, a significantly higher than typical figure for the quarter.
The well servicing rig count was 310 at September 30 and March 31, 2018, down from 421 at September 30, 2017. Rig hours were 180,300 in the third quarter of 2018, down 1% compared to 181,600 hours in the second quarter of 2018 and up 9% from 165,200 hours in the comparable quarter of last year. Rig utilization was 82% in the third quarter of 2018, same as the prior quarter and up from 72% in the third quarter of 2017 based on our current fleet of 310 service rigs. Basic averaged a total of 23 24-hour rental equipment packages working for the third quarter of 2018, due to the relocation of two 24-hour packages from Appalachia. The company had a total of 28 24-hours packages in the field at the end of the third quarter. During the third quarter of 2017, the company averaged only 11 active equipment packages. As a reminder, revenue for the rental equipment portion of a 24-hour package is recorded in our Completion and Remedial segment.
Revenue per well servicing rig hour, net of Taylor manufacturing revenue, was $357 in the third quarter of 2018, compared to $348 in the previous quarter and up 9% from $329 reported in the third quarter of 2017. The sequential increase in the third quarter was due to the additional 24-hour rigs operating in the quarter, which, in addition to improved hours, resulted in higher rates as well as additional revenue opportunities.
Segment profit in the third quarter of 2018 decreased 17.6% to $12.1 million, compared to $14.7 million in the prior quarter and increased 6% from $11.4 million during the same period in 2017. Net of Taylor manufacturing revenue, segment profit in the third quarter of 2018 decreased 14% from the second quarter of 2018 to $11.8 million. Segment profit margin decreased to 18.1% (or 18.3% net of Taylor) in the third quarter of 2018 from 22.9% (23% net of Taylor) in the prior quarter as billable time lost due to asset relocations, as well as holiday and weather disruptions, particularly during September, negatively impacted margins. In the third quarter of 2017, segment profit was 21% of segment revenue.
Water Logistics
Water Logistics revenue in the third quarter of 2018 was flat at $59.5 million compared to $59.7 million in the prior quarter. During the third quarter of 2017, this segment generated $52.3 million in revenue. Weather and holidays negatively impacted well servicing revenues by $0.3 million in the third quarter.
The weighted average number of fluid services trucks decreased 9% to 870 during the third quarter of 2018, compared to 903 during the second quarter of 2018 and decreased 8% compared to 947 during the third quarter of 2017. The decrease in the number of trucks has been driven by the structural change taking place in the industry where increasing volumes of fluids are moving through pipelines, a significantly lower-cost alternative for our clients and higher-margin vis-à-vis transportation via trucks. Truck hours of 448,200 during the third quarter of 2018 represented a decrease of 8% from the 486,800 generated in the second quarter of 2018 and a decrease of 7% compared to 483,300 in the same period in 2017.
Total pipeline water volumes disposed at Basic-owned salt water disposal wells ("Basic SWDs") reached 2.5 million barrels during the third quarter of 2018 compared to 2.1 million barrels during the second quarter of 2018. Pipeline disposal volumes to Basic SWD's in the Permian Basin continue to grow and have now reached 49% of total water disposal volumes in the Permian Basin, up from 39% for the second quarter of 2018.
Segment profit in the third quarter of 2018 increased by 7% to $16.8 million, compared to a profit of $15.7 million in the second quarter of 2018. Segment profit margin increased approximately 100 basis points to 28% due to increases in higher margin pipeline disposal. Segment profit in the same period in 2017 was $11.1 million, or 21% of segment revenue.
Completion and Remedial Services
Completion and Remedial Services revenue decreased 8.6% to $116.0 million in the third quarter of 2018 from $126.9 million in the prior quarter. The decrease in revenue was primarily due to weather impacts and a decrease in frac revenue during the quarter as we located two large spreads from Midland to the Mid-Continent. In the third quarter of 2017, this segment generated $123.7 million in revenue. Weather and holidays negatively impacted revenues by $0.6 million in the third quarter.
At September 30, 2018, Basic had approximately 516,000 hydraulic horsepower ("HHP"), flat with the end of the previous quarter and down from 523,000 at September 30, 2017. Weighted average HHP for the third quarter of 2018 decreased to 516,000 from second quarter of 2018 levels of 517,000.
Segment profit in the third quarter of 2018 decreased 1% to $26.2 million compared to $26.4 million in the prior quarter. Segment margin for the third quarter of 2018 increased 180 basis points to 23% compared to 21% during the previous quarter as we begin to realize the benefits of greater scale in the Mid-Continent and SCOOP/STACK. The decrease in segment gross profit was due to the decremental impact of lower revenue in the frac segment. During the third quarter of 2017, segment gross profit was $39.2 million, or 32% of segment revenue.
Contract Drilling
Contract Drilling revenues increased by 53% to $3.6 million during the third quarter of 2018 from $2.3 million in the prior quarter. During the third quarter of 2017, this segment generated $2.8 million in revenue. Basic marketed 11 drilling rigs during the third and second quarter of 2018, and the third quarter of 2017. Revenue per drilling day in the third quarter of 2018 was up 8% to $27,700 compared to $25,700 in the previous quarter and down from $31,000 in the third quarter of 2017, due to increased rates.
Rig operating days during the third quarter of 2018 increased by 42% to 129 compared to 91 in the prior quarter, resulting in rig utilization of 13% during the third quarter of 2018 compared to 9% during the prior quarter, due to running one additional rig. In the comparable period in 2017, rig operating days were 92, resulting in a utilization rate of 9%.
Segment profit in the third quarter of 2018 was $840,000 compared to $594,000 in the prior quarter and $301,000 in the third quarter of 2017. Segment margin for the third quarter of 2018 was 24% of segment revenues compared to 25% in the prior quarter. The improved margin is due to increases in rig moving activity, and decreased transportation expense. Last year in the comparable period, segment margin was 11%.
G&A Expense
Reported general and administrative ("G&A") expense was $39.6 million for the third quarter of 2018 compared to a reported G&A expense for the second quarter of 2018 of $51.5 million. The majority of this decrease is related to decreases in special items such as the second quarter accrual of $6.0 million for Basic's liability under our Texas sales and use tax audit, accelerated non-cash deferred compensation costs of $3.9 million related to the retirement of Basic's prior CFO, and bad debt related to a single customer of $3.1 million. Special items in the third quarter include costs related to the strategic realignment of approximately $2.2 million. Excluding the special items mentioned above, third quarter G&A expense totaled $37.4 million compared to $36.7 million in the second quarter of 2018, excluding the special items noted above. Excluding costs associated with the bankruptcy and restructuring and retention expenses, G&A expense in the third quarter of 2017 was $35.5 million.
Interest Expense
Net interest expense for the third quarter of 2018 was $10.9 million, which includes interest on Basic's term loan, ABL facility, capital leases and other financings. Net interest expense in the second quarter of 2018 was $12.8 million, and $8.9 million in the third quarter of 2017.
Income Taxes
Basic's tax expense for the third quarter of 2018 was $0 compared to tax expense of $278,000 in the second quarter of 2018. The effective tax rate was 0% in the third quarter of 2018 compared to 1% in the prior quarter. The effective tax benefit of $1.7 million in the third quarter of 2017 translated into an effective tax rate of 11%. As of September 30, 2018, Basic had approximately $775.4 million of net operating loss carryforwards, for federal income tax purposes. Basic provides a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. As of September 30, 2018, a valuation allowance of $165.1 million was recorded against the Company's net deferred tax assets for all jurisdictions that are not expected to be realized.
Cash and Total Liquidity
On September 30, 2018, Basic had cash and cash equivalents of approximately $30.8 million, compared to $38.5 million at December 31, 2017 and $30.7 million on June 30, 2018.
At September 30, 2018, Basic had an outstanding amount of $90.0 million drawn on its prior revolving asset-based lending facility ("Prior ABL Facility").
On October 2, 2018, the Company issued in a private placement offering $300 million aggregate principal amount of 10.75% senior secured notes due 2023 (the "Senior Notes") at 99.042% of par and entered into a new $150 million senior secured revolving credit facility, subject to borrowing base capacity (the "New ABL Facility"). In connection with the closing of the Senior Notes, the Company repaid the balances outstanding under the Prior ABL Facility and the Term Loan in their entirety and terminated both facilities. Basic's availability under the New ABL Facility at October 2, 2018 was $80.9 million and our cash balance stood at $86.1 million, bringing total liquidity to $167.0 million.
Capital Expenditures
Total capital expenditures during the third quarter of 2018 were approximately $23.1 million (including capital leases and other financing of $5.5 million), comprised of $7.7 million for expansion projects, $14.7 million for sustaining and replacement projects and $804,000 for other projects. Expansion capital spending included $4.0 million for the Water Logistics segment, $1.9 million for the Well Servicing segment, and $1.8 million for the Completion and Remedial services segment. Other capital expenditures were mainly for facilities and information technology infrastructure. Basic currently anticipates 2018 capital expenditures of $80.0 million, including $20.0 million of capital leases and other financings.
Conference Call
Further details are provided in the presentation for our quarterly conference call to review the third quarter of 2018 results, available in the investor relations section of our corporate website. Basic will host a conference call to discuss its third quarter 2018 results on Friday, November 2, 2018, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until November 9, 2018 and may be accessed by calling (201) 612-7415 and using pass code 13683453#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating areas. The Company's operations are managed regionally and are concentrated in major United States onshore oil producing regions located in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and Colorado. Our operations are focused on liquids-rich basins that have historically exhibited strong drilling and production economics in recent years. Specifically, we have a significant presence in the Permian Basin and the Bakken, Eagle Ford, and Denver-Julesburg shales. We provide our services to a diverse group of over 2,000 oil and gas companies. Additional information on Basic Energy Services is available on the Company's website at 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. The words "believe," "estimate," "expect," "anticipate," "project," "intend," "seek," "could," "should," "may," "potential" and similar expressions are intended to identify forward-looking statements. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2017 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.
-Tables to Follow-
Basic Energy Services, Inc. | |||||||||||||
Consolidated Statements of Operations and Other Financial Data | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Income Statement Data: | |||||||||||||
Revenues: | |||||||||||||
Completion and remedial services | $ | 115,978 | $ | 123,650 | $ | 360,523 | $ | 311,466 | |||||
Water Logistics | 59,539 | 52,333 | 175,727 | 153,279 | |||||||||
Well servicing | 67,246 | 54,629 | 189,188 | 156,302 | |||||||||
Contract drilling | 3,571 | 2,848 | 8,930 | 7,728 | |||||||||
Total revenues | 246,334 | 233,460 | 734,368 | 628,775 | |||||||||
Expenses: | |||||||||||||
Completion and remedial services | 89,777 | 84,481 | 279,963 | 232,932 | |||||||||
Water Logistics | 42,785 | 41,281 | 127,716 | 124,399 | |||||||||
Well servicing | 55,106 | 43,219 | 152,977 | 125,931 | |||||||||
Contract drilling | 2,731 | 2,547 | 7,017 | 6,818 | |||||||||
General and administrative (1) | 39,599 | 39,235 | 132,038 | 109,478 | |||||||||
Depreciation and amortization | 32,754 | 29,478 | 94,150 | 80,846 | |||||||||
(Gain) loss on disposal of assets | 191 | 26 | 3,891 | (664) | |||||||||
Total expenses | 262,943 | 240,267 | 797,752 | 679,740 | |||||||||
Operating loss | (16,609) | (6,807) | (63,384) | (50,965) | |||||||||
Other income (expense): | |||||||||||||
Interest expense | (10,896) | (8,892) | (34,985) | (27,181) | |||||||||
Interest income | 88 | 5 | 175 | 23 | |||||||||
Other income | 81 | 109 | 492 | 344 | |||||||||
Loss before income taxes | (27,336) | (15,585) | (97,702) | (77,779) | |||||||||
Income tax benefit (expense) | — | 1,740 | (219) | 1,366 | |||||||||
Net loss | $ | (27,336) | $ | (13,845) | $ | (97,921) | $ | (76,413) | |||||
Loss per share of common stock: | |||||||||||||
Basic | $ | (1.03) | $ | (0.53) | $ | (3.70) | $ | (2.94) | |||||
Diluted | $ | (1.03) | $ | (0.53) | $ | (3.70) | $ | (2.94) | |||||
Other Financial Data: | |||||||||||||
EBITDA (2) | $ | 16,226 | $ | 22,780 | $ | 31,258 | $ | 30,225 | |||||
Adjusted EBITDA (2) | 24,926 | 32,434 | 75,184 | 53,934 | |||||||||
Capital expenditures: | |||||||||||||
Property and equipment | 16,890 | 14,550 | 48,588 | 48,295 | |||||||||
Capital Leases | 5,518 | 11,826 | 16,565 | 64,041 | |||||||||
As of | |||||||||||||
September 30, | December 31, | ||||||||||||
2018 | 2017 | ||||||||||||
(Unaudited) | Audited | ||||||||||||
Balance Sheet Data: | |||||||||||||
Cash and cash equivalents | $ | 30,847 | $ | 38,520 | |||||||||
Net property and equipment | 465,553 | 502,579 | |||||||||||
Total assets | 778,970 | 820,480 | |||||||||||
Total long-term debt | 278,319 | 259,242 | |||||||||||
Total stockholders' equity | 261,010 | 338,653 | |||||||||||
Three months ended | Nine months ended | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Segment Data: | (unaudited) | |||||||||||||
Completion and Remedial Services | ||||||||||||||
Total hydraulic horsepower (HHP) | 516,000 | 523,000 | 516,000 | 523,000 | ||||||||||
Total Frac HHP | 386,000 | 413,000 | 386,000 | 413,000 | ||||||||||
Coiled tubing units | 18 | 16 | 18 | 16 | ||||||||||
Rental and Fishing tool stores | 16 | 16 | 16 | 16 | ||||||||||
Segment Profits as a percent of revenue | 22 | % | 32 | % | 23 | % | 25 | % | ||||||
Water Logistics | ||||||||||||||
Weighted average number of fluid service trucks | 870 | 947 | 909 | 942 | ||||||||||
Truck hours (000's) | 448.2 | 483.3 | 1,414.6 | 1,441.1 | ||||||||||
Revenue per fluid services truck (000's) | $ | 68 | $ | 55 | $ | 193 | $ | 163 | ||||||
Segment profits per fluid services truck (000's) | $ | 19 | $ | 12 | $ | 53 | $ | 31 | ||||||
Segment profits as a percent of revenue | 28 | % | 21 | % | 27 | % | 19 | % | ||||||
Well Servicing | ||||||||||||||
Weighted average number of rigs | 310 | 421 | 310 | 421 | ||||||||||
Rig hours (000's) | 180.3 | 165.2 | 530.4 | 485.1 | ||||||||||
Rig utilization rate | 82 | % | 55 | % | 80 | % | 54 | % | ||||||
Revenue per rig hour, excluding manufacturing | $ | 357 | $ | 329 | $ | 348 | $ | 319 | ||||||
Well servicing rig profit per rig hour | $ | 67 | $ | 69 | $ | 68 | $ | 62 | ||||||
Segment profits as a percent of revenue | 18 | % | 21 | % | 19 | % | 19 | % | ||||||
Contact Drilling | ||||||||||||||
Weighted average number of rigs | 11 | 11 | 11 | 11 | ||||||||||
Rig operating days | 129 | 92 | 395 | 318 | ||||||||||
Drilling utilization rate | 13 | % | 9 | % | 13 | % | 9 | % | ||||||
Revenue per day | $ | 27,700 | $ | 31,000 | $ | 22,600 | $ | 24,300 | ||||||
Drilling rig profit per day | $ | 6,500 | $ | 3,300 | $ | 4,800 | $ | 2,900 | ||||||
Segment profits as a percent of revenue | 24 | % | 11 | % | 21 | % | 12 | % | ||||||
Note (1) | |||
Includes approximately $5,570,000 and $5,891,000 of non-cash compensation expense for the three months ended September 30, 2018 and 2017, respectively, and $21,994,000 and $16,615,000 for the nine months ended September 30, 2018 and 2017. | |||
Note (2) | |||
This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, the gain or loss on disposal of assets, non-cash stock compensation, audit related sales and use tax, executive retirement, executive bonus payments, bad debt expense, strategic consulting and realignment costs, costs for a withdrawn bond offering, impairment expense, retention expense, restructuring expense, and due diligence for business development activities or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: | |||
The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; | |||
The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and | |||
Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. | |||
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: | |||
EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; | |||
EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; | |||
EBITDA does not reflect income taxes; | |||
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and | |||
Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | |||
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: | |||
Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; | |||
Adjusted EBITDA does not reflect Basic's non-cash stock compensation; | |||
Adjusted EBITDA does not reflect Basic's audit related sales and use tax expense recorded during the three months ended June 30, 2018; | |||
Adjusted EBITDA does not reflect Basic's executive retirement during the three months ended June 30, 2018; | |||
Adjusted EBITDA does not reflect Basic's excess bad debt due to a single customer during the three months ended June 30, 2018; | |||
Adjusted EBITDA does not reflect Basic's strategic realignment expense; | |||
Adjusted EBITDA does not reflect Basic's costs for a withdrawn bond offering incurred during the three months ended March 31, 2018; | |||
Adjusted EBITDA does not reflect Basic's executive bonus expense attributable to the portion of executive bonuses for 2017 that were approved by the Compensation Committee of the Board of Directors and paid in 2018; | |||
Adjusted EBITDA does not reflect Basic's non-cash inventory impairment; | |||
Adjusted EBITDA does not reflect Basic's restructuring or retention costs; and | |||
Adjusted EBITDA does not reflect Basic's costs for due diligence for business development activities incurred in the three months ended September 30, 2017; | |||
Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | |||
The following table presents a reconciliation of net loss to EBITDA: | |||||||||||
Three months ended | Nine months ended | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Reconciliation of Net Loss to EBITDA: | |||||||||||
Net loss | $ | (27,336) | $ | (13,845) | (97,921) | (76,413) | |||||
Income taxes | — | (1,740) | 219 | (1,366) | |||||||
Net interest expense | 10,808 | 8,887 | 34,810 | 27,158 | |||||||
Depreciation and amortization | 32,754 | 29,478 | 94,150 | 80,846 | |||||||
EBITDA | $ | 16,226 | $ | 22,780 | 31,258 | 30,225 | |||||
The following table presents a reconciliation of net loss to Adjusted EBITDA: | |||||||||
Three months ended | Nine months ended | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Reconciliation of Net Loss to Adjusted EBITDA: | |||||||||
Net loss | (27,336) | (13,845) | (97,921) | (76,413) | |||||
Income taxes | — | (1,740) | 219 | (1,366) | |||||
Net interest expense | 10,808 | 8,887 | 34,810 | 27,158 | |||||
Depreciation and amortization | 32,754 | 29,478 | 94,150 | 80,846 | |||||
(Gain) loss on disposal of assets | 191 | 26 | 3,891 | (664) | |||||
Non cash stock compensation | 5,570 | 5,891 | 18,401 | 16,615 | |||||
Audit-related state sales and use tax | — | — | 5,983 | — | |||||
Executive retirement | — | — | 3,855 | — | |||||
Bad debt | — | — | 3,100 | — | |||||
Strategic consulting and realignment | 2,234 | — | 4,634 | — | |||||
Costs for withdrawn bond offering | — | — | 1,753 | — | |||||
Executive bonus | — | — | 1,604 | — | |||||
Impairment expense | 705 | — | 705 | — | |||||
Retention expense | — | — | — | 1,357 | |||||
Restructuring expense | — | — | — | 2,664 | |||||
Due diligence for business development activities | — | 3,737 | — | 3,737 | |||||
Adjusted EBITDA | 24,926 | 32,434 | 75,184 | 53,934 | |||||
Contacts: | Trey Stolz, |
VP Investor Relations | |
Basic Energy Services, Inc. | |
817-334-4100 | |
Jack Lascar | |
Dennard ▪ Lascar Associates | |
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-third-quarter-2018-results-300742807.html
SOURCE Basic Energy Services, Inc.
Article Date
11/1/201810/3/2018 - Basic Energy Services Closes Offering Of Senior Secured Notes And Announces New ABL Credit Facility
Basic Energy Services Closes Offering Of Senior Secured Notes And Announces New ABL Credit Facility
Source: PR Newswire
FORT WORTH, Texas, Oct. 3, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company has closed its previously announced offering of $300 million aggregate principal amount of 10.75% senior secured notes due 2023 (the "notes"). The notes were issued at a price of 99.042% of par to yield 11.00%. The notes will initially be secured by a first-priority lien on substantially all of the assets of the Company and the subsidiary guarantors other than accounts receivable, inventory and certain related assets. In addition, the Company today announced that it has entered into a new asset-based lending credit facility ("New ABL") that is secured by its accounts receivable and related assets. The New ABL has up to a five-year term and replaces its prior $150 million asset-based lending credit facility (as amended, "Prior ABL").
Basic used the net proceeds of the offering to repay Basic's existing indebtedness under its term loan, to repay Basic's outstanding borrowings under the Prior ABL, and for general corporate purposes.
Neither the notes nor the related guarantees have been, nor will be, registered under the Securities Act of 1933, as amended (the "Act"), or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The notes were offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to certain non-U.S. persons outside of the United States pursuant to Regulation S, each under the Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Safe Harbor Statement
This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties. Basic cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Basic does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise except as required by law. The Company further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.
Contacts: | Trey Stolz, VP Investor Relations |
Basic Energy Services, Inc. | |
817-334-4100 | |
Jack Lascar / Kaitlin Ross | |
Dennard-Lascar Associates | |
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-closes-offering-of-senior-secured-notes-and-announces-new-abl-credit-facility-300723378.html
SOURCE Basic Energy Services, Inc.
Article Date
10/3/2018Basic Energy Services Declines Key Energy Services, Inc.'s Unsolicited Proposal
Source: PR Newswire
FORT WORTH, Texas, Sept. 24, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that its Board of Directors has unanimously declined an unsolicited proposal from Key Energy Services, Inc. (NYSE: KEG) ("Key") to combine with Key in a stock-for-stock transaction.
After a careful review, conducted in consultation with its advisors, the Company's Board of Directors unanimously concluded that the proposal is not in the best interests of Basic and its stockholders.
Below is the text of a letter that was sent today by Tim Day, Chairman of the Board of Basic, to Robert J. Saltiel, President and Chief Executive Officer of Key.
September 24, 2018
Mr. Robert J. Saltiel
President and Chief Executive Officer
1301 McKinney
Suite 1800
Houston, Texas 77010
Dear Mr. Saltiel:
This letter is in response to your letters dated September 20, 2018 and September 23, 2018 indicating Key Energy Services' interest in combining with the company. I have shared the correspondence with the company's board, and the board has discussed it. The company will continue to pursue its independent strategy to maximize stockholder value and is not interested in pursuing the proposed transaction.
Sincerely,
Timothy Day
Chairman, Basic Energy Services, Inc.
About Basic Energy Services
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 4,100 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 www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentation, may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: | Trey Stolz, |
VP Investor Relations | |
Basic Energy Services, Inc. | |
817-334-4100 | |
Jack Lascar/Kaitlin Ross | |
Dennard Lascar Investor Relations | |
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-declines-key-energy-services-incs-unsolicited-proposal-300718056.html
SOURCE Basic Energy Services, Inc.
Article Date
9/25/2018Basic Energy Services Announces Offering Of Senior Secured Notes
Source: PR Newswire
FORT WORTH, Texas, Sept. 19, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company intends to offer, subject to market and other conditions, $300 million aggregate principal amount of senior secured notes due 2023 (the "notes") through a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A and to certain persons outside of the United States pursuant to Regulation S, each under the Securities Act of 1933, as amended (the "Act").
The notes will be secured, senior obligations of the Company, and interest will be payable semi-annually in arrears. The notes will be guaranteed on a senior secured basis by Basic's existing material subsidiaries (excluding certain finance-related subsidiaries). The notes will initially be secured by a first-priority lien on substantially all of the assets of the Company and the subsidiary guarantors other than accounts receivable, inventory and certain related assets.
Basic intends to use the net proceeds of the proposed offering to repay Basic's existing indebtedness under its existing Second Amended and Restated Term Loan Agreement, to repay Basic's outstanding borrowings under its asset-based secured revolving credit facility, and for general corporate purposes.
Neither the notes nor the related guarantees have been, nor will be, registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Safe Harbor Statement
This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties. Basic cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Basic does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise except as required by law. The Company further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. Additional important risk factors that could cause actual results to differ materially from expectations are disclosed in Item 1A of Basic's Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent Quarterly Reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.
Contacts: | Trey Stolz, | |
VP Investor Relations | ||
Basic Energy Services, Inc. | ||
817-334-4100 | ||
Jack Lascar / Kaitlin Ross | ||
Dennard Lascar Investor Relations | ||
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-offering-of-senior-secured-notes-300715333.html
SOURCE Basic Energy Services, Inc.
Article Date
9/19/2018Basic Energy Services to Present at Barclays CEO Energy-Power Conference
Source: PR Newswire
FORT WORTH, Texas, Aug. 28, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Barclays CEO Energy-Power Conference to be held in New York City from September 4-6, 2018.
Roe Patterson, President and Chief Executive Officer, is scheduled to present on Wednesday, September 5, 2018, at approximately 3:45 p.m. Eastern Time (2:45 p.m. Central Time). A link to the live webcast and replay for this presentation will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. The accompanying slide presentation will be available that morning in the Investor Relations section of Basic Energy Services' website.
About Basic Energy Services
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 4,100 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 www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentation, may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-present-at-barclays-ceo-energy-power-conference-300702941.html
SOURCE Basic Energy Services, Inc.
Article Date
8/28/20188/15/2018 - Basic Energy Services Announces Appointment of David Schorlemer as Chief Financial Officer
Basic Energy Services Announces Appointment of David Schorlemer as Chief Financial Officer
Source: PR Newswire
FORT WORTH, Texas, Aug. 14, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced the appointment of David Schorlemer as Senior Vice President and Chief Financial Officer. Mr. Schorlemer is an accomplished professional with two decades of experience in senior level positions with public and private companies spanning such areas as finance, technology, business process systems integration, growth acquisitions, strategic and organizational planning and capital markets transactions, among others. In his role as Senior Vice President and Chief Financial Officer, he will be responsible for overseeing and managing all of Basic's finance, technology and accounting responsibilities. Mr. Schorlemer's appointment will be effective August 27, 2018.
"With David joining our team, we are adding a talented and experienced individual with a unique background in finance, technology, organic and acquisition growth, strategic planning and capital markets transactions," said Roe Patterson, Basic's President and Chief Executive Officer. "As we continue to grow our business and implement our strategic initiatives, David's extensive industry knowledge and financial management experience will prove valuable."
Mr. Schorlemer is replacing Alan Krenek, who retired as the Company's Senior Vice President, Chief Financial Officer, Treasurer and Secretary, effective August 15, 2018.
Concerning Mr. Krenek's retirement, "It has been a pleasure to work with Alan over the last 12 years. We thank him for his years of steadfast service to the company and we wish him the very best in his retirement," Mr. Patterson said.
About Basic Energy Services
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 4,100 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 www.basicenergyservices.com.
|
Contacts: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-appointment-of-david-schorlemer-as-chief-financial-officer-300697248.html
SOURCE Basic Energy Services, Inc.
Article Date
8/15/2018Basic Energy Services Reports Second Quarter 2018 Results
Source: PR Newswire
FORT WORTH, Texas, July 31, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the second quarter ended June 30, 2018.
SECOND QUARTER 2018 HIGHLIGHTS
Second quarter 2018 revenue increased to $253.4 million from $234.7 million in the first quarter of 2018. In the second quarter of 2017, Basic generated $213.3 million in revenue.
For the second quarter of 2018, Basic reported a net loss of $40.1 million, or a loss of $1.51 per basic and diluted share. This is compared to a net loss of $30.5 million, or $1.16 per basic and diluted share for the first quarter of 2018, and a net loss of $23.9 million, or $0.92 per basic and diluted share in the second quarter of 2017. Excluding the impact of the special items listed below, Basic reported a net loss of $22.4 million, or a loss of $0.83 per basic and diluted share in the second quarter of 2018, and a net loss of $14.7 million, or a loss of $0.57 per basic and diluted share in the second quarter of 2017.
|
Three months ended June 30, | |||||||
|
2018 |
EPS | ||||||
|
Special Items (adjusted for tax) |
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(40.1) |
$ |
(1.51) |
|||
|
Audit-related state sales and use tax |
4.8 |
0.18 |
|||||
|
Executive retirement |
3.1 |
0.12 |
|||||
|
Bad debt |
2.5 |
0.10 |
|||||
|
Strategic consulting fees |
1.6 |
0.06 |
|||||
|
Change in valuation allowance on federal deferred tax assets |
5.7 |
0.22 |
|||||
|
Adjusted net loss |
$ |
(22.4) |
$ |
(0.83) |
|||
Special items included an after-tax $4.8 million expense related to prior years' sales and use tax associated with an audit that is currently in progress; an after-tax $3.1 million expense related to the acceleration of non-cash incentive compensation payments and severance payments to our Chief Financial Officer, who, in April, announced his future retirement subject to continued service pursuant to a Transition Services Agreement; $2.5 million of bad debt related to a single customer; and $1.6 million in management consulting fees related to our strategic realignment initiative, which is discussed in further detail below.
Adjusted EBITDA was $27.0 million, excluding $6.0 million in non-cash stock compensation, or 11% of revenues, for the second quarter of 2018, compared to $22.8 million, excluding $6.8 million of non-cash stock compensation, or 10% of revenues, in the first quarter of 2018. In the second quarter of 2017, Basic generated Adjusted EBITDA of $18.3 million, excluding $6.3 million of non-cash stock compensation, or 9% of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), the net gain or loss from the disposal of assets, non-cash stock compensation, retention expense, and restructuring expense. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables. We currently have $45.4 million in liquidity, compared to $34.3 million at the end of the first quarter.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Our second quarter results were led by the improved performance in the well servicing and water logistics segments, where we benefitted from increased utilization, higher revenue per rig and truck hour and increased penetration of water disposal volumes through our pipeline system. As a result, we managed to deliver higher sequential revenues and overall margins in both the well servicing and water logistics segments. However, equally important during the second quarter was the undertaking of an ongoing proactive realignment initiative designed to relocate our assets to the most attractive operating areas with our busiest customers and in markets where we possess the most scale. We believe this initiative will accelerate profitability and free cash flow through improved utilization, cost efficiencies, and pricing across all of our business segments.
"During the second quarter, production-related services continued to benefit from increased pricing and utilization in most segments. The well service industry is operating at virtually full utilization based on current available labor, and as a result we are seeing additional rate traction in the mid-single digit range for the second half of 2018. The well servicing segment margin increased 670 basis points due largely to improved utilization, more than offsetting the on-boarding and higher labor cost of new hires. We continue to see increased demand for 24-hour packages, averaging 24 active packages for the quarter and exiting the quarter at 28, up from an average of 21 for the first quarter. We anticipate that this trend will continue for the remainder of 2018. Our fleet is uniquely equipped to handle this demand as we combine our high-spec well servicing rigs with our rental assets to form these larger packages.
"The water logistics segment continues to perform well, with truck hours up three percent and the revenue per fluid service truck up 22 percent. The amount of water disposal volumes via higher-margin pipeline remains strong, reaching a new high for our Permian Basin operations nearing 40%. As water disposal volumes via pipeline continue to expand, we anticipate the number of active trucks to decrease as we replace fewer at lease expiration.
"In our completion and remedial services segment, both the frac and coiled tubing businesses continue to face competitive pressures while the snubbing and rental businesses saw improved sequential results from the first quarter driven by higher pricing and utilization during the second quarter. Utilization for our frac equipment remained choppy through the second quarter, and pricing remains very competitive, especially in the Permian as most of the new horsepower in the industry is showing up there. However, in our Mid-Con frac market, which ranges from Kansas through Oklahoma to the northern Barnett Shale, we experienced better results due to our larger scale in the region and lower average maintenance costs. Excluding frac and coiled tubing businesses, our completion and remedial margins would have been 41% for the second quarter compared to 36% without frac and coiled tubing in the first quarter.
"Some regions and business lines in which we operate have not made the type of recovery we had hoped for thus far in 2018. Either business lines have suffered from a saturation of new-build assets, or the markets themselves have not reached the anticipated levels of recovery demand that we were expecting. In response to these market conditions, we are proactively embarking on the aforementioned strategic realignment initiative with the objective of accelerating financial performance in all operating segments, primarily via relocation of assets to our most attractive markets where we possess the most scale. As an example of this strategic initiative, we are relocating frac assets from the Permian and Niobrara basins, placing this equipment into more attractive regions such as the Mid-Con where our current scale supports better financial results. We are also in the process of relocating other assets including rental tools, water trucks and well servicing rigs from regions that have not recovered as anticipated to core markets like the Permian Basin, SCOOP/STACK and Eagle Ford where we have market leading positions. Current run rates and activity levels suggest that revenue is trending higher for the third quarter; however, this realignment initiative is certain to result in some choppiness as we relocate assets. Therefore, we are guiding third quarter revenues to be relatively flat sequentially. Additionally, with our net debt remaining essentially flat quarter-over-quarter, we believe that we have reached the threshold of positive free cash flow generation, and we expect that trend to continue through the remainder of 2018.
"More specifically, customer feedback on planned capital expenditures in the production-oriented segments remains promising, and as a result, we expect our well servicing and water logistics segments in our core markets to continue delivering improvements in pricing, utilization and margin for the remainder of 2018. Production businesses continue to represent an increasing majority of our company revenue and present improving financial results. Therefore, we will further transition our assets and focus our growth initiatives to the production side of the industry."
2018 First Six Months Highlights
Revenues for the first half of 2018 rose 23% to $488.0 million from $395.3 million in the first six months of 2017.
Adjusted EBITDA for the first six months of 2018 was $50.3 million, or 10% of revenues, compared to $21.5 million, or 5% of revenues, for the first six months of 2017. Adjusted EBITDA excludes the special items discussed above for both 2018 and 2017. Adjusted EBITDA is reconciled in note 2 under the accompanying financial tables.
For the first half of 2018, Basic reported a net loss of $70.6 million, or $2.67 per basic and diluted share, compared to a net loss of $62.6 million, or $2.41 per basic and diluted share, for the first half of 2017. Excluding special items in both 2018 and 2017, Basic generated an adjusted net loss of $45.5 million, or $1.72 per basic and diluted share for the first half of 2018 compared to an adjusted net loss of $36.6 million, or $1.42 per basic and diluted share in the first six months of 2017.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue increased 8.0% to $126.9 million in the second quarter of 2018 from $117.6 million in the prior quarter. The increase in revenue was primarily due to an increase in activity, partially offset by a decrease in frac revenue and weather impacts during the quarter. In the second quarter of 2017, this segment generated $107.4 million in revenue.
At June 30, 2018, Basic had approximately 516,500 hydraulic horsepower ("HHP"), down from 523,000 at the end of the previous quarter and 518,000 at June 30, 2017. Weighted average HHP for the second quarter of 2018 decreased to 518,000 from first quarter of 2018 levels of 523,000.
Segment profit in the second quarter of 2018 decreased 5.4% to $26.4 million compared to $27.9 million in the prior quarter. Segment margin for the second quarter of 2018 decreased 300 basis points to 21% compared to 24% during the previous quarter. The decrease in margin was due to increased sand and freight costs in the Pumping segment during the quarter as well as the decremental impact of lower revenue in the Coiled Tubing segment. During the second quarter of 2017, segment profit was $26.2 million, or 24% of segment revenue.
Well Servicing
Well servicing revenues increased 12% to $64.4 million during the second quarter of 2018 compared to $57.5 million in the prior quarter led by increased rig activity and utilization as well as improved pricing late in the quarter. Well servicing revenues were $53.1 million in the second quarter of 2017.
The well servicing rig count was 310 at June 30 and March 31, 2018, down from 421 at June 30, 2017. Rig hours were 181,600 in the second quarter of 2018, up 8% compared to 168,500 hours in the first quarter of 2018 and up 12% from 162,300 hours in the comparable quarter of last year. Rig utilization was 82% in the second quarter of 2018, compared to 76% in the prior quarter and up from 71% based on our current fleet of 310 service rigs. Basic averaged a total of 24 24-hour rental equipment packages working for the second quarter of 2018, up from 21 in the first quarter of 2018, exiting the second quarter with 28 24-hours packages in the field. During the second quarter of 2017, the company averaged only 11 active equipment packages.
Revenue per well servicing rig hour was $348 in the second quarter of 2018, compared to $338 in the previous quarter and up 8% from $321 reported in the second quarter of 2017. The sequential increase in the second quarter was due to the additional 24-hour rigs operating in the quarter, which, in addition to improved hours, improved rates as well.
Segment profit in the second quarter of 2018 increased 57.6% to $14.7 million, compared to $9.3 million in the prior quarter and increased 31% from $11.3 million during the same period in 2017. Segment profit margin increased to 23% in the second quarter of 2018 from 16% in the prior quarter. In the second quarter of 2017, segment profit was 21% of segment revenue.
Water Logistics
Water logistics revenue in the second quarter of 2018 increased 6% to $59.7 million compared to $56.5 million in the prior quarter. Segment revenue growth was driven by an increase in trucking activity, improved disposal utilization and higher skim oil sales. During the second quarter of 2017, this segment generated $50.7 million in revenue.
The weighted average number of fluid services trucks decreased 6% to 903 during the second quarter of 2018, compared to 960 during the first quarter of 2018 and decreased 4% compared to 943 during the second quarter of 2017. The decrease in the number of trucks is driven by the structural change taking place in the industry where increasing volumes of fluids are moving through pipelines. Truck hours of 486,800 during the second quarter of 2018 represented an increase of 2% from the 479,600 generated in the first quarter of 2018 and an increase of 3% compared to 473,500 in the same period in 2017.
The average revenue per fluid service truck increased 12% to $66,000 from $59,000 in the first quarter of 2018, led by increased trucking activity and improved pricing. In the comparable quarter of 2017, average revenue per fluid truck was $54,000.
Total pipeline water volumes of the Basic owned salt water disposal wells ("Basic SWDs") reached 2.0 million barrels compared to 1.5 million barrels during the first quarter of 2018. Pipeline disposal volumes of Basic SWD's in the Permian Basin continue to grow and have now reached 23% of total water disposal volumes.
Segment profit in the second quarter of 2018 increased by 1% to $15.7 million, compared to a profit of $15.6 million in the first quarter of 2018. Segment profit margin decreased approximately 100 basis points to 26% due to the temporary effect of weather in one region. Segment profit in the same period in 2017 was $9.2 million, or 18% of segment revenue.
Contract Drilling
Contract drilling revenues decreased by 23% to $2.3 million during the second quarter of 2018 from $3.0 million in the prior quarter. During the second quarter of 2017, this segment generated $2.1 million in revenue. Basic marketed 11 drilling rigs during the first and second quarter of 2018, and the second quarter of 2017. Revenue per drilling day in the second quarter of 2018 was up 49% to $25,700 compared to $17,300 in the previous quarter and up from $23,300 in the second quarter of 2017, due to increased rates.
Rig operating days during the second quarter of 2018 decreased by 48% to 91 compared to 175 in the prior quarter, resulting in rig utilization of 9% during the second quarter of 2018 compared to 18% during the prior quarter, due to running one less rig. In the comparable period in 2017, rig operating days were 91, producing a utilization of 8%.
Segment profit in the second quarter of 2018 was $594,000 compared to $479,000 in the prior quarter and $254,000 in the second quarter of 2017. Segment margin for the second quarter of 2018 was 25% of segment revenues compared to 16% in the prior quarter. The improved margin is due to increases in rig moving activity, and decreased transportation expense. Last year in the comparable period, segment margin was 12%.
G&A Expense
Reported general and administrative ("G&A") expense was $51.5 million for the second quarter of 2018 compared to a reported G&A expense for the first quarter of 2018 of $41.0 million. The majority of this increase is related to special items such as the accrual of $6.0 million for our liability under our Texas sales and use tax audit, accelerated non-cash deferred compensation costs of $3.9 million related to the retirement of our CFO, bad debt related to a single customer of $3.1 million, and accrued consulting fees related to our strategic realignment of approximately $2.0 million. These increases were partially offset by decreases of $2.6 million in personnel costs due to the absence of the payroll tax reset effect and the absence of the 2017 executive bonus payment both incurred in the first quarter. Excluding the special items mentioned above, second quarter G&A expense totaled $36.6 million compared to $37.6 million in the first quarter of 2018, which excluded expenses of $1.8 million for a bond offering that was withdrawn by Basic and $1.6 million of additional bonus payments. Excluding costs associated with the bankruptcy and restructuring and retention expenses, G&A expense in the second quarter of 2017 was $35.0 million.
Texas Sales and Use Tax Audit
In 2014, we were notified by the Texas State Comptroller's office that a sales and use tax audit for the period from 2010 through 2013 would be conducted. A preliminary report has been issued for this audit, and we have appealed the preliminary report through the redetermination process. Based on our analysis, we believe the potential liability associated with this audit ranges from $6.0 million to $24.0 million.
Interest Expense
Net interest expense for the second quarter of 2018 was $12.8 million. These amounts include interest on Basic's term loan, ABL facility, capital leases and other financings. Net interest expense in the first quarter of 2018 was $11.3 million, and $9.2 million in the second quarter of 2017.
Income Taxes
Basic's tax expense for the second quarter of 2018 was $278,000 compared to tax benefit of $59,000 in the first quarter of 2018. The effective tax rate was 1% in the second quarter of 2018 compared to 0% in the prior quarter. The effective tax expense of $0 in the second quarter of 2017 translated into an effective tax rate of 0%. Excluding the valuation allowance related to the deferred tax assets, the operating effective tax benefit would have been 20.3% or $5.7 million in the second quarter 2018.
Cash and Total Liquidity
On June 30, 2018, Basic had cash and cash equivalents of approximately $30.7 million, compared to $38.5 million at December 31, 2017 and $33.8 million on March 31, 2018.
At June 30, 2018, Basic had an outstanding amount of $90.0 million drawn on its revolving asset-based lending facility ("ABL"), including $5.0 million that was drawn during the second quarter of 2018. Based on the borrowing base at June 30, 2018 we had $14.7 million of availability under the ABL at June 30, 2018. We elected not to pay down the ABL with available cash at June 30, 2018 and total liquidity was $45.4 million.
On April 11, 2018, Basic amended and restated its $120.0 million ABL to increase the total commitments under the facility to $150.0 million. This increase in commitments gives Basic additional access to liquidity as its accounts receivable base grows.
Capital Expenditures
Total capital expenditures during the second quarter of 2018 were approximately $24.4 million (including capital leases and other financing of $7.7 million), comprised of $2.6 million for expansion projects, $21.5 million for sustaining and replacement projects and $322,000 for other projects. Expansion capital spending included $2.1 million for the well servicing segment, $397,000 for the completion and remedial services segment, and $105,000 for the fluid services segment. Other capital expenditures were mainly for facilities and information technology infrastructure. Basic currently anticipates 2018 capital expenditures of $80.0 million, including $20.0 million of capital leases and other financings.
Conference Call
Further details are provided in the presentation for our quarterly conference call to review the second quarter of 2018 results, available in the investor relations section of our corporate website. Basic will host a conference call to discuss its second quarter 2018 results on Wednesday, August 1, 2018, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until August 8, 2018 and may be accessed by calling (201) 612-7415 and using pass code 13681002#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 4,100 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 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. The words "believe," "estimate," "expect," "anticipate," "project," "intend," "seek," "could," "should," "may," "potential" and similar expressions are intended to identify forward-looking statements. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2017 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.
