Basic Energy reports 2Q revenue riseJuly 26, 2013
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A. Lee Graham
Basic Energy Services Inc. of Fort Worth has reported a 7 percent revenue surge, rising from $304.4 million in first-quarter 2013 to $325.7 million in the second quarter.
But revenues dropped 10 percent from the $361.5 million generated in the same quarter last year.
For second-quarter 2013, the company reported a net loss of $12.8 million, or 32 cents per share, compared to a net loss of $8.8 million, or 22 cents per share, reported in prior quarter.
Adjusted earnings before interest, taxes, depreciation and amortization rose 20 percent to $62.1 million in the second quarter of 2013, or 19 perent of revenue, from $51.5 million, or 17 percent of revenue, in the prior quarter.
"Demand for our services improved modestly over the course of the quarter with the sequential increase in revenue essentially matching our recent guidance,” said president and CEO Ken Huseman in a news release.
The company’s oil- and liquids-driven markets are “extremely active," Huseman said, with rising demand but dry gas market activity remaining slow.
"That overall market improvement did not alleviate the intense price competition we've seen develop in most of our operating areas,” Huseman said.
Huseman said the company is limiting capital investment and has spent 7 percent less than the approved capital budget at the mid-point of the year.
“We will continue to hold the line on capital spending and expect to spend less than $165 million in 2013 unless we see a sustained increase in activity,” said Huseman, expecting
Company revenues declined 14 percent to $630.1 million for the first six months of 2013 compared to $732.4 million during the same period last year.
Fluid services revenue in second-quarter 2013 rose 2 percent to $85.6 million compared to $84.3 million in the prior quarter. The company attributed the revenue rise primarily to the full quarter revenue contribution from the Atlas and PetroWater acquisitions completed in late February 2013, as well as an increase in fluid services trucks and trucking hours.
Well servicing revenues rose 7 percent to $93.9 million during second-quarter 2013 compared to $87.7 million in the prior quarter, which the company primarily credited to seasonally higher utilization combined with a 2 percent increase in average rate per hour.
At June 30, 2013, the well servicing rig count totaled 425, the same as the end of the prior quarter. Excluding revenues associated with Taylor manufacturing operations, revenue per well servicing rig hour rose 2 percent to $408 in second-quarter 2013 from $399 in the previous quarter and $399 reported in second-quarter 2012.
Total capital expenditures for the six months ended June 30, 2013, including capital leases of $27.0 million, totaled about $104.6 million, comprising $31.8 million for expansion projects, $63.9 million for sustaining and replacement projects and $8.9 million for other projects.
BasicEnergy Services, which provides oil and gas well-site services, employs more than 5,700 workers in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain and Appalachian regions. More information is available at www.basicenergyservices.com.