Company Quick10K Filing
Quick10K
Basic Energy Services
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$2.46 27 $66
10-Q 2019-05-09 Quarter: 2019-05-09
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-05-31 Other Events, Exhibits
8-K 2019-05-16 Officers, Shareholder Vote, Exhibits
8-K 2019-05-09 Earnings, Exhibits
8-K 2018-12-12 Officers, Exhibits
8-K 2018-11-01 Earnings, Exhibits
8-K 2018-10-03 Regulation FD, Exhibits
8-K 2018-10-02 Enter Agreement, Leave Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-09-25 Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-09-14 Enter Agreement, Regulation FD, Other Events, Exhibits
8-K 2018-08-14 Officers, Regulation FD, Exhibits
8-K 2018-07-31 Earnings, Exhibits
8-K 2018-05-21 Shareholder Vote
8-K 2018-05-03 Earnings, Exhibits
8-K 2018-04-17 Enter Agreement, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2018-04-10 Officers
8-K 2018-04-03 Officers, Exhibits
8-K 2018-03-19 Officers
8-K 2018-03-07 Regulation FD, Exhibits
8-K 2018-03-05 Other Events, Exhibits
8-K 2018-02-28 Regulation FD, Other Events, Exhibits
8-K 2018-02-26 Earnings, Exhibits
8-K 2018-02-08 Officers, Exhibits
PSO Pearson 8,180
TRIP Tripadvisor 6,790
PFS Provident Financial Services 1,730
FRO Frontline 1,340
ANIP ANI Pharmaceuticals 870
PED Pedevco 86
IMMP Immtech Pharmaceuticals 66
KAAC Kayne Anderson Acquisition 0
GTBP GT Biopharma 0
WDLF Social Life Network 0
BAS 2019-05-09
Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 bas033119ex311.htm
EX-31.2 bas033119ex312.htm
EX-32.1 bas033119ex321.htm
EX-32.2 bas033119ex322.htm

Basic Energy Services Earnings 2019-05-09

BAS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
10-QFALSETRUEFALSE2019-03-312019Q1basBASIC ENERGY SERVICES INC000110918912-31Accelerated Filer26,957,3501,5731,83835947910,44810,6900.010.015,000,0005,000,0000.010.0180,000,00080,000,00027,267,89926,990,03426,957,35026,747,712310,549242,3223,2886,7983,2886,798P3YP3YP10YP3YP10MP3Y33.3333.3333.33xbrli:shares00011091892019-05-0900011091892019-01-012019-03-31iso4217:USD00011091892019-03-3100011091892018-12-31iso4217:USDxbrli:shares0001109189bas:CompletionAndRemedialServicesMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMember2018-01-012018-03-310001109189bas:WellServicingMember2019-01-012019-03-310001109189bas:WellServicingMember2018-01-012018-03-310001109189bas:WaterLogisticsMember2019-01-012019-03-310001109189bas:WaterLogisticsMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMember2018-01-012018-03-3100011091892018-01-012018-03-310001109189us-gaap:CommonStockMember2018-12-310001109189us-gaap:AdditionalPaidInCapitalMember2018-12-310001109189us-gaap:TreasuryStockMember2018-12-310001109189us-gaap:RetainedEarningsMember2018-12-310001109189us-gaap:CommonStockMember2019-01-012019-03-310001109189us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001109189us-gaap:TreasuryStockMember2019-01-012019-03-310001109189us-gaap:RetainedEarningsMember2019-01-012019-03-310001109189us-gaap:CommonStockMember2019-03-310001109189us-gaap:AdditionalPaidInCapitalMember2019-03-310001109189us-gaap:TreasuryStockMember2019-03-310001109189us-gaap:RetainedEarningsMember2019-03-310001109189us-gaap:CommonStockMember2017-12-310001109189us-gaap:AdditionalPaidInCapitalMember2017-12-310001109189us-gaap:TreasuryStockMember2017-12-310001109189us-gaap:RetainedEarningsMember2017-12-3100011091892017-12-310001109189us-gaap:CommonStockMember2018-01-012018-03-310001109189us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-310001109189us-gaap:TreasuryStockMember2018-01-012018-03-310001109189us-gaap:RetainedEarningsMember2018-01-012018-03-310001109189us-gaap:CommonStockMember2018-03-310001109189us-gaap:AdditionalPaidInCapitalMember2018-03-310001109189us-gaap:TreasuryStockMember2018-03-310001109189us-gaap:RetainedEarningsMember2018-03-3100011091892018-03-310001109189us-gaap:SeniorNotesMember2018-10-02xbrli:pure0001109189us-gaap:SeniorNotesMember2018-10-022018-10-020001109189bas:NewABLFacilityMember2018-10-020001109189bas:NewABLFacilityMember2019-03-31bas:segment0001109189us-gaap:LandMember2019-03-310001109189us-gaap:LandMember2018-12-310001109189us-gaap:BuildingAndBuildingImprovementsMember2019-03-310001109189us-gaap:BuildingAndBuildingImprovementsMember2018-12-310001109189us-gaap:WellsAndRelatedEquipmentAndFacilitiesMember2019-03-310001109189us-gaap:WellsAndRelatedEquipmentAndFacilitiesMember2018-12-310001109189bas:FracturingTestTanksMember2019-03-310001109189bas:FracturingTestTanksMember2018-12-310001109189bas:PressurePumpingEquipmentMember2019-03-310001109189bas:PressurePumpingEquipmentMember2018-12-310001109189us-gaap:EquipmentMember2019-03-310001109189us-gaap:EquipmentMember2018-12-310001109189bas:DisposalFacilitiesMember2019-03-310001109189bas:DisposalFacilitiesMember2018-12-310001109189bas:RentalEquipmentMember2019-03-310001109189bas:RentalEquipmentMember2018-12-310001109189us-gaap:VehiclesMember2019-03-310001109189us-gaap:VehiclesMember2018-12-310001