-Tables to Follow-
|
Basic Energy Services, Inc. | |||||||||||||
|
Consolidated Statements of Operations and Other Financial Data | |||||||||||||
|
(in thousands, except per share amounts) | |||||||||||||
|
Three months ended June 30, |
Six months ended June 30, | ||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||
|
(Unaudited) |
(Unaudited) | ||||||||||||
|
Income Statement Data: |
|||||||||||||
|
Revenues: |
|||||||||||||
|
Completion and remedial services |
$ |
126,948 |
$ |
107,385 |
$ |
244,545 |
$ |
187,817 |
|||||
|
Water Logistics |
59,679 |
50,740 |
116,188 |
100,946 |
|||||||||
|
Well servicing |
64,405 |
53,054 |
121,942 |
101,672 |
|||||||||
|
Contract drilling |
2,337 |
2,117 |
5,359 |
4,880 |
|||||||||
|
Total revenues |
253,369 |
213,296 |
488,034 |
395,315 |
|||||||||
|
Expenses: |
|||||||||||||
|
Completion and remedial services |
100,528 |
81,199 |
190,187 |
148,451 |
|||||||||
|
Water Logistics |
44,008 |
41,580 |
84,931 |
83,118 |
|||||||||
|
Well servicing |
49,680 |
41,796 |
97,871 |
82,712 |
|||||||||
|
Contract drilling |
1,743 |
1,863 |
4,286 |
4,271 |
|||||||||
|
General and administrative (1) |
51,460 |
36,037 |
92,468 |
70,241 |
|||||||||
|
Depreciation and amortization |
31,161 |
25,956 |
61,396 |
51,369 |
|||||||||
|
(Gain) loss on disposal of assets |
1,921 |
(223) |
3,700 |
(690) |
|||||||||
|
Total expenses |
280,501 |
228,208 |
534,839 |
439,472 |
|||||||||
|
Operating loss |
(27,132) |
(14,912) |
(46,805) |
(44,157) |
|||||||||
|
Other income (expense): |
|||||||||||||
|
Interest expense |
(12,806) |
(9,179) |
(24,089) |
(18,289) |
|||||||||
|
Interest income |
60 |
6 |
87 |
18 |
|||||||||
|
Other income |
102 |
144 |
441 |
235 |
|||||||||
|
Loss before income taxes |
(39,776) |
(23,941) |
(70,366) |
(62,193) |
|||||||||
|
Income tax benefit (expense) |
(278) |
— |
(219) |
(374) |
|||||||||
|
Net loss |
$ |
(40,054) |
$ |
(23,941) |
$ |
(70,585) |
$ |
(62,567) |
|||||
|
Loss per share of common stock: |
|||||||||||||
|
Basic |
$ |
(1.51) |
$ |
(0.92) |
$ |
(2.67) |
$ |
(2.41) |
|||||
|
Diluted |
$ |
(1.51) |
$ |
(0.92) |
$ |
(2.67) |
$ |
(2.41) |
|||||
|
Other Financial Data: |
|||||||||||||
|
EBITDA (2) |
$ |
4,131 |
$ |
11,188 |
$ |
15,032 |
$ |
7,447 |
|||||
|
Adjusted EBITDA (2) |
26,976 |
18,283 |
50,261 |
21,501 |
|||||||||
|
Capital expenditures: |
|||||||||||||
|
Property and equipment |
16,286 |
7,815 |
31,698 |
33,745 |
|||||||||
|
As of |
|||||||||||||
|
June 30, |
December 31, |
||||||||||||
|
2018 |
2017 |
||||||||||||
|
(Unaudited) |
Audited |
||||||||||||
|
Balance Sheet Data: |
|||||||||||||
|
Cash and cash equivalents |
$ |
30,683 |
$ |
38,520 |
|||||||||
|
Net property and equipment |
480,552 |
502,579 |
|||||||||||
|
Total assets |
802,234 |
820,480 |
|||||||||||
|
Total long-term debt |
279,032 |
259,242 |
|||||||||||
|
Total stockholders' equity |
283,151 |
338,653 |
|||||||||||
|
Three months ended June 30, |
Six months ended June 30, | |||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||
|
Segment Data: |
(unaudited) |
|||||||||||||
|
Completion and Remedial Services |
||||||||||||||
|
Total hydraulic horsepower (HHP) |
517,000 |
517,000 |
520,000 |
480,000 |
||||||||||
|
Total Frac HHP |
410,000 |
367,000 |
411,000 |
362,000 |
||||||||||
|
Coiled tubing units |
18 |
16 |
18 |
16 |
||||||||||
|
Rental and Fishing tool stores |
16 |
16 |
16 |
16 |
||||||||||
|
Segment Profits as a percent of revenue |
21 |
% |
24 |
% |
22 |
% |
21 |
% | ||||||
|
Water Logistics |
||||||||||||||
|
Weighted average number of fluid service trucks |
903 |
943 |
932 |
939 |
||||||||||
|
Truck hours (000's) |
486.8 |
473.5 |
966.4 |
957.8 |
||||||||||
|
Revenue per fluid services truck (000's) |
$ |
66 |
$ |
54 |
$ |
125 |
$ |
108 |
||||||
|
Segment profits per fluid services truck (000's) |
$ |
17 |
$ |
10 |
$ |
34 |
$ |
19 |
||||||
|
Segment profits as a percent of revenue |
26 |
% |
18 |
% |
27 |
% |
18 |
% | ||||||
|
Well Servicing |
||||||||||||||
|
Weighted average number of rigs |
310 |
421 |
310 |
421 |
||||||||||
|
Rig hours (000's) |
181.6 |
162.3 |
350.1 |
319.9 |
||||||||||
|
Rig utilization rate |
82 |
% |
54 |
% |
79 |
% |
53 |
% | ||||||
|
Revenue per rig hour, excluding manufacturing |
$ |
348 |
$ |
321 |
$ |
343 |
$ |
314 |
||||||
|
Well servicing rig profit per rig hour |
$ |
81 |
$ |
69 |
$ |
69 |
$ |
59 |
||||||
|
Segment profits as a percent of revenue |
23 |
% |
21 |
% |
20 |
% |
19 |
% | ||||||
|
Contact Drilling |
||||||||||||||
|
Weighted average number of rigs |
11 |
11 |
11 |
12 |
||||||||||
|
Rig operating days |
91 |
91 |
266 |
226 |
||||||||||
|
Drilling utilization rate |
9 |
% |
8 |
% |
13 |
% |
10 |
% | ||||||
|
Revenue per day |
$ |
25,700 |
$ |
23,300 |
$ |
20,100 |
$ |
21,600 |
||||||
|
Drilling rig profit per day |
$ |
6,500 |
$ |
2,800 |
$ |
4,000 |
$ |
2,700 |
||||||
|
Segment profits as a percent of revenue |
25 |
% |
12 |
% |
20 |
% |
12 |
% | ||||||
|
(1) Includes approximately $9,626,000 and $6,275,000 of non-cash compensation expense for the three months ended June 30, 2018 and 2017, respectively, and $16,424,000 and $10,723,000 for the six months ended June 30, 2018 and 2017. | ||||
|
(2) This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, the gain or loss on disposal of assets, retention expense, and restructuring expense or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess:
| ||||
|
The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; | ||||
|
The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and | ||||
|
Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. | ||||
|
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: | ||||
|
EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; | ||||
|
EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; | ||||
|
EBITDA does not reflect income taxes; |
||||
|
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and | ||||
|
Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | ||||
|
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: | ||||
|
Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; | ||||
|
Adjusted EBITDA does not reflect Basic's strategic consulting expense; | ||||
|
Adjusted EBITDA does not reflect Basic's audit related sales and use tax expense; | ||||
|
Adjusted EBITDA does not reflect Basic's bad debt, bonus expense and withdrawn bond offering expense; | ||||
|
Adjusted EBITDA does not reflect Basic's retention expense; | ||||
|
Adjusted EBITDA does not reflect Basic's restructuring costs; | ||||
|
Adjusted EBITDA does not reflect Basic's non-cash stock compensation; and | ||||
|
Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | ||||
|
The following table presents a reconciliation of net loss to EBITDA: | |||||||||||
|
Three months ended June 30, |
Six months ended June 30, | ||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||
|
Reconciliation of Net Loss to EBITDA: |
|||||||||||
|
Net loss |
$ |
(40,054) |
$ |
(23,941) |
(70,585) |
(62,567) |
|||||
|
Income taxes |
278 |
— |
219 |
374 |
|||||||
|
Net interest expense |
12,746 |
9,173 |
24,002 |
18,271 |
|||||||
|
Depreciation and amortization |
31,161 |
25,956 |
61,396 |
51,369 |
|||||||
|
EBITDA |
$ |
4,131 |
$ |
11,188 |
15,032 |
7,447 |
|||||
|
The following table presents a reconciliation of net loss to Adjusted EBITDA: | |||||||||
|
Three months ended June 30, |
Six months ended June 30, | ||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||
|
Reconciliation of Net Loss to Adjusted EBITDA: |
|||||||||
|
Net loss |
(40,054) |
(23,941) |
(70,585) |
(62,567) |
|||||
|
Income taxes |
278 |
— |
219 |
374 |
|||||
|
Net interest expense |
12,746 |
9,173 |
24,002 |
18,271 |
|||||
|
Depreciation and amortization |
31,161 |
25,956 |
61,396 |
51,369 |
|||||
|
(Gain) loss on disposal of assets |
1,921 |
(223) |
3,700 |
(690) |
|||||
|
Non cash stock compensation |
6,036 |
6,275 |
12,834 |
10,723 |
|||||
|
Audit-related state sales and use tax |
5,983 |
— |
5,983 |
— |
|||||
|
Executive retirement |
3,855 |
— |
3,855 |
— |
|||||
|
Bad debt |
3,100 |
— |
3,100 |
— |
|||||
|
Strategic consulting |
1,950 |
— |
2,400 |
— |
|||||
|
Costs for withdrawn bond offering |
— |
— |
1,753 |
— |
|||||
|
Executive bonus |
— |
— |
1,604 |
— |
|||||
|
Retention expense |
— |
— |
— |
1,357 |
|||||
|
Restructuring expense |
— |
1,043 |
— |
2,664 |
|||||
|
Adjusted EBITDA |
26,976 |
18,283 |
50,261 |
21,501 |
|||||
|
Contacts: |
Trey Stolz, |
|
VP Investor Relations | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-second-quarter-2018-results-300689738.html
SOURCE Basic Energy Services, Inc.
Article Date
7/31/2018Basic Energy Services Announces New Leadership Position; Appoints Adam Hurley as New Vice President, Strategy and Business Development
Source: PR Newswire
FORT WORTH, Texas, July 18, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") is pleased to announce the creation of a new leadership position and the hiring of Adam Hurley as Vice President, Strategy and Business Development reporting to President and CEO, Roe Patterson. Effective immediately, Mr. Hurley will be responsible for focusing on Basic's strategy of leveraging its strong market position in its core markets to accelerate the growth of the Company through a more efficient allocation of its assets. In addition, Mr. Hurley is expected to lead Basic's efforts to further reduce costs, drive efficiencies throughout the organization and identify new M&A opportunities that would allow the Company to have even greater scale in its core markets.
Mr. Hurley earned his Bachelor of Science degree from West Point and has a Master in Business Administration from Duke University. He also has the distinction of serving his country for eight years as an officer in the US Army where he served in multiple combat missions.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-new-leadership-position-appoints-adam-hurley-as-new-vice-president-strategy-and-business-development-300682733.html
SOURCE Basic Energy Services, Inc.
Article Date
7/18/20187/16/2018 - Basic Energy Services Announces Second Quarter 2018 Earnings Release And Conference Call Schedule
Basic Energy Services Announces Second Quarter 2018 Earnings Release And Conference Call Schedule
Source: PR Newswire
FORT WORTH, Texas, July 16, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its second quarter 2018 financial results after the market closes on Tuesday, July 31, 2018. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Wednesday, August 1, 2018, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services Second Quarter 2018 Earnings Conference Call |
|
|
When: |
Wednesday, August 1, 2018 – 9:00 a.m. Eastern Time |
|
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
|
Live over the Internet - Log on to the web at the address below. |
||
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through August 8, 2018 by calling 201-612-7415 and using pass code 13681002#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Trey Stolz, VP Investor Relations |
|
|
Basic Energy Services, Inc. |
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817-334-4100 |
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Jack Lascar / Kaitlin Ross |
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Dennard-Lascar Investor Relations |
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713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-second-quarter-2018-earnings-release-and-conference-call-schedule-300681471.html
SOURCE Basic Energy Services, Inc.
Article Date
7/16/2018Basic Energy Services Reports First Quarter 2018 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, May 3, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the first quarter ended March 31, 2018.
FIRST QUARTER 2018 HIGHLIGHTS
First quarter 2018 revenue decreased to $234.7 million from $235.3 million in the fourth quarter of 2017, as the severe weather during January and February forced our customers to defer both maintenance work on a large number of existing wells and completion activity of drilled but uncompleted wells throughout our footprint. In the first quarter of 2017, Basic generated $182.0 million in revenue.
For the first quarter of 2018, Basic reported a net loss of $30.5 million, or a loss of $1.16 per basic and diluted share. This is compared to a net loss of $20.3 million, or $0.78 per basic and diluted share for the fourth quarter of 2017, and a net loss of $38.6 million, or $1.49 per basic and diluted share in the first quarter of 2017.
|
Three months ended March 31, | |||||||
|
2018 |
EPS | ||||||
|
Special Items (adjusted for tax) |
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(30.5) |
$ |
(1.16) |
|||
|
Cost of withdrawn bond offering |
1.5 |
0.06 |
|||||
|
Executive bonus |
1.3 |
0.05 |
|||||
|
Change in valuation allowance on federal deferred tax assets |
4.7 |
0.18 |
|||||
|
Adjusted net loss |
$ |
(23.0) |
$ |
(0.87) |
|||
Excluding the impact of the special items listed above, Basic reported a net loss of $23.0 million, or a loss of $0.87 per basic and diluted share. Special items included an after-tax $1.5 million expense related to a withdrawn bond offering and an after-tax $1.3 million expense related to the portion of the executive bonuses for 2017 that were approved by the Compensation Committee and paid in 2018. Excluding special items, the Company reported a net loss of $14.4 million, or a loss of $0.55 per basic and diluted share, in the fourth quarter of 2017 and a net loss of $22.6 million, or a loss of $0.87 per basic and diluted share in the first quarter of 2017.
Adjusted EBITDA was $22.8 million, excluding $6.8 million in non-cash stock compensation, or 10% of revenues, for the first quarter of 2018, compared to $28.8 million, excluding $6.3 million of non-cash stock compensation, or 12% of revenues, in the fourth quarter of 2017. In the first quarter of 2017, Basic generated Adjusted EBITDA of $3.2 million, or 2% of revenues, excluding $4.4 million of non-cash stock compensation. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), the net gain or loss from the disposal of assets, non-cash stock compensation, retention expense, and restructuring expense. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Despite a challenging first quarter that was severely impacted by a series of winter storms and heavy rains during the first two months of the quarter, we managed to deliver higher sequential revenue in the well servicing and water logistics segments. The severe winter weather negatively impacted revenues by approximately $6.4 million and reduced our margins by approximately 270 basis points. While weather impacts dragged down operating results through January and February, we experienced a much better performance for the month of March, where revenue was the third highest since the recovery began, while exit rates at the end of the first quarter were the highest we have seen since 2014 in production related services.
"During the first quarter, production related services benefited from increased pricing and utilization in most segments. In water logistics, the amount of water disposal volumes via higher-margin pipeline remains strong, reaching a new high in the Permian Basin. The well servicing segment margin was relatively flat after offsetting the reset of payroll taxes as well as the on-boarding costs of additional new hires. We believe the well service industry is operating at virtually full utilization based on current available labor, and as a result we are seeing additional rate traction that could be in the mid-single digit range, quarter over quarter for the second quarter. Water logistics segment margin improved 700 basis points, led by improved rates and pipeline volumes, with additional rate improvements continuing into the second quarter.
"On the completion and remedial services side, both the frac and coiled tubing businesses faced softer results while the cement, acidizing, and rental businesses saw improved sequential results from the fourth quarter. Our coiled tubing segment was negatively impacted by two of our larger customers delaying projects until late in the first quarter. The frac segment experienced multiple delays during the first quarter as well. In the Permian Basin, many of our frac customers were slow in starting the year, and we did not see steady frac utilization until late in the first quarter. Frac pricing also remains very competitive in the Permian as most of the new horse power in the industry is showing up there. In our Mid-Con frac market, we experienced much better results but still saw severe weather interruptions and customer delays from downhole well issues. Cementing, acidizing and rental and fishing tool segments experienced higher pricing and utilization for most of the quarter.
"General activity levels have picked up pace since early March and continued during April, and we are currently experiencing utilization levels that exceed the highs of 2017. We are also currently seeing a healthy level of inquiries regarding equipment and crew availability for all services for the remainder of 2018. Looking forward, we continue to expect a gradual improvement in pricing and utilization for the remainder of 2018 across all business lines. Customer feedback on capital expenditures remains promising, and we anticipate delivering margin expansion in the second quarter as the impact of payroll taxes fade, longer daylight hours lead to increased utilization levels, and rates continue to improve. Overall, we currently anticipate that revenues for the second quarter of 2018 should exceed those for the first quarter by 7%-11%, and we also anticipate that the financial results for the second half of 2018 should significantly exceed those from the first half of 2018."
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue decreased 3.6% to $117.6 million in the first quarter of 2018 from $122.0 million in the prior quarter. The sequential decrease in revenue was primarily due to lower activity levels caused by severe weather that caused customers to defer completion work and a slower start to customer projects earlier in the first quarter. In the first quarter of 2017, this segment generated $80.4 million in revenue.
At March 31, 2018, Basic had approximately 523,000 hydraulic horsepower ("HHP"), flat with 523,000 at the end of the previous quarter and up from 444,000 at March 31, 2017. Weighted average HHP for the first quarter of 2018 was flat from fourth quarter of 2017 levels of 523,000, including 413,000 of frac HHP.
Segment profit in the first quarter of 2018 decreased 23.9% to $27.9 million compared to $36.7 million in the prior quarter. Segment margin for the first quarter of 2018 decreased 600 basis points to 24% compared to 30% during the previous quarter, driven predominantly by the negative impact of decremental margins on the lower revenue base. This margin degradation was further compounded by the annual unemployment tax reset, which had an impact of 70 basis points to quarterly margins. During the first quarter of 2017, segment profit was $13.2 million, or 16% of segment revenue.
Well Servicing
Well servicing revenues increased 6% to $57.5 million during the first quarter of 2018 compared to $54.5 million in the prior quarter led by increased rig activity and utilization as well as improved pricing late in the quarter. Well servicing revenues were $48.6 million in the first quarter of 2017. Revenues from the Taylor manufacturing operations were $585,000 in the first quarter of 2018 compared to $369,000 in the prior quarter and $230,000 in the first quarter of 2017.
At March 31, 2018, the well servicing rig count was 310, down from 421 at the end of the prior quarter and at March 31, 2017. Rig hours were 168,500 in the first quarter of 2018, up 6% compared to 159,500 hours in the fourth quarter of 2017 and up 7% from 157,600 hours in the comparable quarter of last year. Rig utilization was 76% in the first quarter of 2018, compared to 53% in the prior quarter (on the previous base of 421 service rigs), or an equivalent utilization rate of 72% based on our current fleet of 310 service rigs and up from 52% in the first quarter of 2017 or 71% based on our current fleet. Basic averaged a total of 21 24-hour packages working for the first quarter of 2018, up from 20 in the fourth quarter of 2017 and 11 for the first quarter of 2017.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $338 in the first quarter of 2018, compared to $339 in the previous quarter and up 10% from $307 reported in the first quarter of 2017. While rates were up in the first quarter of 2018 across most operating regions, a significant increase in rig hours in the Permian Basin, where rates are lower on average, resulted in a blended rig rate per hour that was essentially flat relative to that of the fourth quarter of 2017.
Segment profit in the first quarter of 2018 decreased 11.3% to $9.3 million, compared to $10.5 million in the prior quarter and increased 21% from $7.7 million during the same period in 2017. Segment profit margin decreased to 16% in the first quarter of 2018 from 19% in the prior quarter. This margin decrease includes the impact of the annual reset of unemployment taxes of approximately 160 basis points. In the first quarter of 2017, segment profit was 16% of segment revenue. Margins decreased primarily due to competitive pricing pressures. Segment loss from the Taylor manufacturing operations was $167,000 in the first quarter of 2018 compared to a profit of $9,000 in last year's fourth quarter.
Water Logistics
Water logistics revenue in the first quarter of 2018 increased 2% to $56.5 million compared to $55.5 million in the prior quarter. Segment revenues growth was driven by an increase in trucking activity, improved disposal utilization and higher skim oil sales. During the first quarter of 2017, this segment generated $50.2 million in revenue.
The weighted average number of fluid services trucks decreased 1% to 960 during the first quarter of 2018, compared to 967 during the fourth quarter of 2017 and improved 3% compared to 935 during the first quarter of 2017. Truck hours of 479,600 during the first quarter of 2018 represented a decrease of 3% from the 492,800 generated in the fourth quarter of 2017 and a decrease of 1% compared to 484,300 in the same period in 2017.
The average revenue per fluid service truck increased 4% to $59,000 from $57,000 in the fourth quarter of 2017, led by increased trucking activity and improved pricing. In the comparable quarter of 2017, average revenue per fluid truck was $54,000.
Total pipeline water volumes of the Basic owned salt water disposal wells ("Basic SWDs") reached 1.5 million barrels compared to 1.9 million barrels during the fourth quarter of 2017. Excluding the unusual volumes from one large customer in October, fourth quarter 2017 volumes would have been 1.7 million barrels. Pipeline disposal volumes of Basic SWD's in the Permian Basin continue to grow and have now reached 39% of total water disposal volumes.
Segment profit in the first quarter of 2018 increased by 38% to $15.6 million, compared to a profit of $11.3 million in the fourth quarter of 2017. Segment profit margin increased 840 basis points to 28% due to the impact of incremental margins on the higher revenue base, offset by 90 basis points of impact from the annual reset of unemployment taxes. Segment profit in the same period in 2017 was $8.7 million, or 17% of segment revenue.
Contract Drilling
Contract drilling revenues decreased by 8% to $3.0 million during the first quarter of 2018 from $3.3 million in the prior quarter. During the first quarter of 2017, this segment generated $2.8 million in revenue. Basic marketed 11 drilling rigs during the first quarter of 2018 and the fourth quarter of 2017 compared to 12 rigs in the first quarter of 2017. Revenue per drilling day in the first quarter of 2018 was down 26% to $17,300 compared to $23,500 in the previous quarter and down from $20,500 in the first quarter of 2017, due to increased pressure on rates.
Rig operating days during the first quarter of 2018 increased by 26% to 175 compared to 139 in the prior quarter, resulting in rig utilization of 18% during the first quarter of 2018 compared to 14% during the prior quarter. In the comparable period in 2017, rig operating days were 135, producing a utilization of 12%.
Segment profit in the first quarter of 2018 was $479,000 compared to $352,000 in the prior quarter and $355,000 in the first quarter of 2017. Segment margin for the first quarter of 2018 was 16% of segment revenues compared to 11% in the prior quarter. The improved margin is due to two rigs being active for the majority of the quarter, along with increases in rig moving activity, and decreased transportation expense. Last year in the comparable period, segment margin was 13%.
G&A Expense
Reported general and administrative ("G&A") expense was $41.0 million for the first quarter of 2018 compared to a reported G&A expense for the fourth quarter of 2017 of $37.0 million. Excluding expenses of $1.8 million for a bond offering that was withdrawn by Basic and $1.6 million of additional bonus payments that were approved by the Compensation Committee in the first quarter of 2018, G&A for the first quarter of 2018 was $37.6 million. This compares to $36.5 million in the fourth quarter of 2017, which excluded $0.5 million of business development activity expense. Excluding costs associated with the bankruptcy and restructuring and retention expenses, G&A expense in the first quarter of 2017 was $31.2 million.
Interest Expense
Net interest expense for the first quarter of 2018 was $11.3 million. These amounts include interest on Basic's term loan, ABL facility, capital leases and other financings. Net interest expense in the fourth quarter of 2017 was $10.3 million, and $9.1 million in the first quarter of 2017.
Tax Benefit
Basic's tax benefit for the first quarter of 2018 was $59,000 compared to tax benefit of $147,000 in the fourth quarter of 2017. The effective tax benefit rate was 0% in both the first quarter of 2018 and in the prior quarter. The effective tax expense of $375,000 in the first quarter of 2017 translated into an effective tax rate of 1%. Excluding the valuation allowance related to the deferred tax assets of $5.2 million, the operating effective tax benefit of $4.7 million translated into an operating tax benefit rate of 17% in the first quarter 2018.
Cash and Total Liquidity
On March 31, 2018, Basic had cash and cash equivalents of approximately $33.8 million, compared to $38.5 million at December 31, 2017 and $50.6 million on March 31, 2017.
At March 31, 2018, Basic had an outstanding amount of $85.0 million drawn on its revolving asset-based lending facility ("ABL"), including $21.0 million that was drawn during the first quarter of 2018. Based on the borrowing base at March 31, we had $0.5 million of availability under the ABL. We elected not to pay down the ABL with available cash at March 31 and total liquidity was $34.3 million.
On April 11, 2018, Basic amended and restated its $120.0 million ABL to increase the total commitments under the facility to $150.0 million. This increase in commitments gives Basic additional access to liquidity as its accounts receivable base grows.
Capital Expenditures
Total capital expenditures during the first three months of 2018 were approximately $21.3 million (including capital leases and other financing of $3.3 million), comprised of $3.8 million for expansion projects, $17.0 million for sustaining and replacement projects and $432,000 for other projects. Expansion capital spending included $2.6 million for the completion and remedial services segment, $1.1 million for the well servicing segment, and $79,000 for the fluid services segment. Other capital expenditures were mainly for facilities and information technology infrastructure.
Basic currently anticipates 2018 capital expenditures of $80.0 million, including $40.0 million of capital leases and other financings.
Conference Call
Basic will host a conference call to discuss its first quarter 2018 results on Friday, May 4, 2018, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until May 11, 2018 and may be accessed by calling (201) 612-7415 and using pass code 13678421#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 4,100 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 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. The words "believe," "estimate," "expect," "anticipate," "project," "intend," "seek," "could," "should," "may," "potential" and similar expressions are intended to identify forward-looking statements. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2017 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.
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Contacts: |
Trey Stolz, |
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VP Investor Relations | |
|
Basic Energy Services, Inc. | |
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817-334-4100 | |
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Jack Lascar | |
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Dennard ▪ Lascar Associates | |
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713-529-6600 |
-Tables to Follow-
|
Basic Energy Services, Inc. | ||||||
|
Consolidated Statements of Operations and Other Financial Data | ||||||
|
(in thousands, except per share amounts) | ||||||
|
Three months ended March 31, | ||||||
|
2018 |
2017 | |||||
|
(Unaudited) | ||||||
|
Income Statement Data: |
||||||
|
Revenues: |
||||||
|
Completion and remedial services |
$ |
117,597 |
$ |
80,431 |
||
|
Water Logistics |
56,509 |
50,206 |
||||
|
Well servicing |
57,537 |
48,619 |
||||
|
Contract drilling |
3,022 |
2,763 |
||||
|
Total revenues |
234,665 |
182,019 |
||||
|
Expenses: |
||||||
|
Completion and remedial services |
89,659 |
67,252 |
||||
|
Water Logistics |
40,923 |
41,538 |
||||
|
Well servicing |
48,191 |
40,916 |
||||
|
Contract drilling |
2,543 |
2,408 |
||||
|
General and administrative (1) |
40,978 |
34,205 |
||||
|
Depreciation and amortization |
30,235 |
25,413 |
||||
|
(Gain) loss on disposal of assets |
1,779 |
(467) |
||||
|
Total expenses |
254,308 |
211,265 |
||||
|
Operating loss |
(19,643) |
(29,246) |
||||
|
Other income (expense): |
||||||
|
Interest expense |
(11,283) |
(9,109) |
||||
|
Interest income |
27 |
12 |
||||
|
Other income |
309 |
92 |
||||
|
Loss before income taxes |
(30,590) |
(38,251) |
||||
|
Income tax benefit (expense) |
59 |
(375) |
||||
|
Net loss |
$ |
(30,531) |
$ |
(38,626) |
||
|
Loss per share of common stock: |
||||||
|
Basic |
$ |
(1.16) |
$ |
(1.49) |
||
|
Diluted |
$ |
(1.16) |
$ |
(1.49) |
||
|
Other Financial Data: |
||||||
|
EBITDA (2) |
$ |
10,901 |
$ |
(3,741) |
||
|
Adjusted EBITDA (2) |
22,835 |
3,218 |
||||
|
Capital expenditures: |
||||||
|
Property and equipment |
15,412 |
25,930 |
||||
|
As of | ||||||
|
March 31, |
December 31, | |||||
|
2018 |
2017 | |||||
|
(Unaudited) |
Audited | |||||
|
Balance Sheet Data: |
||||||
|
Cash and cash equivalents |
$ |
33,831 |
$ |
38,520 |
||
|
Net property and equipment |
491,266 |
502,579 |
||||
|
Total assets |
811,565 |
820,480 |
||||
|
Total long-term debt |
272,658 |
259,242 |
||||
|
Total stockholders' equity |
313,578 |
338,653 |
||||
|
Three months ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
Segment Data: |
(unaudited) | ||||||
|
Completion and Remedial Services |
|||||||
|
Total hydraulic horsepower (HHP) |
523,000 |
444,000 |
|||||
|
Total Frac HHP |
413,000 |
357,000 |
|||||
|
Coiled tubing units |
18 |
16 |
|||||
|
Rental and Fishing tool stores |
16 |
16 |
|||||
|
Segment Profits as a percent of revenue |
24 |
% |
16 |
% | |||
|
Water Logistics |
|||||||
|
Weighted average number of fluid service trucks |
960 |
935 |
|||||
|
Truck hours (000's) |
479.6 |
484.3 |
|||||
|
Revenue per fluid services truck (000's) |
$ |
59 |
$ |
54 |
|||
|
Segment profits per fluid services truck (000's) |
$ |
16 |
$ |
9 |
|||
|
Segment profits as a percent of revenue |
28 |
% |
17 |
% | |||
|
Well Servicing |
|||||||
|
Weighted average number of rigs |
310 |
421 |
|||||
|
Rig hours (000's) |
168.5 |
157.6 |
|||||
|
Rig utilization rate |
76 |
% |
52 |
% | |||
|
Revenue per rig hour, excluding manufacturing |
$ |
338 |
$ |
307 |
|||
|
Well servicing rig profit per rig hour |
$ |
55 |
$ |
49 |
|||
|
Segment profits as a percent of revenue |
16 |
% |
16 |
% | |||
|
Contact Drilling |
|||||||
|
Weighted average number of rigs |
11 |
12 |
|||||
|
Rig operating days |
175 |
135 |
|||||
|
Drilling utilization rate |
18 |
% |
12 |
% | |||
|
Revenue per day |
$ |
17,300 |
$ |
20,500 |
|||
|
Drilling rig profit per day |
$ |
2,700 |
$ |
2,600 |
|||
|
Segment profits as a percent of revenue |
16 |
% |
13 |
% | |||
|
(1) Includes approximately $6,798,000 and $4,448,000 of non-cash compensation expense for the three months ended March 31, 2018 and 2017, respectively. |
|||||
|
(2) This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, the gain or loss on disposal of assets, retention expense, and restructuring expense or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: |
|||||
|
The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; |
|||||
|
The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and |
|||||
|
Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. |
|||||
|
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: |
|||||
|
EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; |
|||||
|
EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; |
|||||
|
EBITDA does not reflect income taxes; |
|||||
|
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and |
|||||
|
Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. |
|||||
|
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: |
|||||
|
Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; |
|||||
|
Adjusted EBITDA does not reflect Basic's retention expense; |
|||||
|
Adjusted EBITDA does not reflect Basic's restructuring costs; |
|||||
|
Adjusted EBITDA does not reflect Basic's non-cash stock compensation; and |
|||||
|
Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. |
|||||
The following table presents a reconciliation of net loss to EBITDA:
|
Three months ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
Reconciliation of Net Loss to EBITDA: |
|||||||
|
Net loss |
$ |
(30,531) |
$ |
(38,626) |
|||
|
Income taxes |
(59) |
375 |
|||||
|
Net interest expense |
11,256 |
9,097 |
|||||
|
Depreciation and amortization |
30,235 |
25,413 |
|||||
|
EBITDA |
$ |
10,901 |
$ |
(3,741) |
|||
The following table presents a reconciliation of net loss to Adjusted EBITDA:
|
Three months ended March 31, | |||||||
|
2018 |
2017 | ||||||
|
Reconciliation of Net Loss to Adjusted EBITDA: |
|||||||
|
Net loss |
$ |
(30,531) |
$ |
(38,626) |
|||
|
Income taxes |
(59) |
375 |
|||||
|
Net interest expense |
11,256 |
9,097 |
|||||
|
Depreciation and amortization |
30,235 |
25,413 |
|||||
|
(Gain) loss on disposal of assets |
1,779 |
(467) |
|||||
|
Non cash stock compensation |
6,798 |
4,448 |
|||||
|
Costs for withdrawn bond offering |
1,753 |
— |
|||||
|
Executive bonus |
1,604 |
— |
|||||
|
Retention expense |
— |
1,357 |
|||||
|
Restructuring expense |
— |
1,621 |
|||||
|
Adjusted EBITDA |
$ |
22,835 |
$ |
3,218 |
|||
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-first-quarter-2018-results-300642600.html
SOURCE Basic Energy Services, Inc.
Article Date
5/3/2018Basic Energy Services Announces ABL Credit Facility Increase to $150 Million
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, April 17, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") announced today that it has amended its existing asset-based lending credit facility ("ABL") to increase the bank group's commitments from $120 million to $150 million. Furthermore, an additional lender was added to the bank group while all other terms and conditions of the ABL remained unchanged.
Roe Patterson, Basic's CEO and President, stated, "We are very pleased that we were able to increase the ABL commitments by $30 million. With this up-sized ABL, we have positioned ourselves to access additional liquidity to fund our anticipated growth."
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2017 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.
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Contacts: |
Trey Stolz, VP Investor Relations |
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Basic Energy Services, Inc. | |
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817-334-4100 | |
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Jack Lascar / Kaitlin Ross | |
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Dennard-Lascar Associates | |
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713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-abl-credit-facility-increase-to-150-million-300631540.html
SOURCE Basic Energy Services, Inc.
Article Date
4/17/20184/10/2018 - Basic Energy Services Announces First Quarter 2018 Earnings Release And Conference Call Schedule
Basic Energy Services Announces First Quarter 2018 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, April 10, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its first quarter 2018 financial results after the market closes on Thursday, May 3, 2018. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, May 4, 2018, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services First Quarter 2018 Earnings Conference Call |
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When: |
Friday, May 4, 2018 – 9:00 a.m. Eastern Time |
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How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
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Live over the Internet - Log on to the web at the address below. | |
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Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through May 18, 2018 by calling 201-612-7415 and using pass code 13678421#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
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Contacts: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar/ Kaitlin Ross | |
|
Dennard-Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-first-quarter-2018-earnings-release-and-conference-call-schedule-300627607.html
SOURCE Basic Energy Services, Inc.
Article Date
4/10/20183/22/2018 - Basic Energy Services to Present at the Scotia Howard Weil 46th Annual Energy Conference
Basic Energy Services to Present at the Scotia Howard Weil 46th Annual Energy Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, March 22, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Scotia Howard Weil 46th Annual Energy Conference to be held March 25–28 in New Orleans.
Management is scheduled to present on Wednesday, March 28, 2018, at approximately 10:20 a.m. Central Time (11:20 a.m. Eastern Time). The presentation will not be webcast, but the accompanying materials will be available that morning in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentations may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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.
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Contacts: |
Trey Stolz, | |
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VP Investor Relations | ||
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Basic Energy Services, Inc. | ||
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817-334-4100 | ||
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Jack Lascar / Kaitlin Ross | ||
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Dennard Lascar Investor Relations | ||
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-present-at-the-scotia-howard-weil-46th-annual-energy-conference-300618310.html
SOURCE Basic Energy Services, Inc.
Article Date
3/22/2018Basic Energy Services Announces Withdrawal Of Proposed Senior Secured Notes Offering
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, March 7, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that it has decided not to proceed with the previously announced offering of $300 million of senior secured notes.
The Company approached the market as an opportunistic means to refinance its existing indebtedness under the Amended and Restated Term Loan Agreement for $165 million due in 2021, however, the Company has concluded that current rate and structure available in the market lacked the flexibility to be sufficiently attractive for Basic to move forward. The company is comfortable that it has sufficient financial resources, and will continue to monitor the markets for terms that are more flexible to refinance its current term loan in the future.
As previously announced, Basic is continuing to engage in advanced conversations with lenders to secure a new, up-to $150 million 5-year revolving credit facility secured by accounts receivable, inventory and certain related assets (the "New ABL Facility"). In the event the New ABL Facility becomes effective, the New ABL Facility will replace the existing $120 million asset-based credit facility.
About Basic Energy Services
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 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties. Basic cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Basic does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise except as required by law. The Company further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. 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, 2017 filed with the U.S. Securities and Exchange Commission.
|
Contacts: |
Trey Stolz, |
|
VP Investor Relations | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-withdrawal-of-proposed-senior-secured-notes-offering-300610096.html
SOURCE Basic Energy Services, Inc.
Article Date
3/7/2018Basic Energy Services Announces Offering Of Senior Secured Notes
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, Feb. 28, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company intends to offer, subject to market and other conditions, $300 million aggregate principal amount of senior secured notes due 2023 (the "notes") through a private offering to qualified institutional buyers pursuant to Rule 144A and to certain persons outside of the United States pursuant to Regulation S, each under the Securities Act of 1933, as amended (the "Act").
The notes will be secured, senior obligations of the Company, and interest will be payable semi-annually in arrears. The notes will be guaranteed on a senior secured basis by Basic's existing material subsidiaries (excluding certain finance-related subsidiaries). The notes will initially be secured by a first-priority lien on substantially all of the assets of the Company and the subsidiary guarantors other than accounts receivable, inventory and certain related assets.
Basic intends to use the net proceeds of the proposed offering to repay Basic's existing indebtedness under its existing Second Amended and Restated Term Loan Agreement, to repay Basic's outstanding borrowings under its asset-based secured revolving credit facility, and for general corporate purposes.
Neither the notes nor the related guarantees have been, nor will be, registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Safe Harbor Statement
This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the "safe harbor" from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Additionally, forward-looking statements are subject to certain risks, trends, and uncertainties. Basic cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Basic does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise except as required by law. The Company further expressly disclaims any written or oral statements made by a third party regarding the subject matter of this press release. 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, 2017 filed with the U.S. Securities and Exchange Commission.
|
Contacts: |
Trey Stolz, |
|
VP Investor Relations | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-offering-of-senior-secured-notes-300606101.html
SOURCE Basic Energy Services, Inc.
Article Date
2/28/2018Basic Energy Services Reports Fourth Quarter And Full Year 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, Feb. 26, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the fourth quarter and twelve months ended December 31, 2017.
Basic emerged from its Chapter 11 bankruptcy pursuant to a prepackaged plan of reorganization on December 23, 2016. Upon emergence from the Chapter 11 bankruptcy, the Company adopted fresh start accounting, which results in Basic becoming a new entity for accounting and financial reporting purposes upon emergence. As such, the application of fresh start accounting was reflected in its consolidated balance sheet as of December 31, 2016, and all fresh start accounting adjustments were included in its consolidated statement of operations for the year ended December 31, 2016. Due to these adjustments, the results of operations as of December 31, 2017 are not comparable with information provided for prior periods.
FOURTH QUARTER 2017 HIGHLIGHTS
Fourth quarter 2017 revenues increased 1% sequentially to $235.3 million from $233.5 million in the third quarter of 2017, as an improved level of optimism and activity driven by higher oil prices offset the normal seasonal slowdown and the severe weather impact of the fourth quarter. Fourth quarter 2017 revenues increased 51% from $155.5 million in the fourth quarter of 2016. We estimate the total seasonal and weather impact for the fourth quarter of 2017 was $13.7 million.
For the fourth quarter of 2017, Basic reported a net loss of $20.3 million, or a loss of $0.78 per basic and diluted share, which compares to a net loss of $13.8 million, or a loss of $0.53 per basic and diluted share for the third quarter of 2017, and a net income of $141.9 million, or earnings of $3.32 per basic and $3.15 per diluted share for the fourth quarter of 2016.
|
Three months ended December 31, 2017 | |||||||
|
(in millions) |
EPS | ||||||
|
Special Items (adjusted for tax) |
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(20.3) |
$ |
(0.78) |
|||
|
Unsuccessful merger costs, after tax |
0.3 |
0.01 |
|||||
|
Valuation allowance on federal deferred tax assets |
5.6 |
0.22 |
|||||
|
Adjusted net loss |
$ |
(14.4) |
$ |
(0.55) |
|||
Excluding the impact of these special items listed above, Basic reported a net loss of $14.4 million, or a loss of $0.55 per basic and diluted share for the fourth quarter of 2017. Excluding special items, the Company reported a net loss of $6.1 million, or a loss of $0.24 per basic and diluted share, in the third quarter of 2017.
"We are pleased with the significant progress we have made over the course of 2017 as we emerged from one of the worst downturns in our industry's history," said Roe Patterson, Chief Executive Officer. "We are also very pleased with our fourth quarter results, which improved slightly despite a typical seasonal slowdown of the fourth quarter and weather impacting working hours. These results are encouraging because, historically, fourth quarter revenues that are flat or higher than third quarter levels despite seasonal impacts serve as a positive indication for robust activity levels during the following year. Even though heavy rains hampered operations in early October, our revenue for the month was not only the highest of 2017, but the highest since 2015. In addition, our production services went on to see their best levels of activity in mid-November, the week before Thanksgiving. That said, weather and holidays, particularly in the last half of the quarter, negatively impacted our fourth quarter revenue by approximately $14 million, more than twice the impact we suffered during the third quarter.
"Fourth quarter results were led by a particularly strong performance in the well servicing and water logistics segments, where we benefitted from increased utilization and revenue per rig and truck hour. In addition, the amount of water disposal volumes via higher-margin pipeline continues to increase, reaching over 20% of our total volumes by year-end. Though we continue to see some rate traction on our production-oriented services, most markets remain competitive. However, we believe the industry is approaching virtually full utilization levels based on current available labor. Increased equipment activations in 2018 will require our industry to attract labor from outside the current labor pool. Higher wages are customarily needed to accomplish this, which we believe will be the primary driver for higher rates in 2018.
"On the completion services side, while pressure pumping activity was steady, pricing in this segment was flat throughout the quarter, which is normal for this time of year. We saw no major issues with sand or other supply chain inputs. Customer activity levels were normal for the fourth quarter with a few projects sliding into the first quarter instead of being completed just before or during the holiday period. We did experience some pricing traction in coiled tubing, rental and fishing tools and snubbing services during the quarter.
"The seasonal choppiness due to holiday and weather interruptions reduced our margins slightly, resulting in adjusted EBITDA of $22.5 million in the fourth quarter compared to the moderately higher levels we saw in the third quarter.
"Activity levels continued at a slower pace in early January, as winter weather continued to impact operations for the first two weeks of the quarter. However, by the third week of January, activity had ramped up again, and we are already experiencing utilization levels that exceed the highs of 2017. We expect the exit rate for first quarter 2018 EBITDA to be higher than any run rates we experienced in 2017. We also anticipate that revenues for the first half of 2018 are likely to be 7% to 10% higher than the second half of 2017."
Adjusted EBITDA declined to $22.5 million, or 10% of revenues, for the fourth quarter of 2017 from $26.5 million, or 11% of revenues, in the third quarter of 2017. In the fourth quarter of 2016, Basic generated Adjusted EBITDA of ($5.2) million, or (3%) of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), goodwill impairment, retention expenses, restructuring costs, vesting of predecessor equity compensation, the loss on customer audit settlements, and the net gain or loss from the disposal of assets. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
FULL YEAR 2017 HIGHLIGHTS
Revenues during 2017 increased 58% to $864.0 million from $547.5 million for 2016.
In 2017, Basic reported a net loss of ($96.7) million, or ($3.72) per basic and diluted share, compared to a net loss of ($123.4) million, or a loss of ($2.94) per basic and diluted share in for the predecessor entity in 2016. Included in that result are several special items as noted below.
|
Twelve months ended | ||||||
|
(in millions) |
EPS | |||||
|
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(96.7) |
$ |
(3.72) | ||
|
Reorganization expense, after tax |
1.8 |
0.07 | ||||
|
Write-off of deferred compensation due to reorganization, after tax |
0.9 |
0.02 | ||||
|
Unsuccessful merger costs, after tax |
2.8 |
0.07 | ||||
|
AMT tax credit utilization |
(0.1) |
(0.00) | ||||
|
Valuation allowance on federal deferred tax assets |
32.1 |
1.23 | ||||
|
Adjusted net loss |
$ |
(59.2) |
$ |
(2.33) | ||
Excluding special items in 2016, Basic generated an adjusted net loss of ($206.9) million, or a loss of ($4.92) per basic and diluted share.
