Basic Energy Services to Purchase Davis Tool Company
Basic Energy Services, Inc. has entered two asset purchase agreements for a total cash consideration of approximately $26 million.
Basic Marine Services, Inc, a wholly owned subsidiary of Basic, recently entered into an agreement with Parker Drilling Offshore USA, LLC, a wholly owned subsidiary of Parker Drilling Company to purchase two barge- mounted workover rigs and related equipment. The rigs, which operate in the inland waters of Louisiana and Texas, will be integrated into Basic Marine Services' existing operations, doubling its barge-mounted workover rig fleet to a total of four.
In addition, Basic has entered into a letter of intent to purchase substantially all of the operating assets of Davis Tool Company, Inc. ("Davis") in Hobbs, New Mexico. Davis provides rental and fishing tool services in eastern New Mexico and will be integrated into Basic's Rental and Fishing Tool Division, increasing the company's presence in eastern New Mexico.
Both acquisitions are expected to be complete by late January 2007 and, combined, are projected to contribute quarterly revenues and EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately $3.9 million and $1.7 million, respectively.
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs more than 4,100 employees in approximately 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico and the Rocky Mountain States.
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- Basic Energy Posts Operating Results, Well Servicing Rig Count for June (Jul 06)