Basic Energy Services Inc. (NYSE: BAS), a provider of a range of well site services to oil and natural gas drilling and producing companies, last week saw some significant insider buying.
Steven A. Webster, BAS’ Director, purchased 52,370 shares of BAS at a cost of $13.50 per share. Before the purchase last week, Webster purchased BAS shares on 3 other occasions during the past year for a total investment of $1.99 million at an average price of $19.93 per share.
Webster’s purchase came a few days after Basic Energy Services reported its first-quarter financial results. For the quarter ended March 31, 2012, BAS reported net income of $19.6 million, or $0.47 per share, compared with net income of $22.5 million reported in the fourth quarter of 2011 and a net loss of $18.5 million reported in the first quarter of 2011.
Revenue for the first quarter of 2012 was $354.4 million, up 5% on a sequential basis and 51% on a year-over-year basis.
Ken Huseman, President and CEO of Basic Energy Services, said that activity levels in BAS’ oil and liquids-rich operating areas combined with equipment additions drove revenue to a new quarterly record during the first quarter of 2012. Huseman noted that despite sequential increases achieved in each segments, first-quarter margins fell due to deteriorating conditions in the company’s gas markets, rising labor costs and several non-recurring expenses.
Huseman added that while the non-recurring items in the aggregate reduced sequential operating margins by 150 basis points, the company believes that additional equipment that has moved into more active markets will result in higher labor costs and more price competition, inhibiting the margin improvement that the company had previously projected for the remainder of the year.
BAS shares are up sharply in trading today. At last check, the stock was trading 5.21% higher at $15.15 on volume of 1.40 million. BAS shares are down nearly 23% this year.
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