Adjusted EBITDA for 2017 increased to $59.8 million, or 7% of revenues, from ($29.2) million, or (5%) of revenue, for 2016. Adjusted EBITDA excludes the special items discussed above for both 2017 and 2016. Adjusted EBITDA is reconciled in note 2 under the accompanying financial tables.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue decreased 1% to $122.0 million in the fourth quarter of 2017 from $123.7 million in the third quarter. The decrease was due to normal seasonal and severe weather impacts partially offset by increased activity in rental and fishing services in the Permian Basin and Central regions. In the fourth quarter of 2016, this segment generated $59.2 million in revenue.
At December 31, 2017, Basic had approximately 523,000 of total hydraulic horsepower ("HHP"), flat compared to the end of the third quarter and up from 444,000 HHP as of December 31, 2016. Weighted average HHP for the fourth quarter of 2017 was 523,000, up from 520,000 in the third quarter of 2017. Weighted average HHP was 444,000 in the fourth quarter of 2016.
Segment profit in the fourth quarter of 2017 decreased to $36.7 million compared to $39.2 million in the prior quarter. Segment margin for the fourth quarter of 2017 decreased to 30% compared to 32% during the previous quarter, driven by the decremental impact of seasonal holiday and weather effects. The Rental and Fishing and Snubbing segments saw margin improvement quarter over quarter, as activity and pricing in the Permian Basin increased throughout the fourth quarter. During the fourth quarter of 2016, segment profit was $8.4 million, or 14% of segment revenue.
Well Servicing
Well servicing revenues declined slightly to $54.5 million during the fourth quarter of 2017 compared to $54.6 million in the third quarter, reflecting seasonal declines and weather impact, almost completely offset by an improving activity and rate environment. Well servicing revenue was $45.1 million in the fourth quarter of 2016. Revenues from the Taylor manufacturing operations were $369,000 compared to $300,000 in the third quarter of 2017 and $1.3 million in the fourth quarter of 2016.
At December 31, 2017, the well servicing active rig count was 310, down from 421 as of the end of the prior quarter and at December 31, 2016. On December 31, 2017, Basic elected to classify 111 rigs as "cold-stacked" and remove these rigs from the active rig count. It is anticipated that these cold-stacked rigs will ultimately be retired and disposed of in an orderly fashion.
Rig hours decreased 3% to 159,500 in the fourth quarter of 2017, compared to 165,200 in the previous quarter and were up 9% from 146,200 hours in the comparable quarter of last year. Rig utilization was 53% in the fourth quarter of 2017, down from 55% in the prior quarter and up from 49% in the fourth quarter of 2016. If the 111 rigs noted above were not included in the active rig count, fourth quarter utilization would have been 72%.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $339 in the fourth quarter of 2017, up 3% compared to $329 in the previous quarter and up 13% from $300 reported in the fourth quarter of 2016. Rates continue to increase across all geographies, with notable rate increases in the first quarter of 2018, driven by slightly higher labor costs.
Segment profit in the fourth quarter of 2017 decreased 8% to $10.5 million, compared to $11.4 million in the prior quarter and increased 71% from $6.1 million during the same period in 2016. Segment profit margin fell to 19% in the fourth quarter of 2017 from 21% in the prior quarter. Margins declined due to a combination of factors, including weather and holiday impacts as well as higher repair and maintenance costs during the quarter as operations took advantage of the seasonal slowdown to perform maintenance on equipment. In the fourth quarter of 2016, segment profit was 14% of segment revenue. Segment profit from the Taylor manufacturing operations was $9,000 in the fourth quarter of 2017, compared to $14,000 in the third quarter of 2017.
Water Logistics
Water Logistics revenue in the fourth quarter of 2017 increased 6% to $55.5 million from $52.3 million in the prior quarter. Segment revenues grew due to an increase in pipeline utilization, slight rate improvements, and increased hot oiler revenue. These improvements were partially offset by weather and holiday impacts. During the fourth quarter of 2016, this segment generated $48.8 million in revenue.
The weighted average number of water logistics trucks increased 2% to 967 during the fourth quarter of 2017, compared to 947 during the third quarter of 2017 and increased 2% compared to 944 during the fourth quarter of 2016. Truck hours were 492,800 during the fourth quarter of 2017 representing an improvement of 2% from 483,300 during the third quarter of 2017 and a decrease of 2% compared to 503,200 in the same period in 2016. Revenue per truck increased 4% to $57,400 compared to $55,300 in the third quarter on improved rates for disposal utilization and hot oiling revenues. In the comparable quarter of 2016, average revenue per truck was $51,600.
As our business transitions to higher levels of pipeline water into our disposal wells, we believe tracking strictly trucking hours will be less indicative of the state of the Water Logistics segment. Total water volumes for fourth quarter were 9.3 million barrels, with 21% coming via pipeline, up from 8.6 million barrels in the third quarter (18% via pipeline).
Segment profit in the fourth quarter of 2017 increased to $11.3 million from $11.1 million in the prior quarter. Segment profit margin decreased 70 basis points to 20% due to the impact of holiday periods and inclement weather, offset by improved pipeline activity, disposal utilization and hot oiling. Segment profit in the same period in 2016 was $6.3 million, or 13% of segment revenue.
Contract Drilling
Contract drilling revenue increased 15% to $3.3 million during the fourth quarter of 2017 compared to $2.8 million the prior quarter. During the fourth quarter of 2016, this segment generated $2.4 million in revenue. Basic marketed 11 drilling rigs during the fourth quarter of 2017, the same number of rigs as in the previous quarter and down one from 12 in the fourth quarter of 2016. Two rigs were active through the entire fourth quarter. Revenue per drilling day in the fourth quarter of 2017 decreased to $23,500 compared to $31,000 in the previous quarter, but up from $17,500 in the fourth quarter of 2016.
Rig operating days during the fourth quarter increased to 139 compared to 92 in the third quarter of 2017, resulting in a rig utilization of 14% and 9% during the fourth and third quarters of 2017, respectively. This improvement is due to a second rig remaining out throughout the entire fourth quarter, as compared to a partial quarter's impact in the third quarter of 2017. In the comparable period in 2016, rig operating days were also 139, producing a utilization of 14%.
Segment profit in the fourth quarter of 2017 was $352,000 compared to $301,000 in the prior quarter and a loss of $40,000 in the fourth quarter of 2016. Segment margin for the fourth quarter of 2017 was 11% of segment revenues, consistent with the prior quarter. For the fourth quarter of 2016, segment margin was (2%).
G&A Expense
Reported General and Administrative ("G&A") expense was $37.0 million for the fourth quarter of 2017 compared to a reported G&A expense for the third quarter of 2017 of $39.2 million. Excluding costs associated with business development activity, G&A expense in the fourth quarter of 2017 was $36.5 million, or 15% of revenues, compared to $35.0 million, also 15% of revenue, in the third quarter.
Non-cash stock incentive expense in the fourth quarter of 2017 was $6.7 million, compared to $6.3 million in the third quarter. G&A expense in the fourth quarter of 2016 was $38.5 million.
Interest Expense
Net interest expense for the fourth quarter of 2017 was $10.3 million compared to $8.9 million in the third quarter of 2017. The increase is related to the draw of $64 million in the third quarter on the new ABL facility that closed in September 2017. Net interest expense was $29.4 million in the fourth quarter of 2016.
Tax Benefit
Basic's tax benefit for the fourth quarter of 2017 was $312,000 compared to a benefit of $1.7 million in the third quarter of 2017. The fourth quarter of 2017 represents an effective tax benefit rate of 2%, compared to an effective tax benefit rate of 11% in the prior quarter. Excluding the valuation allowance related to the temporary impairments of the deferred tax assets of $5.6 million, the operating effective tax benefit of $5.7 million in the fourth quarter of 2017 translated into an effective tax benefit rate of 28%.
Cash and Total Liquidity
On December 31, 2017, Basic had cash and cash equivalents of approximately $38.5 million, down from $43.1 million at September 30, 2017 and $98.9 million on December 31, 2016. On October 27, 2017, Basic entered into an agreement to increase the aggregate commitments of the new ABL facility by $20 million, to a total of $120 million. In addition, Basic had restricted cash in the amount of $48 million at December 31, 2017. The borrowing base of the ABL was $75 million at December 31, 2017. Borrowings under the ABL were $64 million, including $45 million for the cash collateralization of letters of credit, $15 million for working capital purposes, and $4 million for fees associated with the ABL. Availability under the ABL at December 31 was $11 million, which was not subject to covenant restrictions. At December 31, 2017, total liquidity was approximately $50 million, consisting of cash and cash equivalents and the $11 million of availability under Basic's ABL previously discussed.
Capital Expenditures
Total capital expenditures during 2017 were approximately $138 million (including capital leases of $67 million), comprised of $47 million for expansion projects, $88 million for sustaining and replacement projects and $3 million for other projects. Expansion capital spending included $40 million for the completion and remedial services segment, $6 million for the well servicing segment, and $524,000 for the water logistics segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates maintenance capital expenditures for 2018 to be $95 million, including $40 million of capital leases.
Conference Call
Further details are provided in the presentation for our quarterly conference call to review the fourth quarter and full year of 2017 results, available in the investor relations section of our corporate website. Basic will host a conference call to discuss its fourth quarter 2017 results on Tuesday, February 27, 2018, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A replay of the conference call will be available until March 13, 2018 and may be accessed by calling (201) 612-7415 and using pass code 13676101#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, New Mexico, Oklahoma, Arkansas, Kansas, Louisiana, Wyoming, North Dakota, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2016 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: |
Trey Stolz, | |
|
VP Investor Relations | ||
|
Basic Energy Services, Inc. | ||
|
817-334-4100 | ||
|
Jack Lascar / Kaitlin Ross | ||
|
Dennard Lascar Investor Relations | ||
|
713-529-6600 |
-Tables to Follow-
|
Basic Energy Services, Inc. | ||||||||||||||||||||||
|
Consolidated Statements of Operations and Other Financial Data | ||||||||||||||||||||||
|
(in thousands, except per share amounts) | ||||||||||||||||||||||
|
Three months ended |
Twelve months ended |
|||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
|||||||||||||||||||
|
Successor |
Predecessor |
Successor |
Predecessor |
|||||||||||||||||||
|
(Unaudited) |
(Unaudited) |
|||||||||||||||||||||
|
Income Statement Data: |
||||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||
|
Completion and remedial services |
$ 121,984 |
$ 59,218 |
$433,450 |
$ 184,567 |
||||||||||||||||||
|
Well servicing |
54,509 |
45,075 |
210,811 |
163,966 |
||||||||||||||||||
|
Water logistics |
55,505 |
48,806 |
208,784 |
191,725 |
||||||||||||||||||
|
Contract drilling |
3,268 |
2,427 |
10,996 |
7,239 |
||||||||||||||||||
|
Total revenues |
235,266 |
155,526 |
864,041 |
547,497 |
||||||||||||||||||
|
Expenses: |
||||||||||||||||||||||
|
Completion and remedial services |
85,259 |
50,820 |
318,191 |
158,762 |
||||||||||||||||||
|
Well servicing |
43,974 |
38,929 |
169,905 |
140,274 |
||||||||||||||||||
|
Water logistics |
44,221 |
42,485 |
168,621 |
161,535 |
||||||||||||||||||
|
Contract drilling |
2,916 |
2,467 |
9,733 |
7,079 |
||||||||||||||||||
|
General and administrative (1) |
36,982 |
48,627 |
146,458 |
135,331 |
||||||||||||||||||
|
Restructuring costs |
- |
10,273 |
- |
20,743 |
||||||||||||||||||
|
Depreciation and amortization |
31,362 |
54,064 |
112,209 |
218,205 |
||||||||||||||||||
|
Loss on disposal of assets |
938 |
881 |
274 |
1,014 |
||||||||||||||||||
|
Goodwill impairment |
- |
- |
- |
646 |
||||||||||||||||||
|
Total expenses |
245,652 |
248,546 |
925,391 |
843,589 |
||||||||||||||||||
|
Operating loss |
(10,386) |
(93,020) |
(61,350) |
(296,092) |
||||||||||||||||||
|
Other income (expense): |
||||||||||||||||||||||
|
Reorganization items, net |
- |
264,306 |
- |
264,306 |
||||||||||||||||||
|
Interest expense |
(10,291) |
(29,437) |
(37,472) |
(96,625) |
||||||||||||||||||
|
Interest income |
28 |
3 |
51 |
26 |
||||||||||||||||||
|
Bargain purchase gain on acquisition |
- |
- |
- |
662 |
||||||||||||||||||
|
Other income |
75 |
89 |
419 |
467 |
||||||||||||||||||
|
Income (loss) before income taxes |
(20,574) |
141,941 |
(98,352) |
(127,256) |
||||||||||||||||||
|
Income tax benefit (expense) |
312 |
- |
1,678 |
3,883 |
||||||||||||||||||
|
Net income (loss) |
$ (20,262) |
$ 141,941 |
$ (96,674) |
$ (123,373) |
||||||||||||||||||
|
Loss per share of common stock: |
||||||||||||||||||||||
|
Basic |
$ (0.78) |
$ 3.32 |
$ (3.72) |
$ (2.94) |
||||||||||||||||||
|
Diluted |
$ (0.78) |
$ 3.15 |
$ (3.72) |
$ (2.94) |
||||||||||||||||||
|
Other Financial Data: |
||||||||||||||||||||||
|
EBITDA (2) |
$ 21,051 |
$ 225,442 |
$ 51,278 |
$ 187,574 |
||||||||||||||||||
|
Adjusted EBITDA (2) |
22,485 |
(5,234) |
59,806 |
(29,153) |
||||||||||||||||||
|
Capital expenditures: |
||||||||||||||||||||||
|
Property and equipment |
15,071 |
9,782 |
63,366 |
32,689 |
||||||||||||||||||
|
As of |
||||||||||||||||||||||
|
December 31, |
December 31, |
|||||||||||||||||||||
|
2017 |
2016 |
|||||||||||||||||||||
|
(Unaudited) |
(Audited) |
|||||||||||||||||||||
|
Balance Sheet Data: |
||||||||||||||||||||||
|
Cash and cash equivalents |
$ 38,520 |
$ 98,875 |
||||||||||||||||||||
|
Net property and equipment |
502,579 |
488,848 |
||||||||||||||||||||
|
Total assets |
820,480 |
768,160 |
||||||||||||||||||||
|
Total long-term debt |
259,242 |
184,752 |
||||||||||||||||||||
|
Total stockholders' equity |
338,653 |
414,408 |
||||||||||||||||||||
|
Three months ended |
Twelve months | |||||
|
2017 |
2016 |
2017 |
2016 | |||
|
Segment Data: |
(Unaudited) |
(Unaudited) | ||||
|
Completion and Remedial Services |
||||||
|
Total Hydraulic Horsepower (HHP) |
522,565 |
443,320 |
522,565 |
443,320 | ||
|
Total Frac HHP |
413,300 |
356,900 |
413,300 |
356,900 | ||
|
Coiled Tubing Units |
18 |
16 |
18 |
16 | ||
|
Rental & Fishing Tool Stores |
16 |
16 |
16 |
16 | ||
|
Segment Profits as a percent of revenue |
30% |
14% |
27% |
14% | ||
|
Water Logistics |
||||||
|
Weighted average number of fluid service trucks |
967 |
944 |
948 |
966 | ||
|
Truck hours (000's) |
492.8 |
503.2 |
1,933.9 |
1,999.0 | ||
|
Revenue per fluid services truck (000's) |
$ 57 |
$ 52 |
$ 220 |
$ 199 | ||
|
Segment profits per fluid services truck (000's) |
$ 12 |
$ 7 |
$ 42 |
$ 31 | ||
|
Segment profits as a percent of revenue |
20% |
13% |
19% |
16% | ||
|
Well Servicing |
||||||
|
Weighted average number of rigs |
421 |
421 |
421 |
421 | ||
|
Rig hours (000's) |
159.5 |
146.2 |
644.6 |
504.9 | ||
|
Rig utilization rate |
53% |
49% |
54% |
42% | ||
|
Revenue per rig hour, excluding manufacturing |
$ 339 |
$ 300 |
$ 324 |
$ 310 | ||
|
Well servicing rig profit per rig hour |
$ 63 |
$ 43 |
$ 63 |
$ 47 | ||
|
Segment profits as a percent of revenue |
19% |
14% |
19% |
14% | ||
|
Contact Drilling |
||||||
|
Weighted average number of rigs |
11 |
12 |
11 |
12 | ||
|
Rig operating days |
139 |
139 |
457 |
413 | ||
|
Revenue per day |
$ 23,500 |
$ 17,500 |
$ 24,100 |
$ 17,500 | ||
|
Drilling rig profit per day |
$ 2,500 |
$ 800 |
$ 2,800 |
$ 800 | ||
|
Segment profits as a percent of revenue |
11% |
-2% |
11% |
2% | ||
|
(1) Includes approximately $6,689,000 and $10,189,000 of non-cash compensation expense for the three months ended December 31, 2017 and 2016, respectively, and $24,437,000 and $18,041,000 for the twelve months ended December 31, 2017 and 2016, respectively. | ||||||||||||||||||||||
|
(2) This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, retention expense, goodwill impairment, due diligence for M&A activities, reorganization items, net. vesting of predecessor equity compensation, restructuring costs, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: | ||||||||||||||||||||||
|
• The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; | ||||||||||||||||||||||
|
• The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and | ||||||||||||||||||||||
|
• Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. | ||||||||||||||||||||||
|
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: | ||||||||||||||||||||||
|
• EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; | ||||||||||||||||||||||
|
• EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; | ||||||||||||||||||||||
|
• EBITDA does not reflect income taxes; | ||||||||||||||||||||||
|
• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and | ||||||||||||||||||||||
|
• Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | ||||||||||||||||||||||
|
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: | ||||||||||||||||||||||
|
• Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; | ||||||||||||||||||||||
|
• Adjusted EBITDA does not reflect Basic's retention expense; | ||||||||||||||||||||||
|
• Adjusted EBITDA does not reflect Basic's goodwill impairment; | ||||||||||||||||||||||
|
• Adjusted EBITDA does not reflect Basic's due diligence for M&A activities; | ||||||||||||||||||||||
|
• Adjusted EBITDA does not reflect Basic's reorganization items, net; | ||||||||||||||||||||||
|
• Adjusted EBITDA does not reflect Basic's vesting of predecessor equity compensation; | ||||||||||||||||||||||
|
• Adjusted EBITDA does not reflect Basic's restructuring costs; and | ||||||||||||||||||||||
|
• Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | ||||||||||||||||||||||
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended |
Twelve months ended | ||||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
Reconciliation of Net Income (Loss) to EBITDA: |
|||||||
|
Net income / (loss) |
$ (20,262) |
$ 141,941 |
$ (96,674) |
$(123,373) | |||
|
Income taxes |
(312) |
- |
(1,678) |
(3,883) | |||
|
Net interest expense |
10,263 |
29,437 |
37,421 |
96,625 | |||
|
Depreciation and amortization |
31,362 |
54,064 |
112,209 |
218,205 | |||
|
EBITDA |
$ 21,051 |
$ 225,442 |
$ 51,278 |
$ 187,574 | |||
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, retention expense, goodwill impairment, due diligence on M&A activities, reorganization items, net, vesting of equity compensation, and restructuring costs
|
Three months ended |
Twelve months ended | ||||||
|
2017 |
2016 |
2017 |
2016 | ||||
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA: |
|||||||
|
Net income / (loss) |
$(20,262) |
$141,941 |
$(96,674) |
$(123,373) | |||
|
Income taxes |
(312) |
- |
(1,678) |
(3,883) | |||
|
Net interest expense |
10,263 |
29,437 |
37,421 |
96,625 | |||
|
Depreciation and amortization |
31,362 |
54,064 |
112,209 |
218,205 | |||
|
(Gain) loss on disposal of assets |
938 |
881 |
274 |
1,014 | |||
|
Retention expense |
- |
3,561 |
1,357 |
6,261 | |||
|
Goodwill impairment |
- |
- |
- |
646 | |||
|
Due diligence for M&A activities |
496 |
- |
4,233 |
- | |||
|
Reorganization items, net |
- |
(264,306) |
- |
(264,306) | |||
|
Vesting of predecessor equity compensation |
- |
18,915 |
- |
18,915 | |||
|
Restructuring costs |
- |
10,273 |
2,664 |
20,743 | |||
|
Adjusted EBITDA |
$22,485 |
$(5,234) |
$59,806 |
$(29,153) | |||
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-fourth-quarter-and-full-year-2017-results-300604506.html
SOURCE Basic Energy Services, Inc.
Article Date
2/27/20182/19/2018 - Basic Energy Services Reschedules Fourth Quarter And Year End 2017 Earnings Release To February 26
Basic Energy Services Reschedules Fourth Quarter And Year End 2017 Earnings Release To February 26
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, Feb. 19, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it is rescheduling the release of its fourth quarter and year end 2017 financial results to Monday, February 26 after the close of market. The Company has also rescheduled a conference call to discuss its results to Tuesday, February 27, starting at 9:00 a.m. ET (8:00 a.m. CT).
|
What: |
Basic Energy Services Fourth Quarter 2017 Earnings Conference Call | |
|
When: |
Tuesday, February 27, 2018 – 9:00 a.m. Eastern Time | |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. | |
|
Live over the Internet - Log on to the web at the address below. | ||
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through March 13, 2018 by calling 201-612-7415 and using pass code 13676101#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,100 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar/Kaitlin Ross | |
|
Dennard-Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reschedules-fourth-quarter-and-year-end-2017-earnings-release-to-february-26-300600654.html
SOURCE Basic Energy Services, Inc.
Article Date
2/19/2018Basic Energy Services to Present at the Credit Suisse 23rd Annual Energy Summit
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, Feb. 7, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Credit Suisse 23rd Annual Energy Summit to be held in Vail, Colorado from February 13-15, 2018.
Roe Patterson, President and Chief Executive Officer, is scheduled to present on Wednesday, February 14 at approximately 11:35 a.m. Mountain Time (12:35 p.m. Central Time). A link to the live webcast and replay for this presentation will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. The accompanying slide presentation will be available that morning in the Investor Relations section of Basic Energy Services' website.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,000 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentation, may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard-Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-present-at-the-credit-suisse-23rd-annual-energy-summit-300594652.html
SOURCE Basic Energy Services, Inc.
Article Date
2/7/2018Basic Energy Services Announces Fourth Quarter And Year End 2017 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, Jan. 30, 2018 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its fourth quarter and year end 2017 financial results after the market closes on Thursday, March 1, 2018. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, March 2, 2018, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services Fourth Quarter 2017 Earnings Conference Call |
|
When: |
Friday, March 2, 2018 – 9:00 a.m. Eastern Time |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
Live over the Internet - Log on to the web at the address below. | |
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through March 16, 2018 by calling 201-612-7415 and using pass code 13676101#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,000 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar/Kaitlin Ross | |
|
Dennard-Lascar Investor Relations | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-fourth-quarter-and-year-end-2017-earnings-release-and-conference-call-schedule-300590268.html
SOURCE Basic Energy Services, Inc.
Article Date
1/30/2018Basic Energy Services Reports Third Quarter 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
FORT WORTH, Texas, Nov. 2, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the third quarter ended September 30, 2017.
Basic emerged from its Chapter 11 bankruptcy pursuant to a prepackaged plan of reorganization on December 23, 2016. Upon emergence from the Chapter 11 bankruptcy, the Company adopted fresh start accounting, which resulted in Basic becoming a new entity for accounting and financial reporting purposes upon emergence. As such, the application of fresh start accounting was reflected in Basic's balance sheet as of December 31, 2016 and all fresh start accounting adjustments were included in its consolidated statement of operations for the year ended December 31, 2016. Due to these adjustments, the financial statements as of September 30, 2017 are not comparable with information provided for periods prior to December 31, 2016.
THIRD QUARTER 2017 HIGHLIGHTS
Third quarter 2017 revenue increased 9.5% to $233.5 million from $213.3 million in the second quarter of 2017, as the drilling rig count and completion activity levels continued to increase. However, third quarter was negatively impacted by an estimated loss of $3.0 million in revenue related to Hurricane Harvey. In the third quarter of 2016, Basic generated $141.6 million in revenue.
For the third quarter of 2017, Basic reported a net loss of $13.8 million, or a loss of $0.53 per basic and diluted share, which compares to a net loss of $23.9 million, or a loss of $0.92 per basic and diluted share for the second quarter of 2017, and a net loss of $92.1 million, or a loss of $2.16 per basic and diluted share in the third quarter of 2016.
|
Three months ended September 30, 2017 | |||||||
|
(in millions) |
EPS | ||||||
|
Special Items (adjusted for tax) |
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(13.8) |
$ |
(0.53) |
|||
|
Due diligence for business development activities |
2.4 |
0.09 |
|||||
|
AMT tax credit utilization |
1.7 |
0.06 |
|||||
|
Valuation allowance on federal deferred tax assets |
3.6 |
0.14 |
|||||
|
Adjusted net loss |
$ |
(6.1) |
$ |
(0.24) |
|||
Excluding the impact of these special items listed above, Basic reported a net loss of $6.1 million, or a loss of $0.24 per basic and diluted share in the third quarter of 2017. Excluding special items, the Company reported a net loss of $14.7 million, or a loss of $0.57 per basic and diluted share, in the second quarter of 2017.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "We are very pleased with our third quarter results as we delivered a better than anticipated increase in revenue driven by a continued recovery in all of our oil-related business segments, especially in the completion and remedial services segment. While the 9.5% increase in revenue was ahead of our expectations, we suffered weather interruptions of $6.6 million during the third quarter, of which Hurricane Harvey represented approximately $3 million.
"Though we continue to see some rate traction on our production-oriented services, and more on the completion side of the business, most markets remain highly competitive. Our customers are taking advantage of more stable oil prices and have maintained steady drilling, completion and well maintenance activities. From an adjusted earnings standpoint, the third quarter delivered sequentially greater monthly results despite the impact of severe weather during the quarter. Increased activity and improved pricing allowed us to deliver an adjusted EBITDA of $26.5 million in the third quarter, which was significantly higher than the $12 million of adjusted EBITDA we posted in the second quarter. The adjusted EBITDA run-rate as we exited the quarter in September was the highest we experienced for the quarter.
"This improved performance was led by our pressure pumping, coiled tubing, and other completion and remedial product lines, with all of our frac horsepower operating by the end of the quarter. The remaining half of the 74,000 HHP we purchased in the second quarter was placed in service in late August. We also activated our two newest large diameter coil units that were delivered in early July and deployed in the field in early August. In addition to introducing this new equipment, we saw improvements in revenue and margin as we continued to transition our frac fleets to work where we provide all sourcing and logistics to our customers. A few remaining frac programs existed in the first and second quarters in which customers self-sourced most inputs. Our fleets perform best when we can manage all logistics and maximize efficiencies at the field level so we have reoriented this work accordingly. This shift provides our customers with superior service, reduces the potential for downtime and improves our financial performance. On the production services side, we are experiencing some modest increase in activity in both our well servicing and water logistics businesses as well as increased utilization and revenue per rig and truck hour.
"Based on current and near-term projected oil prices, we expect the fourth quarter of 2017 to be very similar to the third quarter in terms of pricing traction and utilization across all lines of business. Preliminary feedback from our customers indicates that they currently plan to maintain steady activity levels during the holidays. As a result, the typical seasonal slowdown during the fourth quarter should be offset somewhat by strong demand for our services. Weather interruptions can always alter these future results.
"We also continue to experience a healthy level of inquiries regarding equipment and crew availability for all services into 2018. For the completion and remedial segment, most assets and fleets are being booked well into the second quarter of next year. Therefore, we remain optimistic that our activity levels will remain robust in 2018 if oil prices can remain in their current trading ranges."
Adjusted EBITDA increased 121% to $26.5 million, or 11% of revenues, for the third quarter of 2017 compared to $12.0 million, or 6% of revenues, in the second quarter of 2017. In the third quarter of 2016, Basic generated Adjusted EBITDA of ($4.7) million, or (3)% of revenues. Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization ("EBITDA"), the net gain or loss from the disposal of assets, retention expense, due diligence on business development activities, and restructuring expense. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue increased 15% to $123.7 million in the third quarter of 2017 from $107.4 million in the prior quarter. The sequential increase in revenue was primarily due to higher activity levels as we activated the remaining 37,000 HHP that was purchased in the first quarter of 2017 and two newbuild coil tubing units during the quarter. Customers also took advantage of stabilized pricing to reduce the inventory of drilled but uncompleted wells outstanding. In addition, we benefitted from rate increases across all business lines and a seasonal pick-up in rental and fishing revenues. In the third quarter of 2016, this segment generated $49.4 million in revenue.
At September 30, 2017, Basic had approximately 523,000 hydraulic horsepower ("HHP"), up from 518,000 HHP at the end of the previous quarter and 444,000 HHP as of September 30, 2016. This included 413,000 of frac HHP. The entirety of the previously announced 74,000 frac HHP was fully deployed in mid-August. Weighted average total HHP for the third quarter of 2017 was 520,000, up from 488,000 in the second quarter of 2017. Weighted average frac HHP was 394,000 for the third quarter of 2017.
Segment profit in the third quarter of 2017 increased by 50% to $39.2 million compared to $26.2 million in the prior quarter. Segment margin for the third quarter of 2017 increased 730 basis points to 32% compared to 24% during the previous quarter, driven predominantly by the impact of incremental margins on the higher revenue base, improved customer mix driving better profitability and the increase in hydraulic horsepower in the field. During the third quarter of 2016, segment profit was $9.1 million, or 18% of segment revenue.
Water Logistics
Water Logistics revenue in the third quarter of 2017 increased 3% to $52.3 million compared to $50.7 million in the prior quarter. Segment revenues grew driven by seasonal improvements and improved pricing, as well as an increase in pipeline utilization and improved disposal utilization. These improvements were partially offset by weather impacts, including the effects of Hurricane Harvey.
The weighted average number of water logistics trucks increased to 947 during the third quarter of 2017, compared to 943 during the second quarter of 2017 and declined from 962 during the third quarter of 2016. Truck hours were 483,300 in the third quarter, up 2% from 473,500 in the second quarter of 2017. Revenue per truck was $55,300 compared to $53,800 in the second quarter as disposal utilization increased with trucking activity. In the comparable quarter of 2016, average revenue per truck was $49,100.
Segment profit in the third quarter of 2017 increased by 21% to $11.1 million, compared to a profit of $9.2 million in the second quarter of 2017. Margins improved 300 basis points on the incremental impact of higher revenues, offset by weather impacts of approximately 75 basis points related to Hurricane Harvey. Segment profit in the same period in 2016 was $7.9 million, or 17% of segment revenue.
Well Servicing
Well servicing revenues increased 3% to $54.6 million during the third quarter of 2017 compared to $53.1 million in the prior quarter led by stable utilization rates partially offset by weather impact of approximately $1.2 million in the third quarter. Well servicing revenues were $43.2 million in the third quarter of 2016. Net revenues from the Taylor manufacturing operations were $300,000 in the third quarter of 2017 compared to $905,000 in the prior quarter and $380,000 in the third quarter of 2016.
At September 30, 2017, the well servicing rig count was 421, the same as the end of the prior quarter and at September 30, 2016. Rig hours were 165,200 in the third quarter of 2017, up 2% compared to 162,300 hours in the second quarter of 2017 and up 21% from 136,600 hours in the comparable quarter of last year. Rig utilization was 55% in the third quarter of 2017, compared to 54% in the prior quarter and up from 45% in the third quarter of 2016.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $329 in the third quarter of 2017, 2% higher compared to $321 in the previous quarter and up 5% from $313 reported in the third quarter of 2016.
Segment profit in the third quarter of 2017 improved slightly to $11.4 million, compared to $11.3 million in the prior quarter and increased 40% from $8.1 million during the same period in 2016. Segment profit margin was 21% in the third quarter of 2017, as well as in the prior quarter. Margins remained consistent as seasonal increases in activity were offset by the weather impact from Hurricane Harvey. In the third quarter of 2016, segment profit was 19% of segment revenue. Segment profit from the Taylor manufacturing operations was $14,000 in the third quarter of 2017 compared to $89,000 in the previous quarter.
Contract Drilling
Contract drilling revenues increased by 35% to $2.8 million during the third quarter of 2017 from $2.1 million in the prior quarter. During the third quarter of 2016, this segment generated $1.8 million in revenue. Basic marketed 11 drilling rigs during the third quarter of 2017, down one from 12 in the previous quarter as well as the third quarter of 2016. Only one rig was active through the entire third quarter. Revenue per drilling day in the third quarter of 2017 was up 33% to $31,000 compared to $23,300 in the previous quarter and up from $20,100 in the third quarter of 2016 on higher contract drilling trucking revenues.
Rig operating days during the third quarter of 2017 increased to 92 compared to 91 in the prior quarter, resulting in rig utilization of 9% during the third quarter of 2017 compared to 8% during the prior quarter. In the comparable period in 2016, rig operating days were 92, producing a utilization of 8%.
Segment profit in the third quarter of 2017 was $301,000 compared to $254,000 in the prior quarter and $164,000 in the third quarter of 2016. Segment margin for the third quarter of 2017 was 11% of segment revenues compared to 12% in the prior quarter. Last year in the comparable period, segment margin was 9%.
G&A Expense
Reported general and administrative ("G&A") expense for the third quarter of 2017 was $39.2 million compared to a reported G&A expense for the second quarter of 2017 of $36.0 million. Excluding costs associated with business development activity, G&A expense in the third quarter of 2017 was $35.5 million, or 15% of revenue, compared to $35.0 million, or 16% of revenue, in the prior quarter. G&A expense in the third quarter of 2016 was $30.1 million, or 21% of revenue.
Interest Expense
Net interest expense for the third quarter of 2017 was $8.9 million compared to $9.2 million in the second quarter of 2017. These amounts include interest on Basic's term loan facility and capital leases, as well as approximately $1.9 million of non-cash interest expense related to the accretion of fair value discounts on the Company's debt. Net interest expense was $24.0 million in the third quarter of 2016.
Tax Benefit
Basic's tax benefit for the third quarter of 2017 was $1.7 million compared to $0 in the second quarter of 2017. The benefit is a result of accelerating the utilization of alternative minimum tax credits. The third quarter of 2017 represents an effective tax benefit rate of 11%, compared to 0% in the prior quarter. Excluding the valuation allowance related to the temporary impairments of the deferred tax assets of $3.4 million, the operating effective tax benefit of $5.7 million in the third quarter of 2017 translated into an effective tax benefit rate of 48%.
Cash and Total Liquidity
On September 30, 2017, Basic had cash and cash equivalents of approximately $43.1 million, compared to $34.2 million at June 30, 2017 and $34.3 million on September 30, 2016.
On September 29, 2017, Basic terminated its existing $75 million credit facility and entered into a new $100 million accounts receivable securitization facility ("ABL"). This ABL is secured by Basic's accounts receivable, with the ability to increase the size by $50 million.
On October 27, 2017, Basic entered into an agreement to increase the aggregate commitments of the new ABL facility by $20 million, to a total of $120 million.
In addition, Basic had restricted cash in the amount of $48 million at September 30, 2017.
The borrowing base of the ABL was $95 million at September 30, 2017. Borrowings under the ABL were $64 million, including $45 million for the cash collateralization of letters of credit, $15 million for working capital purposes, and $4 million for fees associated with the ABL.
Availability under the ABL at September 30 was $31 million, which was not subject to covenant restrictions.
At September 30, 2017, total liquidity was approximately $74 million, which included the $31 million of availability under Basic's ABL previously discussed.
Capital Expenditures
Total capital expenditures during the third quarter of 2017 were approximately $28.9 million (including capital leases and other financing of $11.8 million), comprised of $1.6 million for expansion projects, $26.6 million for sustaining and replacement projects and $672,000 for other projects. Expansion capital spending included $1.1 million for the well servicing segment, $461,000 for the completion and remedial services segment, and $68,000 for the water logistics segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates 2017 capital expenditures of $135 million, including $70 million of capital leases and other financings. This includes committed expansion capital expenditures of $45 million in 2017. The expansion capital consists of $43 million for completion and remedial services and $2 million for the well servicing segment.
Conference Call
Further details are provided in the presentation for our quarterly conference call to review third quarter 2017 results, available in the investor relations section of our corporate website, www.basicenergyservices.com. Basic will host a conference call to discuss its third quarter 2017 results on Friday, November 3, 2017, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until November 17, 2017 and may be accessed by calling (201) 612-7415 and using pass code 13670801#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,000 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2016 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.
-Tables to Follow-
|
Basic Energy Services, Inc. | |||||||||
|
Consolidated Statements of Operations and Other Financial Data | |||||||||
|
(in thousands, except per share amounts) | |||||||||
|
Three months ended September 30, |
Nine months ended September 30, | ||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||
|
Successor |
Predecessor |
Successor |
Predecessor | ||||||
|
(Unaudited) |
(Unaudited) | ||||||||
|
Income Statement Data: |
|||||||||
|
Revenues: |
|||||||||
|
Completion and remedial services |
123,650 |
49,425 |
311,466 |
125,348 |
|||||
|
Water logistics |
52,333 |
47,178 |
153,279 |
142,919 |
|||||
|
Well servicing |
54,629 |
43,160 |
156,302 |
118,891 |
|||||
|
Contract drilling |
2,848 |
1,847 |
7,728 |
4,812 |
|||||
|
Total revenues |
233,460 |
141,610 |
628,775 |
391,970 |
|||||
|
Expenses: |
|||||||||
|
Completion and remedial services |
84,481 |
40,292 |
232,932 |
107,941 |
|||||
|
Water logistics |
41,281 |
39,268 |
124,399 |
119,053 |
|||||
|
Well servicing |
43,219 |
35,028 |
125,931 |
101,345 |
|||||
|
Contract drilling |
2,547 |
1,683 |
6,818 |
4,612 |
|||||
|
General and administrative (1) |
39,235 |
30,065 |
109,478 |
86,706 |
|||||
|
Depreciation and amortization |
29,478 |
53,142 |
80,846 |
164,141 |
|||||
|
Restructuring Costs |
— |
10,470 |
— |
10,470 |
|||||
|
(Gain) loss on disposal of assets |
26 |
(128) |
(664) |
133 |
|||||
|
Goodwill Impairment |
— |
646 |
— |
646 |
|||||
|
Total expenses |
240,267 |
210,466 |
679,740 |
595,047 |
|||||
|
Operating loss |
(6,807) |
(68,856) |
(50,965) |
(203,077) |
|||||
|
Other income (expense): |
|||||||||
|
Interest expense |
(8,892) |
(23,953) |
(27,181) |
(67,188) |
|||||
|
Interest income |
5 |
14 |
23 |
23 |
|||||
|
Bargain purchase gain on acquisition |
— |
662 |
— |
662 |
|||||
|
Other income |
109 |
37 |
344 |
378 |
|||||
|
Loss before income taxes |
(15,585) |
(92,096) |
(77,779) |
(269,202) |
|||||
|
Income tax benefit (expense) |
1,740 |
(1) |
1,366 |
3,883 |
|||||
|
Net loss |
(13,845) |
(92,097) |
(76,413) |
(265,319) |
|||||
|
Loss per share of common stock: |
|||||||||
|
Basic |
(0.53) |
(2.16) |
(2.94) |
(6.32) |
|||||
|
Diluted |
(0.53) |
(2.16) |
(2.94) |
(6.32) |
|||||
|
Other Financial Data: |
|||||||||
|
EBITDA (2) |
22,780 |
(15,015) |
30,225 |
(37,896) |
|||||
|
Adjusted EBITDA (2) |
26,543 |
(4,673) |
37,319 |
(27,293) |
|||||
|
Capital expenditures: |
|||||||||
|
Property and equipment |
14,550 |
11,346 |
48,295 |
22,907 |
|||||
|
As of |
|||||||||
|
September 30, |
December 31, |
||||||||
|
2017 |
2016 |
||||||||
|
(Unaudited) |
(Audited) |
||||||||
|
Balance Sheet Data: |
|||||||||
|
Cash and cash equivalents |
43,168 |
98,875 |
|||||||
|
Net property and equipment |
516,371 |
488,848 |
|||||||
|
Total assets |
861,145 |
768,160 |
|||||||
|
Total long-term debt |
269,330 |
184,752 |
|||||||
|
Total stockholders' equity |
354,572 |
414,408 |
|||||||
|
Three months ended September 30, |
Nine months ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Segment Data: |
(Unaudited) |
(Unaudited) | |||||||||||||
|
Completion and Remedial Services |
|||||||||||||||
|
Segment profits as a percent of revenue |
32 |
% |
18 |
% |
25 |
% |
14 |
% | |||||||
|
Water Logistics |
|||||||||||||||
|
Weighted average number of fluid service trucks |
947 |
962 |
942 |
974 |
|||||||||||
|
Truck hours (000's) |
483.3 |
499.9 |
1,441.1 |
1,495.8 |
|||||||||||
|
Revenue per fluid services truck (000's) |
$ |
55 |
$ |
49 |
$ |
163 |
$ |
147 |
|||||||
|
Segment profits per fluid services truck (000's) |
$ |
12 |
$ |
8 |
$ |
31 |
$ |
25 |
|||||||
|
Segment profits as a percent of revenue |
21 |
% |
17 |
% |
19 |
% |
17 |
% | |||||||
|
Well Servicing |
|||||||||||||||
|
Weighted average number of rigs |
421 |
421 |
421 |
421 |
|||||||||||
|
Rig hours (000's) |
165.2 |
136.6 |
485.1 |
358.7 |
|||||||||||
|
Rig utilization rate |
55 |
% |
45 |
% |
54 |
% |
40 |
% | |||||||
|
Revenue per rig hour, excluding manufacturing |
$ |
329 |
$ |
313 |
$ |
319 |
$ |
314 |
|||||||
|
Well servicing rig profit per rig hour |
$ |
69 |
$ |
60 |
$ |
62 |
$ |
49 |
|||||||
|
Segment profits as a percent of revenue |
21 |
% |
19 |
% |
19 |
% |
15 |
% | |||||||
|
Contact Drilling |
|||||||||||||||
|
Weighted average number of rigs |
11 |
12 |
11 |
12 |
|||||||||||
|
Rig operating days |
92 |
92 |
318 |
274 |
|||||||||||
|
Drilling utilization rate |
9 |
% |
8 |
% |
9 |
% |
8 |
% | |||||||
|
Revenue per day |
$ |
31,000 |
$ |
20,100 |
$ |
24,300 |
$ |
17,600 |
|||||||
|
Drilling rig profit per day |
$ |
3,300 |
$ |
1,800 |
$ |
2,900 |
$ |
700 |
|||||||
|
Segment profits as a percent of revenue |
11 |
% |
9 |
% |
12 |
% |
4 |
% | |||||||
|
(1) Includes approximately $6,302,000 and $2,550,000 of non-cash compensation expense for the three months ended September 30, 2017 and 2016, respectively, and $17,748,000 and $7,853,000 for the nine months ended September 30, 2017 and 2016, respectively. |
|||||
|
(2) This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net loss) before interest, taxes, depreciation, amortization, retention expense, due diligence for M&A activities, restructuring costs, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: |
|||||
|
• The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; |
|||||
|
• The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and |
|||||
|
• Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. |
|||||
|
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: |
|||||
|
• EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; |
|||||
|
• EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; |
|||||
|
• EBITDA does not reflect income taxes; |
|||||
|
• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and |
|||||
|
• Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. |
|||||
|
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: |
|||||
|
• Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; |
|||||
|
• Adjusted EBITDA does not reflect Basic's retention expense; |
|||||
|
• Adjusted EBITDA does not reflect Basic's due diligence for business development activities; |
|||||
|
• Adjusted EBITDA does not reflect Basic's restructuring costs; and |
|||||
|
• Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. |
|||||
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended September 30, |
Nine months ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Successor |
Predecessor |
Successor |
Predecessor | ||||||||||||
|
Reconciliation of Net Loss to EBITDA: |
|||||||||||||||
|
Net loss |
$ |
(13,845) |
$ |
(92,097) |
$ |
(76,413) |
$ |
(265,319) |
|||||||
|
Income taxes |
(1,740) |
1 |
(1,366) |
(3,883) |
|||||||||||
|
Net interest expense |
8,887 |
23,939 |
27,158 |
67,165 |
|||||||||||
|
Depreciation and amortization |
29,478 |
53,142 |
80,846 |
164,141 |
|||||||||||
|
EBITDA |
$ |
22,780 |
$ |
(15,015) |
$ |
30,225 |
$ |
(37,896) |
|||||||
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, retention expense, due diligence on business development activities, and restructuring expense:
|
Three months ended September 30, |
Nine months ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Successor |
Predecessor |
Successor |
Predecessor | ||||||||||||
|
Reconciliation of Net Loss to Adjusted EBITDA: |
|||||||||||||||
|
Net loss |
$ |
(13,845) |
$ |
(92,097) |
$ |
(76,413) |
$ |
(265,319) |
|||||||
|
Income taxes |
(1,740) |
1 |
(1,366) |
(3,883) |
|||||||||||
|
Net interest expense |
8,887 |
23,939 |
27,158 |
67,165 |
|||||||||||
|
Depreciation and amortization |
29,478 |
53,142 |
80,846 |
164,141 |
|||||||||||
|
(Gain) loss on disposal of assets |
26 |
(128) |
(664) |
133 |
|||||||||||
|
Retention expense |
— |
— |
1,357 |
— |
|||||||||||
|
Due diligence for |
3,737 |
— |
3,737 |
— |
|||||||||||
|
Restructuring expense |
— |
10,470 |
2,664 |
10,470 |
|||||||||||
|
Adjusted EBITDA |
$ |
26,543 |
$ |
(4,673) |
$ |
37,319 |
$ |
(27,293) |
|||||||
|
Contacts: |
Trey Stolz, |
|
VP Investor Relations | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar/ Kaitlin Ross | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-third-quarter-2017-results-300548994.html
SOURCE Basic Energy Services, Inc.