109189bas:ContractDrillingEquipmentMember2019-03-310001109189bas:ContractDrillingEquipmentMember2018-12-310001109189us-gaap:OtherCapitalizedPropertyPlantAndEquipmentMember2019-03-310001109189us-gaap:OtherCapitalizedPropertyPlantAndEquipmentMember2018-12-310001109189bas:BrineAndFreshWaterStationsMember2019-03-310001109189bas:BrineAndFreshWaterStationsMember2018-12-310001109189us-gaap:ComputerSoftwareIntangibleAssetMember2019-03-310001109189us-gaap:ComputerSoftwareIntangibleAssetMember2018-12-310001109189us-gaap:TradeNamesMember2018-12-310001109189us-gaap:TradeNamesMember2019-03-310001109189us-gaap:TradeNamesMember2019-01-012019-03-310001109189us-gaap:OtherIntangibleAssetsMember2019-03-310001109189us-gaap:OtherIntangibleAssetsMember2018-12-310001109189bas:TermLoanMember2019-03-310001109189bas:TermLoanMember2018-12-310001109189bas:AssetsHeldUnderFinanceLeasesCurrentMember2019-03-310001109189bas:CapitalLeaseObligationsShorttermMember2018-12-3100011091892018-10-022018-10-020001109189us-gaap:SeniorNotesMembersrt:MinimumMember2019-01-012019-03-310001109189us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodFourMembersrt:MaximumMember2019-01-012019-03-310001109189us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodFourMember2019-01-012019-03-310001109189us-gaap:DebtInstrumentRedemptionPeriodThreeMemberus-gaap:SeniorNotesMember2019-01-012019-03-310001109189us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2019-01-012019-03-310001109189us-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:SeniorNotesMember2019-01-012019-03-310001109189us-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodFiveMember2019-01-012019-03-310001109189bas:NewABLFacilityMemberus-gaap:LetterOfCreditMember2018-10-020001109189bas:SwinglineLoansMemberbas:NewABLFacilityMember2018-10-020001109189bas:NewABLFacilityMemberus-gaap:LetterOfCreditMember2019-03-310001109189us-gaap:AccountingStandardsUpdate201602Member2019-01-010001109189us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2019-03-310001109189us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-03-310001109189us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2018-12-310001109189us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2018-12-310001109189bas:SalesandUseTaxAuditMembersrt:MinimumMember2019-03-310001109189bas:SalesandUseTaxAuditMembersrt:MaximumMember2019-03-310001109189bas:SalesandUseTaxAuditMember2019-01-012019-03-310001109189bas:PerformanceBasedRSUsMember2018-02-012018-02-280001109189us-gaap:RestrictedStockUnitsRSUMember2018-02-012018-02-280001109189us-gaap:EmployeeStockOptionMember2019-01-012019-03-310001109189us-gaap:EmployeeStockOptionMember2018-01-012018-03-310001109189us-gaap:EmployeeStockOptionMember2019-03-310001109189us-gaap:RestrictedStockMember2018-12-310001109189us-gaap:RestrictedStockMember2019-01-012019-03-310001109189us-gaap:RestrictedStockMember2019-03-310001109189us-gaap:PerformanceSharesMember2018-12-310001109189us-gaap:PerformanceSharesMember2019-01-012019-03-310001109189us-gaap:PerformanceSharesMember2019-03-310001109189us-gaap:RestrictedStockMember2018-05-212018-05-210001109189us-gaap:RestrictedStockMember2018-01-012018-03-310001109189bas:RestrictedPhantomStockAwardMember2019-03-222019-03-220001109189bas:RestrictedPhantomStockAwardMember2019-01-012019-03-310001109189bas:RestrictedPhantomStockAwardMember2018-01-012018-03-310001109189us-gaap:ShareBasedCompensationAwardTrancheOneMemberbas:RestrictedPhantomStockAwardMember2017-03-152017-03-150001109189bas:RestrictedPhantomStockAwardMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2017-03-152017-03-150001109189us-gaap:ShareBasedCompensationAwardTrancheThreeMemberbas:RestrictedPhantomStockAwardMember2017-03-152017-03-150001109189bas:CompletionAndRemedialServicesMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2019-01-012019-03-310001109189bas:WaterLogisticsMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2019-01-012019-03-310001109189bas:WellServicingMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2019-01-012019-03-310001109189srt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2019-01-012019-03-310001109189bas:WaterLogisticsMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2019-01-012019-03-310001109189bas:WellServicingMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2019-01-012019-03-310001109189srt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2019-01-012019-03-310001109189bas:WaterLogisticsMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2019-01-012019-03-310001109189bas:WellServicingMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2019-01-012019-03-310001109189srt:ReportableGeographicalComponentsMemberbas:WestCoastMember2019-01-012019-03-310001109189srt:GeographyEliminationsMemberbas:CompletionAndRemedialServicesMemberbas:CorporateHeadquartersMember2019-01-012019-03-310001109189srt:GeographyEliminationsMemberbas:WaterLogisticsMemberbas:CorporateHeadquartersMember2019-01-012019-03-310001109189