Basic Energy Services Inc. (BAS) said Oct. 14 that it will lower fracking services prices as it continues to hold onto its market share.
Completion activity in the company's completion and remedial segment continues to be impacted by the lower drilling rig count and volatile oil price environment, said Roe Patterson, Basic's CEO.
"As a result of the continued weakness in commodity prices, pricing in all of our markets and lines of business is being lowered in order to maintain activity levels and protect market share as much as possible," Patterson said in a statement.
The company's fluid services business has been the most resilient, he said. This is due to its salt water disposal well network, especially in markets like the Permian Basin.
"Concentrating our produced water hauls on our company-owned disposal facilities allows us to keep costs low and efficiencies high," he said.
Based on the company's September performance, Basic expects that its third quarter 2015 revenues will be in line with its previous guidance of 4-5% lower sequentially, he said.
The Fort Worth, Texas company reported selected operating data for the month of September.
Basic's well servicing rig count remained unchanged at 421.
Well servicing rig hours for the month were 46,800 producing a rig utilization rate of 46%, compared to 53% in August and 71% year-over-year. This drop was primarily due to the Labor Day holiday and competitive market conditions, Patterson said.
Drilling rig days for the month were 97 producing a rig utilization of 27%, compared to 23% in August and 91% year-over-year.
During the month, Basic's fluid service truck count remained flat at 1,015. Fluid service truck hours for the month were 183,400, compared to 188,100 in August and 215,800 year-over-year.
The company employs more than 4,200 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.
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