Article Date
11/2/201710/2/2017 - Basic Energy Services Announces New $100 Million ABL Credit Facility And Termination Of Atm Public Offering
Basic Energy Services Announces New $100 Million ABL Credit Facility And Termination Of Atm Public Offering
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Oct. 2, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") announced today that it has entered into a new asset-based lending credit facility ("New ABL") that is secured by its accounts receivable. The New ABL has a four-year term and replaces its prior $75 million asset-based lending credit facility ("Prior ABL"). The New ABL agreement was filed with the SEC in an 8-K earlier today.
Under the New ABL, the borrowing base will be measured each month and, based on the accounts receivable at August 31, Basic would have available borrowings of approximately $42 million, net of letters of credit mainly required for insurance collateral. This availability would not be subject to restrictions on borrowing or covenants other than measurements of accounts receivable as of an applicable borrowing date and customary events of default. The Prior ABL was subject to other covenant constraints, including a fixed charge coverage ratio, that limited the ability for borrowings.
Roe Patterson, Basic's CEO and President, stated, "We were very pleased to improve the liquidity of the company with the successful completion of the New ABL to ensure that Basic has the ability to meet working capital needs when required. Based on this improved liquidity from the New ABL, we have decided that the $50 million at-the-market ("ATM") public offering announced on August 3, 2017 is no longer needed, and the ATM program has been terminated."
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 4,000 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-new-100-million-abl-credit-facility-and-termination-of-atm-public-offering-300528891.html
SOURCE Basic Energy Services, Inc.
Article Date
10/2/20179/26/2017 - Basic Energy Services Announces Third Quarter 2017 Earnings Release And Conference Call Schedule
Basic Energy Services Announces Third Quarter 2017 Earnings Release And Conference Call Schedule
Source: PR Newswire
FORT WORTH, Texas, Sept. 26, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its third quarter 2017 financial results after the market closes on Thursday, November 2, 2017. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, November 3, 2017, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services Third Quarter 2017 Earnings Conference Call |
|
When: |
Friday, November 3, 2017 – 9:00 a.m. Eastern Time |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
Live over the Internet - Log on to the web at the address below. | |
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through November 17, 2017 by calling 201-612-7415 and using pass code 13670801#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,900 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-announces-third-quarter-2017-earnings-release-and-conference-call-schedule-300525314.html
SOURCE Basic Energy Services, Inc.
Article Date
9/26/2017Basic Energy Services to Present at Johnson Rice & Company 2017 Energy Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Sept. 11, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Johnson Rice & Company 2017 Energy Conference to be held in New Orleans from September 25-27, 2017.
Roe Patterson, President and Chief Executive Officer, is scheduled to present on Tuesday, September 26, 2017, at approximately 1:00 p.m. Central Time (2:00 p.m. Eastern Time). A link to the live webcast and replay for this presentation will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. The accompanying slide presentation will be available that morning in the Investor Relations section of Basic Energy Services' website.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,900 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentation, may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-present-at-johnson-rice--company-2017-energy-conference-300516583.html
SOURCE Basic Energy Services, Inc.
Article Date
9/11/2017Basic Energy Services to Present at Barclays CEO Energy-Power Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Aug. 30, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Barclays CEO Energy-Power Conference to be held in New York City from September 5-7, 2017.
Roe Patterson, President and Chief Executive Officer, is scheduled to present on Wednesday, September 6, 2017, at approximately 11:45 a.m. Eastern Time (10:45 a.m. Central Time). A link to the live webcast and replay for this presentation will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. The accompanying slide presentation will be available that morning in the Investor Relations section of Basic Energy Services' website.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,900 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentation, may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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: |
Trey Stolz, VP Investor Relations |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-present-at-barclays-ceo-energy-power-conference-300511879.html
SOURCE Basic Energy Services, Inc.
Article Date
8/30/2017Basic Energy Services to Present at EnerCom's The Oil & Gas Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Aug. 11, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at EnerCom's The Oil & Gas Conference to be held in Denver, Colorado from August 13-17, 2017.
Roe Patterson, President and Chief Executive Officer, is scheduled to present on Monday, August 14, 2017, at approximately 1:55 p.m. Mountain Time (3:55 p.m. Eastern Time). The link to the live webcast will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. The accompanying slides will also be available the morning of the presentation in the Investor Relations section of the website.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,900 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentation, may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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/Kaitlin Ross | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-to-present-at-enercoms-the-oil--gas-conference-300503091.html
SOURCE Basic Energy Services, Inc.
Article Date
8/11/2017Basic Energy Services, Inc. Announces Commencement of an At-The-Market Public Offering of Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Aug. 3, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that it has commenced an at-the-market public offering, under which it may sell up to $50 million of its common stock ("Common Stock") pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (the "SEC").
Basic intends to use the net proceeds of this offering for general corporate and working capital purposes.
Raymond James & Associates will act as sales agent for the offering.
The offering may be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. A copy of the prospectus supplement and accompanying base prospectus meeting such requirements relating to this offering may be obtained from the sales agent:
Raymond James & Associates, Inc.
880 Carillon Parkway
St. Petersburg, Florida 33716
Attention: Scott Warnock
You may also obtain these documents for free when they are available by visiting the Securities and Exchange Commission's website at www.sec.gov.
The shelf registration statement relating to these securities has previously been filed with the SEC and declared effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Basic Energy Services, Inc.
Basic provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,900 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.
Safe Harbor Statement
This press release includes forward-looking statements 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2016, as amended, and subsequent Form 10-Qs and other reports 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 | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-inc-announces-commencement-of-an-at-the-market-public-offering-of-common-stock-300499554.html
SOURCE Basic Energy Services, Inc.
Article Date
8/3/2017Basic Energy Services Reports Second Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, July 27, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the second quarter ended June 30, 2017.
Basic emerged from its Chapter 11 bankruptcy pursuant to a prepackaged plan of reorganization on December 23, 2016. Upon emergence from the Chapter 11 bankruptcy, the Company adopted fresh start accounting, which resulted in Basic becoming a new entity for accounting and financial reporting purposes upon emergence. As such, the application of fresh start accounting was reflected in Basic's balance sheet as of December 31, 2016 and all fresh start accounting adjustments were included in its consolidated statement of operations for the year ended December 31, 2016. Due to these adjustments, the financial statements as of June 30, 2017 are not comparable with information provided for periods prior to December 31, 2016.
SECOND QUARTER 2017 HIGHLIGHTS
Second quarter 2017 revenue increased 17% to $213.3 million from $182.0 million in the first quarter of 2017, as rising drilling rig count and overall activity levels continued to rise throughout most geographic areas. This recovery in oilfield-related services led our customers to expedite postponed maintenance work and complete more wells located throughout our footprint. In the second quarter of 2016, Basic generated $120.0 million in revenue.
For the second quarter of 2017, Basic reported a net loss of $23.9 million, or a loss of $0.92 per basic and diluted share. This is compared to a net loss of $38.6 million, or $1.49 per basic share and diluted share for the first quarter of 2017, and a net loss of $89.9 million, or $2.11 per basic and diluted share in the second quarter of 2016.
|
Three months ended June 30, 2017 | |||||||
|
(in millions) |
EPS | ||||||
|
Special Items (adjusted for tax) |
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(23.9) |
$ |
(0.92) | |||
|
Restructuring expense |
0.7 |
0.03 | |||||
|
Valuation allowance on federal deferred tax assets |
8.5 |
0.32 | |||||
|
Adjusted net loss |
$ |
(14.7) |
$ |
(0.57) | |||
Excluding the impact of these special items listed above, Basic reported a net loss of $14.7 million, or a loss of $0.57 per basic and diluted share in the second quarter of 2017. The restructuring expenses are professional fees associated with Basic's Chapter 11 Restructuring incurred in 2017. Excluding special items, the Company reported a net loss of $22.6 million, or a loss of $0.87 per basic and diluted share, in the first quarter of 2017 and a net loss of $57.0 million, or a loss of $1.34 per basic and diluted share in the second quarter of 2016.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "We were pleased with our second quarter results as we delivered a second consecutive 17% increase in revenue driven by a recovery in all of our oil-related business segments. This increased level of activity that started in the Permian Basin and the SCOOP/STACK plays in Oklahoma, is now spreading into the Niobrara, California, and Eagle Ford markets. Additionally, improvements in other non-conventional basins are strengthening our base of business as well.
"Our customers benefitted from higher oil prices in the second quarter and took advantage of competitively priced oilfield services to accelerate drilling, completion and well maintenance activity. Most have increased their capital expenditures programs thus far this year. From an EBITDA standpoint, we are now clearly in positive territory and we expect that to continue for the remainder of 2017. While pricing has improved, especially on the completion side of the business, most markets remain competitive with only limited pricing improvement. Nevertheless, increased activity and improved pricing allowed us to deliver a sequential 560 basis point expansion in gross margin.
"This improved performance was led by our pressure pumping, coil tubing, and other completion and remedial product lines, with all of our frac horsepower operating during the quarter. Half of the 74,000 HHP we recently purchased was placed in service during the latter part of the second quarter and the remaining half will be operational in this quarter. A delay in the delivery of new software control parts from a manufacturer postponed the activation of this HHP. In addition, this quarter we will activate our two newest large diameter coil units that were delivered in early July. We are also experiencing a ramp-up in activity in our well servicing business with increased utilization and increased revenue per rig hour. Fluid services was relatively flat in terms of truck count and utilization, as weather and holiday capped activity levels. Revenue per truck hour did improve slightly on some small pricing increases improving margins slightly.
"Looking forward to the second half of 2017, we continue to expect a gradual improvement in pricing and utilization across most lines of business. We currently anticipate additional margin expansion in the third quarter as activity is spreading to more basins and longer daylight hours will benefit our utilization levels. We are also seeing a healthy level of inquiries regarding equipment and crew availability for well maintenance and repair activity. These are clear indicators of future demand. However, we are keeping a close eye on oil prices. Our current view is predicated on oil pricing trading at current levels or higher. Customers, especially those with stretched balance sheets or those that have not hedged their production, have quickly responded to fluctuation in oil prices: slowing down spending when prices linger below $45 per barrel and ramping up significantly when prices show stickiness above $50 per barrel. Likewise for natural gas prices, customers in gassier markets have ramped activity when pricing stabilizes above $3 per million cubic feet. As a result of our belief that commodity pricing will slowly improve in the coming quarters, we currently expect to generate a sequential increase of 6-10% in quarterly revenues in the third quarter. This guidance could change quickly if commodity pricing ramps at a much faster pace or retraces recent lows.
"For the third quarter and beyond, we will be changing the name of our Fluid Services segment to Water Logistics. The change reflects the growing holistic approach to water management by our entire fluids business and our customers' needs. Recycling, pipelining, fresh water sourcing, water storage and chemical treatment are growing sub-segments of this business. Our commercial salt water disposal well network, one of the nation's largest, and our best in class fluid truck fleet finish out the nation's largest and most comprehensive fleet of assets dedicated to water logistics in the U.S. onshore oil and gas industry."
Adjusted EBITDA was $12.0 million, or 6% of revenues, for the second quarter of 2017 compared to ($1.2) million, or (1)% of revenues, in the first quarter of 2017. In the second quarter of 2016, Basic generated Adjusted EBITDA of ($11.5) million, or (10)% of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), the net gain or loss from the disposal of assets, retention expense, and restructuring expense. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
2017 First Six Months Highlights
Revenues for the first half of 2017 rose 58% to $395.3 million from $250.4 million in the first six months of 2016.
Adjusted EBITDA for the first six months of 2017 was $10.8 million, or 3% of revenues, compared to ($22.6 million), or (9%) of revenues, for the first six months of 2016. Adjusted EBITDA excludes the special items discussed above for both 2017 and 2016. Adjusted EBITDA is reconciled in note 2 under the accompanying financial tables.
For the first half of 2017, Basic reported a net loss of $62.6 million, or $2.41 per basic and diluted share, compared to a net loss of $173.2 million, or $4.14 per basic and diluted share, for the first half of 2016. Excluding special items in both 2017 and 2016, Basic generated an adjusted net loss of $36.6 million, or $1.42 per basic and diluted share for the first half of 2017 compared to an adjusted net loss of $111.8 million, or $2.67 per basic and diluted share in the first six months of 2016.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue increased 34% to $107.4 million in the second quarter of 2017 from $80.4 million in the prior quarter. The sequential increase in revenue was primarily due to higher activity levels as customers took advantage of improved pricing to reduce the inventory of drilled but uncompleted wells outstanding, offset by significant weather impacts of approximately $4.2 million during the second quarter. In the second quarter of 2016, this segment generated $36.2 million in revenue.
At June 30, 2017, Basic had approximately 518,000 hydraulic horsepower ("HHP"), up from 444,000 HHP both at the end of the previous quarter and as of June 30, 2016. This includes 430,000 of frac HHP. Of the previously announced purchase of 74,000 frac HHP, half was deployed in mid-May. The remainder of this horsepower is planned to be deployed in August. Weighted average total HHP for the second quarter of 2017 was 488,000, up from 444,000 in the first quarter of 2017. Weighted average frac HHP was 406,000 for the second quarter of 2016.
Segment profit in the second quarter of 2017 almost doubled to $26.2 million compared to $13.2 million in the prior quarter. Segment margin for the second quarter of 2017 increased 800 basis points to 24% compared to 16% during the previous quarter, driven predominantly by the positive impact of incremental margins on the higher revenue base and improved pricing. Second quarter margin also benefitted from the elimination of the impact of the annual unemployment tax reset, which occurred during the first quarter. During the second quarter of 2016, segment profit was $3.4 million, or 9% of segment revenue.
Fluid Services (Water Logistics)
Fluid services revenue in the second quarter of 2017 increased 1% to $50.7 million compared to $50.2 million in the prior quarter. The slight increase in revenues was mainly driven by higher activity levels, offset by weather impacts, seasonal declines in hot oiling and a decrease in disposal utilization.
The weighted average number of fluid services trucks increased 1% to 943 during the second quarter of 2017, compared to 935 during the first quarter of 2017 and declined 3% compared to 976 during the second quarter of 2016. Truck hours were 473,500 in the second quarter, down 2% from 484,300 in the first quarter of 2017, as weather impacted fluid service revenues by $800,000 during the quarter. Revenue per truck was $53,800 compared to $53,700 in the first quarter on improved pricing and the ramp in activity. In the comparable quarter of 2016, average revenue per fluid truck was $46,600.
Segment profit in the second quarter of 2017 increased by 6% to $9.2 million, compared to a profit of $8.7 million in the first quarter of 2017. Margins improved 80 basis points on higher revenues and pricing, as well as the elimination of the unemployment tax reset impact of 160 basis points experienced in the first quarter. Second quarter margins in 2017 were negatively impacted by approximately 300 basis points due to an insurance accrual from an October 2016 event. Weather also negatively impacted margins by 30 basis points. Segment profit in the same period in 2016 was $6.9 million, or 15% of segment revenue.
Well Servicing
Well servicing revenues increased 9% to $53.1 million during the second quarter of 2017 compared to $48.6 million in the prior quarter led by increased utilization rates and improved pricing during the quarter. Well servicing revenues were $36.8 million in the second quarter of 2016. Net revenues from the Taylor manufacturing operations were $904,000 in the second quarter of 2017 compared to $230,000 in the prior quarter and $1.8 million in the second quarter of 2016.
At June 30, 2017, the well servicing rig count was 421, the same as the end of the prior quarter and at June 30, 2016. Rig hours were 162,300 in the second quarter of 2017, up 3% compared to 157,600 hours in the first quarter of 2017 and up 43% from 113,700 hours in the comparable quarter of last year. Rig utilization was 54% in the second quarter of 2017, compared to 52% in the prior quarter and up from 38% in the second quarter of 2016.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $321 in the second quarter of 2017, 5% higher compared to $307 in the previous quarter and up 4% from $308 reported in the second quarter of 2016. The sequential increase was due mainly to improved pricing during the quarter.
Segment profit in the second quarter of 2017 increased 46% to $11.3 million, compared to $7.7 million in the prior quarter and increased 126% from $5.0 million during the same period in 2016. Segment profit margin increased to 21% in the second quarter of 2017 from 16% in the prior quarter led by increased activity and a full quarter's impact of rate increases that were put into place in the late first and early second quarters, as well as the lack of the unemployment tax reset that was incurred in the first quarter of 2017. In the second quarter of 2016, segment profit was 14% of segment revenue. Segment profit from the Taylor manufacturing operations was $89,000 in the second quarter of 2017 compared to a $17,000 in the previous quarter.
Contract Drilling
Contract drilling revenues decreased by 23% to $2.1 million during the second quarter of 2017 from $2.8 million in the prior quarter. During the second quarter of 2016, this segment generated $1.5 million in revenue. Basic marketed 11 drilling rigs during the second quarter of 2017, down one from 12 in the previous quarter as well as the second quarter of 2016. Only one rig was active through the entire second quarter. Revenue per drilling day in the second quarter of 2017 was up 14% to $23,300 compared to $20,500 in the previous quarter and up from $16,100 in the second quarter of 2016 on higher contract drilling trucking revenues.
Rig operating days during the second quarter of 2017 decreased to 91 compared to 135 in the prior quarter, resulting in rig utilization of 8% during the second quarter of 2017 compared to 12% during the prior quarter. In the comparable period in 2016, rig operating days were 91, producing a utilization of 8%.
Segment profit in the second quarter of 2017 was $254,000 compared to $355,000 in the prior quarter and $93,000 in the second quarter of 2016. Segment margin for the second quarter of 2017 was 12% of segment revenues compared to 13% in the prior quarter. The decline in margin is due to only one rig being active throughout the quarter compared to two active rigs during the majority of the first quarter. Last year in the comparable period, segment margin was 6%.
G&A Expense
Reported general and administrative ("G&A") expense for the second quarter of 2017 was $36.0 million compared to a reported G&A expense for the first quarter of 2017 of $34.2 million. Excluding costs associated with the bankruptcy and restructuring expenses incurred in 2017, G&A expense in the second quarter of 2017 was $35.0 million, or 16% of revenue, compared to $31.2 million, or 17% of revenue, in the prior quarter. Expense was higher due to a $1.7 million increase from the first quarter of 2017 in non-cash stock compensation expense, associated with the Company's stock grants. G&A expense in the second quarter of 2016 was $27.1 million, or 23% of revenue.
Interest Expense
Net interest expense for the second quarter of 2017 was $9.2 million compared to $9.1 million in the first quarter of 2017. These amounts include interest on Basic's term loan facility and capital leases, as well as approximately $2.3 million of non-cash interest expense related to the accretion of fair value discounts on the Company's debt. Net interest expense was $22.5 million in the second quarter of 2016.
Tax Benefit
Basic's tax expense for the second quarter of 2017 was $0 compared to $375,000 in the first quarter of 2017. The second quarter of 2017 represents an effective tax rate of 0%, compared to 1% in the prior quarter. Excluding the valuation allowance related to the temporary impairments of the deferred tax assets of $9.6 million, the operating effective tax benefit of $8.5 million in the second quarter of 2017 translated into an effective tax benefit rate of 36%.
Cash and Total Liquidity
On June 30, 2017, Basic had cash and cash equivalents of approximately $34.2 million, compared to $50.6 million at March 31, 2017 and $86.1 million on June 30, 2016.
At June 30, 2017, total liquidity was approximately $55 million, which included $20 million of availability under Basic's amended and restated $75 million revolving credit facility.
In July 2017, Basic was successful in reducing insurance collateral by $12 million as a result of the renewal of their insurance programs. Pro forma for this reduction in required letters of credit, total liquidity at June 30, 2017 would have been $67 million.
Capital Expenditures
Total capital expenditures during the second quarter of 2017 were approximately $40.8 million (including capital leases and other financing of $26.8 million), comprised of $15.4 million for expansion projects, $23.6 million for sustaining and replacement projects and $1.8 for other projects. Expansion capital spending included $15.3 million for the completion and remedial services segment, $145,000 for the well servicing segment, and $11,000 for the fluid services segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates 2017 capital expenditures of $115 million, including $70 million of capital leases and other financings. This includes committed expansion capital expenditures of $45 million in 2017. The expansion capital consists of $43 million for completion and remedial services and $2 million for the well servicing segment.
Conference Call
Basic will host a conference call to discuss its second quarter 2017 results on Friday, July 28, 2017, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until August 11, 2017 and may be accessed by calling (201) 612-7415 and using pass code 13665022#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,900 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2016 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 | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
-Tables to Follow-
|
Basic Energy Services, Inc. | ||||||||||||||||
|
Consolidated Statements of Operations and Other Financial Data | ||||||||||||||||
|
(in thousands, except per share amounts) | ||||||||||||||||
|
Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||
|
Successor |
Predecessor |
Successor |
Predecessor | |||||||||||||
|
(Unaudited) |
(Unaudited) | |||||||||||||||
|
Income Statement Data: |
||||||||||||||||
|
Revenues: |
||||||||||||||||
|
Completion and remedial services |
$ |
107,385 |
$ |
36,228 |
$ |
187,817 |
$ |
75,924 |
||||||||
|
Fluid services |
50,740 |
45,491 |
100,946 |
95,741 |
||||||||||||
|
Well servicing |
53,054 |
36,824 |
101,672 |
75,731 |
||||||||||||
|
Contract drilling |
2,117 |
1,461 |
4,880 |
2,965 |
||||||||||||
|
Total revenues |
213,296 |
120,004 |
395,315 |
250,361 |
||||||||||||
|
Expenses: |
||||||||||||||||
|
Completion and remedial services |
81,199 |
32,860 |
148,451 |
67,648 |
||||||||||||
|
Fluid services |
41,580 |
38,619 |
83,118 |
79,786 |
||||||||||||
|
Well servicing |
41,796 |
31,847 |
82,712 |
66,318 |
||||||||||||
|
Contract drilling |
1,863 |
1,368 |
4,271 |
2,929 |
||||||||||||
|
General and administrative (1) |
36,037 |
27,078 |
70,241 |
56,640 |
||||||||||||
|
Depreciation and amortization |
25,956 |
54,847 |
51,369 |
110,999 |
||||||||||||
|
(Gain) loss on disposal of assets |
(223) |
336 |
(690) |
261 |
||||||||||||
|
Total expenses |
228,208 |
186,955 |
439,472 |
384,581 |
||||||||||||
|
Operating loss |
(14,912) |
(66,951) |
(44,157) |
(134,220) |
||||||||||||
|
Other income (expense): |
||||||||||||||||
|
Interest expense |
(9,179) |
(22,521) |
(18,289) |
(43,235) |
||||||||||||
|
Interest income |
6 |
7 |
18 |
9 |
||||||||||||
|
Other income |
144 |
244 |
235 |
340 |
||||||||||||
|
Loss before income taxes |
(23,941) |
(89,221) |
(62,193) |
(177,106) |
||||||||||||
|
Income tax benefit (expense) |
— |
(662) |
(374) |
3,884 |
||||||||||||
|
Net loss |
$ |
(23,941) |
$ |
(89,883) |
$ |
(62,567) |
$ |
(173,222) |
||||||||
|
Loss per share of common stock: |
||||||||||||||||
|
Basic |
$ |
(0.92) |
$ |
(2.11) |
$ |
(2.41) |
$ |
(4.14) |
||||||||
|
Diluted |
$ |
(0.92) |
$ |
(2.11) |
$ |
(2.41) |
$ |
(4.14) |
||||||||
|
Other Financial Data: |
||||||||||||||||
|
EBITDA (2) |
$ |
11,188 |
$ |
(11,860) |
$ |
7,447 |
$ |
(22,881) |
||||||||
|
Adjusted EBITDA (2) |
12,008 |
(11,524) |
10,778 |
(22,620) |
||||||||||||
|
Capital expenditures: |
||||||||||||||||
|
Property and equipment |
7,815 |
6,984 |
33,745 |
11,561 |
||||||||||||
|
As of |
||||||||||||||||
|
June 30, |
December 31, |
|||||||||||||||
|
2017 |
2016 |
|||||||||||||||
|
(Unaudited) |
(Audited) |
|||||||||||||||
|
Balance Sheet Data: |
||||||||||||||||
|
Cash and cash equivalents |
$ |
34,244 |
$ |
98,875 |
||||||||||||
|
Net property and equipment |
520,575 |
488,848 |
||||||||||||||
|
Total assets |
786,366 |
768,160 |
||||||||||||||
|
Total long-term debt |
207,487 |
184,752 |
||||||||||||||
|
Total stockholders' equity |
362,526 |
414,408 |
||||||||||||||
|
Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||
|
Segment Data: |
(Unaudited) |
(Unaudited) | ||||||||||||||
|
Completion and Remedial Services |
||||||||||||||||
|
Segment Profits as a percent of revenue |
24 |
% |
9 |
% |
21 |
% |
11 |
% | ||||||||
|
Fluid Services |
||||||||||||||||
|
Weighted average number of fluid service trucks |
943 |
976 |
939 |
980 |
||||||||||||
|
Truck hours (000's) |
473.5 |
474.4 |
957.8 |
995.9 |
||||||||||||
|
Revenue per fluid services truck (000's) |
$ |
54 |
$ |
47 |
$ |
108 |
$ |
98 |
||||||||
|
Segment profits per fluid services truck (000's) |
$ |
10 |
$ |
7 |
$ |
19 |
$ |
16 |
||||||||
|
Segment profits as a percent of revenue |
18 |
% |
15 |
% |
18 |
% |
17 |
% | ||||||||
|
Well Servicing |
||||||||||||||||
|
Weighted average number of rigs |
421 |
421 |
421 |
421 |
||||||||||||
|
Rig hours (000's) |
162.3 |
113.7 |
319.9 |
222.1 |
||||||||||||
|
Rig utilization rate |
54 |
% |
38 |
% |
53 |
% |
37 |
% | ||||||||
|
Revenue per rig hour, excluding manufacturing |
$ |
321 |
$ |
308 |
$ |
314 |
$ |
314 |
||||||||
|
Well servicing rig profit per rig hour |
$ |
69 |
$ |
44 |
$ |
59 |
$ |
42 |
||||||||
|
Segment profits as a percent of revenue |
21 |
% |
14 |
% |
19 |
% |
12 |
% | ||||||||
|
Contact Drilling |
||||||||||||||||
|
Weighted average number of rigs |
11 |
12 |
12 |
12 |
||||||||||||
|
Rig operating days |
91 |
91 |
226 |
182 |
||||||||||||
|
Drilling utilization rate |
8 |
% |
8 |
% |
10 |
% |
8 |
% | ||||||||
|
Revenue per day |
$ |
23,300 |
$ |
16,100 |
$ |
21,600 |
$ |
16,300 |
||||||||
|
Drilling rig profit per day |
$ |
2,800 |
$ |
1,000 |
$ |
2,700 |
$ |
200 |
||||||||
|
Segment profits as a percent of revenue |
12 |
% |
6 |
% |
12 |
% |
1 |
% | ||||||||
|
(1) Includes approximately $6,575,000 and $2,044,000 of non-cash compensation expense for the three months ended June 30, 2017 and 2016, respectively, and $11,445,000 and $5,302,000 for the six months ended June 30, 2017 and 2016, respectively. | |||
|
(2) This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, loss on customer audit settlements, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: | |||
|
The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; | |||
|
The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and | |||
|
Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. | |||
|
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: | |||
|
EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; | |||
|
EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; | |||
|
EBITDA does not reflect income taxes; | |||
|
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and | |||
|
Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | |||
|
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: | |||
|
Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; | |||
|
Adjusted EBITDA does not reflect Basic's retention expense; | |||
|
Adjusted EBITDA does not reflect Basic's restructuring costs; and | |||
|
Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. |
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended June 30, |
Six months ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Successor |
Predecessor |
Successor |
Predecessor | ||||||||||||
|
Reconciliation of Net Loss to EBITDA: |
|||||||||||||||
|
Net loss |
$ |
(23,941) |
$ |
(89,883) |
$ |
(62,567) |
$ |
(173,222) |
|||||||
|
Income taxes |
— |
662 |
374 |
(3,884) |
|||||||||||
|
Net interest expense |
9,173 |
22,514 |
18,271 |
43,226 |
|||||||||||
|
Depreciation and amortization |
25,956 |
54,847 |
51,369 |
110,999 |
|||||||||||
|
EBITDA |
$ |
11,188 |
$ |
(11,860) |
$ |
7,447 |
$ |
(22,881) |
|||||||
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, retention expense, and restructuring expense:
|
Three months ended June 30, |
Six months ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Successor |
Predecessor |
Successor |
Predecessor | ||||||||||||
|
Reconciliation of Net Loss to Adjusted EBITDA: |
|||||||||||||||
|
Net loss |
$ |
(23,941) |
$ |
(89,883) |
$ |
(62,567) |
$ |
(173,222) |
|||||||
|
Income taxes |
— |
662 |
374 |
(3,884) |
|||||||||||
|
Net interest expense |
9,173 |
22,514 |
18,271 |
43,226 |
|||||||||||
|
Depreciation and amortization |
25,956 |
54,847 |
51,369 |
110,999 |
|||||||||||
|
(Gain) loss on disposal of assets |
(223) |
336 |
(690) |
261 |
|||||||||||
|
Retention expense |
— |
— |
1,357 |
— |
|||||||||||
|
Restructuring expense |
1,043 |
— |
2,664 |
— |
|||||||||||
|
Adjusted EBITDA |
$ |
12,008 |
$ |
(11,524) |
$ |
10,778 |
$ |
(22,620) |
|||||||
View original content:http://www.prnewswire.com/news-releases/basic-energy-services-reports-second-quarter-2017-results-300495814.html
SOURCE Basic Energy Services, Inc.
Article Date
7/27/20177/5/2017 - Basic Energy Services Announces Second Quarter 2017 Earnings Release And Conference Call Schedule
Basic Energy Services Announces Second Quarter 2017 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, July 5, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its second quarter 2017 financial results after the market closes on Thursday, July 27, 2017. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, July 28, 2017, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services Second Quarter 2017 Earnings Conference Call |
|
When: |
Friday, July 28, 2017 – 9:00 a.m. Eastern Time |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
Live over the Internet - Log on to the web at the address below. | |
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through August 11, 2017 by calling 201-612-7415 and using pass code 13665022#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,900 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Kaitlin Ross | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
7/5/2017Basic Energy Services Reports First Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, April 20, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the first quarter ended March 31, 2017.
Basic emerged from its Chapter 11 bankruptcy pursuant to a prepackaged plan of reorganization on December 23, 2016. Upon emergence from the Chapter 11 bankruptcy, the Company adopted fresh start accounting, which resulted in Basic becoming a new entity for accounting and financial reporting purposes upon emergence. As such, the application of fresh start accounting was reflected in Basic's balance sheet as of December 31, 2016 and all fresh start accounting adjustments were included in its consolidated statement of operations for the year ended December 31, 2016. Due to these adjustments, the financial statements as of March 31, 2017 are not comparable with information provided for periods prior to December 31, 2016.
FIRST QUARTER 2017 HIGHLIGHTS
First quarter 2017 revenue increased 17% to $182.0 million from $155.5 million in the fourth quarter of 2016, as more stable oil prices led our customers to complete more wells and accelerate deferred maintenance work on the large number of existing wells throughout our footprint. In the first quarter of 2016, Basic generated $130.4 million in revenue.
For the first quarter of 2017, Basic reported a net loss of $38.6 million, or a loss of $1.49 per basic and diluted share. This is compared to net income of $141.9 million, or $3.32 per basic share and $3.15 per diluted share for the fourth quarter of 2016, and a net loss of $83.3 million, or $2.00 per basic and diluted share in the first quarter of 2016.
|
Three months ended March 31, 2017 | |||||||
|
(in millions) |
EPS | ||||||
|
Special Items (adjusted for tax) |
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(38.6) |
$ |
(1.49) |
|||
|
Restructuring expense |
1.0 |
0.04 |
|||||
|
Retention expense |
0.8 |
0.03 |
|||||
|
Valuation allowance on federal deferred tax assets |
14.2 |
0.53 |
|||||
|
Adjusted net loss |
$ |
(22.6) |
$ |
(0.87) |
|||
Excluding the impact of these special items listed above, Basic reported a net loss of $22.6 million, or a loss of $0.87 per basic and diluted share. The reorganization expenses and retention expenses are both related to Basic's Chapter 11 Restructuring that occurred in 2016. Excluding special items, the Company reported a net loss of $60.2 million, or a loss of $1.41 per basic and diluted share, in the fourth quarter of 2016 and a net loss of $54.8 million, or a loss of $1.32 per basic and diluted share in the first quarter of 2016.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Our first quarter results were better than originally anticipated. This is a reflection of the improvement in oil prices as compared to the end of 2016, and subsequently, a recovery in all oilfield-related services. This increased level of activity that started in the Permian Basin and the STACK and SCOOP plays in Oklahoma, is now spreading into other non-conventional basins strengthening our base of business. Our customers are taking advantage of the improved oil price environment to accelerate well maintenance and completion activity. Most have increased their capital expenditures programs and as a result our first quarter revenues increased 17%, sequentially. From an EBITDA standpoint, we were near breakeven for the quarter and well into positive territory for March.
"This improved performance was led by both our pressure pumping and coil tubing product lines with all of our frac horsepower operating during the quarter. In addition, we are starting to experience a ramp-up in activity in both our well servicing and fluid service businesses with increased utilization in both product lines. While pricing in all our markets remain competitive, the margin pressure we encountered during the fourth quarter has lessened, allowing us to deliver a sequential 300 basis point expansion in gross margin.
"Looking forward, we continue to expect a gradual improvement in pricing and utilization for the remainder of 2017. Customer feedback on capital expenditures remains promising, with expected improvements in oily basins for all of our service segments. We currently anticipate additional margin expansion in the second quarter as the impact of payroll taxes fade. Longer daylight hours will benefit our utilization levels as well. We expect to generate positive EBITDA in every month of the second quarter and a sequential increase of 18-20% in quarterly revenues."
Adjusted EBITDA was ($1.2) million, or (0.7)% of revenues, for the first quarter of 2017 compared to ($5.2) million, or (3)% of revenues, in the fourth quarter of 2016. In the first quarter of 2016, Basic generated Adjusted EBITDA of ($11.1) million, or (9)% of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), the net gain or loss from the disposal of assets, retention expense, and restructuring expense. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables..
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue increased 36% to $80.4 million in the first quarter of 2017 from $59.2 million in the prior quarter. The sequential increase in revenue was primarily due to higher activity levels as customers took advantage of more favorable oil prices to reduce the inventory of drilled but uncompleted wells outstanding. In the first quarter of 2016, this segment generated $39.7 million in revenue.
At March 31, 2017, Basic had approximately 444,000 hydraulic horsepower ("HHP"), flat with 444,000 HHP both at the end of the previous quarter and as of March 31, 2016. As announced in February 2017, we will be adding 74,000 of frac HHP in the second quarter of 2017. The totality of this horsepower should be operational by May. Weighted average HHP for the first quarter of 2017 was 444,000, equal to the fourth quarter of 2016. This includes 358,000 of frac HHP.
Segment profit in the first quarter of 2017 increased 57% to $13.2 million compared to $8.4 million in the prior quarter. Segment margin for the first quarter of 2017 increased 190 basis points to 16% compared to 14% during the previous quarter, driven predominantly by the positive impact of incremental margins on the higher revenue base and by improved pricing that came into play late in the first quarter. This margin improvement was partially offset by the annual unemployment tax reset, which had an impact of 100 basis points to quarterly margins. During the first quarter of 2016, segment profit was $4.9 million, or 12% of segment revenue.
Fluid Services
Fluid services revenue in the first quarter of 2017 increased 3% to $50.2 million compared to $48.8 million in the prior quarter. Segment revenues grew driven by an increase in non-trucking activity, improved disposal utilization and higher skim oil sales. During the first quarter of 2016, this segment generated $50.3 million in revenue.
The weighted average number of fluid services trucks decreased 1% to 935 during the first quarter of 2017, compared to 944 during the fourth quarter of 2016 and declined 5% compared to 985 during the first quarter of 2016. Truck hours of 484,300 during the first quarter of 2017 represented a decrease of 4% from the 503,200 generated in the fourth quarter of 2016 and a decrease of 7% compared to 521,500 in the same period in 2016.
The average revenue per fluid service truck increased 4% to $53,700 from $51,600 in the fourth quarter of 2016, as non-trucking activity picked up and disposal utilization and skim oil sales increased with trucking activity. In the comparable quarter of 2016, average revenue per fluid truck was $51,000.
Segment profit in the first quarter of 2017 increased by 37% to $8.7 million, compared to a profit of $6.3 million in the fourth quarter of 2016. Segment profit margin increased 430 basis points to 17% due to the impact of incremental margins on the higher revenue base, offset by 160 basis points of impact from the annual reset of unemployment taxes. Segment profit in the same period in 2016 was $9.1 million, or 18% of segment revenue.
Well Servicing
Well servicing revenues increased 8% to $48.6 million during the first quarter of 2017 compared to $45.1 million in the prior quarter led by increased rig activity and improved pricing late in the quarter. Well servicing revenues were $38.9 million in the first quarter of 2016. Revenues from the Taylor manufacturing operations were $230,000 in the first quarter of 2017 compared to $1.3 million in the prior quarter and $4.1 million in the first quarter of 2016.
At March 31, 2017, the well servicing rig count was 421, the same as the end of the prior quarter and at March 31, 2016. Rig hours were 157,600 in the first quarter of 2017, up 8% compared to 146,200 hours in the fourth quarter of 2016 and up 45% from 108,400 hours in the comparable quarter of last year. Rig utilization was 52% in the first quarter of 2017, compared to 49% in the prior quarter and up from 36% in the first quarter of 2016.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $307 in the first quarter of 2017, 2% higher compared to $300 in the previous quarter and down 4% from $321 reported in the first quarter of 2016. The sequential increase was due mainly to improved pricing late in the first quarter of 2017.
Segment profit in the first quarter of 2017 increased 25% to $7.7 million, compared to $6.1 million in the prior quarter and increased 74% from $4.4 million during the same period in 2016. Segment profit margin increased to 16% in the first quarter of 2017 from 14% in the prior quarter. This margin improvement includes the impact of the annual reset of unemployment taxes of approximately 230 basis points. In the first quarter of 2016, segment profit was 11% of segment revenue. Margins improved primarily due to higher utilization and pricing. Segment profit from the Taylor manufacturing operations was $17,000 in the first quarter of 2017 compared to a loss of $9,000 in last year's fourth quarter.
Contract Drilling
Contract drilling revenues increased by 14% to $2.8 million during the first quarter of 2017 from $2.4 million in the prior quarter. During the first quarter of 2016, this segment generated $1.5 million in revenue. Basic marketed 12 drilling rigs during the first quarter of 2017, the same number of rigs as in the previous quarter as well as the first quarter of 2016. While two rigs were active at the beginning of the first quarter, only one rig was working by the end of March. Revenue per drilling day in the first quarter of 2017 was up 17% to $20,500 compared to $17,500 in the previous quarter and up from $16,500 in the first quarter of 2016, due to increased activity in the rig moving business line.
Rig operating days during the first quarter of 2017 decreased by 3% to 135 compared to 139 in the prior quarter, resulting in rig utilization of 12% during the first quarter of 2017 compared to 13% during the prior quarter. In the comparable period in 2016, rig operating days were 91, producing a utilization of 8%.
Segment profit in the first quarter of 2017 was $355,000 compared to a loss of $40,000 in the prior quarter and a loss of $57,000 in the first quarter of 2016. Segment margin for the first quarter of 2017 was 13% of segment revenues compared to (2)% in the prior quarter. The positive margin is due to two rigs being active for the majority of the quarter, along with increases in rig moving activity. Last year in the comparable period, segment margin was (4)%.
G&A Expense
General and administrative ("G&A") expense for the first quarter of 2017 was $34.2 million. This compares to an as reported G&A expense for the fourth quarter of 2016 of $48.6 million. Excluding costs associated with the bankruptcy and restructuring and retention expenses, G&A expense in the first quarter of 2017 was $31.2 million, or 17% of revenue, compared to $27.5 million, or 18% of revenue, in the prior quarter. The sequential upturn in G&A expense was due to expense associated with a full quarter's effect of non-cash deferred compensation of $4.9 million related to stock incentive plans, as well as an impact of $700,000 of expense associated with the annual reset of unemployment taxes in the first quarter of 2017. G&A expense in the first quarter of 2016 was $29.6 million, or 23% of revenue.
Interest Expense
Net interest expense for the first quarter of 2017 was $9.1 million. These amounts include interest on Basic's term loan facility and capital leases, as well as approximately $1.6 million of non-cash interest expense related to the accretion of fair value discounts on the Company's debt. These discounts were recorded in the fourth quarter of 2016 as part of the fresh start accounting process. Net interest expense in the fourth quarter of 2016 was $29.4 million, and $20.7 million in the first quarter of 2016.
Tax Benefit
Basic's tax expense for the first quarter of 2017 was $375,000 compared to no tax expense in the fourth quarter of 2016. The first quarter of 2017 represents an effective tax rate of 1%, compared to 0% in the prior quarter. Excluding the impact of the value allowance mentioned above, the operating effective tax benefit of $14.2 million in the first quarter of 2017 translated into an effective tax benefit rate of 36%.
Cash and Total Liquidity
On March 31, 2017, Basic had cash and cash equivalents of approximately $50.6 million, compared to $98.9 million at December 31, 2016 and $75.1 million on March 31, 2016.
At March 31, 2017, total liquidity was approximately $74.0 million, which included $23.4 million of availability under Basic's amended and restated $75 million revolving credit facility.
Capital Expenditures
Total capital expenditures during the first three months of 2017 were approximately $48.3 million (including capital leases and other financing of $22.4 million), comprised of $24.4 million for expansion projects, $23.7 million for sustaining and replacement projects and $243,000 for other projects. Expansion capital spending included $19.9 million for the completion and remedial services segment, $4.2 million for the well servicing segment, and $319,000 for the fluid services segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates 2017 capital expenditures of $115.0 million, including $70.0 million of capital leases and other financings. This includes committed expansion capital expenditures of $45 million in 2017. The expansion capital consists of $43.0 million for completion and remedial services and $2.0 million for the well servicing segment.
Conference Call
Basic will host a conference call to discuss its first quarter 2017 results on Friday, April 21, 2017, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until May 5, 2017 and may be accessed by calling (201) 612-7415 and using pass code 13658595#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 3,900 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2016 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.
