Basic Energy Services Acquires Assets in New Mexico and Texas
Basic Enregy has closed the purchase agreement on all of Steve Carter, Inc. and Hughes Services' operating assets for a total consideration of $20 million in cash. The assets purchased include 22 fluid services trucks, 168 frac tanks, four disposal wells, and other ancillary equipment and inventory. SCI and HCI provide transportation, storage and disposal of oilfield fluids in the southeastern New Mexico and the western Permian Basin regions. Ken Huseman, Basic's President and CEO, stated, "These acquisitions continue our efforts of expanding our footprint in the most prolific U.S. oil and gas basins, and in particular, they fill a gap in our fluid services coverage of the eastern New Mexico market. The purchase price paid is under four times trailing twelve months EBITDA and the transaction should be immediately accretive to our financial performance.
"Collectively, these transactions represent the eighth acquisition that we have completed this year and we continue to selectively evaluate additional acquisition opportunities in all of our major lines of businesses."
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 4,400 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 States.
- Basic Energy Services Closes Exchange Offer (Nov 26)
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- Basic Energy Posts Operating Results, Well Servicing Rig Count for June (Jul 06)