Basic Energy Services Inc.

With a business motto that says “our life’s work is the life of the well,” it’s easy to understand that the services provided by Basic Energy Services Inc. are more comprehensive than “basic” would imply. But its numbers stress the point even more – based in Midland, Texas, Basic helps oil and gas producers keep more than 800,000 wells in production throughout their lifecycle. The company notes that its more than 4,500 employees provide essential services to more than 2,000 oil and gas companies, and as it expands through acquisition and grows organically, Basic’s operations get farther beyond the basic.

Founded in 1992, Basic’s offerings fall into eight categories: well servicing, fluid services, pumping services, rental/fishing tools, contract drilling, wireline, snubbing services and well site construction. As a result, it is able to take clients from the initial drilling of the well to ongoing maintenance, plugging and abandonment. The company serves clients throughout the major oil and gas producing regions of Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas, the Appalachians and the Rocky Mountains.

The company notes that all of its operations meet federal, state and local laws in regard to the protection of the environment, as well as the health and safety of the communities in which it works.

“Year after year, Basic Energy Services has grown in scope, services and reputation,” the company says. “Our diversified service offerings, extensive footprint and leadership positions in prolific U.S. basins as well as our new-build program are all reasons why we have experienced exceptional growth since inception. However, our largest competitive advantage comes from our work force – people who have dedicated their professional careers to providing exceptional service throughout the life of our customers’ wells.”

Building Value
Basic expanded its operations in July when it completed the $180 million acquisition of the Maverick group of companies. Founded in 1996, Maverick offered stimulation, coil tubing and thru-tubing services from operations in Fort Morgan, Grand Junction and Trinidad, Colo.; Farmington, N.M.; Vernal, Utah; and Bartlesville, Okla. At the time of the acquisition, Maverick employed more than 180 people and operated approximately 60,000 horsepower in well stimulation equipment and seven coil-tubing spreads.

Basic estimated that the acquisition immediately contributed revenue of approximately $64 million. For 2012, Basic expects that the revenue contribution from this acquisition will be approximately $140 million.

“Maverick is a great example of the type of acquisition that we believe helps build value for our shareholders,” Basic President and CEO Ken Huseman stated. “Maverick’s experienced management and well-trained field personnel combined with its high quality, late-model equipment has developed a reputation as a first-class service provider in markets where, for the most part, we do not currently compete. We look forward to providing the Maverick management team the resources necessary to continue building service capabilities within our footprint in the Rocky Mountain market. In addition, we believe the Maverick coil tubing platform provides us with an excellent foundation to rapidly build upon in several markets where we already have a substantial operating presence.”

Doing it Right
Basic Energy Services says it is committed to being a leader in the oil and gas well servicing industry. It plans to maintain its position by:

• Providing services that exceed clients’ expectations
• Maintaining a work environment that is satisfying to its employees
• Conducting its business with the highest ethical standards
• Generating a financial return to its shareholders that encourages their continued investment in the company

“We strive to fulfill that commitment by getting the job done right the first time,” the company stresses. “‘Getting the job done right’ means we have completed our work efficiently, to industry and customer standards, and without injury to people, damage to property or adverse impact to the environment.

Basic notes that it relies on many partners to help it complete its work in a safe, efficient and quality manner. One of its partners is Runzheimer International, which provides services such as business vehicle management, route planning and logistics, mobile device expense management and mobile work force management.

Another one of Basic’s core values is remaining involved in the communities in which it operates. The company says that it views the success of its communities as a critical part of its business.

“At Basic Energy Services, our role in the communities in which we work is something we take to heart,” the company says.

“We have established long-term relationships with both community leaders and townspeople, and are committed to setting a high standard of service through the support of youth organizations and volunteerism,” it adds. “Year-in, year-out, we pride ourselves on being an active community citizen, supporting communities through donations, sponsored programs and partnerships.”