Basic Energy Services Agrees to Sell Non-Core Assets

Rhea-AI Summary

Basic Energy Services (OTCQX: BASX) has signed a purchase and sale agreement to divest certain non-core assets for $6.6 million, alongside the assumption of approximately $0.7 million in capital leases and an earn-out payment of up to $1.0 million due one year post-closing. This deal, expected to close in about thirty days, involves heavy-duty trucks, light-duty vehicles, fracturing tanks, and non-core saltwater disposal wells. The sale aims to streamline operations and focus on core services essential for oil and gas production.

Positive

• Sale of non-core assets for $6.6 million enhances financial liquidity.
• Streamlining operations allows for a focused business strategy.

Negative

• Dependence on successful closing of the purchase agreement involves inherent risks.
• The potential earn-out payment is contingent on future performance, creating uncertainty.

Basic Energy Services, Inc. (OTCQX: BASX) (“Basic” or the “Company”) today announced it has entered into a purchase and sale agreement for the sale of certain non-core assets for a purchase price of $6.6 million, not including the assumption of certain capital leases with a remaining balance of approximately $0.7 million and earn-out payment of up to $1.0 million payable one year after closing. The closing date is anticipated to occur approximately thirty days after the execution of the purchase and sale agreement. The sale includes heavy duty trucks, light duty vehicles, fracturing tanks and certain non-core salt water disposal wells.

About Basic Energy Services

Basic Energy Services provides wellsite 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, California, New Mexico, Oklahoma, Arkansas, Louisiana, Wyoming, North Dakota, Colorado and Montana. Our operations are focused in prolific basins that have historically exhibited strong drilling and production economics in recent years as well as natural gas-focused shale plays characterized by prolific reserves. Specifically, the Company has a significant presence in the Permian Basin, Bakken, Los Angeles and San Joaquin Basins, Eagle Ford, Haynesville and Powder River Basin. 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.basices.com.

Safe Harbor Statement

This release includes “forward-looking statements” within the meaning of the federal and securities laws. 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. These risks and uncertainties include without limitation, risks associated with a future closing of the purchase and sale agreement described therein and the satisfaction of the conditions thereto. 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.

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FAQ

What assets is Basic Energy Services selling?

Basic Energy Services is selling heavy-duty trucks, light-duty vehicles, fracturing tanks, and non-core saltwater disposal wells.

What is the sale price of the assets sold by BASX?

The sale price of the assets is $6.6 million, excluding capital leases and potential earn-outs.

When is the closing date for the asset sale by Basic Energy Services?

The closing date for the asset sale is expected to occur approximately thirty days after the agreement's execution.

What risks are associated with the asset sale by BASX?

Risks include the uncertainty of closing the sale and related conditions, impacting the anticipated financial benefits.