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Contacts: |
Alan Krenek, |
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Chief Financial Officer | |
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Basic Energy Services, Inc. | |
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817-334-4100 | |
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Jack Lascar | |
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Dennard ▪ Lascar Associates | |
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713-529-6600 |
-Tables to Follow-
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Basic Energy Services, Inc. |
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Consolidated Statements of Operations and Other Financial Data |
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(in thousands, except per share amounts) |
|||
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Three months ended March 31, |
|||
|
2017 |
2016 |
||
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Successor |
Predecessor |
||
|
(Unaudited) |
|||
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Income Statement Data: |
|||
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Revenues: |
|||
|
Completion and remedial services |
$ 80,431 |
$ 39,696 |
|
|
Fluid services |
50,206 |
50,250 |
|
|
Well servicing |
48,619 |
38,906 |
|
|
Contract drilling |
2,763 |
1,504 |
|
|
Total revenues |
182,019 |
130,356 |
|
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Expenses: |
|||
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Completion and remedial services |
67,252 |
34,788 |
|
|
Fluid services |
41,538 |
41,167 |
|
|
Well servicing |
40,916 |
34,470 |
|
|
Contract drilling |
2,408 |
1,561 |
|
|
General and administrative (1) |
34,205 |
29,562 |
|
|
Depreciation and amortization |
25,413 |
56,152 |
|
|
(Gain) loss on disposal of assets |
(467) |
(75) |
|
|
Total expenses |
211,265 |
197,625 |
|
|
Operating loss |
(29,246) |
(67,269) |
|
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Other income (expense): |
|||
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Interest expense |
(9,109) |
(20,714) |
|
|
Interest income |
12 |
2 |
|
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Other income |
92 |
96 |
|
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Loss before income taxes |
(38,251) |
(87,885) |
|
|
Income tax benefit (expense) |
(375) |
4,546 |
|
|
Net loss |
$ (38,626) |
$ (83,339) |
|
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Loss per share of common stock: |
|||
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Basic |
$ (1.49) |
$ (2.00) |
|
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Diluted |
$ (1.49) |
$ (2.00) |
|
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Other Financial Data: |
|||
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EBITDA (2) |
$ (3,741) |
$ (11,021) |
|
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Adjusted EBITDA (2) |
(1,230) |
(11,096) |
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Capital expenditures: |
|||
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Acquisitions, net of cash acquired |
- |
- |
|
|
Property and equipment |
25,930 |
4,577 |
|
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As of |
|||
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March 31, |
December 31, |
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2017 |
2016 |
||
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(Unaudited) |
(Audited) |
||
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Balance Sheet Data: |
|||
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Cash and cash equivalents |
$ 50,640 |
$ 98,875 |
|
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Net property and equipment |
510,346 |
488,848 |
|
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Total assets |
769,277 |
768,160 |
|
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Total long-term debt |
194,442 |
184,752 |
|
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Total stockholders' equity |
380,191 |
414,408 |
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Three months ended March 31, | |||
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2017 |
2016 | ||
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Segment Data: |
(Unaudited) | ||
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Completion and Remedial Services |
|||
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Segment Profits as a percent of revenue |
16% |
12% | |
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Fluid Services |
|||
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Weighted average number of fluid service trucks |
935 |
985 | |
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Truck hours (000's) |
484.3 |
521.5 | |
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Revenue per fluid services truck (000's) |
$ 54 |
$ 51 | |
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Segment profits per fluid services truck (000's) |
$ 9 |
$ 10 | |
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Segment profits as a percent of revenue |
17% |
18% | |
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Well Servicing |
|||
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Weighted average number of rigs |
421 |
421 | |
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Rig hours (000's) |
157.6 |
108.4 | |
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Rig utilization rate |
52% |
36% | |
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Revenue per rig hour, excluding manufacturing |
$ 307 |
$ 321 | |
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Well servicing rig profit per rig hour |
$ 49 |
$ 44 | |
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Segment profits as a percent of revenue |
16% |
11% | |
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Contact Drilling |
|||
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Weighted average number of rigs |
12 |
12 | |
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Rig operating days |
135 |
91 | |
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Drilling utilization rate |
12% |
8% | |
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Revenue per day |
$ 20,500 |
$ 16,500 | |
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Drilling rig profit per day |
$ 2,600 |
$ (400) | |
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Segment profits as a percent of revenue |
13% |
-4% | |
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(1) Includes approximately $4,870,000 and $3,258,000 of non-cash compensation expense for the three months ended March 31, 2017 and 2016, respectively. | |||
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(2) This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, the gain or loss on disposal of assets, retention expense, and restructuring expense or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: | |||
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• The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; | |||
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• The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and | |||
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• Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. | |||
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EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: | |||
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• EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; | |||
|
• EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; | |||
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• EBITDA does not reflect income taxes; |
|||
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• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and | |||
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• Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | |||
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In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: | |||
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• Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; | |||
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• Adjusted EBITDA does not reflect Basic's retention expense; | |||
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• Adjusted EBITDA does not reflect Basic's restructuring expense; and | |||
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• Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | |||
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
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Three months ended March 31, | |||
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2017 |
2016 | ||
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Successor |
Predecessor | ||
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Reconciliation of Net Loss to EBITDA: |
|||
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Net loss |
$ (38,626) |
$ (83,339) | |
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Income taxes |
375 |
(4,546) | |
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Net interest expense |
9,097 |
20,712 | |
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Depreciation and amortization |
25,413 |
56,152 | |
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EBITDA |
$ (3,741) |
$ (11,021) | |
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, retention expense, and restructuring expense:
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Three months ended March 31, | |||
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2017 |
2016 | ||
|
Successor |
Predecessor | ||
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Reconciliation of Net Loss to Adjusted EBITDA: |
|||
|
Net loss |
$ (38,626) |
$ (83,339) | |
|
Income taxes |
375 |
(4,546) | |
|
Net interest expense |
9,097 |
20,712 | |
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Depreciation and amortization |
25,413 |
56,152 | |
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(Gain) loss on disposal of assets |
(467) |
(75) | |
|
Retention expense |
1,357 |
- | |
|
Restructuring costs |
1,621 |
- | |
|
Adjusted EBITDA |
$ (1,230) |
$ (11,096) | |
SOURCE Basic Energy Services, Inc.
Article Date
4/20/20174/3/2017 - Basic Energy Services Announces First Quarter 2017 Earnings Release And Conference Call Schedule
Basic Energy Services Announces First Quarter 2017 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, April 3, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its first quarter 2017 financial results after the market closes on Thursday, April 20, 2017. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, April 21, 2017, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
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What: |
Basic Energy Services First Quarter 2017 Earnings Conference Call |
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When: |
Friday, April 21, 2017 – 9:00 a.m. Eastern Time |
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How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
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Live over the Internet - Log on to the web at the address below. | |
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Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through May 5, 2017 by calling 201-612-7415 and using pass code 13658595#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,800 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
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Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
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817-334-4100 | |
|
Jack Lascar | |
|
Dennard-Lascar Associates | |
|
713-529-6600 | |
SOURCE Basic Energy Services, Inc.
Article Date
4/3/2017Basic Energy Services Reports Updated Final Fourth Quarter And Full Year 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, March 31, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the fourth quarter and year ended December 31, 2016. This press release updates and corrects certain items previously reported in the Company's press release dated March 23, 2017. This press release does not change Adjusted EBITDA previously reported, and corrects matters relating to (i) capital lease accounting as applied in accordance with fresh start accounting and (ii) certain other reorganization items discussed and reflected below.
Basic emerged from its Chapter 11 bankruptcy pursuant to a prepackaged plan of reorganization on December 23, 2016. Upon emergence from the Chapter 11 bankruptcy, the Company adopted fresh start accounting, which results in Basic becoming a new entity for accounting and financial reporting purposes upon emergence. Basic evaluated events between December 23 and December 31, 2016 and concluded that the use of an accounting convenience date of December 31, 2016 did not have a material impact on Basic's results of operations or financial position. As such, the application of fresh start accounting was reflected in its consolidated balance sheet as of December 31, 2016 and all fresh start accounting adjustments were included in its consolidated statement of operations for the year ended December 31, 2016. References to the Basic "Predecessor" relate to the financial position of Basic the results of operations through December 31, 2016; and references to the "Successor" relate to the financial position of Basic on December 31, 2016. Due to these adjustments, the financial statements as of December 31, 2016 are not comparable with information provided for prior periods.
For the fourth quarter of 2016, the Basic Predecessor reported net income of $141.9 million, or $3.32 per basic share and $3.15 per diluted share. Excluding the special items as noted below, fourth quarter net loss was $60.2 million, or a loss of $1.41 per basic and diluted share.
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Three months ended December 31, 2016 | |||||||
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(in millions) |
EPS | ||||||
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Predecessor Special Items (adjusted for tax) |
(Unaudited) | ||||||
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Net income, as reported |
$ |
141.9 |
$ |
3.32 |
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Restructuring costs |
7.4 |
0.17 |
|||||
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Reorganization items, net |
(189.1) |
(4.43) |
|||||
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Vesting of equity compensation |
13.5 |
0.32 |
|||||
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Retention expense |
2.4 |
0.06 |
|||||
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Valuation allowance on federal deferred tax assets |
(36.3) |
(0.85) |
|||||
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Adjusted net loss |
$ |
(60.2) |
$ |
(1.41) |
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Net income for the fourth quarter and the net loss for the year ended December 31, 2016 on a Predecessor basis includes the net loss on fresh start adjustments of $220.5 million and the net gain on restructuring of $540.3 million.
FOURTH QUARTER 2016 HIGHLIGHTS
Fourth quarter 2016 revenues increased 10% sequentially to $155.5 million from $141.6 million in the third quarter of 2016, as improved levels of activity driven by higher oil prices drove our customers to complete more wells and initiate previously deferred maintenance work on existing well bores throughout our footprint. Fourth quarter 2016 revenues decreased 3% from $161.0 million in the fourth quarter of 2015.
For the third quarter of 2016, Basic reported a net loss of $92.1 million, or a loss of $2.16 per basic and diluted share, which included a tax-effected, non-cash charge of $5.9 million, or $0.14 per basic and diluted share pertaining to professional and other fees associated with the Company's Chapter 11 bankruptcy filing and a non-cash charge of $32.8 million, or $0.77 per share, related to a valuation allowance on federal deferred tax assets. Excluding the impact of these special items, Basic reported a net loss of $53.4 million, or a loss of $1.25 per basic and diluted share for the third quarter of 2016. In the fourth quarter of 2015, Basic reported a net loss of $55.2 million, or a loss of $1.36 per basic and diluted share.
"We are pleased to have emerged late last year from of a restructuring and recapitalization process with a solid financial foundation from which we expect to continue to strengthen our business.," said Roe Patterson, Chief Executive Officer. "We are proud of our employees for their hard work and dedication making this a successful process. With steadfast assistance from our customers, vendors and various other stakeholders we were able to navigate the restructuring process smoothly and timely. While no restructuring process is ever a desired outcome for any company, we now have a healthier financial position that will allow us to continue providing our customers with industry-leading expertise and safe, efficient services.
"Without a doubt, 2016 was one of the most challenging years in our industry's history. U.S. land activity continued to decline during most of the year and our revenues fell 32% after having fallen 46% during 2015. However, our fourth quarter results benefitted from the improvement in oil prices and the pick-up in activity, especially in the Permian Basin. Our customers took advantage of this improved environment to restart well maintenance activity and to begin a steady pace of completion activity for new wells.
"Despite the pick-up in activity, fourth quarter margins declined across all product lines because of normal seasonal impacts, reactivation costs of stacked equipment as well as increased headcount and input costs. This situation continued during the first quarter led by the increase in labor rates and the annual reset of payroll taxes. We have been able to pass most of these cost increases through increased pricing, but there is always a degree of lag. This margin pressure has begun to dissipate here at the end of the first quarter. We expect that to continue in the second quarter as pricing and utilization continues to improve. We expect to exit the first quarter with all of our frac horsepower unstacked, positive EBITDA for March and full first quarter revenues that are 13-15% higher sequentially.
"Looking forward, we expect a gradual improvement in pricing and utilization for the remainder of 2017. Customer guidance on capital expenditures looks promising, with gradual improvements in oily basins for all of our service segments. While we are cautiously optimistic about near term activity levels, we expect a measured and even-paced recovery. Headwinds, such as finding experienced labor, still exist and could delay projects. In addition, all customers are keeping a close eye on fluctuating oil prices and have shown the ability to swiftly respond to large corrections."
Adjusted EBITDA declined to ($5.2 million), or (3%) of revenues, for the fourth quarter of 2016 from ($4.7 million), or (3%) of revenues, in the third quarter of 2016. In the fourth quarter of 2015, Basic generated Adjusted EBITDA of ($7.5) million, or (5%) of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), goodwill impairment, retention expenses, restructuring costs, reorganization items, vesting of equity compensation, the loss on customer audit settlements, and the net gain or loss from the disposal of assets. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
FULL YEAR 2016 HIGHLIGHTS
Revenues for Basic Predecessor during 2016 declined 32% to $547.5 million from $805.6 million for 2015.
In 2016, Basic's Predecessor reported a net loss of $123.4 million, or $2.94 per basic and diluted share, compared to a net loss of $241.7 million, or a loss of $5.97 per basic and diluted share in 2015. This includes several special items as noted below.
|
Twelve months ended December 31, 2016 | |||||||
|
(in millions) |
EPS | ||||||
|
Predecessor Special Items (adjusted for tax) |
(Unaudited) | ||||||
|
Net loss, as reported |
$ |
(123.4) |
$ |
(2.94) |
|||
|
Early extinguishment of deferred debt costs |
1.3 |
0.03 |
|||||
|
Restructuring expense |
13.7 |
0.33 |
|||||
|
Reorganization items, net |
(175.0) |
(4.17) |
|||||
|
Vesting of equity compensation |
12.6 |
0.30 |
|||||
|
Retention expense |
4.1 |
0.10 |
|||||
|
Valuation allowance on federal deferred tax assets |
48.3 |
1.15 |
|||||
|
Adjusted net loss |
$ |
(218.4) |
$ |
(5.20) |
|||
This adjusted net loss includes the net loss on fresh start adjustments and gain on restructuring as explained above. Excluding special items in 2015, Basic generated an adjusted net loss of $186.7 million, or a loss of $4.58 per basic and diluted share.
Adjusted EBITDA for 2016 decreased to ($29.2) million, or (5%) of revenues from $24.3 million, or 3% of revenue, for 2015. Adjusted EBITDA excludes the special items discussed above for both 2016 and 2015. Adjusted EBITDA is reconciled in note 2 under the accompanying financial tables.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue increased 20% to $59.2 million in the fourth quarter of 2016 from $49.4 million in the prior quarter. The sequential improvement in revenue for the segment was led by higher activity levels, particularly in the Permian Basin. However, rate traction remained limited due to continued high levels of competition in all basins in the Company's footprint. In the fourth quarter of 2015, this segment generated $58.5 million in revenue.
At December 31, 2016, Basic had approximately 444,000 of total hydraulic horsepower ("HHP"), essentially flat compared to both the end of the previous quarter and as of December 31, 2015. Weighted average HHP for the fourth quarter of 2016 was 444,000, equal to the third quarter of 2016. This includes 358,000 of frac HHP. As of December 31, 2016, 116,595 HHP was stacked, with 55,650 HHP unstacked during the fourth quarter of 2016. The stacked HHP as of December 31 includes 101,000 of stacked frac HHP.
Segment profit in the fourth quarter of 2016 decreased to $8.4 million compared to $9.1 million in the prior quarter. Segment margin for the fourth quarter of 2016 decreased to 14% compared to 18% during the previous quarter, driven by a combination of factors, including seasonal holiday and weather impacts, reactivation costs of stacked HHP of approximately 100 basis points, and higher proppant costs. During the fourth quarter of 2015, segment profit was $8.5 million, or 15% of segment revenue.
Fluid Services
Fluid services revenue in the fourth quarter of 2016 increased 3% to $48.8 million from $47.2 million in the prior quarter. Segment revenues increased driven by a pick-up in activity in trucking operations and disposal utilization mainly in the Permian Basin and the Eagle Ford. During the fourth quarter of 2015, this segment generated $58.5 million in revenue.
The weighted average number of fluid services trucks decreased 2% to 944 during the fourth quarter of 2016, compared to 962 during the third quarter of 2016 and declined 6% compared to 1,002 during the fourth quarter of 2015. Truck hours of 503,200 during the fourth quarter of 2016 represented an improvement of 1% from 499,900 during the third quarter of 2016 and a decrease of 10% compared to 557,000 in the same period in 2015.
The average revenue per fluid service truck increased 5% to $51,600 during the fourth quarter from $49,100 in the third quarter of 2016, as disposal utilization and hot oiling revenues rose with increased trucking activity. In the comparable quarter of 2015, average revenue per fluid truck was $58,300.
Segment profit in the fourth quarter of 2016 decreased to $6.3 million from $7.9 million in the prior quarter. Segment profit margin decreased 380 basis points to 13% due to the impact of holiday periods, rising labor costs and inclement weather in the latter part of the quarter. Segment profit in the same period in 2015 was $12.5 million, or 21% of segment revenue.
Well Servicing
Well servicing revenues increased 4% to $45.1 million during the fourth quarter of 2016 compared to $43.2 million in the prior quarter due to an increase in rig hours and utilization driven by increased workover and plugging activity throughout our geographic footprint. Well servicing revenue was $41.5 million in the fourth quarter of 2015. Revenues from the Taylor manufacturing operations were $1.3 million compared to $380,000 in the third quarter of 2016 and $2.6 million in the fourth quarter of 2015.
At December 31, 2016, the well servicing rig count was 421, the same as of the end of the prior quarter and at December 31, 2015. Rig hours increased 7% to 146,200 in the fourth quarter of 2016, compared to 136,600 in the previous quarter and were up 22% from 119,900 hours in the comparable quarter of last year. Rig utilization was 49% in the fourth quarter of 2016, up from 45% in the prior quarter and from 39% in the fourth quarter of 2015.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $300 in the fourth quarter of 2016, down 4% compared to $313 in the previous quarter and down 7% from $324 reported in the fourth quarter of 2015. The lower rig rate per hour reflects the competitive structure of the Permian Basin where most of the increased activity is taking place.
Segment profit in the fourth quarter of 2016 decreased 24% to $6.1 million compared to $8.1 million in the prior quarter and increased 57% from $3.9 million during the same period in 2015. Segment profit margin fell to 14% in the fourth quarter of 2016 from 19% in the prior quarter. Despite the increased rig hours and utilization, margins declined due to a combination of factors, including weather and holiday impacts, higher labor costs and a continued highly competitive pricing environment. In the fourth quarter of 2015, segment profit was 9% of segment revenue. Segment profit from the Taylor manufacturing operations was a loss of $9,000 in the fourth quarter of 2016 compared to positive margin of $18,000 in the third quarter of 2016.
Contract Drilling
Contract drilling revenue increased 31% to $2.4 million during the fourth quarter of 2016 compared to $1.8 million the prior quarter. During the fourth quarter of 2015, this segment generated $2.6 million in revenue. Basic marketed 12 drilling rigs during the fourth quarter of 2016, the same number of rigs as in the previous quarter as well as in the fourth quarter of 2015. While only one rig was active at the beginning of the fourth quarter of 2016, a second rig was contracted in the middle of the quarter and remained active throughout the remainder of the quarter. Revenue per drilling day in the fourth quarter of 2016 decreased to $17,500 compared to $20,100 in the previous quarter, but up from $16,500 in the fourth quarter of 2015.
Rig operating days during the fourth quarter increased to 139 compared to 92 in the third quarter of 2016, resulting in a rig utilization of 13% and 8% during the fourth and third quarters of 2016, respectively. In the comparable period in 2015, rig operating days were 155, producing a utilization of 14%.
Segment loss in the fourth quarter of 2016 was $40,000 compared to a profit of $164,000 in the prior quarter and a profit of $69,000 in the fourth quarter of 2015. Segment margin for the fourth quarter of 2016 was (2%) of segment revenues compared to 9% in the prior quarter, due to costs associated with redeploying the second rig in the quarter. For the fourth quarter of 2015, segment margin was 3%.
G&A Expense
As reported General and administrative ("G&A") expense was $48.6 million for the fourth quarter of 2016. Net of retention expense and the vesting of predecessor equity compensation discussed above, G&A expense in the fourth quarter of 2016 declined 8% to $27.5 million on an operating basis, or 18% of revenue from $30.1 million, or 21% of revenue, in the prior quarter. G&A expense in the fourth quarter of 2015 was $32.6 million, or 20% of revenue. The 16% decrease in G&A expense from last year's fourth quarter was primarily the result of headcount reductions, lower incentive compensation and other cost savings initiatives implemented during 2016.
Tax Benefit
Basic had no tax expense for the fourth quarter of 2016, compared to tax expense of $1,000 in the third quarter of 2016. Excluding the impact of valuation allowance as discussed above, Basic's operating effective tax benefit for the fourth quarter of 2016 was $29.4 million compared to an operating effective tax benefit of $28.3 million in the third quarter of 2016. The fourth quarter of 2016 represents an operating effective tax benefit rate of 28%, compared to 35% in the prior quarter. The adjusted effective tax benefit of $29.8 million in the fourth quarter of 2015 translated into an effective tax benefit rate of 35%.
Cash and Total Liquidity
On December 31, 2016, Basic Successor had cash and cash equivalents of approximately $98.9 million, up from $34.3 million at September 30, 2016 and $46.7 million on December 31, 2015. This amount includes proceeds from the $125 million rights offering on December 23, 2016, less payments of DIP financing and Chapter 11 restructuring costs.
At December 31, 2016, total liquidity was approximately $122.3 million, which included $23.4 million of availability under Basic's amended and restated $75 million revolving credit facility.
Capital Expenditures
Total capital expenditures during 2016 were approximately $38.3 million (including capital leases of $5.6 million), comprised of $5.0 million for expansion projects, $29.6 million for sustaining and replacement projects and $3.7 million for other projects. Expansion capital spending included $2.9 million for the completion and remedial services segment, $1.1 million for the fluid services segment, and $904,000 for the well servicing segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates 2017 maintenance capital expenditures to be $70.0 million, including $30.0 million of capital leases. In addition, we have committed expansion capital expenditures of $45 million in 2017. This includes $43.0 million for completion and remedial services and $2.0 million for the well servicing segment.
Basic will host a conference call to discuss its fourth quarter 2016 results on Friday, March 24, 2017, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until April 7, 2017 and may be accessed by calling (201) 612-7415 and using pass code 13654038#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 3,800 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2015 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.
-Tables to Follow-
|
Basic Energy Services, Inc. | |||||||||||||
|
Consolidated Statements of Operations and Other Financial Data | |||||||||||||
|
(in thousands, except per share amounts) | |||||||||||||
|
Three months ended December 31, |
Twelve months ended December 31, | ||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||
|
(Unaudited) |
(Unaudited) |
||||||||||||
|
Income Statement Data: |
|||||||||||||
|
Revenues: |
|||||||||||||
|
Completion and remedial services |
$ |
59,218 |
$ |
58,479 |
$ |
184,567 |
$ |
307,550 |
|||||
|
Fluid services |
48,806 |
58,460 |
191,725 |
258,597 |
|||||||||
|
Well servicing |
45,075 |
41,544 |
163,966 |
217,245 |
|||||||||
|
Contract drilling |
2,427 |
2,552 |
7,239 |
22,207 |
|||||||||
|
Total revenues |
155,526 |
161,035 |
547,497 |
805,599 |
|||||||||
|
Expenses: |
|||||||||||||
|
Completion and remedial services |
50,820 |
49,983 |
158,762 |
245,069 |
|||||||||
|
Fluid services |
42,485 |
45,938 |
161,535 |
196,155 |
|||||||||
|
Well servicing |
38,929 |
37,638 |
140,274 |
184,952 |
|||||||||
|
Contract drilling |
2,467 |
2,477 |
7,079 |
16,680 |
|||||||||
|
General and administrative (1) |
48,627 |
32,603 |
135,331 |
143,458 |
|||||||||
|
Depreciation and amortization |
54,064 |
59,983 |
218,205 |
241,471 |
|||||||||
|
Restructuring costs |
10,273 |
— |
20,743 |
— |
|||||||||
|
(Gain) loss on disposal of assets |
881 |
483 |
1,014 |
1,602 |
|||||||||
|
Goodwill impairment |
— |
— |
646 |
81,877 |
|||||||||
|
Total expenses |
248,546 |
229,105 |
843,589 |
1,111,264 |
|||||||||
|
Operating loss |
(93,020) |
(68,070) |
(296,092) |
(305,665) |
|||||||||
|
Other income (expense): |
|||||||||||||
|
Reorganization items, net |
264,306 |
- |
264,306 |
- |
|||||||||
|
Interest expense |
(29,437) |
(17,018) |
(96,625) |
(67,964) |
|||||||||
|
Interest income |
3 |
9 |
26 |
26 |
|||||||||
|
Bargain purchase gain on acquisition |
— |
— |
662 |
— |
|||||||||
|
Other income |
89 |
79 |
467 |
528 |
|||||||||
|
Loss before income taxes |
141,941 |
(85,000) |
(127,256) |
(373,075) |
|||||||||
|
Income tax benefit (expense) |
— |
29,816 |
3,883 |
131,330 |
|||||||||
|
Net loss |
$ |
141,941 |
$ |
(55,184) |
$ |
(123,373) |
$ |
(241,745) |
|||||
|
Loss per share of common stock: |
|||||||||||||
|
Basic |
$ |
3.32 |
$ |
(1.36) |
$ |
(2.94) |
$ |
(5.97) |
|||||
|
Diluted |
$ |
3.15 |
$ |
(1.36) |
$ |
(2.94) |
$ |
(5.97) |
|||||
|
Other Financial Data: |
|||||||||||||
|
EBITDA (2) |
$ |
225,442 |
$ |
(8,008) |
$ |
187,574 |
$ |
(63,666) |
|||||
|
Adjusted EBITDA (2) |
(5,234) |
(7,525) |
(29,153) |
24,313 |
|||||||||
|
Capital expenditures: |
|||||||||||||
|
Acquisitions, net of cash acquired |
— |
— |
— |
7,914 |
|||||||||
|
Property and equipment |
— |
10,283 |
— |
38,340 |
|||||||||
|
As of |
|||||||||||||
|
December 31,
|
|||||||||||||
|
2016 |
2015 |
||||||||||||
|
Successor |
Predecessor |
||||||||||||
|
(Unaudited) |
|||||||||||||
|
Balance Sheet Data: |
|||||||||||||
|
Cash and cash equivalents |
$ |
98,875 |
$ |
46,732 |
|||||||||
|
Net property and equipment |
488,848 |
846,290 |
|||||||||||
|
Total assets |
768,160 |
1,161,369 |
|||||||||||
|
Total long-term debt |
184,752 |
838,368 |
|||||||||||
|
Total stockholders' equity |
414,408 |
106,338 |
|||||||||||
|
Three months ended December 31, |
Twelve months ended December 31, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Segment Data: |
(Unaudited) |
(Unaudited) | ||||||||||||||
|
Completion and Remedial Services |
||||||||||||||||
|
Segment Profits as a percent of revenue |
14% |
15% |
14% |
20% | ||||||||||||
|
Fluid Services |
||||||||||||||||
|
Weighted average number of fluid service trucks |
944 |
1,002 |
966 |
1,018 | ||||||||||||
|
Truck hours (000's) |
503.2 |
557.0 |
1,999.0 |
2,291.2 | ||||||||||||
|
Revenue per fluid services truck (000's) |
$ |
52 |
$ |
58 |
$ |
199 |
$ |
254 | ||||||||
|
Segment profits per fluid services truck (000's) |
$ |
7 |
$ |
12 |
$ |
31 |
$ |
61 | ||||||||
|
Segment profits as a percent of revenue |
13% |
21% |
16% |
24% | ||||||||||||
|
Well Servicing |
||||||||||||||||
|
Weighted average number of rigs |
421 |
421 |
421 |
421 | ||||||||||||
|
Rig hours (000's) |
146.2 |
120.0 |
504.9 |
592.7 | ||||||||||||
|
Rig utilization rate |
49% |
39% |
42% |
49% | ||||||||||||
|
Revenue per rig hour, excluding manufacturing |
$ |
300 |
$ |
324 |
$ |
310 |
$ |
348 | ||||||||
|
Well servicing rig profit per rig hour |
$ |
43 |
$ |
33 |
$ |
47 |
$ |
54 | ||||||||
|
Segment profits as a percent of revenue |
14% |
9% |
14% |
15% | ||||||||||||
|
Contact Drilling |
||||||||||||||||
|
Weighted average number of rigs |
12 |
12 |
12 |
12 | ||||||||||||
|
Rig operating days |
139 |
155 |
413 |
1361 | ||||||||||||
|
Revenue per day |
$ |
17,500 |
$ |
16,500 |
$ |
17,500 |
$ |
16,300 | ||||||||
|
Drilling rig profit per day |
$ |
800 |
$ |
400 |
$ |
800 |
$ |
4,000 | ||||||||
|
Segment profits as a percent of revenue |
(2)% |
3% |
2% |
25% | ||||||||||||
|
(1) |
Includes approximately $10,189,000 and $3,632,000 of non-cash compensation expense for the three months ended December 31, 2016 and 2015, respectively, and $18,041,000 and $16,922,000 for the twelve months ended December 31, 2016 and 2015 respectively. |
|
(2) |
This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, loss on customer audit settlements, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: |
|
• |
The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; |
|
• |
The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and |
|
• |
Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. |
|
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: | |
|
• |
EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; |
|
• |
EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; |
|
• |
EBITDA does not reflect income taxes; |
|
• |
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and |
|
• |
Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. |
|
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: | |
|
• |
Adjusted EBITDA does not reflect Basic's goodwill impairment; |
|
• |
Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; |
|
• |
Adjusted EBITDA does not reflect Basic's retention expense; |
|
• |
Adjusted EBITDA does not reflect Basic's restructuring costs; |
|
• |
Adjusted EBITDA does not reflect Basic's reorganization items, net; |
|
• |
Adjusted EBITDA does not reflect Basic's vesting of equity compensation; |
|
• |
Adjusted EBITDA does not reflect Basic's loss on customer audit settlements; and |
|
• |
Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. |
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended December 31, |
Twelve months ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Reconciliation of Net Income (Loss) to EBITDA: |
|||||||||||||||
|
Net income / (loss) |
$ |
141,941 |
$ |
(55,184) |
$ |
(123,373) |
$ |
(241,745) |
|||||||
|
Income taxes |
— |
(29,816) |
(3,883) |
(131,330) |
|||||||||||
|
Net interest expense |
29,437 |
17,009 |
96,625 |
67,938 |
|||||||||||
|
Depreciation and amortization |
54,064 |
59,983 |
218,205 |
241,471 |
|||||||||||
|
EBITDA |
$ |
225,442 |
$ |
(8,008) |
$ |
187,574 |
$ |
(63,666) |
|||||||
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, and loss on customer audit settlements:
|
Three months ended December 31, |
Twelve months ended December 31, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA: |
|||||||||||||||
|
Net income / (loss) |
$ |
141,941 |
$ |
(55,184) |
$ |
(123,373) |
$ |
(241,745) |
|||||||
|
Income taxes |
— |
(29,816) |
(3,883) |
(131,330) |
|||||||||||
|
Net interest expense |
29,437 |
17,009 |
96,625 |
67,938 |
|||||||||||
|
Depreciation and amortization |
54,064 |
59,983 |
218,205 |
241,471 |
|||||||||||
|
Goodwill Impairment |
— |
— |
646 |
81,877 |
|||||||||||
|
(Gain) loss on disposal of assets |
881 |
483 |
1,014 |
1,602 |
|||||||||||
|
Retention expense |
3,561 |
— |
6,261 |
— |
|||||||||||
|
Restructuring costs |
10,273 |
— |
20,743 |
— |
|||||||||||
|
Reorganization items, net |
(264,306) |
— |
(264,306) |
— |
|||||||||||
|
Vesting of equity compensation |
18,915 |
— |
18,915 |
— |
|||||||||||
|
Loss on customer audit settlement |
— |
— |
— |
4,500 |
|||||||||||
|
Adjusted EBITDA |
$ |
(5,234) |
$ |
(7,525) |
$ |
(29,153) |
$ |
24,313 |
|||||||
|
Contacts: |
Alan Krenek, |
|
Chief Financial Officer | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard ▪ Lascar Associates | |
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713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
3/31/2017Basic Energy Services Reports Fourth Quarter And Full Year 2016 Results
Source: PR Newswire
FORT WORTH, Texas, March 23, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the fourth quarter and twelve months ended December 31, 2016.
Basic emerged from its Chapter 11 bankruptcy pursuant to a prepackaged plan of reorganization on December 23, 2016. Upon emergence from the Chapter 11 bankruptcy, the Company adopted fresh start accounting, which results in Basic becoming a new entity for accounting and financial reporting purposes upon emergence. Basic evaluated events between December 23 and December 31, 2016 and concluded that the use of an accounting convenience date of December 31, 2016 did not have a material impact on Basic's results of operations or financial position. As such, the application of fresh start accounting was reflected in its consolidated balance sheet as of December 31, 2016 and all fresh start accounting adjustments were included in its consolidated statement of operations for the year ended December 31, 2016. References to the Basic "Predecessor" relate to the financial position of Basic as of and prior to December 31, 2016 and the results of operations through December 31, 2016; and references to the "Successor" relate to the financial position of Basic on or prior to December 31, 2016. Due to these adjustments, the financial statements as of December 31, 2016 are not comparable with information provided for prior periods.
For the fourth quarter of 2016, the Basic Predecessor reported a net loss of $152.8 million, or a loss of $3.58 per basic and diluted share. Excluding the special items as noted below, fourth quarter net loss was $50.6 million, or a loss of $1.18 per basic and diluted share.
|
Three months ended | |||||
|
2016 |
EPS | ||||
|
Predecessor Special Items (adjusted for tax) |
(Unaudited) | ||||
|
Net loss, as reported |
$ |
(152.8) |
$ |
(3.58) | |
|
Restructuring expense |
44.4 |
1.04 | |||
|
Vesting of Predecessor equity compensation |
6.1 |
0.14 | |||
|
Retention expense |
2.4 |
0.06 | |||
|
Valuation allowance on federal deferred tax assets |
49.3 |
1.16 | |||
|
Adjusted net loss |
$ |
(50.6) |
$ |
(1.18) | |
Net loss for the fourth quarter and for the year ended December 31, 2016 on a Predecessor basis does not include the fresh start accounting fixed asset adjustment of $181.9 million or the net gain on restructuring of $274.9 million. These items are considered a part of Basic's successor entity and are included in equity in the balance sheet for December 31, 2016.
FOURTH QUARTER 2016 HIGHLIGHTS
Fourth quarter 2016 revenues increased 10% sequentially to $155.5 million from $141.6 million in the third quarter of 2016, as improved levels of activity driven by higher oil prices drove our customers to complete more wells and initiate previously deferred maintenance work on existing well bores throughout our footprint. Fourth quarter 2016 revenues decreased 3% from $161.0 million in the fourth quarter of 2015.
For the third quarter of 2016, Basic reported a net loss of $92.1 million, or a loss of $2.16 per basic and diluted share, which included a tax-effected, non-cash charge of $5.9 million, or $0.14 per basic and diluted share pertaining to professional and other fees associated with the Company's Chapter 11 bankruptcy filing and a non-cash charge of $32.8 million, or $0.77 per share, related to a valuation allowance on federal deferred tax assets. Excluding the impact of these special items, Basic reported a net loss of $53.4 million, or a loss of $1.25 per basic and diluted share for the third quarter of 2016. In the fourth quarter of 2015, Basic reported a net loss of $55.2 million, or a loss of $1.36 per basic and diluted share.
"We are pleased to have emerged late last year from of a restructuring and recapitalization process with a solid financial foundation from which we expect to continue to strengthen our business," said Roe Patterson, Chief Executive Officer. "We are proud of our employees for their hard work and dedication in making this a successful process. With steadfast assistance from our customers, vendors and various other stakeholders we were able to navigate the restructuring process smoothly and timely. While no restructuring process is ever a desired outcome for any company, we now have a healthier financial position that will allow us to continue providing our customers with industry-leading expertise and safe, efficient services.
"Without a doubt, 2016 was one of the most challenging years in our industry's history. U.S. land activity continued to decline during most of the year and our revenues fell 32% after having fallen 46% during 2015. However, our fourth quarter results benefitted from the improvement in oil prices and the pick-up in activity, especially in the Permian Basin. Our customers took advantage of this improved environment to restart well maintenance activity and to begin a steady pace of completion activity for new wells.
"Despite the pick-up in activity, fourth quarter margins declined across all product lines because of normal seasonal impacts, reactivation costs of stacked equipment as well as increased headcount and input costs. This situation continued during the first quarter led by the increase in labor rates and the annual reset of payroll taxes. We have been able to pass most of these cost increases through increased pricing, but there is always a degree of lag. This margin pressure has begun to dissipate here at the end of the first quarter and we expect that to continue in the second quarter as pricing and utilization continues to improve. We expect to exit the first quarter with all of our frac horsepower unstacked, generate positive EBITDA for March and deliver full first quarter revenues that are 13-15% higher sequentially.
"Looking forward, we expect a gradual improvement in pricing and utilization for the remainder of 2017. Customer guidance on capital expenditures looks promising, with gradual improvements in oily basins for all of our service segments. While we are cautiously optimistic about near term activity levels, we expect a measured and even-paced recovery. Headwinds, such as finding experienced labor, still exist and could delay projects. In additional, all customers are keeping a close eye on fluctuating oil prices and have shown the ability to swiftly respond to large corrections."
Adjusted EBITDA declined to ($5.2 million), or (3%) of revenues, for the fourth quarter of 2016 from ($4.7 million), or (3%) of revenues, in the third quarter of 2016. In the fourth quarter of 2015, Basic generated Adjusted EBITDA of ($7.5) million, or (5%) of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), goodwill impairment, retention expenses, restructuring costs, vesting of predecessor equity compensation, the loss on customer audit settlements, and the net gain or loss from the disposal of assets. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
FULL YEAR 2016 HIGHLIGHTS
Revenues for Basic Predecessor during 2016 declined 32% to $547.5 million from $805.6 million for 2015.
In 2016, Basic's Predecessor reported a net loss of $418.1 million, or $9.97 per basic and diluted share, compared to a net loss of $241.7 million, or a loss of $5.97 per basic and diluted share in 2015. This includes several special items as noted below.
|
Twelve months ended | |||||
|
2016 |
EPS | ||||
|
Predecessor Special Items (adjusted for tax) |
(Unaudited) | ||||
|
Net loss, as reported |
$ |
(418.1) |
$ |
(9.96) | |
|
Early extinguishment of deferred debt costs |
1.3 |
0.03 | |||
|
Restructuring expense |
47.9 |
1.14 | |||
|
Vesting of predecessor equity compensation |
5.6 |
0.13 | |||
|
Retention expense |
4.0 |
0.10 | |||
|
Valuation allowance on federal deferred tax assets |
152.4 |
3.64 | |||
|
Adjusted net loss |
$ |
(206.9) |
$ |
(4.92) | |
This adjusted net loss does not include the fresh start fixed asset adjustment or gain on restructuring as explained above. Excluding special items in 2015, Basic generated an adjusted net loss of $186.7 million, or a loss of $4.58 per basic and diluted share.
Adjusted EBITDA for 2016 decreased to ($29.2) million, or (5%) of revenues from $24.3 million, or 3% of revenue, for 2015. Adjusted EBITDA excludes the special items discussed above for both 2016 and 2015. Adjusted EBITDA is reconciled in note 2 under the accompanying financial tables.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue increased 20% to $59.2 million in the fourth quarter of 2016 from $49.4 million in the prior quarter. The sequential improvement in revenue for the segment was led by higher activity levels, particularly in the Permian Basin. However, rate traction remained limited due to continued high levels of competition in all basins in the Company's footprint. In the fourth quarter of 2015, this segment generated $58.5 million in revenue.
At December 31, 2016, Basic had approximately 444,000 of total hydraulic horsepower ("HHP"), essentially flat compared to both the end of the previous quarter and as of December 31, 2015. Weighted average HHP for the fourth quarter of 2016 was 444,000, equal to the third quarter of 2016. This includes 358,000 of frac HHP. As of December 31, 2016, 116,595 HHP was stacked, with 55,650 HHP unstacked during the fourth quarter of 2016. The stacked HHP as of December 31 includes 101,000 of stacked frac HHP.
Segment profit in the fourth quarter of 2016 decreased to $8.4 million compared to $9.1 million in the prior quarter. Segment margin for the fourth quarter of 2016 decreased to 14% compared to 18% during the previous quarter, driven by a combination of factors, including seasonal holiday and weather impacts, reactivation costs of stacked HHP of approximately 100 basis points, and higher proppant costs. During the fourth quarter of 2015, segment profit was $8.5 million, or 15% of segment revenue.
Fluid Services
Fluid services revenue in the fourth quarter of 2016 increased 3% to $48.8 million from $47.2 million in the prior quarter. Segment revenues increased driven by a pick-up in activity in trucking operations and disposal utilization mainly in the Permian Basin and the Eagle Ford. During the fourth quarter of 2015, this segment generated $58.5 million in revenue.
The weighted average number of fluid services trucks decreased 2% to 944 during the fourth quarter of 2016, compared to 962 during the third quarter of 2016 and declined 6% compared to 1,002 during the fourth quarter of 2015. Truck hours of 503,200 during the fourth quarter of 2016 represented an improvement of 1% from 499,900 during the third quarter of 2016 and a decrease of 10% compared to 557,000 in the same period in 2015.
The average revenue per fluid service truck increased 5% to $51,600 during the fourth quarter from $49,100 in the third quarter of 2016, as disposal utilization and hot oiling revenues rose with increased trucking activity. In the comparable quarter of 2015, average revenue per fluid truck was $58,300.
Segment profit in the fourth quarter of 2016 decreased to $6.3 million from $7.9 million in the prior quarter. Segment profit margin decreased 380 basis points to 13% due to the impact of holiday periods, rising labor costs and inclement weather in the latter part of the quarter. Segment profit in the same period in 2015 was $12.5 million, or 21% of segment revenue.
Well Servicing
Well servicing revenues increased 4% to $45.1 million during the fourth quarter of 2016 compared to $43.2 million in the prior quarter due to an increase in rig hours and utilization driven by increased workover and plugging activity throughout our geographic footprint. Well servicing revenue was $41.5 million in the fourth quarter of 2015. Revenues from the Taylor manufacturing operations were $1.3 million compared to $380,000 in the third quarter of 2016 and $2.6 million in the fourth quarter of 2015.
At December 31, 2016, the well servicing rig count was 421, the same as of the end of the prior quarter and at December 31, 2015. Rig hours increased 7% to 146,200 in the fourth quarter of 2016, compared to 136,600 in the previous quarter and were up 22% from 119,900 hours in the comparable quarter of last year. Rig utilization was 49% in the fourth quarter of 2016, up from 45% in the prior quarter and from 39% in the fourth quarter of 2015.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $300 in the fourth quarter of 2016, down 4% compared to $313 in the previous quarter and down 7% from $324 reported in the fourth quarter of 2015. The lower rig rate per hour reflects the competitive structure of the Permian Basin where most of the increased activity is taking place.
Segment profit in the fourth quarter of 2016 decreased 24% to $6.1 million compared to $8.1 million in the prior quarter and increased 57% from $3.9 million during the same period in 2015. Segment profit margin fell to 14% in the fourth quarter of 2016 from 19% in the prior quarter. Despite the increased rig hours and utilization, margins declined due to a combination of factors, including weather and holiday impacts, higher labor costs and a continued highly competitive pricing environment. In the fourth quarter of 2015, segment profit was 9% of segment revenue. Segment profit from the Taylor manufacturing operations was a loss of $9,000 in the fourth quarter of 2016 compared to positive margin of $18,000 in the third quarter of 2016.
Contract Drilling
Contract drilling revenue increased 31% to $2.4 million during the fourth quarter of 2016 compared to $1.8 million the prior quarter. During the fourth quarter of 2015, this segment generated $2.6 million in revenue. Basic marketed 12 drilling rigs during the fourth quarter of 2016, the same number of rigs as in the previous quarter as well as in the fourth quarter of 2015. While only one rig was active at the beginning of the fourth quarter of 2016, a second rig was contracted in the middle of the quarter and remained active throughout the remainder of the quarter. Revenue per drilling day in the fourth quarter of 2016 decreased to $17,500 compared to $20,100 in the previous quarter, but up from $16,500 in the fourth quarter of 2015.
Rig operating days during the fourth quarter increased to 139 compared to 92 in the third quarter of 2016, resulting in a rig utilization of 13% and 8% during the fourth and third quarters of 2016, respectively. In the comparable period in 2015, rig operating days were 155, producing a utilization of 14%.
