PROFILE

About Basic

Basic Energy Services provides a range of well site services to establish and maintain the flow of oil and natural gas throughout the productive life of the well. Our geographic reach in major United States onshore basins and our breadth of service provide a competitive advantage that allows customers to benefit from consolidated 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 through a decentralized business approach. We support our customer base with ancillary services that deliver added value, and we back 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, Basic supports 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 help keep production flowing safely and efficiently while we maintain leading market positions for each of our lines of business within our core operating areas.

Services For The Life Of The Well

DRILLING

Contract Drilling
Directional Drilling
Water Logistics
Pumping Services
Tubular Services
Rental/Fishing Tools

COMPLETION

Well Servicing
Pumping Services
Water Logistics
Coil Tubing
Rental/Fishing Tools
Thru-Tubing Fishing Services
Tubular Services
Snubbing Services

WATER
LOGISTICS

Salt Water Disposal Network
Trucking Operations
Water Recycling Services
Pipeline Design & Construction
Water Sourcing
Chemical Treatment Programs
Water Storage
Well Permitting, Construction & Design

MAINTENANCE
SERVICES

Well Servicing
Pumping Services
Water Logistics
Coil Tubing
Rental/Fishing Tools
Thru-Tubing Fishing Services
Tubular Services
Snubbing Services

WORKOVER

Well Servicing
Pumping Services
Water Logistics
Coil Tubing
Rental/Fishing Tools
Thru-Tubing Fishing Services
Tubular Services
Snubbing Services

PLUG & ABANDON

P&A Services
Well Servicing
Water Logistics
Pumping Services
Rental/Fishing Tools
Thru-Tubing Fishing Services
Tubular Services
Coil Tubing
Snubbing Services

SERVICES

2017 Performance

Completions and Remedial

The core of Basic’s Completions and Remedial business consists of our 523,000 horsepower of pressure pumping capacity. Beyond frac, Basic also has acid and cement operations, coiled tubing, and rental & fishing tools. Basic typically pursues frac work that is moderate in terms of required pressure­—horizontal wells that do not require more than 40,000 horsepower on location or 8,500 psi of pressure—mainly in the SCOOP/STACK and the Midland Basin platform of the Permian Basin. By the end of the first quarter of 2017, we had already taken all of our hydraulic horsepower out of stack and placed it back into operation.

All of our Completions and Remedial business lines showed improvement throughout 2017. Coiled tubing remains one of Basic’s best-performing business segments, working at nearly full utilization during 2017. Our Rental & Fishing Tool assets are seeing increased demand with the uptick in completions and major workover projects, largely working in concert with our well service rigs on today’s higher-pressure, long-lateral horizontal wells.

Well Servicing

As the number of larger workover projects and new well completions increased over 2017, Basic’s level of 24-hour service rig work steadily increased. These larger projects often see double the utilization for a service rig while creating multiple revenue streams, particularly when combined with a rental equipment package that can triple a normal rig rate. By the end of 2017, Basic had removed 87 older Class 3 rigs and 24 Class 4 rigs from the reported rig count, placing the focus firmly on the higher-spec assets that remain in demand today. Our fleet of 310 service rigs remains one of the largest and most active high-spec rig fleets in the entire Lower 48, with utilization above 70% in the fourth quarter of 2017.

During the recent cyclical recovery of the well service industry, the reactivation of our fleet and utilization recovery for our production-oriented businesses has and continues to outpace that of our peers. With an offering of available and ready-to-go Class IV or higher rig fleet that is second to none in the industry, Basic has been able to redeploy quickly and more cost effectively than many competitors. With our manufacturing group in-house, Basic has taken the opportunity to upgrade many rigs going back into service, further customizing the fleet for today’s customer requirements, meeting the challenges of a changing market.

With activity intensifying, driven by stronger commodity prices and growing rig counts, oil and gas service suppliers are increasingly focused on customer satisfaction. Throughout the year, Basic continued to rise to that challenge. According to EnergyPoint Research’s 2017 Oilfield Products & Services Customer Satisfaction Survey, Basic Energy Services was ranked first in Workovers & Well Servicing, reflecting our commitment to helping our customers reach their goals more effectively.