Segment loss in the fourth quarter of 2016 was $40,000 compared to a profit of $164,000 in the prior quarter and a profit of $69,000 in the fourth quarter of 2015. Segment margin for the fourth quarter of 2016 was (2%) of segment revenues compared to 9% in the prior quarter, due to costs associated with redeploying the second rig in the quarter. For the fourth quarter of 2015, segment margin was 3%.
G&A Expense
As reported General and administrative ("G&A") expense was $38.5 million for the fourth quarter of 2016. Net of retention expense and the vesting of predecessor equity compensation discussed above, G&A expense in the fourth quarter of 2016 declined 13% to $26.1 million on an operating basis, or 17% of revenue from $30.1 million, or 21% of revenue, in the prior quarter. G&A expense in the fourth quarter of 2015 was $32.6 million, or 20% of revenue. The 20% decrease in G&A expense from last year's fourth quarter was primarily the result of headcount reductions, lower incentive compensation and other cost savings initiatives implemented during 2016.
Tax Benefit
Basic had no tax expense for the fourth quarter of 2016, compared to tax expense of $1,000 in the third quarter of 2016. Excluding the impact of valuation allowance as discussed above, Basic's operating effective tax benefit for the fourth quarter of 2016 was $24.9 million compared to an operating effective tax benefit of $28.3 million in the third quarter of 2016. The fourth quarter of 2016 represents an operating effective tax benefit rate of 32%, compared to 35% in the prior quarter. The adjusted effective tax benefit of $29.8 million in the fourth quarter of 2015 translated into an effective tax benefit rate of 35%.
Cash and Total Liquidity
On December 31, 2016, Basic had cash and cash equivalents of approximately $98.9 million, up from $34.3 million at September 30, 2016 and $46.7 million on December 31, 2015. This amount includes proceeds from the $125 million rights offering on December 23, 2016, less payments of DIP financing and Chapter 11 restructuring costs.
At December 31, 2016, total liquidity was approximately $122.3 million, which included $23.4 million of availability under Basic's amended and restated $75 million revolving credit facility.
Capital Expenditures
Total capital expenditures during 2016 were approximately $38.3 million (including capital leases of $5.6 million), comprised of $5.0 million for expansion projects, $29.6 million for sustaining and replacement projects and $3.7 million for other projects. Expansion capital spending included $2.9 million for the completion and remedial services segment, $1.1 million for the fluid services segment, and $904,000 for the well servicing segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates 2017 maintenance capital expenditures to be $70.0 million, including $30.0 million of capital leases. In addition, we have committed expansion capital expenditures of $45 million in 2017. This includes $43.0 million for completion and remedial services and $2.0 million for the well servicing segment.
Conference Call
Basic will host a conference call to discuss its fourth quarter 2016 results on Friday, March 24, 2017, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until April 7, 2017 and may be accessed by calling (201) 612-7415 and using pass code 13654038#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 3,800 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2015 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.
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Contacts: |
Alan Krenek, | |
|
Chief Financial Officer | ||
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Basic Energy Services, Inc. | ||
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817-334-4100 | ||
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Jack Lascar | ||
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Dennard ▪ Lascar Associates | ||
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713-529-6600 |
-Tables to Follow-
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Basic Energy Services, Inc. |
||||||||||||||
|
Consolidated Statements of Operations and Other Financial Data |
||||||||||||||
|
(in thousands, except per share amounts) |
||||||||||||||
|
Three months ended December 31, |
Twelve months ended December 31, |
|||||||||||||
|
2016 |
2015 |
2016 |
2015 |
|||||||||||
|
Income Statement Data: |
(Unaudited) |
(Unaudited) |
||||||||||||
|
Revenues: |
||||||||||||||
|
Completion and remedial services |
$ |
59,218 |
$ |
58,479 |
$ |
184,567 |
$ |
307,550 |
||||||
|
Fluid services |
48,806 |
58,460 |
191,725 |
258,597 |
||||||||||
|
Well servicing |
45,075 |
41,544 |
163,966 |
217,245 |
||||||||||
|
Contract drilling |
2,427 |
2,552 |
7,239 |
22,207 |
||||||||||
|
Total revenues |
155,526 |
161,035 |
547,497 |
805,599 |
||||||||||
|
Expenses: |
||||||||||||||
|
Completion and remedial services |
50,820 |
49,983 |
158,762 |
245,069 |
||||||||||
|
Fluid services |
42,485 |
45,938 |
161,535 |
196,155 |
||||||||||
|
Well servicing |
38,929 |
37,638 |
140,274 |
184,952 |
||||||||||
|
Contract drilling |
2,467 |
2,477 |
7,079 |
16,680 |
||||||||||
|
General and administrative (1) |
38,549 |
32,603 |
125,253 |
143,458 |
||||||||||
|
Depreciation and amortization |
49,152 |
59,983 |
213,293 |
241,471 |
||||||||||
|
Restructuring costs |
64,882 |
- |
75,352 |
- |
||||||||||
|
(Gain) loss on disposal of assets |
881 |
483 |
1,014 |
1,602 |
||||||||||
|
Goodwill impairment |
- |
- |
646 |
81,877 |
||||||||||
|
Total expenses |
288,165 |
229,105 |
883,208 |
1,111,264 |
||||||||||
|
Operating loss |
(132,639) |
(68,070) |
(335,711) |
(305,665) |
||||||||||
|
Other income (expense): |
||||||||||||||
|
Interest expense |
(20,273) |
(17,018) |
(87,461) |
(67,964) |
||||||||||
|
Interest income |
3 |
9 |
26 |
26 |
||||||||||
|
Bargain purchase gain on acquisition |
- |
- |
662 |
- |
||||||||||
|
Other income |
89 |
79 |
467 |
528 |
||||||||||
|
Loss before income taxes |
(152,820) |
(85,000) |
(422,017) |
(373,075) |
||||||||||
|
Income tax benefit (expense) |
- |
29,816 |
3,883 |
131,330 |
||||||||||
|
Net loss |
$ |
(152,820) |
$ |
(55,184) |
$ |
(418,134) |
$ |
(241,745) |
||||||
|
Loss per share of common stock: |
||||||||||||||
|
Basic |
$ |
(3.58) |
$ |
(1.36) |
$ |
(9.96) |
$ |
(5.97) |
||||||
|
Diluted |
$ |
(3.58) |
$ |
(1.36) |
$ |
(9.96) |
$ |
(5.97) |
||||||
|
Other Financial Data: |
||||||||||||||
|
EBITDA (2) |
$ |
(83,395) |
$ |
(8,008) |
$ |
(121,263) |
$ |
(63,666) |
||||||
|
Adjusted EBITDA (2) |
(5,234) |
(7,525) |
(29,153) |
24,313 |
||||||||||
|
Capital expenditures: |
||||||||||||||
|
Acquisitions, net of cash acquired |
- |
- |
- |
7,914 |
||||||||||
|
Property and equipment |
10,283 |
6,580 |
38,340 |
53,868 |
||||||||||
|
As of |
||||||||||||||
|
December 31, 2016 Successor |
December 31, 2015 Predecessor |
|||||||||||||
|
(Unaudited) |
||||||||||||||
|
Balance Sheet Data: |
||||||||||||||
|
Cash and cash equivalents |
$ |
98,875 |
$ |
46,732 |
||||||||||
|
Net property and equipment |
488,848 |
846,290 |
||||||||||||
|
Total assets |
768,154 |
1,161,369 |
||||||||||||
|
Total long-term debt |
184,751 |
838,368 |
||||||||||||
|
Total stockholders' equity |
414,408 |
106,338 |
||||||||||||
|
Three months ended |
Twelve months ended | ||||||
|
2016 |
2015 |
2016 |
2015 | ||||
|
Segment Data: |
(Unaudited) |
(Unaudited) | |||||
|
Completion and Remedial Services |
|||||||
|
Segment Profits as a percent of revenue |
16% |
15% |
14% |
20% | |||
|
Fluid Services |
|||||||
|
Weighted average number of fluid service trucks |
944 |
1,002 |
966 |
1,018 | |||
|
Truck hours (000's) |
503.2 |
557.0 |
1999.0 |
2,291.2 | |||
|
Revenue per fluid services truck (000's) |
$ 52 |
58 |
199 |
254 | |||
|
Segment profits per fluid services truck (000's) |
$ 7 |
12 |
31 |
61 | |||
|
Segment profits as a percent of revenue |
13% |
21% |
16% |
24% | |||
|
Well Servicing |
|||||||
|
Weighted average number of rigs |
421 |
421 |
421 |
421 | |||
|
Rig hours (000's) |
146.2 |
120.0 |
504.9 |
592.7 | |||
|
Rig utilization rate |
49% |
39% |
42% |
49% | |||
|
Revenue per rig hour, excluding manufacturing |
$ 300 |
324 |
310 |
348 | |||
|
Well servicing rig profit per rig hour |
$ 43 |
33 |
47 |
54 | |||
|
Segment profits as a percent of revenue |
14% |
9% |
15% |
15% | |||
|
Contact Drilling |
|||||||
|
Weighted average number of rigs |
12 |
12 |
12 |
12 | |||
|
Rig operating days |
139 |
155 |
413 |
1361 | |||
|
Revenue per day |
$ 17,500 |
16,500 |
17,500 |
16,300 | |||
|
Drilling rig profit per day |
$ 800 |
400 |
800 |
4,000 | |||
|
Segment profits as a percent of revenue |
5% |
3% |
4% |
25% | |||
|
(1) |
Includes approximately $10,189,000 and $3,632,000 of non-cash compensation expense for the three months ended December 31, 2016 and 2015, respectively, and $18,041,000 and $16,922,000 for the twelve months ended December 31, 2016 and 2015 respectively. |
|
(2) |
This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, loss on customer audit settlements, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: |
|
• |
The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; |
|
• |
The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and |
|
• |
Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. |
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include:
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include:
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended December 31, |
Twelve months ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Reconciliation of Net Income (Loss) to EBITDA: |
(Unaudited) |
(Unaudited) | |||||||||
|
Net income / (loss) |
$ |
(152,820) |
$ |
(55,184) |
$ |
(418,134) |
$ |
(241,745) | |||
|
Income taxes |
- |
(29,816) |
(3,883) |
(131,330) | |||||||
|
Net interest expense |
20,273 |
17,009 |
87,461 |
67,938 | |||||||
|
Depreciation and amortization |
49,152 |
59,983 |
213,293 |
241,471 | |||||||
|
EBITDA |
$ |
(83,395) |
$ |
(8,008) |
$ |
(121,263) |
$ |
(63,666) | |||
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, goodwill impairment, retention expense, restructuring costs, vesting of predecessor equity compensation, and loss on customer audit settlements:
|
Three months ended December 31, |
Twelve months ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA: |
(Unaudited) |
(Unaudited) | |||||||||
|
Net income / (loss) |
$ |
(152,820) |
$ |
(55,184) |
$ |
(418,134) |
$ |
(241,745) | |||
|
Income taxes |
- |
(29,816) |
(3,883) |
(131,330) | |||||||
|
Net interest expense |
20,273 |
17,009 |
87,461 |
67,938 | |||||||
|
Depreciation and amortization |
49,152 |
59,983 |
213,293 |
241,471 | |||||||
|
Goodwill impairment |
- |
- |
646 |
81,877 | |||||||
|
(Gain) loss on disposal of assets |
881 |
483 |
1,014 |
1,602 | |||||||
|
Retention expense |
3,561 |
- |
6,261 |
- | |||||||
|
Restructuring costs |
64,882 |
- |
75,352 |
- | |||||||
|
Vesting of equity compensation |
8,837 |
- |
8,837 |
- | |||||||
|
Loss on customer audit settlement |
- |
- |
- |
4,500 | |||||||
|
Adjusted EBITDA |
$ |
(5,234) |
$ |
(7,525) |
$ |
(29,153) |
$ |
24,313 | |||
SOURCE Basic Energy Services, Inc.
Article Date
3/24/2017Basic Energy Services to Present at the Raymond James & Associates' 38th Annual Institutional Investors Conference
Source: PR Newswire
FORT WORTH, Texas, March 2, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Raymond James & Associates' 38th Annual Institutional Investors Conference to be held in Orlando, FL on March 7, 2017.
Alan Krenek, Senior Vice President and Chief Financial Officer, is scheduled to present on Tuesday, March 7, 2017, at approximately 4:35 p.m. Eastern Time (3:35 p.m. Central Time). The link to the live webcast will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. The accompanying slides will also be available the morning of the presentation in the Investor Relations section of the website.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,800 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
Safe Harbor Statement
Statements made in this press release and in the presentations may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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 | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
3/2/2017Basic Energy Services Adds 74,000 Hydraulic Horsepower Of Pressure Pumping Equipment
Source: PR Newswire
FORT WORTH, Texas, Feb. 27, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today that it has signed an agreement to purchase 74,000 hydraulic horsepower (hhp) to be used in two frac spreads. The total all-in cost of the 74,000 hhp and additional associated equipment is approximately $28.5 million, or under $400 per hhp. The purchase will be paid for by using a combination of cash and capital leases. It is anticipated that this equipment will be ready to be deployed during the month of May. With this purchase, Basic's total frac hhp will be 431,650 and total hhp will be 517,445.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "We have seen an increase in frac activity in our Permian Basin and Mid-Continent operating areas and expect to have all of our remaining stacked fleet activated by the end of March. Since the beginning of the year, we have been able to improve our frac pricing in the range of 5 to 15%, depending on the operating area.
"We were fortunate to be able to find and purchase this equipment. The majority of these spreads were manufactured between 2013 and 2014, and then warm-stacked because of inactivity. It has been maintained according to our very own stacking procedures and is therefore well preserved for like-new performance and operating life expectancy. In addition, the frac pumps on this equipment will have software installed that will enable them to be compatible and interchangeable with the rest of our pressure pumping fleet. We are in process of filling the calendar for these new frac spreads."
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,800 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
2/27/2017Basic Energy Services Announces Fourth Quarter And Year End 2016 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Feb. 22, 2017 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its fourth quarter and year end 2016 financial results after the market closes on Thursday, March 23, 2017. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, March 24, 2017, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services Fourth Quarter 2016 Earnings Conference Call |
|
When: |
Friday, March 24, 2017 – 9:00 a.m. Eastern Time |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
Live over the Internet - Log on to the web at the address below. | |
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through April 7, 2017 by calling 201-612-7415 and using pass code 13654038#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,800 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
2/22/2017Basic Energy Services Successfully Completes Prepackaged Restructuring And Emerges From Chapter 11 With $125 Million Of New Capital And Debt Level Reduced By $775 Million
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Dec. 23, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company and its affiliated chapter 11 debtors have successfully completed their prepackaged restructuring and recapitalization plan (the "Prepackaged Plan") and emerged from chapter 11 bankruptcy protection.
Through its Prepackaged Plan, Basic equitized over $800 million of unsecured debt, including accrued interest, eliminated over $60 million in annual cash interest, and raised $125 million of new capital. Existing shareholders of record as of the close of trading on December 23, 2016 will receive new common stock and warrants in the reorganized Company. The Company believes that its substantially deleveraged balance sheet and capital infusion position Basic for long-term success for the benefit of all of its stakeholders.
"Today marks the completion of a restructuring and recapitalization that allows the Company to move forward with a solid financial foundation from which we expect to continue to strengthen our business and grow," said Roe Patterson, Chief Executive Officer. "We now have the financial flexibility to continue to provide our customers with industry-leading expertise and safe, efficient services. Basic is thankful for the continued support of our employees, customers and suppliers and for the support of our secured term loan lenders, secured ABL lenders and unsecured bondholders. That support has been integral to the successful outcome of the chapter 11 process."
The Company's new common stock (CUSIP number 06985P 209) (the "New Common Shares") has been approved for listing on the New York Stock Exchange (the "NYSE") under the NYSE ticker symbol "BAS," the same as the symbol for existing shares of the Company's issued common stock (CUSIP number 06985P 100), which will be cancelled as of the close of business on December 23, 2016. Trading in the New Common Shares on the NYSE is expected to commence on Tuesday, December 27, 2016. The Company's warrants will not be listed on the NYSE or any other exchange at this time.
Pro Forma Capital Structure
The table below summarizes Basic's cash, debt and liquidity values as of September 30, 2016 on a historical basis, as well as a pro forma basis after giving effect to the restructuring.
|
As of September 30, 2016 | |||
|
(in millions) | |||
|
Recognition |
|||
|
Actual |
Adjustments |
Pro Forma | |
|
Cash |
|||
|
Cash and Cash Equivalents |
$ 34 |
$ 66 |
$ 100 |
|
Restricted Cash |
29 |
(27) |
2 |
|
Total Cash |
$ 63 |
$ 39 |
$ 102 |
|
Debt |
|||
|
Term Loan |
$ 164 |
$ - |
$ 164 |
|
7.75% Senior Notes due 2019 |
475 |
(475) |
- |
|
7.75% Senior Notes due 2022 |
300 |
(300) |
- |
|
Capital Leases and Other Notes |
79 |
- |
79 |
|
Term Loan issuance costs |
(15) |
- |
(15) |
|
Senior Notes premium and issuance costs |
(7) |
7 |
- |
|
Total Debt |
$ 996 |
$ (768) |
$ 228 |
|
Liquidity |
|||
|
Borrowing Base |
$ 51 |
$ 24 |
$ 75 |
|
Less: Letters of Credit |
(51) |
- |
(51) |
|
Cash |
34 |
66 |
100 |
|
Total Liquidity |
$ 34 |
$ 90 |
$ 124 |
As of September 30, 2016, Basic was considered to be in default on its $100 million ABL Credit Facility. As such, the only amount eligible under the borrowing base was the amounts associated with the Company's letters of credit.
Board of Directors
The Company also announced today a newly constituted Board of Directors, effective in conjunction with the Company's emergence from chapter 11:
The Prepackaged Plan provides that the initial Board of Directors will have a total of seven members. As of the Effective Date, six of the seven member of the Board of Directors have been designated. The Company anticipates that the remaining member of the Board of Directors will be designated shortly after the Effective Date.
Mr. Patterson said, "Our newly constituted Board is comprised of a diverse group of individuals with a range of backgrounds and expertise, each of whom will bring fresh perspective to Basic. We look forward to benefitting from their guidance as we embark on our new beginning."
As previously announced, the Company's Prepackaged Plan was confirmed by the United States Bankruptcy Court for the District of Delaware on December 9, 2016.
Weil, Gotshal & Manges LLP is serving as legal counsel, and Moelis & Company LLC is serving as investment banker to Basic. AP Services, LLC is acting as restructuring advisors to the Company in connection with its restructuring efforts.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, including statements regarding the status of the negotiations and our liquidity. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, and (vii) the ability to execute the requirements of the Prepackaged Plan subsequent to its effective date. 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, 2015 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 | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
12/23/2016Basic Energy Services, Inc. To Continue Listing New Shares Of Common Stock And Resume Trading Under Ticker "BAS" Following Emergence From Chapter 11 Reorganization
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Dec. 22, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company received approval to list its new common stock with the new CUSIP number 06985P 209 (the "New Common Shares") on the New York Stock Exchange (the "NYSE") under the same NYSE ticker symbol "BAS" as the existing shares of the Company's issued common stock (the "Existing Shares"), in conjunction with its anticipated emergence from chapter 11 reorganization in accordance with the First Amended Joint Prepackaged Chapter 11 Plan of Basic Energy Services, Inc. and its Affiliated Debtors (as confirmed, the "Prepackaged Plan") that was confirmed on December 9, 2016 by the United States Bankruptcy Court for the District of Delaware.
The Company currently anticipates emerging from bankruptcy on December 23, 2016 (the "Effective Date"). The stockholders of record at the close of business on the Effective Date will be entitled to receive New Common Shares and warrants with the CUSIP number 06985P 118 (the "Warrants") in accordance with the Prepackaged Plan. In addition, participants in the Company's previously announced rights offering (the "Rights Offering') who have properly exercised their rights pursuant thereto, and/or are backstop parties to the Rights Offering, will also receive New Common Shares on the Effective Date. All Existing Shares (with the CUSIP number 06985P 100) will be cancelled after the close of business on the Effective Date, and the New Common Shares and Warrants will be issued at such time.
Assuming emergence on the Effective Date of December 23, 2016, trading in the New Common Shares is expected to commence on December 27, 2016, under the ticker symbol "BAS," which is the same trading symbol used for the Company's common stock previously listed on the NYSE. The Warrants will not be listed on the NYSE or any other exchange at this time.
Because the Company will retain the ticker symbol "BAS" after the effective date of the Prepackaged Plan, holders of Existing Shares, and brokers, dealers and agents effecting trades in Existing Shares, and persons who expect to receive New Common Shares or effect trades in New Common Shares, should take note of the anticipated cancellation of the Existing Shares and issuance of New Common Shares, and the two different CUSIP numbers signifying the Existing Shares and the New Common Shares, in trading or taking any other actions in respect of shares of the Company that trade under the "BAS" ticker.
Pro Forma Ownership Summary
As previously disclosed, under the Prepackaged Plan, pre-petition holders of the Company's unsecured notes will receive 14,925,000 New Common Shares, representing approximately 57.8% of the New Common Shares after giving effect to shares issuable in connection with the rights offering and before giving effect to the shares issuable under the management incentive plan (the "MIP") and the Warrants. The pre-petition Basic stockholders will receive 75,000 New Common Shares, or an equivalent of an approximate 1-for-570.093480 reverse stock split, and Warrants to purchase 2,066,598 New Common Shares, or approximately 1 Warrant for each 20.689564 Existing Shares (each based on approximately 42.8 million Existing Shares issued and outstanding and subject to rounding).
The table below summarizes the new ownership structure of Basic.
|
Shares Excluding MIP & Warrants |
Shares Including MIP & Warrants |
||||||||||||||
|
Holder |
Shares |
% Ownership |
Shares |
% Ownership |
|||||||||||
|
New Common Shares Issued to Unsecured Noteholders |
14,925,000 |
57.8 |
% |
14,925,000 |
47.9 |
% | |||||||||
|
New Common Shares Issued to Existing Stockholders |
75,000 |
0.3 |
% |
75,000 |
0.2 |
% | |||||||||
|
New Common Shares Issued to Rights Offering Parties |
(1) |
10,825,802 |
41.9 |
% |
10,825,802 |
34.8 |
% | ||||||||
|
New Common Shares Issued Under MIP |
(2) |
-- |
0.0 |
% |
3,237,671 |
10.4 |
% | ||||||||
|
New Warrants Issued to Existing Stockholders |
(3) |
-- |
0.0 |
% |
2,066,598 |
6.6 |
% | ||||||||
|
Total |
25,825,802 |
100.0 |
% |
31,130,071 |
100.0 |
% | |||||||||
|
Note: Final share allocations may vary slightly from the amounts set forth above due to rounding in accordance with the Prepackaged Plan. | |||||||||||||||
|
(1) Shares issued pursuant to rights offering contemplated by the Prepackaged Plan and a deemed conversion. Includes shares issued to backstop parties as a backstop put premium. | |||||||||||||||
|
(2) Shares authorized under the MIP include 3,237,671 shares, of which the Company expects to issue time-based restricted stock unit awards ("RSUs") for 809,416 shares and stock option awards for 323,770 shares on the Effective Date vesting in 1/3 tranches on the Effective Date, and the first and second anniversaries of the Effective Date. From the immediately vested RSUs, the Company anticipates issuing 269,810 shares on the Effective Date. The remainder of the authorized awards, including 809,416 performance- based RSUs and 323,770 performance-based stock options contemplated by the Prepackaged Plan, may be awarded in the future at the discretion of the Company's board of directors. | |||||||||||||||
|
(3) The Warrants have an exercise price of $55.25 and a term of seven years. | |||||||||||||||
The occurrence of the Effective Date is subject to conditions set forth in the Prepackaged Plan, and the Company can make no assurances as to whether the Effective Date will occur on December 23, 2016.
About Basic Energy Services
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 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
12/22/2016Basic Energy Services Obtains Court Approval Of Restructuring And Recapitalization Plan
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Dec. 9, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company and its affiliated chapter 11 debtors obtained court approval of their prepackaged restructuring and recapitalization plan (the "Prepackaged Plan"), which received near unanimous support from voting creditors.
"The court's confirmation of our Prepackaged Plan represents a critical step towards emerging from chapter 11 and securing a bright future for Basic," said Roe Patterson, Basic's President and Chief Executive Officer. "Basic is thankful for the continued support of our creditors, employees, customers and suppliers. Their support has been integral to the successful outcome of the chapter 11 process and we look forward to emerging as quickly as possible as a healthier company, poised to continue providing our customers with dependable, high-quality services, which are the hallmark of our Company."
Among other things, the Prepackaged Plan equitizes over $800 million of unsecured debt, eliminates over $60 million in annual cash interest, and completes a new capital raise of $125 million. Specifically, the Prepackaged Plan provides for a debt-for-equity swap that will result in its existing unsecured bond obligations being converted into equity. Existing shareholders will receive common stock and warrants in the reorganized Company. In addition, the Prepackaged Plan implements agreements the Company reached with its existing secured lenders to continue their support of the Company through an amended and restated term loan agreement with more flexible covenants and an amended and restated ABL loan agreement. Basic has also completed a $125 million fully backstopped rights offering of mandatorily convertible notes (totaling $131.25 million principal amount of notes including the backstop put premium), which will close on the effective date of the Prepackaged Plan and provide the Company with the cash it needs to operate successfully once it emerges from bankruptcy. It is expected that the new notes will be deemed converted into equity of Basic contemporaneously with Basic's emergence from chapter 11 and thus will have no debt or interest burden on Basic. All customer, vendor, and employee obligations associated with the ongoing business will remain unaffected.
Additional information regarding Basic's restructuring is available at www.basicenergyservices.com/restructuring. Basic has also established a telephone hotline and e-mail address to respond to inquiries from interested parties regarding the restructuring. The telephone hotline is 844-801-5971. The e-mail address is restructuring@basicenergyservices.com.
Weil, Gotshal & Manges LLP is serving as legal counsel and Moelis & Company LLC is serving as investment banker to Basic. AP Services, LLC is acting as restructuring advisors to the Company in connection with its restructuring efforts.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, including statements regarding the status of the negotiations and our liquidity. 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) the ability to satisfy the conditions necessary to declare the Prepackaged Plan effective in the anticipated timeframe, (ii) changes in demand for our services and any related material impact on our pricing and utilizations rates, (iii) Basic's ability to execute, manage and integrate acquisitions successfully, (iv) changes in our expenses, including labor or fuel costs and financing costs, (v) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (vi) competition within our industry, (vii) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, (viii) the length of time the Debtors will operate under the chapter 11 cases, (ix) risks associated with third-party motions in the chapter 11 cases, which may interfere with the Debtors' ability to develop and consummate the Prepackaged Plan, (x) the potential adverse effects of the chapter 11 cases on the Debtors' liquidity, results of operations or business prospects, (xi) the ability to execute the requirements of the Prepackaged Plan subsequent to its effective date and (xii) increased legal and advisor costs related to the chapter 11 cases and other litigation and the inherent risks involved in a bankruptcy process. 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, 2015 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 | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
12/9/2016Basic Energy Services Continued Listing Plan Accepted By The NYSE
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Nov. 21, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") announced today that the New York Stock Exchange ("NYSE") has accepted the Company's plan for continued listing on the NYSE. As a result, Basic's common stock will continue to be listed on the NYSE, subject to quarterly reviews by the NYSE to monitor the Company's progress against the plan to restore compliance with continued listing standards.
The NYSE had notified Basic on August 19, 2016 of non-compliance (the "NYSE Notice") with the market capitalization and share price continued listing standards under Sections 802.01B and 802.01C of the NYSE Listed Company Manual.
Basic has a period of six months from the date of the NYSE Notice to regain compliance with the minimum share price criteria by bringing its share price and thirty trading-day average share price above $1.00. Basic has also a period of 18 months from the date of the NYSE Notice to regain compliance with the market capitalization requirements of the NYSE listing standards. Should the Company's average global market capitalization over a consecutive 30 trading-day period fall below $15 million, the NYSE will promptly initiate suspension and delisting procedures.
About Basic Energy Services
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 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
11/21/201610/25/2016 - Basic Energy Services Initiates Prepackaged Chapter 11 Proceedings Pursuant To Restructuring Support Agreement
Basic Energy Services Initiates Prepackaged Chapter 11 Proceedings Pursuant To Restructuring Support Agreement
Source: PR Newswire
FORT WORTH, Texas, Oct. 25, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") and certain subsidiaries today announced that they had filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court for the District of Delaware to pursue a prepackaged plan ("Prepackaged Plan") of reorganization in accordance with its previously announced restructuring support agreement with creditors to effectuate a comprehensive balance sheet restructuring (the "RSA").
The RSA and Prepackaged Plan provides for a substantial deleveraging transaction pursuant to which Basic will meaningfully improve its balance sheet by equitizing over $800 million of its existing unsecured bond obligations and will substantially bolster its liquidity position through a $125 million rights offering for mandatorily convertible debt, to be backstopped by certain unsecured noteholders. Basic's prepetition secured term loan lenders and certain of its unsecured bondholders have also agreed, subject to the Court's approval, to provide a $90 million debtor-in-possession credit facility (the "DIP Financing") to help fund the costs of the restructuring.
Basic's creditors throughout its capital structure overwhelmingly support the restructuring. Pursuant to the RSA, 100% of Basic's prepetition secured term loan lenders and holders of over 80% of its 7.75% senior notes due 2019 and 7.75% senior notes due 2022 have agreed to vote in favor of the Prepackaged Plan.
The Company began the solicitation of votes on the Prepackaged Plan prior to filing its petition and currently estimates that it will emerge from the Chapter 11 reorganization before the end of 2016.
Basic will continue to operate the business as debtors-in-possession under the jurisdiction of the Bankruptcy Court and fully expects to continue existing operations and maintain staffing and equipment as normal throughout the court-supervised financial restructuring process. Basic has filed a series of motions with the Bankruptcy Court requesting authority to continue normal operations, including requesting Bankruptcy Court authority to continue paying employee wages and salaries and providing employee benefits without interruption. The Company continues to work closely with its suppliers and partners to ensure it meets ongoing obligations and business continues uninterrupted.
Roe Patterson, Basic's President and Chief Executive Officer commented, "After much thought, we decided that Chapter 11 proceedings were necessary to create financial stability which will allow Basic to be a formidable competitor during the cyclical nature of our industry.
"Throughout the Chapter 11 process, we anticipate meeting ongoing obligations to our employees, customers, vendors and suppliers, and others. We will continue to provide our customers with the dependable, high-quality services which Basic is known for."
To support and effect the restructuring, Basic has retained Weil, Gotshal & Manges LLP as legal counsel and Moelis & Company as financial advisor.
Additionally, the Company engaged David Johnston of AP Services, LLC (and a Managing Director at AlixPartners LLP) as Chief Restructuring Officer. Mr. Johnston is supported by a team including Charles Braley and Brian Huffman as Senior Vice President and Vice President of Restructuring, respectively.
As noted above, the RSA anticipates that the restructuring would be implemented through the Prepackaged Plan, which remains subject to Bankruptcy Court approval and the satisfaction of conditions laid out in the Prepackaged Plan.
Additional information regarding Basic's restructuring is available at www.basicenergyservices.com/restructuring. Basic has also established a telephone hotline and e-mail address to respond to inquiries from interested parties regarding the restructuring. The telephone hotline is 844-801-5971. The e-mail address is restructuring@basicenergyservices.com.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, including statements regarding the status of the negotiations and our liquidity. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, (vii) Basic's ability to obtain approval by the Bankruptcy Court of the Prepackaged Plan or any other plan of reorganization, including the treatment of the claims of the Basic's lenders and trade creditors, among others; (viii) Basic's ability to obtain approval with respect to motions in the Chapter 11 cases and the Bankruptcy Court's rulings in the Chapter 11 cases and the outcome of the Chapter 11 cases in general; (ix) the length of time the Debtors will operate under the Chapter 11 cases; (x) risks associated with third-party motions in the Chapter 11 cases, which may interfere with the Debtors' ability to develop and consummate the Prepackaged Plan or other plan of reorganization; (xi) the potential adverse effects of the Chapter 11 cases on the Debtors' liquidity, results of operations or business prospects; (xii) the ability to execute Basic's business and restructuring plan; and (xiii) increased legal and advisor costs related to the Chapter 11 cases and other litigation and the inherent risks involved in a bankruptcy process. 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, 2015 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.
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Contacts: |
Alan Krenek, Chief Financial Officer |
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Basic Energy Services, Inc. | |
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817-334-4100 | |
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Jack Lascar | |
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Dennard-Lascar Associates | |
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713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
10/25/201610/24/2016 - Basic Energy Services Reaches Agreement On Comprehensive Deleveraging And Recapitalization Transaction
Basic Energy Services Reaches Agreement On Comprehensive Deleveraging And Recapitalization Transaction
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Oct. 24, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company entered into a restructuring support agreement (the "RSA") on October 23, 2016, with its secured term loan lenders and certain holders of its 7.75% senior notes due 2019 (the "2019 Notes") and 7.75% senior notes due 2022 (the "2022 Notes" and together with the 2019 Notes, the "Unsecured Notes") to effectuate a proposed prepackaged plan of reorganization (the "Plan") that will significantly deleverage the Company's balance sheet and provide the Company with $125 million of additional liquidity. Under the terms of the RSA, the Company and certain of its subsidiaries must file chapter 11 cases to implement the Plan on or before October 25, 2016.
Following extensive negotiation with its key creditors, Basic's Plan has the support of 100% of its secured term loan lenders and holders of over 80% of the outstanding 2019 Notes and 2022 Notes. In addition, the agent for the Company's secured asset-based lenders, although not a party to the RSA, has been involved in the negotiations regarding the Plan.
Roe Patterson, Basic's President and Chief Executive Officer, commented, "After careful consideration, we have taken this difficult but necessary step to secure a bright future for Basic Energy Services. This process is about fixing our capital structure for the long-term to benefit all of our stakeholders.
"The sharp and prolonged period of depressed commodity prices have created poor operating conditions in the field and significantly reduced our operating cash flow. The actions we have taken, combined with the support of our existing lenders, will help us strengthen our balance sheet and position Basic for a sustainable future to benefit from what we anticipate will be an eventual recovery in oil and natural gas prices.
"During this process, we anticipate meeting all of our ongoing obligations to suppliers, customers, employees, and others, as usual, and we will continue to provide our customers with dependable, high-quality services, which is the hallmark of our Company.
"The fundamentals of the business are strong and having access to new capital will enable us to strengthen our current business lines, grow organically as opportunities develop and participate in potential merger and acquisition activities in the future."
Upon effectuation, the consensual financial restructuring would, among other things:
Reorganized Basic equity issued under the management incentive plan and upon exercise of the warrants will further dilute the equity recovery for Noteholders and existing shareholders described above.
All aspects of the Plan remain subject to Bankruptcy court approval and the satisfaction of conditions set forth in the Plan.
In further support of the restructuring, the Company's secured term lenders and certain of its Noteholders have committed to provide up to $90 million of liquidity, in the form of debtor-in-possession financing, to help maintain the Company's uninterrupted operations while in chapter 11.
The Company is in active discussions with potential lenders to find a replacement for its prepetition $100 million asset-based revolving credit facility, under which no revolving borrowings and approximately $51 million in contingent letter of credit obligations are outstanding. Basic is exploring its options and, while it can provide no assurances it will find a replacement facility, it anticipates that it will find one that will further enhance its capital structure upon emergence.
Today, Basic commences solicitation on the Plan. Votes on the Plan must be received by Epiq Corporate Restructuring, the Company's voting agent, by November 29, 2016, unless the deadline is extended. The record date for voting has been set as October 11, 2016. Subject to approval by Basic's board of directors, the Company anticipates filing voluntary petitions for relief under chapter 11 in the United States Bankruptcy Court for the District of Delaware by October 25, 2016. Subject to Bankruptcy Court approval of the Plan and the satisfaction of certain conditions to the Plan and related transactions, the Company expects to exit chapter 11 before the end of 2016. There can be no assurances that the Plan will be approved or confirmed pursuant to the Bankruptcy Code.
The Company recommends that its creditors, including Noteholders, refer to the information in the Company's Disclosure Statement, which attaches a copy of the Plan. Information contained in the Disclosure Statement is subject to change, whether as a result of amendments, actions of third parties or otherwise.
This press release is for information purposes only and is not a solicitation to accept or reject the Plan referred to herein or an offer to sell or a solicitation of an offer to buy any securities of the Company. Any solicitation or offer to sell will be made pursuant to and in accordance with the Disclosure Statement distributed to Noteholders and applicable law.
More detailed information on the restructuring can be found in the RSA which will be included with a Form 8‐K being filed with the SEC today. Further information on the Company as well as the restructuring process and plan will be included in a disclosure document which will be used in the solicitation process and will also be included with the Form 8‐K filed today with the SEC.
Advisors
Weil, Gotshal & Manges LLP is acting as legal counsel, Moelis & Company LLC is acting as investment banker, and AP Services, LLC is acting as restructuring advisors to the Company in connection with its restructuring efforts. Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal counsel and GLC Advisors & Co., LLC is acting as investment banker to certain supporting Noteholders. Davis Polk & Wardwell LLP is acting as legal counsel and PJT Partners Inc. is acting as investment banker to the secured term loan lenders. Vinson & Elkins LLP is acting as legal counsel to the asset-based lenders.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, including statements regarding the status of the negotiations and our liquidity. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, and (vii) (vii) Basic's ability to obtain approval by the Bankruptcy Court of the Plan or any other plan of reorganization, including the treatment of the claims of the Basic's lenders and trade creditors, among others; (viii) Basic's ability to obtain approval with respect to motions in the Chapter 11 cases and the Bankruptcy Court's rulings in the Chapter 11 cases and the outcome of the Chapter 11 cases in general; (ix) the length of time the Debtors will operate under the Chapter 11 cases; (x) risks associated with third-party motions in the Chapter 11 cases, which may interfere with the Debtors' ability to develop and consummate the Plan or other plan of reorganization; (xi) the potential adverse effects of the Chapter 11 cases on the Debtors' liquidity, results of operations or business prospects; (xii) the ability to execute Basic's business and restructuring plan; and (xiii) increased legal and advisor costs related to the Chapter 11 cases and other litigation and the inherent risks involved in a bankruptcy process. 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, 2015 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.
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Contacts: |
Alan Krenek, Chief Financial Officer |
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Basic Energy Services, Inc. | |
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817-334-4100 | |
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Jack Lascar | |
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Dennard-Lascar Associates | |
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713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
10/24/2016Basic Energy Services Receives Extension Of Waiver From Asset-Based Lenders
Source: PR Newswire
FORT WORTH, Texas, Oct. 18, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company has successfully obtained an extension of its temporary waiver from Basic's secured asset-based revolver (the "ABL Facility") lenders. As previously announced on October 17, 2016, the Company was seeking an additional extension of its temporary waiver of certain existing and future defaults under the ABL Facility in order to finalize the terms of a deleveraging transaction with its creditors. Basic has now received an additional seven day extension of the temporary waiver, through October 24, 2016, subject to certain terms and conditions.
The Company continues to have, and expects to have, adequate liquidity to continue its efficient and uninterrupted operations in the ordinary course and to meet all of its obligations to suppliers, customers and employees.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, including statements regarding the status of the negotiations and our liquidity. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, and (vii) the course of our negotiations with our creditors. 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, 2015 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.
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CONTACT: |
Alan Krenek, |
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Chief Financial Officer | |
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Basic Energy Services, Inc. | |
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817-334-4100 | |
|
Jack Lascar | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
10/18/201610/17/2016 - Basic Energy Services Announces Substantial Progress Made In Discussions With Creditors
Basic Energy Services Announces Substantial Progress Made In Discussions With Creditors
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Oct. 17, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that the Company, its secured term loan lenders and secured asset-based revolver lenders (collectively, the "Secured Lenders"), and certain of its unsecured bondholders have made substantial progress towards finalizing the terms of a deleveraging transaction. To enable all parties to finish documenting the terms of such transaction, the Company, its Secured Lenders, and certain of its unsecured bondholders have agreed to further extend the previously announced forbearance agreement and waivers as detailed below.
On September 28, 2016, the Company entered into an agreement with holders of over 81% of the 7.75% senior notes due 2019 (the "2019 Notes") to extend the previously announced forbearance agreement. Under the forbearance extension, such unsecured noteholders agreed to forbear from exercising their rights and remedies in connection with the interest payment default, including the right to accelerate any indebtedness, through October 16, 2016 (the "Forbearance Extension Period"). Additionally, the Company's Secured Lenders agreed to provide temporary waivers of certain existing and future defaults under the Term Loan and ABL Facility related, in part, to the missed interest payment.
During the Forbearance Extension Period, the Company and its creditors have made significant progress in their negotiations regarding a deleveraging transaction. To provide the Company with additional time to finalize the documentation of the deleveraging transaction, the Company has reached an agreement with holders of over 81% of the 2019 Notes to further extend the Forbearance Extension Period by eight days, through October 24, 2016, subject to certain terms and conditions (including the extension of the Forbearance Extension Period by the Company's secured term loan lenders and secured asset-based revolver lenders) (the "Additional Extension Period"). The Company's secured term loan lenders have also agreed to provide an extension of their temporary waiver through the Additional Extension Period. Furthermore, the Company has received a one-day extension of the temporary waiver with its secured asset-based revolver lenders and is seeking an additional extension of the temporary waiver through October 24, 2016. The October 15, 2016 interest payment on the 7.75% senior notes due 2022 has not been paid. The indenture pursuant to which these notes were issued provides a grace period of 30 days before this non-payment constitutes an event of default thereunder.
Roe Patterson, Basic's President and Chief Executive Officer, reiterated, "We are very pleased with the progress we have made to date in our restructuring discussions with Basic's creditors. We believe that we are close to finalizing the terms of a financial restructuring plan that will leave the Company well capitalized and positioned for strong growth."
The Company continues to have, and expects to have, adequate liquidity to continue its efficient and uninterrupted operations in the ordinary course and to meet all of its obligations to suppliers, customers and employees.
About Basic Energy Services
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The Company employs over 3,500 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, California, and the Rocky Mountain and Appalachian regions. Additional information on Basic Energy Services is available on the Company's website at 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, including statements regarding the status of the negotiations and our liquidity. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, and (vii) the course of our negotiations with our creditors. 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, 2015 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.
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Contacts: |
Alan Krenek, |
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Chief Financial Officer | |
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Basic Energy Services, Inc. | |
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817-334-4100 | |
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Jack Lascar | |
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Dennard ▪ Lascar Associates | |
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713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
10/17/2016Basic Energy Services Announces Extensions Of Forbearance Agreement And Waivers To Continue Deleveraging Negotiations With Secured Lenders And Unsecured Bondholders
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Sept. 28, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") and certain subsidiaries today announced that the Company, its secured term loan lenders and secured asset-based revolver lenders (collectively, the "Secured Lenders"), and certain of its unsecured bondholders have taken steps to enable the continuation of negotiations regarding a deleveraging transaction.
On September 14, 2016, the Company entered into a forbearance agreement with over 81% of the holders of the 7.75% senior notes due 2019 (the "2019 Notes") with respect to the previously announced 30-day grace period related to an $18.4 million payment of interest under the 2019 Notes. Under the forbearance agreement, the unsecured noteholders agreed to forbear from exercising their rights and remedies, including the right to accelerate any indebtedness, through September 28, 2016 in connection with the interest payment default (the "Forbearance Period"). Additionally, the Company's Secured Lenders agreed to provide temporary waivers of certain existing and future defaults under the Term Loan and ABL Facility related, in part, to the missed interest payment.
During the Forbearance Period, the Company and its creditors have continued to make progress in their negotiations regarding a deleveraging transaction. To provide the Company with additional time to continue and conclude these discussions, the Company has reached an agreement with over 81% of the holders of the 2019 Notes to extend the Forbearance Period through October 16, 2016 (the "Extension Period"). The Company's Secured Lenders have also agreed to provide extensions of their respective temporary waivers through the Extension Period.
Roe Patterson, Basic's President and Chief Executive Officer, reiterated, "We look forward to continuing our restructuring discussions with our Secured Lenders and unsecured bondholders during the Extension Period, and I am grateful to our creditors for their continued support and cooperation. The extension of the forbearance and temporary waivers will provide the time we need to accomplish a mutually acceptable financial restructuring plan that provides Basic with a sustainable capital structure that supports the Company's long-term business plan and results in long-term value generation for the benefit of our employees, customers, vendors, and all other stakeholders."