Water Logistics

In today’s most active shale plays, the management of water has steadily grown in importance as produced water volumes have multiplied with the growth of longer laterals. For that reason, Basic changed the name of its Fluid Services segment to Water Logistics, which better captures the true nature of this business and cradle-to-grave service, from sourcing to transporting to disposing or remediating, and anything in between.

In 2017, Basic focused on maintaining its network of Salt Water Disposal (SWD) wells, which is the largest commercial SWD operation in the U.S. Increasingly over 2017, the infrastructure of this business changed so that salt water produced from our customers’ oil and gas wells is piped into our SWDs rather than trucked in. During the year, we increased the volume of water that we transport to our wells via pipeline to 25% of the total, with the remainder via traditional trucking. Piping in water creates a lower cost opportunity for both Basic and our customers while delivering significantly better margins for our company. We are also helping to install pipelines into customer-owned facilities and helping with the management of that water. We are truly providing our customers a holistic solution to their water management challenges, adapting to the changing requirements of the oilfield today.

Safety

While we experienced a 50% increase in employees in 2017, we maintained one of the industry’s lowest TRIR rates as well as one of the lowest motor vehicle incident rates; however, safety is a job that is never completed. At Basic, we are dedicated to developing processes and procedures that keep our most valuable assets, our employees, safe and sound.

LEADERSHIP

Board of Directors

Timothy H. Day
Chairman of the Board

T.M. “Roe” Patterson
President, Chief Executive Officer and Director

Anthony Di’Nello
Director

John Jackson
Director

James D. Kern
Director

Samuel E. Langford
Director

Julio Quintana
Director

 

Executive Management

T. M. “Roe” Patterson
President, Chief Executive Officer

Alan Krenek
Senior Vice President, Chief Financial Officer, Treasurer and Secretary

James F. Newman
Senior Vice President, Region Operations

William T. Dame
Vice President, Pumping Services Division

Douglas B. Rogers
Vice President, Corporate Marketing

Eric Lannen
Vice President, Human Resources

Lanny T. (“Trampas”) Poldrack
Vice President, Central Region and Tubular Division

Brett J. Taylor
Vice President, Manufacturing and Equipment

Senior Management

Trey Stolz
Vice President, Investor Relations

Barbara S. Wood
Vice President, Information Systems and Technology

Mike Dye
Vice President, Financial Services and Assistant Treasurer

Robert Sepanski
Vice President, Risk Management

Brandon McGuire
Vice President, Permian Business Unit

Raul Jr. DeLeon
Vice President, Gulf Coast Region

Jerry Tufly
Vice President, Rocky Mountain Region

Roger Massey
Vice President, Ark-La-Tex District

Lynn Wigington
Vice President, Central District

Kevin Northcutt
Vice President, Delaware District

Tommy Clayton
Vice President, Midland District

Ronnie Lackey
Vice President, North Texas District

Steven Wild
Vice President, Oklahoma-Kansas District

Richard Robertson
Vice President, Mid-Continent District, Pumping Services Division

Dan Klaus
Vice President, Rocky Mountain District, Pumping Services Division

Steve Newman
Vice President, Integrated Services

Tim Rains
Vice President, Permian Basin District, Pumping Services Division

Mohit Punj
Vice President, Corporate Development and Controller, Central Region

Cheryl Majors
Vice President, Taylor Operations

Richard Wegner
Vice President, Health, Safety & Environment

Corporate Office

Basic Energy Services, LP
801 Cherry Street, Suite 2100
Fort Worth, TX 76102
817.334.4100

Mailing Address

801 Cherry Street
Suite 2100, Unit #21
Fort Worth, TX 76102

Investor Relations

Trey Stolz
Vice President, Investor Relations
Basic Energy Services, Inc.
Fort Worth, TX
817.334.4100
trey.stolz@basicenergyservices.com

Jack Lascar
Dennard-Lascar Associates, LLC
Houston, TX
713.529.6600
jlascar@dennardlascar.com

Transfer Agent

American Stock Transfer & Trust Company New York, New York

Independent Accountants

KPMG LLP
Dallas, Texas

Counsel

Andrews Kurth LLP
Houston, Texas

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CONTACT

Discover What Basic Energy Services Can Do For You

Corporate Office

Basic Energy Services, LP
801 Cherry Street, Suite 2100
Fort Worth, TX 76102

817-334-4100

Info@basicenergyservices.com

Mailing Address

801 Cherry Street
Suite 2100, Unit #21
Fort Worth, TX 76102