The Company continues to have ample liquidity to continue efficient and uninterrupted operations in the ordinary course and meet all of its obligations to suppliers, customers, and employees.
About Basic Energy Services
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 3,400 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 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, including statements regarding the status of the negotiations and our liquidity. 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, and (vii) the course of our negotiations with our creditors. 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, 2015 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.
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Contacts: |
Alan Krenek, |
|
Chief Financial Officer | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
9/29/2016Basic Energy Services Enters Into Forbearance Agreement And Obtains Waivers To Continue Deleveraging Negotiations With Secured Lenders And Unsecured Bondholders
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Sept. 14, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") and certain subsidiaries today announced that the Company, its secured term loan lenders and secured asset-based revolver lenders (collectively, the "Secured Lenders"), and certain of its unsecured bondholders have taken steps to enable the continuation of negotiations regarding a deleveraging transaction.
Specifically, the Company has entered into a forbearance agreement with over 81% of the holders of the 7.75% senior notes due 2019 (the "2019 Notes") with respect to the previously announced 30-day grace period related to an $18.4 million payment of interest under the 2019 Notes. The Company has elected not to make the interest payment upon the expiration of the 30-day grace period. Under the forbearance agreement, the unsecured noteholders have agreed to forbear from exercising their rights and remedies, including the right to accelerate any indebtedness, through September 28, 2016 in connection with the interest payment default.
Additionally, the Company's Secured Lenders have agreed to provide temporary waivers of certain existing and future defaults under the Term Loan and ABL Facility related, in part, to the missed interest payment. The forbearance and temporary waivers will provide the Company with additional flexibility to continue discussions with all its creditors with the objective of improving Basic's long-term capital structure.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "I would like to express our appreciation to our Secured Lenders and unsecured bondholders for their continued support and cooperation. The forbearance agreement and temporary waivers will provide additional time to reach a mutually acceptable financial restructuring plan that provides Basic with a sustainable capital structure that supports the Company's long-term business plan and results in long-term value generation for the benefit of our employees, customers, vendors, and all other stakeholders."
The Company continues to believe that it has ample liquidity at this time to continue efficient and uninterrupted operations in the ordinary course and anticipates meeting all of its obligations to suppliers, customers, and employees.
About Basic Energy Services
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 3,400 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, and (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions. 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, 2015 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.
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Contacts: |
Alan Krenek, | |
|
Chief Financial Officer | ||
|
Basic Energy Services, Inc. | ||
|
817-334-4100 | ||
|
Jack Lascar | ||
|
Dennard - Lascar Associates | ||
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
9/14/2016Basic Energy Services Announces Receipt Of NYSE Continued Listing Standard Notice
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Aug. 22, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced the receipt on August 19, 2016 of formal notice of non-compliance (the "NYSE Notice") with the New York Stock Exchange (the "NYSE") market capitalization and share price continued listing standards. Section 802.01B of the NYSE Listed Company Manual (the "Manual") prohibits the Company's average global market capitalization over a consecutive thirty trading-day period from being less than $50,000,000 at the same time its stockholders' equity is less than $50,000,000. Section 802.01C of the Manual requires the average closing price of the Company's common shares to be at least $1.00 per share over a consecutive thirty trading-day period. As noted in the NYSE Notice, as of August 18, 2016, the average closing price of Basic's common shares over the preceding 30 trading-day period was $0.98 per share, the average global market capitalization over the preceding thirty trading-day period was approximately $41.7 million and the last reported stockholders' deficit was approximately ($62.4) million as of June 30, 2016.
Basic has ten business days from receipt of the NYSE Notice to send a letter to the NYSE confirming receipt of the NYSE Notice and its intent to cure the deficiencies. Upon submission of such a letter, Basic would then submit a business plan within 45 days that demonstrates compliance with the market capitalization and stockholders' equity listing standard within eighteen months following the NYSE Notice. Upon receipt of such plan, the NYSE would have 45 calendar days to review and determine whether Basic has made reasonable demonstration of its ability to come into conformity with the relevant standards within the eighteen-month period. The NYSE will either accept the plan, at which time Basic would be subject to ongoing quarterly monitoring for compliance with the plan, or the NYSE will not accept the plan and Basic would be subject to suspension and delisting proceedings.
Basic has a period of six months from the date of the NYSE Notice to regain compliance with the minimum share price criteria by bringing its share price and thirty trading-day average share price above $1.00. Basic can regain compliance at any time during the six-month cure period if Basic's common shares have a closing price of at least $1.00 per common share on the last trading day of any calendar month during the cure period and an average closing price of at least $1.00 per common share over the thirty-trading day period ending on the last trading day of that month.
Under the NYSE rules, Basic's common shares will continue to be listed and traded on the NYSE during the cure periods outlined above, subject to Basic's compliance with other continued listing requirements. The current noncompliance with the NYSE listing standards does not affect Basic's ongoing business operations or its U.S. Securities and Exchange Commission reporting requirements, nor does it trigger any violation of its material debt or other obligations. Basic is considering all available options to regain compliance with the NYSE's continued listing standards. Basic can provide no assurances that it will be able to satisfy any of the steps outlined above and maintain the listing of its shares on the NYSE.
About Basic Energy Services
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 3,400 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions, and (vii) Basic's ability to successfully obtain approval from the NYSE on a plan that demonstrates Basic's ability to regain compliance with applicable NYSE continued listing standards. 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, 2015 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 | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
8/22/2016Basic Energy Services Announces Decision To Utilize Interest Payment Grace Period To Continue Deleveraging Discussions With Term Loan Lenders And Unsecured Bondholders
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Aug. 15, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced that it has elected to utilize the 30-day grace period with respect to an $18.4 million interest payment due today on its 7.75% senior notes due 2019 (the "2019 Notes"). Under the terms of the indenture governing the 2019 Notes (the "2019 Notes Indenture"), the Company has a 30-day grace period after the interest payment date before an event of default would occur on September 14, 2016. Basic believes it is in the best interests of all stakeholders to use the grace period to continue to engage in discussions with its secured and unsecured debtholders regarding strategic alternatives to improve Basic's long-term capital structure. There are no discussions underway that would impair trade vendors, customers, or employees in any regard, and the Company believes that it has ample liquidity at this time to continue efficient and uninterrupted operations in the ordinary course.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "We have made the strategic choice to use the grace period while our discussions with Basic's debtholders continue. During these discussions, we anticipate meeting all of our obligations to suppliers, customers, employees, and others, as usual, and we will continue to provide our customers with dependable, high-quality services, which is the hallmark of our Company."
About Basic Energy Services
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 3,400 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, (v) competition within our industry, and (vi) Basic's ability to comply with its financial and other covenants and metrics in its debt agreements, as well as any cross-default provisions. 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, 2015 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, | |
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Chief Financial Officer | ||
|
Basic Energy Services, Inc. | ||
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817-334-4100 | ||
|
Jack Lascar | ||
|
Dennard ▪ Lascar Associates | ||
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
8/15/2016Basic Energy Services Reports Second Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, July 21, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the second quarter ended June 30, 2016.
SECOND QUARTER 2016 HIGHLIGHTS
Second quarter 2016 revenues declined 8% to $120.0 million from $130.4 million in the first quarter of 2016, as continued low levels of activity driven by weak and volatile energy prices and significant weather impact during the first two months of the quarter drove our customers to further delay a growing inventory of maintenance and workover projects. In the second quarter of 2015, Basic generated $193.6 million in revenues.
For the second quarter of 2016, Basic reported a net loss of $89.9 million, or a loss of $2.11 per basic and diluted share. This includes a non-cash charge of $32.9 million, or $0.77 per basic and diluted share, related to a valuation allowance on federal deferred tax assets. Excluding this valuation allowance, Basic reported a net loss of $57.0 million, or $1.34 per basic and diluted share for the second quarter of 2016. For the first quarter of 2016, Basic reported a net loss of $83.3 million, or a loss of $2.00 per basic and diluted share, which included a tax-effected, non-cash charge of $1.3 million, or $0.03 per basic and diluted share pertaining to the early extinguishment of deferred debt costs related to the amendment of Basic's revolving credit facility and a non-cash charge of $27.3 million, or $0.66 per share, related to a valuation allowance on federal deferred tax assets. Excluding the impact of these special items, Basic reported a net loss of $54.8 million, or a loss of $1.32 per basic and diluted share for the first quarter of 2016. In the second quarter of 2015, Basic reported a net loss of $48.3 million, or a loss of $1.20 per basic and diluted share. Excluding a special item related to a credit given to a customer resulting from the settlement of an audit, Basic reported a net loss of $45.4 million, or $1.13 per basic and diluted share for the second quarter of 2015.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "While revenue came in slightly better than our modified guidance and we believe activity levels probably reached the bottom of this cycle during the month of May, our second quarter results continued to reflect the uncertainty and volatility in oil prices; forcing our customers to further curtail their capital spending programs. In addition, unprecedented rainy conditions in the first two months of the quarter, which represented approximately three percentage points of the total sequential revenue drop, added to the challenges we faced.
"While margins for the quarter reflect the continued competitive pricing environment, our utilization numbers have held up well compared to the overall softening market conditions. For this reason, we believe we have gained market share in our production oriented business lines such as well servicing and fluid services. Should the improved activity levels we saw in June, and early July, continue for the remainder of the year, we will fall back on this higher market share to drive our business during the recovery.
"We made further progress in the quarter to adjust both our operational infrastructure and our general & administrative costs to address the prolonged weak market conditions. We continue to look for ways to operate in a cost effective manner to get the company to cash flow break-even or better by the end of the second half of 2016. This will be difficult to achieve without continued improvements in overall activity levels.
"Improving our capital structure remains a primary focus for our company. We have retained the firm of Moelis & Company and the law firm of Weil, Gotshal, & Manges LLP to assist us in discussions with certain creditors to achieve our goals. These discussions are ongoing at this time."
Adjusted EBITDA decreased to ($11.5 million), or (10%) of revenues, for the second quarter of 2016 from ($11.1 million), or (9%) of revenues, in the first quarter of 2016. In the second quarter of 2015, Basic generated Adjusted EBITDA of $6.1 million, or 3% of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), loss on customer audit settlements, and the net gain or loss from the disposal of assets. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
2016 FIRST SIX MONTHS HIGHLIGHTS
Revenues for the half of 2016 declined 45% to $250.4 million from $455.3 million for the first six months of 2015.
Adjusted EBITDA for the first six months of 2016 decreased to ($22.6 million), or (9%) of revenues from $33.4 million, or 7% of revenue, for the first six months of 2015. Adjusted EBITDA excludes the special items discussed above for both 2016 and 2015. Adjusted EBITDA is reconciled in note 2 under the accompanying financial tables.
For the first half of 2016, Basic reported a net loss of $173.2 million, or $4.14 per basic and diluted share, compared to $80.9 million, or a loss of $2.00 per basic and diluted share in the first half of 2015. Excluding special items in both 2016 and 2015, Basic generated an adjusted net loss of $111.8 million, or $2.67 per basic and diluted share in the first half of 2016 compared to $78.1 million, or a loss of $1.93 per basic and diluted share in the first half of 2015.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue dropped by 9% to $36.2 million from $39.7 million in the prior quarter. The sequential decline in revenue for the segment was led by lower activity levels in almost all the service lines and by continued rate reductions due to severe competition in several basins of the Company's footprint. In the second quarter of 2015, this segment generated $69.1 million in revenue.
At June 30, 2016, Basic had approximately 444,000 hydraulic horsepower ("HHP"), essentially flat compared to the end of the previous quarter and up slightly from 442,000 HHP as of June 30, 2015. Weighted average HHP for the second quarter of 2016 was 444,000, equal to the first quarter of 2016. As of June 30, 2016, 192,000 HHP was stacked, as additional frac operations were shut down during the quarter due to pricing remaining below cash flow breakeven levels in some basins.
Segment profit in the second quarter of 2016 decreased to $3.4 million compared to $4.9 million in the prior quarter. Segment margin for the second quarter of 2016 decreased to 9% compared to 12% during the previous quarter, driven predominantly by lower utilization and continued pricing pressure, as well as the negative impact of decremental margins on the lower revenue base. During the second quarter of 2015, excluding a special item, segment profit was $15.9 million, or 22% of segment revenue.
Fluid Services
Fluid services revenue in the second quarter of 2016 decreased 9% to $45.5 million from $50.3 million in the prior quarter. Segment revenues declined driven by the estimated weather impact of approximately $1.2 million, along with continuing decreases in trucking operations and disposal utilization. During the second quarter of 2015, this segment generated $63.7 million in revenue.
The weighted average number of fluid services trucks decreased 1% to 976 during the second quarter of 2016, compared to 985 during the first quarter of 2016 and declined 3% compared to 1,011 during the second quarter of 2015. Truck hours of 474,400 during the second quarter of 2016 represented a decline of 9% from 521,500 during the first quarter of 2016 and a decrease of 17% compared to 573,700 in the same period in 2015.
The average revenue per fluid service truck decreased 9% to $46,600 during the second quarter from $51,000 in the first quarter of 2016, as disposal utilization and hot oiling revenues dropped with trucking activity. In the comparable quarter of 2015, average revenue per fluid truck was $63,000.
Segment profit in the second quarter of 2016 decreased to $6.9 million from $9.1 million in the prior quarter. Segment profit margin decreased 300 basis points to 15% due to the impact of decremental margins on the lower revenue base, inclement weather and pricing pressure. Segment profit in the same period in 2015 was $15.3 million, or 24% of segment revenue.
Well Servicing
Well servicing revenues decreased 5% to $36.8 million during the second quarter of 2016 compared to $38.9 million in the prior quarter driven by lower Taylor manufacturing revenues and lower levels of plugging activity, despite a quarterly increase in rig hours. Well servicing revenue was $56.5 million in the second quarter of 2015. Revenues from the Taylor manufacturing operations were $1.8 million compared to $4.1 million in the first quarter of 2016 and $2.2 million in the second quarter of 2015.
At June 30, 2016, the well servicing rig count was 421, the same as of the end of the prior quarter and at June 30, 2015. Rig hours increased 5% to 113,700 in the second quarter of 2016, compared to 108,400 in the previous quarter and were down 27% from 154,700 hours in the comparable quarter of last year. Rig utilization was 38% in the second quarter of 2016, up from 36% in the prior quarter and down from 51% in the second quarter of 2015.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $308 in the second quarter of 2016, down 4% compared to $321 in the previous quarter and down 12% from $351 reported in the second quarter of 2015. The lower rig rate per hour reflects pricing concessions granted to customers, along with a decrease in plugging activity in the second quarter, which carries a higher rate.
Segment profit in the second quarter of 2016 increased 12% to $5.0 million compared to $4.4 million in the prior quarter and $9.5 million during the same period in 2015. Segment profit margin increased to 14% in the second quarter of 2016 from 11% in the prior quarter. Margins improved led by higher utilization and activity levels, and the impact of cost savings initiatives. In the second quarter of 2015, segment profit was 17% of segment revenue. Segment profit from the Taylor manufacturing operations improved 5% to $107,000 in the second quarter of 2016 compared to $102,000 in the first quarter of 2016.
Contract Drilling
Contract drilling revenue was essentially flat at $1.5 million during the second quarter of 2016 compared to the prior quarter. During the second quarter of 2015, this segment generated $4.3 million in revenue. Basic marketed 12 drilling rigs during the second quarter of 2016, the same number of rigs as in the previous quarter as well as in the second quarter of 2015. However, only one rig was active during the entire second quarter. Revenue per drilling day in the second quarter of 2016 decreased to $16,100 compared to $16,500 in the previous quarter, but up from $15,500 in the second quarter of 2015.
Rig operating days during the second quarter remained flat at 91 compared to the first quarter of 2016, resulting in a rig utilization of 8% during both the second and first quarters of 2016. Rig operating days remained weak due to the lack of capital spending by our customers. In the comparable period in 2015, rig operating days were 280, producing a utilization of 26%.
Segment profit in the second quarter of 2016 increased to $93,000 compared to a loss of $57,000 in the prior quarter and decreased from $848,000 in the second quarter of 2015. Segment margin for the second quarter of 2016 was 6% of segment revenues compared to (4%) in the prior quarter, due to cost reduction initiatives. For the second quarter of 2015, segment margin was 20%.
G&A Expense
General and administrative ("G&A") expense in the second quarter of 2016 declined 8% to $27.1 million, or 23% of revenue from $29.6 million, or 23% of revenue, in the prior quarter. G&A expense in the second quarter of 2015 was $35.7 million, or 18% of revenue. The 24% decrease in G&A expense from last year's second quarter was primarily the result of headcount reductions, lower incentive compensation and other cost savings initiatives implemented over the past 12 months, including the first half of 2016.
Tax Benefit
Basic's tax expense for the second quarter of 2016 was $662,000, compared to a tax benefit of $4.5 million in the first quarter of 2016. In the second quarter of 2016, Basic recognized a valuation allowance of $32.9 million related to deferred tax assets available to be used in future periods. Excluding the impact of the valuation allowance, the operating effect tax benefit is $32.3 million, for an operating tax benefit rate of 36%. In the first quarter of 2016, Basic recognized a similar deferred tax valuation allowance of $27.3 million. Excluding the effect of the valuation allowance and the write-down of the deferred debt cost discussed previously, the operating effective tax benefit for the first quarter of 2016 was $31.1 million, for an operating effective tax benefit rate of 36%. The adjusted effective tax benefit of $25.6 million in the second quarter of 2015 translated into an effective tax benefit rate of 36%.
Cash and Total Liquidity
On June 30, 2016, Basic had cash and cash equivalents of approximately $86.1 million, up from $75.1 million at March 31, 2016 and $91.8 million on June 30, 2015. An additional amount of $30.2 million is classified as restricted cash, and $19 million of this amount may be released upon satisfaction of pre-determined conditions related to the perfection of collateral assets by August 31, 2016. However, if conditions may not be satisfied by August 31, 2016, the Company would seek an extension of the deadline for satisfaction of such conditions. The Company cannot predict whether the Term Loan Agreement lenders would agree to extend the deadline for the satisfaction of such conditions. In addition, the Term Loan Agreement also includes a delayed draw provision for borrowings in an aggregate principal amount not to exceed $15.0 million.
At June 30, 2016, total liquidity was approximately $138.4 million, which included $22.1 million of availability under Basic's $100 million revolving credit facility.
Basic's senior management and Board are evaluating potential strategic alternatives, such as refinancing or restructuring of the Company's capital structure or available financing options to address the Company's liquidity position and high debt levels. Basic has engaged financial and legal advisors, and is actively working with its advisors and negotiating with certain creditors and their advisors with respect to alternatives to the Company's current capital structure. While the Company is optimistic that ongoing negotiations with its creditors will lead to satisfactory resolution of these issues, the Company cannot provide any assurance that these negotiations will be successful. If the Company is unable to find acceptable alternatives to its current capital structure to better fund future capital needs, or if the Company is unable to finance its operations on acceptable terms or at all, the Company's business, financial condition and results of operations may be materially and adversely affected.
Capital Expenditures
Total capital expenditures during the first six months of 2016 were approximately $13.8 million (including capital leases of $2.2 million), comprised of $1.6 million for expansion projects, $9.7 million for sustaining and replacement projects and $2.5 million for other projects. Expansion capital spending included $840,000 for the well servicing segment, $754,000 for the fluid services segment, and $24,000 for the completion and remedial services segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates 2016 capital expenditures to be under $30.0 million, including $10.0 million of capital leases.
Conference Call
Basic will host a conference call to discuss its second quarter 2016 results on Friday, July 22, 2016, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until August 5, 2016 and may be accessed by calling (201) 612-7415 and using pass code 13639548#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 3,300 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2015 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.
-Tables to Follow-
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Basic Energy Services, Inc. | ||||||||||||||||||||||
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Consolidated Statements of Operations and Other Financial Data | ||||||||||||||||||||||
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(in thousands, except per share amounts) | ||||||||||||||||||||||
|
Three months ended June 30, |
Six months ended June 30, | |||||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||||
|
Income Statement Data: |
(Unaudited) |
(Unaudited) | ||||||||||||||||||||
|
Revenues: |
||||||||||||||||||||||
|
Completion and remedial services |
$ |
36,228 |
$ |
69,056 |
$ |
75,924 |
$ |
181,831 | ||||||||||||||
|
Fluid services |
45,491 |
63,704 |
95,741 |
137,506 | ||||||||||||||||||
|
Well servicing |
36,824 |
56,500 |
75,731 |
120,168 | ||||||||||||||||||
|
Contract drilling |
1,461 |
4,336 |
2,965 |
15,812 | ||||||||||||||||||
|
Total revenues |
120,004 |
193,596 |
250,361 |
455,317 | ||||||||||||||||||
|
Expenses: |
||||||||||||||||||||||
|
Completion and remedial services |
32,860 |
57,670 |
67,648 |
138,921 | ||||||||||||||||||
|
Fluid services |
38,619 |
48,381 |
79,786 |
102,512 | ||||||||||||||||||
|
Well servicing |
31,847 |
47,035 |
66,318 |
99,437 | ||||||||||||||||||
|
Contract drilling |
1,368 |
3,488 |
2,929 |
11,014 | ||||||||||||||||||
|
General and administrative (1) |
27,078 |
35,673 |
56,640 |
74,877 | ||||||||||||||||||
|
Depreciation and amortization |
54,847 |
60,231 |
110,999 |
121,160 | ||||||||||||||||||
|
(Gain) loss on disposal of assets |
336 |
(57) |
261 |
(9) | ||||||||||||||||||
|
Total expenses |
186,955 |
252,421 |
384,581 |
547,912 | ||||||||||||||||||
|
Operating loss |
(66,951) |
(58,825) |
(134,220) |
(92,595) | ||||||||||||||||||
|
Other income (expense): |
||||||||||||||||||||||
|
Interest expense |
(22,521) |
(16,841) |
(43,235) |
(33,704) | ||||||||||||||||||
|
Interest income |
7 |
4 |
9 |
10 | ||||||||||||||||||
|
Other income |
244 |
215 |
340 |
335 | ||||||||||||||||||
|
Loss before income taxes |
(89,221) |
(75,447) |
(177,106) |
(125,954) | ||||||||||||||||||
|
Income tax benefit (expense) |
(662) |
27,152 |
3,884 |
45,035 | ||||||||||||||||||
|
Net loss |
$ |
(89,883) |
$ |
(48,295) |
$ |
(173,222) |
$ |
(80,919) | ||||||||||||||
|
Loss per share of common stock: |
||||||||||||||||||||||
|
Basic |
$ |
(2.11) |
$ |
(1.20) |
$ |
(4.14) |
$ |
(2.00) | ||||||||||||||
|
Diluted |
$ |
(2.11) |
$ |
(1.20) |
$ |
(4.14) |
$ |
(2.00) | ||||||||||||||
|
Other Financial Data: |
||||||||||||||||||||||
|
EBITDA (2) |
$ |
(11,860) |
$ |
1,621 |
$ |
(22,881) |
$ |
28,900 | ||||||||||||||
|
Adjusted EBITDA (2) |
(11,524) |
6,064 |
(22,620) |
33,391 | ||||||||||||||||||
|
Capital expenditures: |
||||||||||||||||||||||
|
Acquisitions, net of cash acquired |
- |
- |
- |
- | ||||||||||||||||||
|
Property and equipment |
6,984 |
8,962 |
11,561 |
34,823 | ||||||||||||||||||
|
As of |
||||||||||||||||||||||
|
June 30, 2016 |
June 30, 2015 |
|||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||
|
Balance Sheet Data: |
||||||||||||||||||||||
|
Cash and cash equivalents |
$ |
86,100 |
$ |
91,822 |
||||||||||||||||||
|
Net property and equipment |
751,070 |
925,738 |
||||||||||||||||||||
|
Total assets |
1,078,358 |
1,402,074 |
||||||||||||||||||||
|
Total long-term debt |
961,416 |
850,887 |
||||||||||||||||||||
|
Total stockholders' equity (deficit) |
(62,407) |
262,256 |
||||||||||||||||||||
|
Three months ended June 30, |
Six months ended June 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
Segment Data: |
(Unaudited) |
(Unaudited) | ||||||||||
|
Completion and Remedial Services |
||||||||||||
|
Segment Profits as a percent of revenue |
9.3% |
21.6% |
10.9% |
25.4% | ||||||||
|
Fluid Services |
||||||||||||
|
Weighted average number of fluid service trucks |
976 |
1,011 |
980 |
1,029 | ||||||||
|
Truck hours (000's) |
474.4 |
573.7 |
995.9 |
1,168.8 | ||||||||
|
Revenue per fluid services truck (000's) |
$ |
47 |
$ |
63 |
$ |
98 |
$ |
134 | ||||
|
Segment profits per fluid services truck (000's) |
$ |
7 |
$ |
15 |
$ |
16 |
$ |
34 | ||||
|
Segment profits as a percent of revenue |
15.1% |
24.1% |
16.7% |
25.4% | ||||||||
|
Well Servicing |
||||||||||||
|
Weighted average number of rigs |
421 |
421 |
421 |
421 | ||||||||
|
Rig hours (000's) |
113.7 |
154.7 |
222.1 |
318.6 | ||||||||
|
Rig utilization rate |
38% |
51% |
37% |
53% | ||||||||
|
Revenue per rig hour, excluding manufacturing |
$ |
308 |
$ |
351 |
$ |
314 |
$ |
364 | ||||
|
Well servicing rig profit per rig hour |
$ |
44 |
$ |
61 |
$ |
42 |
$ |
65 | ||||
|
Segment profits as a percent of revenue |
13.5% |
16.8% |
12.4% |
17.3% | ||||||||
|
Contact Drilling |
||||||||||||
|
Weighted average number of rigs |
12 |
12 |
12 |
12 | ||||||||
|
Rig operating days |
91 |
280 |
182 |
954 | ||||||||
|
Revenue per day |
$ |
16,100 |
$ |
15,500 |
$ |
16,300 |
$ |
16,600 | ||||
|
Drilling rig profit per day |
$ |
1,000 |
$ |
3,000 |
$ |
200 |
$ |
5,000 | ||||
|
Segment profits as a percent of revenue |
6.4% |
19.6% |
1.2% |
30.3% | ||||||||
|
(1) |
Includes approximately $2,044,000 and $4,516,000 of non-cash compensation expense for the three months ended June 30, 2016 and 2015, respectively, and $5,302,000 and $9,047,000 for the six months ended June 30, 2016 and 2015 respectively. |
|
(2) |
This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, loss on customer audit settlements, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: |
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include:
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include:
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended June 30, |
Six months ended June 30, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Reconciliation of Net Income (Loss) to EBITDA: |
(Unaudited) |
(Unaudited) | |||||||||
|
Net income / (loss) |
$ |
(89,883) |
$ |
(48,295) |
$ |
(173,222) |
$ |
(80,919) | |||
|
Income taxes |
662 |
(27,152) |
(3,884) |
(45,035) | |||||||
|
Net interest expense |
22,514 |
16,837 |
43,226 |
33,694 | |||||||
|
Depreciation and amortization |
54,847 |
60,231 |
110,999 |
121,160 | |||||||
|
EBITDA |
$ |
(11,860) |
$ |
1,621 |
$ |
(22,881) |
$ |
28,900 | |||
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, and loss on customer audit settlements:
|
Three months ended June 30, |
Six months ended June 30, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA: |
(Unaudited) |
(Unaudited) | |||||||||
|
Net income / (loss) |
$ |
(89,883) |
$ |
(48,295) |
$ |
(173,222) |
$ |
(80,919) | |||
|
Income taxes |
662 |
(27,152) |
(3,884) |
(45,035) | |||||||
|
Net interest expense |
22,514 |
16,837 |
43,226 |
33,694 | |||||||
|
Depreciation and amortization |
54,847 |
60,231 |
110,999 |
121,160 | |||||||
|
(Gain) loss on disposal of assets |
336 |
(57) |
261 |
(9) | |||||||
|
Loss on customer audit settlement |
- |
4,500 |
- |
4,500 | |||||||
|
Adjusted EBITDA |
$ |
(11,524) |
$ |
6,064 |
$ |
(22,620) |
$ |
33,391 | |||
|
Contacts: |
Alan Krenek, |
|
Chief Financial Officer | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
7/21/20166/28/2016 - Basic Energy Services Announces Second Quarter 2016 Earnings Release And Conference Call Schedule
Basic Energy Services Announces Second Quarter 2016 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, June 28, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its second quarter 2016 financial results after the market closes on Thursday, July 21, 2016. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, July 22, 2016, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services Second Quarter 2016 Earnings Conference Call |
|
When: |
Friday, July 22, 2016 – 9:00 a.m. Eastern Time |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
Live over the Internet - Log on to the web at the address below. | |
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through August 5, 2016 by calling 201-612-7415 and using pass code 13639548#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
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 3,400 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 www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
6/28/20166/3/2016 - Basic Energy Services to Present at the Bank of America Merrill Lynch 2016 Energy Credit Conference
Basic Energy Services to Present at the Bank of America Merrill Lynch 2016 Energy Credit Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, June 3, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Bank of America Merrill Lynch 2016 Energy Credit Conference to be held in New York City on June 7 – 8, 2016.
Alan Krenek, Senior Vice President and Chief Financial Officer, is scheduled to present on Tuesday, June 7, 2016, at approximately 1:40 p.m. Eastern Time (12:40 p.m. Central Time). The accompanying presentation will be available that morning in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com.
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 3,400 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
Statements made in this press release and in the presentations may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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 | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
6/3/2016Basic Energy Services Reports First Quarter 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, April 20, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today announced its financial and operating results for the first quarter ended March 31, 2016.
FIRST QUARTER 2016 HIGHLIGHTS
First quarter 2016 revenue declined 19% to $130.4 million from $161.0 million in the fourth quarter of 2015, as low levels of activity driven by weak and volatile energy prices and significant weather impact during the first two months of the quarter pushed our customers to postpone a growing inventory of maintenance and workover projects. In the first quarter of 2015, Basic generated $261.7 million in revenue.
For the first quarter of 2016, Basic reported a net loss of $83.3 million, or a loss of $2.00 per basic and diluted share. The first quarter of 2016 included a tax-effected, non-cash charge of $1.3 million, or $0.03 per share pertaining to the early extinguishment of deferred debt costs related to the amendment of Basic's revolving credit facility and a non-cash charge of $27.3 million, or $0.66 per share, related to a deferred tax valuation allowance on federal net operating losses. Excluding the impact of these special items, Basic reported a net loss of $54.8 million, or a loss of $1.32 per basic and diluted share. This compares to a net loss of $55.2 million, or a loss of $1.36 per basic and diluted share, in the fourth quarter of 2015. In the first quarter of 2015, Basic reported a net loss of $32.6 million, or a loss of $0.81 per basic and diluted share.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Our first quarter results continue to reflect the impact of the ongoing decline in all oilfield-related services. While our production-related activities appeared to have begun stabilizing at the end of the first quarter, our completion-related services continue to be impacted as the volatility and uncertainty in oil prices caused our customers to further curtail their exploration and drilling projects as the quarter unfolded. In addition, weather interruptions represented approximately three percentage points of the total sequential revenue drop during the quarter.
"Early in the quarter, we had anticipated that the growing inventory of maintenance and workover projects that were deferred at the end of 2015 would be completed in the first quarter. This did not happen as oil prices dipped below $30 per barrel twice during the quarter. These oil price declines forced many customers to delay projects until more stable oil prices returned. Our fluid services business, anchored by our extensive network of salt-water disposal wells, continues to operate at relatively stable levels despite the current environment as we benefit from protected market share and a lower cost structure. Margins in this business were impacted by weather and a decrease in our skim oil sales, which track WTI pricing. Our well servicing business margin increased sequentially driven mainly by the impact of cost savings initiatives.
"Pricing in all our markets and lines of business remains very competitive, and we continue to scale back operations and capital expenditures to fit cash flow and preserve our liquidity. As a result, we continue to stack equipment and exit markets where cash margins do not support maintenance capital expenditures. As of the end of the first quarter, we had stacked 134,000 hydraulic horsepower. We also stacked additional well servicing rigs to bring our total stacked rig inventory to 127 at quarter-end.
"Looking ahead, the fluctuations in oil prices create market uncertainties preventing us from knowing exactly what our near term results will look like. But based on current activity levels, we anticipate that our second quarter revenue could be down approximately 3 to 4% sequentially driven by a declining drilling rig count and fewer completions. Production related services should improve in the near term if oil prices remain in the $40 per barrel range, but these improvements may not be enough to offset declining completion activities.
"In conjunction with our new $165 million term loan that was announced in February 2016, we made further progress during the quarter to adjust our operational infrastructure to react to the prolonged weak market conditions and will make additional changes throughout this year to generate additional cost savings. We expect these changes to be fully implemented by the end of the first half of 2016 and we will continue to look for ways to operate in a cost effective manner to get the company to cash flow break-even or better by the end of 2016."
Adjusted EBITDA decreased to ($11.1 million), or (9%) of revenues, for the first quarter of 2016 from ($7.5 million), or (5%) of revenues, in the fourth quarter of 2015. In the first quarter of 2015, Basic generated Adjusted EBITDA of $27.3 million, or 10% of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization ("EBITDA"), and the net gain or loss from the disposal of assets. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 2 under the accompanying financial tables.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue dropped by 32% to $39.7 million in the first quarter of 2016 from $58.5 million in the prior quarter. The sequential decline in revenue was primarily due to lower activity levels driven by the lower drilling rig count and rate reductions due to greater competition in several basins in the Company's footprint. In the first quarter of 2015, this segment generated $112.8 million in revenue.
At March 31, 2016, Basic had approximately 444,000 hydraulic horsepower ("HHP"), essentially flat compared to the end of the previous quarter and up slightly from 443,000 HHP as of March 31, 2015. Weighted average HHP for the first quarter of 2016 was 444,000, equal to the fourth quarter of 2015. 134,000 HHP was stacked as of March 31, 2016 as several frac operations were shut down during the quarter due to pricing dropping below cash flow breakeven levels.
Segment profit in the first quarter of 2016 decreased 42% to $4.9 million compared to $8.5 million in the prior quarter. Segment margin for the first quarter 2016 decreased to 12% compared to 15% during the previous quarter, driven predominantly by continued pricing pressure, as well as the negative impact of decremental margins on the lower revenue base. During the first quarter of 2015, segment profit was $31.5 million, or 28% of segment revenue.
Fluid Services
Fluid services revenue in the first quarter of 2016 decreased 14% to $50.3 million compared to $58.5 million in the prior quarter. Segment revenues declined driven by the weather impact of approximately $1.6 million, along with decreases in disposal utilization, skim oil sales and frac tank rental revenues. During the first quarter of 2015, this segment generated $73.8 million in revenue.
The weighted average number of fluid services trucks decreased 2% to 985 during the first quarter of 2016, compared to 1,002 during the fourth quarter of 2015 and 1,046 during the first quarter of 2015. Truck hours of 521,500 during the first quarter of 2016 represented a decrease of 6% from the 557,000 generated in the fourth quarter of 2015 and a decrease of 12% compared to 595,100 in the same period in 2015.
The average revenue per fluid service truck decreased 13% to $51,000 from $58,000 in the fourth quarter of 2015, as disposal utilization and skim oil sales dropped with trucking activity. In the comparable quarter of 2015, average revenue per fluid truck was $71,000.
Segment profit in the first quarter of 2016 was $9.1 million, compared to a profit of $12.5 million in the prior quarter. Segment profit margin decreased 330 basis points to 18% due to the impact of decremental margins on the lower revenue base and inclement weather. Segment profit in the same period in 2015 was $19.7 million, or 27% of segment revenue.
Well Servicing
Well servicing revenues decreased 6% to $38.9 million during the first quarter of 2016 compared to $41.5 million in the prior quarter as higher Taylor revenues partially offset lower rig activity and continued pricing pressure. Well servicing revenues were $63.7 million in the first quarter of 2015. Revenues from the Taylor manufacturing operations were $4.1 million in the first quarter of 2016 compared to $2.6 million in the prior quarter and $1.8 million in the first quarter of 2015.
At March 31, 2016, the well servicing rig count was 421, the same as the end of the prior quarter and at March 31, 2015. Rig hours were 108,400 in the first quarter of 2016, down 10% compared to 120,000 in the previous quarter and down 34% from 163,900 hours in the comparable quarter of last year. Rig utilization was 36% in the first quarter of 2016, down from 39% in the prior quarter and down from 55% in the first quarter of 2015.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $321 in the first quarter of 2016, down 1% compared to $325 in the previous quarter and down 15% from $377 reported in the first quarter of 2015. The slight sequential decline was due to pricing concessions given to customers almost totally offset by increases in higher-rate activity services, such as plugging and abandonment.
Segment profit in the first quarter of 2016 increased to $4.4 million, compared to $3.9 million in the prior quarter and $11.3 million during the same period in 2015. Segment profit margin increased to 11% in the first quarter of 2016 from 9% in the prior quarter. In the first quarter of 2015, segment profit was 18% of segment revenue. Margins improved, despite lower utilization and activity levels, due to cost savings initiatives and closing non-profitable locations. Segment profit from the Taylor manufacturing operations was $102,000 in the first quarter of 2016 compared to a loss of $106,000 in last year's fourth quarter.
Contract Drilling
Contract drilling revenues decreased by 41% to $1.5 million during the first quarter of 2016 from $2.6 million in the prior quarter. During the first quarter of 2015, this segment generated $11.5 million in revenue. Basic marketed 12 drilling rigs during the first quarter of 2015, the same number of rigs as in the previous quarter as well as the first quarter of 2015. However, only one rig was active during the majority of the first quarter. Revenue per drilling day in the first quarter of 2016 was $16,500, flat compared to the previous quarter but down slightly from $17,000 in the first quarter of 2015.
Rig operating days during the first quarter of 2016 decreased by 41% to 91 compared to 155 in the prior quarter, resulting in rig utilization of 8% during the first quarter of 2016 compared to 14% during the prior quarter. Rig operating days declined due to diminishing capital and operational spending by our customers. In the comparable period in 2015, rig operating days were 674, producing a utilization of 62%.
Segment loss in the first quarter of 2016 was $57,000 compared to profit of $69,000 in the prior quarter and a decrease from $4.0 million in the first quarter of 2016. Segment margin for the first quarter of 2016 was (4%) of segment revenues compared to 3% in the prior quarter, due to only one rig running during the first quarter. Last year in the comparable period, segment margin was 34%.
G&A Expense
General and administrative ("G&A") expense in the first quarter of 2016 was $29.6 million, or 23% of revenue, compared to $32.6 million, or 20% of revenue, in the prior quarter. This 9% decrease in G&A expense was primarily the result of headcount reductions, lower incentive compensation and other cost savings initiatives implemented throughout the late fourth quarter and during the first quarter. G&A expense in the first quarter of 2015 was $39.2 million, or 15% of revenue.
Tax Benefit
Basic's tax benefit for the first quarter of 2016 was $4.5 million, compared to a tax benefit of $29.8 million in the fourth quarter of 2015. In the first quarter of 2016, Basic recognized a deferred tax valuation allowance of $27.3 million related to net operating loss carryforwards available to be used in future periods. Excluding the impact of the valuation allowance and the write-down of the deferred debt cost discussed previously, the operating effective tax benefit is $31.1 million, for an operating effective tax benefit rate of 36%. The prior quarter's effective tax adjusted benefit rate was 35%. The tax benefit of $17.9 million in the first quarter of 2015 translated into an effective tax benefit rate of 35%.
Cash and Total Liquidity
On March 31, 2016, Basic had cash and cash equivalents of approximately $75.1 million, up from $46.7 million at December 31, 2015 and $104.9 million on March 31, 2015. The increase in cash is due to the initial borrowings of $75.3 million under the $165.0 million Term Loan Credit Agreement signed in February. An additional amount of $83.6 million is classified as restricted cash and is expected to be released upon satisfaction of pre-determined conditions related to the perfection of collateral later in 2016. The Term Loan Agreement also includes a delayed draw provision for borrowings in an aggregate principal amount not to exceed $15.0 million.
At March 31, 2016, total liquidity was approximately $176.3 million, which included $17.6 million of availability under Basic's $100 million revolving credit facility. In February 2016, Basic amended its existing revolving credit agreement, reducing the aggregate commitment from $250 million to $100 million.
Capital Expenditures
Total capital expenditures during the first three months of 2016 were approximately $6.0 million (including capital leases of $1.4 million), comprised of $1.2 million for expansion projects, $3.8 million for sustaining and replacement projects and $1.0 million for other projects. Expansion capital spending included $821,000 for the well servicing segment, $357,000 for the fluid services segment, and $23,000 for the completion and remedial services segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic currently anticipates 2016 capital expenditures to be under $40.0 million, including $15.0 million of capital leases.
Conference Call
Basic will host a conference call to discuss its first quarter 2016 results on Thursday, April 21, 2016, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until May 5, 2016 and may be accessed by calling (201) 612-7415 and using pass code 13633648#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 3,400 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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, 2015 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.
-Tables to Follow-
|
Basic Energy Services, Inc. | |||||
|
Consolidated Statements of Operations and Other Financial Data | |||||
|
(in thousands, except per share amounts) | |||||
|
Three months ended March 31, | |||||
|
2016 |
2015 | ||||
|
Income Statement Data: |
(Unaudited) | ||||
|
Revenues: |
|||||
|
Completion and remedial services |
$ |
39,696 |
$ |
112,775 | |
|
Fluid services |
50,250 |
73,803 | |||
|
Well servicing |
38,906 |
63,668 | |||
|
Contract drilling |
1,504 |
11,475 | |||
|
Total revenues |
130,356 |
261,721 | |||
|
Expenses: |
|||||
|
Completion and remedial services |
34,788 |
81,251 | |||
|
Fluid services |
41,167 |
54,132 | |||
|
Well servicing |
34,470 |
52,401 | |||
|
Contract drilling |
1,561 |
7,525 | |||
|
General and administrative (1) |
29,562 |
39,204 | |||
|
Depreciation and amortization |
56,152 |
60,929 | |||
|
(Gain) loss on disposal of assets |
(75) |
48 | |||
|
Total expenses |
197,625 |
295,490 | |||
|
Operating loss |
(67,269) |
(33,769) | |||
|
Other income (expense): |
|||||
|
Interest expense |
(20,714) |
(16,863) | |||
|
Interest income |
2 |
6 | |||
|
Other income |
96 |
120 | |||
|
Loss before income taxes |
(87,885) |
(50,506) | |||
|
Income tax benefit |
4,546 |
17,882 | |||
|
Net loss |
$ |
(83,339) |
$ |
(32,624) | |
|
Loss per share of common stock: |
|||||
|
Basic |
$ |
(2.00) |
$ |
(0.81) | |
|
Diluted |
$ |
(2.00) |
$ |
(0.81) | |
|
Other Financial Data (unaudited): |
|||||
|
EBITDA (2) |
$ |
(11,021) |
$ |
27,280 | |
|
Adjusted EBITDA (2) |
(11,096) |
27,328 | |||
|
Capital expenditures: |
|||||
|
Acquisitions, net of cash acquired |
- |
- | |||
|
Property and equipment |
4,577 |
25,861 | |||
|
As of | |||||
|
March 31, 2016 |
December 31, 2015 | ||||
|
(Unaudited) |
(Audited) | ||||
|
Balance Sheet Data: |
|||||
|
Cash and cash equivalents |
$ |
75,083 |
$ |
46,732 | |
|
Net property and equipment |
797,973 |
846,290 | |||
|
Total assets |
1,168,525 |
1,161,369 | |||
|
Total long-term debt |
969,790 |
838,368 | |||
|
Total stockholders' equity |
25,202 |
106,338 | |||
|
Three months ended March 31, | |||||
|
2016 |
2015 | ||||
|
Segment Data: |
(Unaudited) | ||||
|
Completion and Remedial Services |
|||||
|
Segment Profits as a percent of revenue |
12.4% |
28.0% | |||
|
Fluid Services |
|||||
|
Weighted average number of fluid service trucks |
985 |
1,046 | |||
|
Truck hours (000's) |
521.5 |
595.1 | |||
|
Revenue per fluid services truck (000's) |
$ |
51 |
$ |
71 | |
|
Segment profits per fluid services truck (000's) |
$ |
10 |
$ |
19 | |
|
Segment profits as a percent of revenue |
18.1% |
26.7% | |||
|
Well Servicing |
|||||
|
Weighted average number of rigs |
421 |
421 | |||
|
Rig hours (000's) |
108.4 |
163.9 | |||
|
Rig utilization rate |
36% |
55% | |||
|
Revenue per rig hour, excluding manufacturing |
$ |
321 |
$ |
377 | |
|
Well servicing rig profit per rig hour |
$ |
44 |
$ |
69 | |
|
Segment profits as a percent of revenue |
11.4% |
17.7% | |||
|
Contact Drilling |
|||||
|
Weighted average number of rigs |
12 |
12 | |||
|
Rig operating days |
91 |
674 | |||
|
Drilling utilization rate |
8% |
62% | |||
|
Revenue per day |
$ |
16,500 |
$ |
17,000 | |
|
Drilling rig profit per day |
$ |
(400) |
$ |
5,900 | |
|
Segment profits as a percent of revenue |
(3.8%) |
34.4% | |||
|
(1) |
Includes approximately $3,258,000 and $4,532,000 of non-cash compensation expense for the three months ended March 31, 2016 and March 31, 2015, respectively. |
|
(2) |
This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: |
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include:
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include:
The following table presents a reconciliation of net income to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended March 31, | |||||
|
2016 |
2015 | ||||
|
Reconciliation of Net Loss to EBITDA: |
(Unaudited) | ||||
|
Net loss |
$ |
(83,339) |
$ |
(32,624) | |
|
Income taxes |
(4,546) |
(17,882) | |||
|
Net interest expense |
20,712 |
16,857 | |||
|
Depreciation and amortization |
56,152 |
60,929 | |||
|
EBITDA |
$ |
(11,021) |
$ |
27,280 | |
The following table presents a reconciliation of net income to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets:
|
Three months ended March 31, | |||||
|
2016 |
2015 | ||||
|
Reconciliation of Net Loss to Adjusted EBITDA: |
(Unaudited) | ||||
|
Net loss |
$ |
(83,339) |
$ |
(32,624) | |
|
Income taxes |
(4,546) |
(17,882) | |||
|
Net interest expense |
20,712 |
16,857 | |||
|
Depreciation and amortization |
56,152 |
60,929 | |||
|
(Gain) loss on disposal of assets |
(75) |
48 | |||
|
Adjusted EBITDA |
$ |
(11,096) |
$ |
27,328 | |
|
Contacts: |
Alan Krenek, |
|
Chief Financial Officer | |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
4/20/2016Basic Energy Services Reports Selected Operating Data For March 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, April 11, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of March 2016. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 37,000 producing a rig utilization rate of 35%, compared to 35% and 55% in February 2016 and March 2015, respectively.
During the month, Basic's fluid service truck count decreased by six to 981. Fluid service truck hours for the month were 172,800, compared to 168,100 and 202,900 in February 2016 and March 2015, respectively.
Drilling rig days for the month were 31 producing a rig utilization of 8%, compared to 8% and 50% in February 2016 and March 2015, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, commented, "Activity in the month of March, excluding the impact of the Easter holiday, remained steady for our production-related well servicing and fluid services segments. However, our completion-related services, such as our stimulation business, continue to be impacted as the volatility and uncertainty in oil prices has caused our customers to further curtail their exploration and drilling projects.
"Throughout the first quarter, we stacked additional equipment in markets where existing demand did not allow us to sustain cash breakeven or better margins. As of March 31, we had stacked 134,000 hydraulic horsepower due to lower completion demand. We also stacked eight additional well servicing rigs in March to bring our total stacked rig inventory to 127 at quarter-end. We made further progress in the first quarter to adjust our operational infrastructure to react to the prolonged weak market conditions and will make additional changes throughout this year to generate additional cost savings.
"Based on our activity in March, we now expect our first quarter revenues to be 18 to 20% lower than the fourth quarter of 2015 rather than our previous guidance of 16 to 17% lower. Weather and holiday interruptions represented approximately 4.5% of the total sequential revenue drop. We will discuss our second quarter revenue expectations during our first quarter earnings call later this month."
|
OPERATING DATA | |||||||
|
Month ended | |||||||
|
March 31, |
February 29, | ||||||
|
2016 |
2015 |
2016 | |||||
|
Number of weekdays in period |
23 |
22 |
21 | ||||
|
Number of well servicing rigs: 1 |
|||||||
|
Weighted average for period |
421 |
421 |
421 | ||||
|
End of period |
421 |
421 |
421 | ||||
|
Rig hours (000s) |
37.0 |
56.0 |
34.2 | ||||
|
Rig utilization rate 2 |
35% |
55% |
35% | ||||
|
Number of fluid service trucks: 1 |
|||||||
|
Weighted average for period |
984 |
1,036 |
986 | ||||
|
End of period |
981 |
1,023 |
987 | ||||
|
Truck Hours (000s) |
172.8 |
202.9 |
168.1 | ||||
|
Number of drilling rigs: 1 |
|||||||
|
Weighted average for period |
12 |
12 |
12 | ||||
|
End of period |
12 |
12 |
12 | ||||
|
Drilling rig days |
31 |
186 |
29 | ||||
|
Drilling rig utilization |
8% |
50% |
8% | ||||
|
(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. |
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 3,400 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, 2015 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 | |
|
Dennard – Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
4/11/20163/28/2016 - Basic Energy Services Announces First Quarter 2016 Earnings Release And Conference Call Schedule
Basic Energy Services Announces First Quarter 2016 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, March 28, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its first quarter 2016 financial results after the market closes on Wednesday, April 20, 2016. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Thursday, April 21, 2016, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services First Quarter 2016 Earnings Conference Call |
|
When: |
Thursday, April 21, 2016 – 9:00 a.m. Eastern Time |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
Live over the Internet - Log on to the web at the address below. | |
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through May 5, 2016 by calling 201-612-7415 and using pass code 13633648#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
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 3,500 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 www.basicenergyservices.com.
Contacts: Alan Krenek, Chief Financial Officer
Basic Energy Services, Inc.
817-334-4100
Jack Lascar/Stephanie Zhadkevich
Dennard-Lascar Associates
713-529-6600
SOURCE Basic Energy Services, Inc.
Article Date
3/28/20163/17/2016 - Basic Energy Services to Present at the Scotia Howard Weil 44th Annual Energy Conference
Basic Energy Services to Present at the Scotia Howard Weil 44th Annual Energy Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, March 17, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Scotia Howard Weil 44th Annual Energy Conference to be held March 20–23 in New Orleans.
Roe Patterson, President and Chief Executive Officer, is scheduled to present on Tuesday, March 22, 2016, at approximately 10:20 a.m. Central Time (11:20 a.m. Eastern Time). The presentation will not be webcast, but the accompanying materials will be available that morning in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com.
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 3,500 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
Statements made in this press release and in the presentations may include 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 and the presentation, including our ability to successfully execute, manage and integrate acquisitions, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, and lower commodity prices. While Basic makes these statements and projections in good faith, neither Basic nor its management can guarantee that the transactions will be consummated or 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 |
SOURCE Basic Energy Services, Inc.
Article Date
3/17/2016Basic Energy Services Reports Selected Operating Data For February 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, March 7, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of February 2016. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 37,200 producing a rig utilization rate of 35%, compared to 38% and 55% in January 2016 and February 2015, respectively.
During the month, Basic's fluid service truck count increased by one to 987. Fluid service truck hours for the month were 168,100, compared to 180,800 and 184,100 in January 2016 and February 2015, respectively.
Drilling rig days for the month were 29 producing a rig utilization of 8%, compared to 8% and 63% in January 2016 and February 2015, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, commented, "February activity remained soft on continued low levels of spending by our customers, including spending for maintaining existing oil wells, which reduced well servicing utilization. Our pumping services utilization was impacted by several projects being delayed by our customers. Our fluid services business, anchored by our extensive network of salt-water disposal wells, continues to operate at stable levels despite the current environment as we benefit from protected market share and a low cost structure.
"As of February 29, we have stacked 119,000 hydraulic horsepower due to lower completion demand. We also stacked nine additional well servicing rigs in February to bring our total stacked rig inventory to 119 at month end. We will continue to adjust our operations and structure to adapt to the current market environment.
"In our fourth quarter earnings call, we had said that we believed that revenues for the first quarter of 2016 would be in the range of 10% lower sequentially. We had anticipated a growing inventory of maintenance and workover projects being deferred at the end of 2015, and our customers indicated many of these would be completed in the first quarter. This inventory has indeed grown, but our customers' reactions to sub-thirty dollar dips in WTI pricing have been swift and drastic, thereby postponing several of these projects. Visibility as to when these projects will be completed is currently unclear, though we still believe they offer the lowest cost per barrel of all capex options available to our clients. These jobs are typically much cheaper than new drills and can be quickly activated. However, because of this near term uncertainty, and these very recent delays, we are guiding first quarter revenue to 16% to 17% lower sequentially."
|
OPERATING DATA | ||||||
|
Month ended | ||||||
|
February 29/28, |
January 31, | |||||
|
2016 |
2015 |
2016 | ||||
|
Number of weekdays in period |
21 |
20 |
21 | |||
|
Number of well servicing rigs: 1 |
||||||
|
Weighted average for period |
421 |
421 |
421 | |||
|
End of period |
421 |
421 |
421 | |||
|
Rig hours (000s) |
34.2 |
50.5 |
37.2 | |||
|
Rig utilization rate 2 |
35% |
55% |
38% | |||
|
Number of fluid service trucks: 1 |
||||||
|
Weighted average for period |
986 |
1,052 |
985 | |||
|
End of period |
987 |
1,049 |
986 | |||
|
Truck Hours (000s) |
168.1 |
184.1 |
180.8 | |||
|
Number of drilling rigs: 1 |
||||||
|
Weighted average for period |
12 |
12 |
12 | |||
|
End of period |
12 |
12 |
12 | |||
|
Drilling rig days |
29 |
213 |
31 | |||
|
Drilling rig utilization |
8% |
63% |
8% | |||
|
(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. |
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 3,500 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 Zhadkevich | |
|
Dennard – Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
3/7/2016Basic Energy Services Reports Fourth Quarter And Full Year 2015 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Feb. 18, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today announced its financial and operating results for the fourth quarter and twelve months ended December 31, 2015.
FOURTH QUARTER 2015 HIGHLIGHTS
Fourth quarter 2015 revenue declined 15% to $161.0 million from $189.2 million in the third quarter of 2015, as normal seasonal declines, including reduced daylight hours, holidays and inclement weather, were compounded by continued pricing pressure and diminished activity levels. In the fourth quarter of 2014, Basic generated $400.9 million in revenue.
For the fourth quarter of 2015, Basic reported a net loss of $55.2 million, or a loss of $1.36 per basic and diluted share. This compares to a reported net loss of $105.6 million, or a loss of $2.63 per basic and diluted share, in the third quarter of 2015. The third quarter of 2015 included a tax-effected, non-cash charge of $55.1 million ($81.9 million before tax), or $1.37 per basic and diluted share, for impairment of all of the goodwill associated with the completion and remedial services segment. Excluding this special item, Basic reported a net loss of $50.6 million, or $1.26 per basic and diluted share, in the third quarter of 2015. In the fourth quarter of 2014, Basic reported a net loss of $18.8 million, or $0.45 per basic and diluted share. The fourth quarter of 2014 included a tax-effected, non-cash charge of $23.5 million ($34.7 million before tax), or $0.56 per basic and diluted share, for impairment of all the goodwill associated with the well servicing and fluid services segments. Excluding this special item, Basic reported net income of $4.7 million, or $0.11 per basic and diluted share, in the fourth quarter of 2014.
Roe Patterson, Basic's President and Chief Executive Officer, stated, "Without a doubt, 2015 was a very challenging year as U.S. land activity experienced its largest decline in the past thirty years. Capital spending by our customers declined by more than 30% and the U.S. drilling rig count ended 2015 almost 70% lower than the 2014 peak.
"Our fourth quarter results reflect the impact of the additional decline in all oilfield related services. Our customers started to rapidly reduce their activities early in the quarter as they attempted to preserve cash and defer maintenance work in response to continually weak commodity prices. Operations were further impacted by the year-end holiday season and the extreme weather conditions in late November and December. Heavy snowfall in the Permian Basin and Oklahoma caused significant downtime in all lines of business as we experienced blizzard conditions in many markets.
"Fourth quarter margins declined across all product lines, with completion and remedial services being impacted the most due to the continuing decline in new drills and completions. The amount of excess equipment available in most markets applies further pressure on rates. Our fluid services business has been the most resilient due to our integrated strategy that benefits from our extensive salt water disposal well network, which allows us to keep costs low and efficiencies high.
"Pricing in all of our markets and lines of business remains very competitive, and we continue to implement our well-developed strategy to deal with the current operating environment, including scaling operations and capital expenditures to fit cash flow and preserve our liquidity. As a result, we continue to stack equipment and exit markets where cash margins do not support maintenance capital expenditures. During the quarter, we stacked an additional 19,000 hydraulic horsepower ("HHP"), for a total of 64,000 HHP stacked at year-end, and we have already stacked over 40,000 additional HHP in the first quarter of this year. We have also reduced our direct costs in field, reduced headcount by 35%, and lowered quarterly SG&A expenses by $11 million, or 25%, since the fourth quarter of 2014. While these cost cutting initiatives have been aggressive and relatively proactive over the last 12 months, it has been difficult to keep pace with the broad decline in overall activity.
"Looking forward, we expect this pace of decline to subside in the first half of 2016. However, the first quarter will remain challenging as our industry finds a bottom. Customers have expressed various levels of capital expenditure reductions for 2016 and many have chosen to defer or delay all projects until commodity prices improve. This lack of visibility and continued market uncertainties prevent us from knowing exactly what our near term results will look like. But based on current activity levels, we anticipate that our first quarter revenue will be down approximately 10% sequentially.
"This downturn has been deeper and longer lasting than anyone originally anticipated. As we see little near term relief, we decided to ensure that the company would have sufficient liquidity to survive a meaningfully longer downturn. We evaluated many options over the last six months that would provide the best approach to increase liquidity. We concluded that the best path to accomplish this was to utilize the secured debt baskets allowed under our senior unsecured bonds. On February 17, we entered into a $165 million term loan agreement with a syndicate of lenders. Although the cost of this financing is high, we believe that this term loan provides us with sufficient liquidity to survive a two-year plus lower operating environment.
"In conjunction with this financing, the company is currently undergoing significant changes to our operating infrastructure that will allow us to reduce our cash burn and help extend our liquidity. We expect these changes to be fully implemented by the first half of this year and we will continue to look for ways to operate in a cost effective manner to get the company to cash flow break-even or better in the second half of 2016."
Adjusted EBITDA decreased to ($7.5 million), or (5%) of revenues, for the fourth quarter of 2015 from ($1.6 million), or (1%) of revenues, in the third quarter of 2015. In the fourth quarter of 2014, Basic generated Adjusted EBITDA of $85.6 million, or 21% of revenues. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, loss on goodwill impairment, loss on legal settlements, loss on customer audit settlements, and the net gain or loss from the disposal of assets. EBITDA and Adjusted EBITDA, which are not measures determined in accordance with United States generally accepted accounting principles ("GAAP"), are defined and reconciled in note 3 under the accompanying financial tables.
Term Loan Financing
On February 17, 2016, Basic entered into a Term Loan Credit Agreement with a syndicate of lenders and U.S. Bank National Association, as administrative agent for the lenders. This agreement provides for borrowings of an aggregate principal amount of $165.0 million on the closing date, and delayed draw term loan borrowings in an aggregate principal amount not to exceed $15.0 million. The obligations under the Term Loan Agreement will be secured by substantially all assets of Basic. Basic expects to borrow the initial borrowings of $165.0 million under the Term Loan Credit Agreement on February 26, 2016, subject to the satisfaction of closing conditions.
The term loan will bear interest at 13.5%. In addition, Basic will be responsible for the applicable lenders' fees, including a closing payment equal to 7.0% of the aggregate principal amount of the commitments.
In conjunction with this financing, Basic intends to amend its existing revolving credit agreement, reducing the aggregate commitment from $250.0 million to $100.0 million.
Pro forma liquidity as of March 31, 2016, including this term loan would be approximately $220.3 million, including $23.1 million of availability under Basic's amended $100 million revolving credit facility.
FULL YEAR 2015 HIGHLIGHTS
Including a revenue adjustment in the second quarter of 2015, revenues for the twelve months of 2015 were $805.6 million. This represents a 46% decrease from revenue of $1.5 billion during the comparable period of 2014.
For the twelve months ended December 31, 2015, Basic reported a net loss of $241.7 million, or a loss of $5.97 per basic and diluted share. Excluding special items, Basic generated an adjusted net loss of $186.7 million, or a loss of $4.58 per basic and diluted share for the full year 2015. Special items include the goodwill write-down in the third quarter of 2015 noted above, as well as a second quarter tax-effected charge of $2.9 million, related to a credit given to a customer resulting from the settlement of an audit. This compares to reported net loss of $8.3 million, or $0.20 per basic and diluted share during the twelve months ended December 31, 2014. Excluding the goodwill impairment charge mentioned above, Basic generated adjusted net income of $18.1 million, or $0.43 per basic and diluted share, in 2014.
Adjusted EBITDA for the full year 2015 decreased 92% to $24.3 million, or 3% of revenue, compared to $318.0 million, or 21% of revenue, for the full year 2014. Adjusted EBITDA excludes the special items discussed above for both 2015 and 2014. Adjusted EBITDA is reconciled in note 3 under the accompanying financial tables.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue dropped by 13% to $58.5 million in the fourth quarter of 2015 from $67.2 million in the prior quarter, excluding the special item from the third quarter of 2015 mentioned above. The sequential decline in revenue was primarily due to normal seasonal and weather-related declines, which included reduced daylight hours as well as severe weather in most of our major markets. Frac and cementing activity also dropped significantly due to sustained activity reductions resulting from the lower drilling rig count. These losses were offset by continued high utilization of our coil tubing equipment. In the fourth quarter of 2014, this segment generated $203.4 million in revenue.
At December 31, 2015, Basic had approximately 444,000 hydraulic horsepower ("HHP"), flat compared to the end of the previous quarter and up slightly from 443,000 HHP as of December 31, 2014. Weighted average HHP for the fourth quarter of 2015 was 444,000, up from 442,000 in the third quarter of 2015. 64,000 HHP was stacked as of December 31, 2015.
Segment profit in the fourth quarter of 2015 decreased 23% to $8.5 million compared to $11.1 million in the prior quarter, excluding the special item mentioned above. Segment margin for the fourth quarter 2015 decreased to 15% compared to the previous quarter, driven predominantly by the negative impact of decremental margins on the lower revenue base. During the fourth quarter of 2014, segment profit was $77.1 million, or 38% of segment revenue.
Fluid Services
Fluid services revenue in the fourth quarter of 2015 decreased 7% to $58.5 million compared to $62.6 million in the prior quarter. Segment revenues declined due to seasonal and weather-related factors, particularly in the Permian Basin and Mid-Continent regions. During the fourth quarter of 2014, this segment generated $93.8 million in revenue.
The weighted average number of fluid services trucks decreased 1% to 1,002 during the fourth quarter of 2015, compared to 1,012 during the third quarter of 2015 and 1,043 during the fourth quarter of 2014. Truck hours of 557,000 during the fourth quarter of 2015 represented a decrease of 1% from the 565,000 generated in the third quarter of 2015 and a decrease of 16% compared to 662,000 in the same period in 2014.
The average revenue per fluid service truck decreased 6% to $58,000 from $62,000 in the third quarter of 2015, as disposal utilization and skim oil sales dropped with trucking activity. In the comparable quarter of 2014, average revenue per fluid truck was $90,000.
Segment profit in the fourth quarter of 2015 was $12.5 million, compared to a profit of $14.9 million in the prior quarter. Segment profit margin decreased 240 basis points to 21% due to continued pricing concessions and decremental margins on the lower revenue base. Segment profit in the same period in 2014 was $26.6 million, or 28% of segment revenue.
Well Servicing
Well servicing revenues decreased 25% to $41.5 million during the fourth quarter of 2015 compared to $55.5 million in the prior quarter. This line of business was most significantly impacted from severe weather and also experienced other seasonal impacts from less daylight hours and holidays. Well servicing revenues were $88.0 million in the fourth quarter of 2014. Revenues from the Taylor manufacturing operations were $2.6 million in the fourth quarter of 2015 compared to $4.1 million in the prior quarter and $3.0 million in the fourth quarter of 2014.
At December 31, 2015, the well servicing rig count was 421, the same as the end of the prior quarter and at December 31, 2014. Rig hours were 120,000 in the fourth quarter of 2015, down 22% compared to 154,100 in the previous quarter and down 41% from 204,400 hours in the comparable quarter of last year. Rig utilization was 39% in the fourth quarter of 2015, down from 50% in the prior quarter and down from 67% in the fourth quarter of 2014.
Excluding revenues associated with the Taylor manufacturing operations, revenue per well servicing rig hour was $324 in the fourth quarter of 2015, down 3% compared to $334 in the previous quarter and down 22% from $416 reported in the fourth quarter of 2014. The slight sequential decline was due to pricing concessions given to customers and declines in higher-rate services, such as plugging and abandonment.
Segment profit in the fourth quarter of 2015 was $3.9 million, compared to $7.7 million in the prior quarter and $19.8 million during the same period in 2014. Segment profit margin decreased to 9.5% in the fourth quarter of 2015 from 14% in the previous quarter. Fourth quarter profit margin was negatively impacted by the severe weather in the Permian Basin and Oklahoma, as well as the seasonal decline. In the fourth quarter of 2014, segment profit was 23% of segment revenue. Segment profit from the Taylor manufacturing operations was a loss of $106,000 in the fourth quarter of 2015 compared to profit of $311,000 in the prior quarter.
Contract Drilling
Contract drilling revenues decreased by 34% to $2.6 million during the fourth quarter of 2015 from $3.8 million in the prior quarter. During the fourth quarter of 2014, this segment generated $15.7 million in revenue. Basic operated 12 drilling rigs during the fourth quarter of 2015, the same number of rigs as in the previous quarter as well as the fourth quarter of 2014. However, only two rigs were active during the majority of the fourth quarter. Revenue per drilling day in the fourth quarter of 2015 was $16,500, up from $15,300 in the previous quarter but down slightly from $16,600 in the fourth quarter of 2014. This increase is due to a lower-rate rig not working in the fourth quarter.
Rig operating days during the fourth quarter of 2015 decreased by 38% to 155 compared to 252 in the prior quarter, resulting in rig utilization of 14% during the fourth quarter of 2015 compared to 23% during the prior quarter. Rig operating days declined due to diminishing capital and operational spending by our customers. In the comparable period in 2014, rig operating days were 948, producing a utilization of 86%.
Segment profit in the fourth quarter of 2015 was $69,000, a 90% decrease compared to profit of $661,000 in the prior quarter and a decrease from $5.1 million in the fourth quarter of 2014. Segment margin for the fourth quarter of 2015 was 3% of segment revenues compared to 17% from the prior quarter, due to one fewer rig running during the fourth quarter. Last year in the comparable period, segment margin was 33%.
G&A Expense
General and administrative ("G&A") expense in the fourth quarter of 2015 was $32.6 million, or 20% of revenue, compared to $36.0 million, or 19% of revenue, in the prior quarter. This 9% decrease in G&A expense was primarily due to cost savings initiatives and lower incentive compensation. G&A expense in the fourth quarter of 2014 was $43.3 million, or 11% of revenue.
Tax Benefit
Basic's tax benefit for the fourth quarter of 2015 was $29.8 million, compared to a tax benefit of $56.5 million in the third quarter of 2015. Excluding the goodwill write-down as mentioned above, the tax benefit would have been $29.7 million for the third quarter. The tax benefit in the fourth quarter of 2015 had an effective tax benefit rate of 35%, compared to the prior quarter's effective tax adjusted benefit rate of 37%, excluding the goodwill write-down. The tax benefit of $7.3 million in the fourth quarter of 2014 translated into an effective tax benefit rate of 28%.
Cash and Total Liquidity
On December 31, 2015, Basic had cash and cash equivalents of approximately $46.7 million, down from $56.0 million at September 30, 2015 and $79.9 million on December 31, 2014. At December 31, 2015, total liquidity was approximately $140.1 million, which included $93.4 million of availability under Basic's $250 million revolving credit facility.
Capital Expenditures
Total capital expenditures during the twelve months of 2015 were approximately $69.8 million (including capital leases of $16.0 million), comprised of $21.4 million for expansion projects, $42.1 million for sustaining and replacement projects and $6.3 million for other projects. Expansion capital spending included $9.6 million for the completion and remedial services segment, $8.5 million for the well servicing segment, $2.0 million for the fluid services segment, and $1.3 million for the contact drilling segment. Other capital expenditures were mainly for facilities and IT infrastructure.
Basic expects 2016 capital expenditures to be approximately $40.0 million, including $15.0 million of capital leases.
Conference Call
Basic will host a conference call to discuss its fourth quarter and full year 2015 results on Friday, February 19, 2016, at 9:00 a.m. Eastern Time (8:00 a.m. Central). To access the call, please dial (412) 902-0003 and ask for the "Basic Energy Services" call at least 10 minutes prior to the start time. The conference call will also be broadcast live via the Internet and can be accessed through the investor relations section of Basic's corporate website, www.basicenergyservices.com.
A telephonic replay of the conference call will be available until March 4, 2016 and may be accessed by calling (201) 612-7415 and using pass code 13628606#. A webcast archive will be available at www.basicenergyservices.com shortly after the call and will be accessible for approximately 30 days.
About Basic Energy Services
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 3,800 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 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, (iii) changes in our expenses, including labor or fuel costs and financing costs, (iv) continued volatility of oil or natural gas prices, and any related changes in expenditures by our customers, and (v) competition within our industry. 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 Zhadkevich | |
|
Dennard ▪ Lascar Associates | |
|
713-529-6600 |
-Tables to Follow-
|
Basic Energy Services, Inc. | ||||||||||||
|
Consolidated Statements of Operations and Other Financial Data | ||||||||||||
|
(in thousands, except per share amounts) | ||||||||||||
|
Three months ended |
Year ended | |||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||
|
Income Statement Data: |
(Unaudited) |
(Unaudited) | ||||||||||
|
Revenues: |
||||||||||||
|
Completion and remedial services |
$ |
58,479 |
$ |
203,367 |
$ |
307,550 |
$ |
698,917 | ||||
|
Fluid services |
58,460 |
93,772 |
258,597 |
369,774 | ||||||||
|
Well servicing |
41,544 |
88,024 |
217,245 |
361,683 | ||||||||
|
Contract drilling |
2,552 |
15,748 |
22,207 |
60,910 | ||||||||
|
Total revenues |
161,035 |
400,911 |
805,599 |
1,491,284 | ||||||||
|
Expenses: |
||||||||||||
|
Completion and remedial services |
49,983 |
126,224 |
245,069 |
434,457 | ||||||||
|
Fluid services |
45,938 |
67,148 |
196,155 |
265,105 | ||||||||
|
Well servicing |
37,638 |
68,201 |
184,952 |
270,344 | ||||||||
|
Contract drilling |
2,477 |
10,612 |
16,674 |
41,513 | ||||||||
|
General and administrative (1) |
32,603 |
43,272 |
143,464 |
167,301 | ||||||||
|
Depreciation and amortization |
59,983 |
59,504 |
241,471 |
217,480 | ||||||||
|
Goodwill impairment |
-- |
34,703 |
81,877 |
34,703 | ||||||||
|
Loss on disposal of assets |
483 |
758 |
1,602 |
1,974 | ||||||||
|
Total expenses |
229,105 |
410,422 |
1,111,264 |
1,432,877 | ||||||||
|
Operating income (loss) |
(68,070) |
(9,511) |
(305,665) |
58,407 | ||||||||
|
Other income (expense): |
||||||||||||
|
Interest expense |
(17,018) |
(16,788) |
(67,964) |
(67,042) | ||||||||
|
Interest income |
9 |
3 |
26 |
40 | ||||||||
|
Other income |
79 |
163 |
528 |
775 | ||||||||
|
Loss before income taxes |
(85,000) |
(26,133) |
(373,075) |
(7,820) | ||||||||
|
Income tax benefit (expense) |
29,816 |
7,325 |
131,330 |
(521) | ||||||||
|
Net loss |
$ |
(55,184) |
$ |
(18,808) |
$ |
(241,745) |
$ |
(8,341) | ||||
|
Loss per share of common stock: |
||||||||||||
|
Basic |
$ |
(1.36) |
$ |
(0.45) |
$ |
(5.97) |
$ |
(0.20) | ||||
|
Diluted |
$ |
(1.36) |
$ |
(0.45) |
$ |
(5.97) |
$ |
(0.20) | ||||
|
Other Financial Data: |
||||||||||||
|
EBITDA (3) |
$ |
(8,008) |
$ |
50,156 |
$ |
(63,666) |
$ |
276,662 | ||||
|
Adjusted EBITDA (3) |
(7,525) |
85,617 |
24,313 |
317,952 | ||||||||
|
Capital expenditures: |
||||||||||||
|
Acquisitions, net of cash acquired |
-- |
-- |
7,914 |
16,090 | ||||||||
|
Property and equipment |
6,580 |
51,370 |
53,868 |
236,295 | ||||||||
|
As of |
||||||||||||
|
December 31, 2015 |
December 31, 2014 |
|||||||||||
|
(Unaudited) |
||||||||||||
|
Balance Sheet Data: |
||||||||||||
|
Cash and cash equivalents |
$ |
46,732 |
$ |
79,915 |
||||||||
|
Net property and equipment |
846,290 |
1,007,969 |
||||||||||
|
Total assets |
1,161,369 |
1,597,177 |
||||||||||
|
Total long-term debt |
838,368 |
882,572 |
||||||||||
|
Total stockholders' equity |
106,338 |
342,653 |
||||||||||
|
Three months ended |
Year ended December 31, | |||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||
|
Segment Data: |
(Unaudited) |
(Unaudited) | ||||||||||
|
Completion and Remedial Services |
||||||||||||
|
Segment profits as a percent of revenue |
14.5% |
37.9% |
20.3% |
37.8% | ||||||||
|
Fluid Services |
||||||||||||
|
Weighted average number of fluid service trucks |
1,002 |
1,043 |
1,018 |
1,022 | ||||||||
|
Truck hours (000's) |
557.0 |
661.9 |
2,291.2 |
2,545.8 | ||||||||
|
Revenue per fluid services truck (000's) |
$ |
58 |
$ |
90 |
$ |
254 |
$ |
362 | ||||
|
Segment profits per fluid services truck (000's) |
$ |
12 |
$ |
26 |
$ |
61 |
$ |
102 | ||||
|
Segment profits as a percent of revenue |
21.4% |
28.4% |
24.1% |
28.3% | ||||||||
|
Well Servicing (2) |
||||||||||||
|
Weighted average number of rigs |
421 |
421 |
421 |
421 | ||||||||
|
Rig hours (000's) |
120.0 |
204.4 |
592.7 |
845.8 | ||||||||
|
Rig utilization rate |
39% |
67% |
49% |
70% | ||||||||
|
Revenue per rig hour, excluding manufacturing |
$ |
324 |
$ |
416 |
$ |
348 |
$ |
409 | ||||
|
Well servicing rig profit per rig hour |
$ |
33 |
$ |
97 |
$ |
54 |
$ |
105 | ||||
|
Segment profits as a percent of revenue |
9.4% |
22.5% |
14.9% |
25.0% | ||||||||
|
Contract Drilling |
||||||||||||
|
Weighted average number of rigs |
12 |
12 |
12 |
12 | ||||||||
|
Rig operating days |
155 |
948 |
1361 |
3,679 | ||||||||
|
Revenue per day |
$ |
16,500 |
$ |
16,600 |
$ |
16,300 |
$ |
16,600 | ||||
|
Drilling rig profit per day |
$ |
400 |
$ |
5,400 |
$ |
4,000 |
$ |
5,300 | ||||
|
Segment profits as a percent of revenue |
2.7% |
32.6% |
24.9% |
31.8% | ||||||||
|
(1) |
Includes approximately $3,632,000 and $3,968,000 of non-cash compensation expense for the three months ended December 31, 2015 and 2014, respectively, and $16,922,000 and $15,440,000 for the year ended December 31, 2015 and 2014, respectively. | |
|
(2) |
Excludes Basic's barge rig operations that were sold on March 31, 2014. | |
|
(3) |
This earnings release contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation and amortization, or "EBITDA." This earnings release also contains references to the non-GAAP financial measure of earnings (net income) before interest, taxes, depreciation, amortization, loss on goodwill impairment, loss on legal settlements, loss on customer audit settlements, and the gain or loss on disposal of assets or "Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. However, Basic believes EBITDA and Adjusted EBITDA are useful supplemental financial measures used by its management and directors and by external users of its financial statements, such as investors, to assess: | |
|
• |
The financial performance of its assets without regard to financing methods, capital structure or historical cost basis; | |
|
• |
The ability of its assets to generate cash sufficient to pay interest on its indebtedness; and | |
|
• |
Its operating performance and return on invested capital as compared to those of other companies in the well servicing industry, without regard to financing methods and capital structure. | |
|
EBITDA and Adjusted EBITDA each have limitations as an analytical tool and should not be considered an alternative to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and operating income, and these measures may vary among other companies. Limitations to using EBITDA as an analytical tool include: | ||
|
• |
EBITDA does not reflect its current or future requirements for capital expenditures or capital commitments; | |
|
• |
EBITDA does not reflect changes in, or cash requirements necessary, to service interest or principal payments on, its debt; | |
|
• |
EBITDA does not reflect income taxes; | |
|
• |
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and | |
|
• |
Other companies in its industry may calculate EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | |
|
In addition to each of the limitations with respect to EBITDA noted above, the limitations to using Adjusted EBITDA as an analytical tool include: | ||
|
• |
Adjusted EBITDA does not reflect Basic's gain or loss on disposal of assets; | |
|
• |
Adjusted EBITDA does not reflect Basic's loss on goodwill impairment; | |
|
• |
Adjusted EBITDA does not reflect Basic's loss on legal settlements | |
|
• |
Adjusted EBITDA does not reflect Basic's loss on customer audit settlements; and | |
|
• |
Other companies in our industry may calculate Adjusted EBITDA differently than Basic does, limiting its usefulness as a comparative measure. | |
The following table presents a reconciliation of net loss to EBITDA, which is the most comparable GAAP performance measure, for each of the periods indicated:
|
Three months ended |
Year ended December 31, | ||||||||||
|
2015 |
2014 |
2015 |
2014 | ||||||||
|
Reconciliation of Net Loss to EBITDA: |
(Unaudited) |
(Unaudited) | |||||||||
|
Net loss |
$ |
(55,184) |
$ |
(18,808) |
$ |
(241,745) |
$ |
(8,341) | |||
|
Income taxes |
(29,816) |
(7,325) |
(131,330) |
521 | |||||||
|
Net interest expense |
17,009 |
16,785 |
67,938 |
67,002 | |||||||
|
Depreciation and amortization |
59,983 |
59,504 |
241,471 |
217,480 | |||||||
|
EBITDA |
$ |
(8,008) |
$ |
50,156 |
$ |
(63,666) |
$ |
276,662 | |||
The following table presents a reconciliation of net loss to "Adjusted EBITDA," which means our EBITDA excluding the gain or loss on disposal of assets, loss on goodwill impairment, loss on legal settlements, and loss on customer audit settlements:
|
Three months ended |
Year ended December 31, | ||||||||||
|
2015 |
2014 |
2015 |
2014 | ||||||||
|
Reconciliation of Net Loss to Adjusted EBITDA: |
(Unaudited) |
(Unaudited) | |||||||||
|
Net loss |
$ |
(55,184) |
$ |
(18,808) |
$ |
(241,745) |
$ |
(8,341) | |||
|
Income taxes |
(29,816) |
(7,325) |
(131,330) |
521 | |||||||
|
Net interest expense |
17,009 |
16,785 |
67,938 |
67,002 | |||||||
|
Depreciation and amortization |
59,983 |
59,504 |
241,471 |
217,480 | |||||||
|
Goodwill impairment |
-- |
34,703 |
81,877 |
34,703 | |||||||
|
Loss on disposal of assets |
483 |
758 |
1,602 |
1,974 | |||||||
|
Loss on legal settlements |
— |
— |
— |
4,613 | |||||||
|
Loss on customer audit settlement |
— |
— |
4,500 |
— | |||||||
|
Adjusted EBITDA |
$ |
(7,525) |
$ |
85,617 |
$ |
24,313 |
$ |
317,952 | |||
SOURCE Basic Energy Services, Inc.
Article Date
2/19/2016Basic Energy Services to Present at the Credit Suisse 21st Annual Energy Summit and the Raymond James 37th Annual Institutional Investors Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Feb. 17, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) announced today that its management will be presenting at the Credit Suisse 21st Annual Energy Summit to be held in Vail, Colorado from February 22-25, 2016, as well as the Raymond James 37th Annual Institutional Investors Conference to be held in Orlando, Florida from March 6-9, 2016.
Roe Patterson, President and Chief Executive Officer, is scheduled to present at the Credit Suisse 21st Annual Energy Summit to be held in Vail, Colorado on Wednesday, February 24 at approximately 12:10 p.m. Mountain Time (1:10 p.m. Central Time).
Mr. Patterson is also scheduled to present at the Raymond James 37th Annual Institutional Investors Conference to be held in Orlando, Florida on Wednesday, March 9 at approximately 8:05 a.m. Eastern Time (7:05 a.m. Central Time).
Links to the live webcasts and replays for these presentations will be available in the Investor Relations section of Basic Energy Services' website at www.basicenergyservices.com. The accompanying slides will also be available the morning of each presentation in the Investor Relations section of Basic Energy Services' website.
About Basic Energy Services
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 3,800 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 www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar / Stephanie Zhadkevich | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
2/17/2016Basic Energy Services Reports Selected Operating Data For January 2016
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Feb. 12, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of January 2016. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 37,200 producing a rig utilization rate of 38%, compared to 36% and 56% in December 2015 and January 2015, respectively.
During the month, Basic's fluid service truck count increased by one to 986. Fluid service truck hours for the month were 180,600, compared to 177,000 and 208,100 in December 2015 and January 2015, respectively.
Drilling rig days for the month were 31 producing a rig utilization of 8%, compared to 12% and 74% in December 2015 and January 2015, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, commented, "January activity was somewhat improved over December, as the holiday period ended and weather conditions improved from the last week in 2015. Well servicing activity increased approximately 200 basis points and trucking hours increased by two percent. Completion and remedial utilization during January declined on lower drilling and completion activities as our customers' drilling plans for 2016 continue to be reduced.
"We continue to right-size our operating infrastructure to fit the current operating environment. As of January 31, we had stacked 119,000 hydraulic horsepower ("HHP") due to lower completion demand, including 58,000 HHP that was stacked during the month. During January, we also stacked one well servicing rig to bring our total stacked rig inventory to 110 at the end of the month.
"We will discuss our first quarter revenue and activity guidance next week during our fourth quarter 2015 earnings call."
|
OPERATING DATA | |||||||
|
Month ended | |||||||
|
January 31, |
December 31, | ||||||
|
2016 |
2015 |
2015 | |||||
|
Number of weekdays in period |
21 |
22 |
23 | ||||
|
Number of well servicing rigs: 1 |
|||||||
|
Weighted average for period |
421 |
421 |
421 | ||||
|
End of period |
421 |
421 |
421 | ||||
|
Rig hours (000s) |
37.2 |
57.4 |
37.9 | ||||
|
Rig utilization rate 2 |
38% |
56% |
36% | ||||
|
Number of fluid service trucks: 1 |
|||||||
|
Weighted average for period |
985 |
1,051 |
993 | ||||
|
End of period |
986 |
1,054 |
985 | ||||
|
Truck Hours (000s) |
180.6 |
208.1 |
177.0 | ||||
|
Number of drilling rigs: 1 |
|||||||
|
Weighted average for period |
12 |
12 |
12 | ||||
|
End of period |
12 |
12 |
12 | ||||
|
Drilling rig days |
31 |
275 |
46 | ||||
|
Drilling rig utilization |
8% |
74% |
12% | ||||
|
(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. |
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 3,800 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 Zhadkevich | |
|
Dennard – Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
2/12/2016Basic Energy Services Announces Fourth Quarter And Year End 2015 Earnings Release And Conference Call Schedule
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Jan. 22, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") announced today it will release its fourth quarter and year end 2015 financial results after the market closes on Thursday, February 18, 2016. In conjunction with the release, Basic has scheduled a conference call that will be broadcast live over the Internet on Friday, February 19, 2016, starting at 9:00 a.m. Eastern Time (8:00 a.m. Central Time).
|
What: |
Basic Energy Services Fourth Quarter 2015 Earnings Conference Call |
|
When: |
Friday, February 19, 2016 – 9:00 a.m. Eastern Time |
|
How: |
Live via phone - Dial 412-902-0003 at least 10 minutes prior to the start time and ask for the Basic Energy Services call. |
|
Live over the Internet - Log on to the web at the address below. | |
|
Where: |
www.basicenergyservices.com. The webcast can be accessed from the investor relations' home page. |
For those unable to listen to the live call, a replay will be available through March 4, 2016 by calling 201-612-7415 and using pass code 13628606#. Also, an archive of the webcast will be available shortly after the call on the company's website at www.basicenergyservices.com for approximately 30 days.
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 3,900 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 www.basicenergyservices.com.
|
Contacts: |
Alan Krenek, Chief Financial Officer |
|
Basic Energy Services, Inc. | |
|
817-334-4100 | |
|
Jack Lascar/Stephanie Zhadkevich | |
|
Dennard-Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
1/22/2016Basic Energy Services Reports Selected Operating Data For December 2015
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
FORT WORTH, Texas, Jan. 12, 2016 /PRNewswire/ -- Basic Energy Services, Inc. (NYSE: BAS) ("Basic") today reported selected operating data for the month of December 2015. Basic's well servicing rig count remained unchanged at 421. Well servicing rig hours for the month were 37,900 producing a rig utilization rate of 36%, compared to 39% and 60% in November 2015 and December 2014, respectively.
During the month, Basic's fluid service truck count declined by 16 to 985. Fluid service truck hours for the month were 177,000, compared to 182,800 and 218,200 in November 2015 and December 2014, respectively.
Drilling rig days for the month were 46 producing a rig utilization of 12%, compared to 16% and 87% in November 2015 and December 2014, respectively.
Roe Patterson, Basic's President and Chief Executive Officer, commented, "The December year-end holiday period was an exceptionally slow one. Our customers dramatically slowed their activities as they preserved cash and deferred maintenance work in response to continually weak commodity prices. Operations were further impacted by extreme weather conditions in the last week of the month. Heavy snowfall in the Permian Basin and Oklahoma caused significant downtime in all lines of business as we experienced blizzard conditions in many markets. Current activity levels in most markets have generally resumed their pre-storm pace.
"Due to the impact of difficult weather conditions in late December, we expect our fourth quarter revenues to be at the higher end of the range that we had previously announced of 13 to 15% lower sequentially. It is still too early to get a view of activity for the first quarter as most of our customers are still evaluating their spending plans for 2016. We will discuss our expectations for the first quarter during our next earnings call."
|
OPERATING DATA | |||||||
|
Month ended | |||||||
|
December 31, |
November 30, | ||||||
|
2015 |
2014 |
2015 | |||||
|
Number of weekdays in period |
23 |
23 |
21 | ||||
|
Number of well servicing rigs: 1 |
|||||||
|
Weighted average for period |
421 |
421 |
421 | ||||
|
End of period |
421 |
421 |
421 | ||||
|
Rig hours (000s) |
37.9 |
64.3 |
37.6 | ||||
|
Rig utilization rate 2 |
36% |
60% |
39% | ||||
|
Number of fluid service trucks: 1 |
|||||||
|
Weighted average for period |
993 |
1,045 |
1,004 | ||||
|
End of period |
985 |
1,047 |
1,001 | ||||
|
Truck Hours (000s) |
177.0 |
218.2 |
182.8 | ||||
|
Number of drilling rigs: 1 |
|||||||
|
Weighted average for period |
12 |
12 |
12 | ||||
|
End of period |
12 |
12 |
12 | ||||
|
Drilling rig days |
46 |
324 |
59 | ||||
|
Drilling rig utilization |
12% |
87% |
16% | ||||
|
(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. |
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 3,900 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 Zhadkevich | |
|
Dennard – Lascar Associates | |
|
713-529-6600 |
SOURCE Basic Energy Services, Inc.
Article Date
1/12/2016Projects & Assets
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