srt:GeographyEliminationsMemberbas:WellServicingMemberbas:CorporateHeadquartersMember2019-01-012019-03-310001109189srt:GeographyEliminationsMemberus-gaap:ServiceOtherMemberbas:CorporateHeadquartersMember2019-01-012019-03-310001109189srt:GeographyEliminationsMemberbas:CorporateHeadquartersMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMember2019-01-012019-03-310001109189bas:WaterLogisticsMember2019-01-012019-03-310001109189bas:WellServicingMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:FracEquipmentMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:FracEquipmentMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:FracEquipmentMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:FracEquipmentMember2019-01-012019-03-310001109189bas:FracEquipmentMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:WellServicesMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:WellServicesMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:WellServicesMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:WellServicesMember2019-01-012019-03-310001109189bas:WellServicesMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:TransportAndVaccuumMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:TransportAndVaccuumMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:TransportAndVaccuumMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:TransportAndVaccuumMember2019-01-012019-03-310001109189bas:TransportAndVaccuumMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:CoiledTubingMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:CoiledTubingMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:CoiledTubingMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:CoiledTubingMember2019-01-012019-03-310001109189bas:CoiledTubingMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:RentalToolRevenueMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:RentalToolRevenueMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:RentalToolRevenueMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:RentalToolRevenueMember2019-01-012019-03-310001109189bas:RentalToolRevenueMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:PluggingMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:PluggingMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:PluggingMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:PluggingMember2019-01-012019-03-310001109189bas:PluggingMember2019-01-012019-03-310001109189bas:ProductionAndDisposalFacilitiesMemberbas:CompletionAndRemedialServicesMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:ProductionAndDisposalFacilitiesMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:ProductionAndDisposalFacilitiesMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:ProductionAndDisposalFacilitiesMember2019-01-012019-03-310001109189bas:ProductionAndDisposalFacilitiesMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:HotOilerMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberbas:HotOilerMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:HotOilerMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:HotOilerMember2019-01-012019-03-310001109189bas:HotOilerMember2019-01-012019-03-310001109189bas:OtherProductsandServicesMemberbas:CompletionAndRemedialServicesMember2019-01-012019-03-310001109189bas:OtherProductsandServicesMemberbas:WaterLogisticsMember2019-01-012019-03-310001109189bas:WellServicingMemberbas:OtherProductsandServicesMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberbas:OtherProductsandServicesMember2019-01-012019-03-310001109189bas:OtherProductsandServicesMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310001109189bas:WellServicingMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberus-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310001109189us-gaap:TransferredAtPointInTimeMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310001109189bas:WaterLogisticsMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310001109189bas:WellServicingMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberus-gaap:TransferredOverTimeMember2019-01-012019-03-310001109189us-gaap:TransferredOverTimeMember2019-01-012019-03-310001109189bas:CompletionAndRemedialServicesMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:PermianBasinMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:TexasGulfCoastMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2018-01-012018-03-310001109189bas:WaterLogisticsMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2018-01-012018-03-310001109189bas:WellServicingMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMembersrt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2018-01-012018-03-310001109189srt:ReportableGeographicalComponentsMemberbas:ArkLaTexAndMidContinentMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2018-01-012018-03-310001109189bas:WaterLogisticsMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2018-01-012018-03-310001109189bas:WellServicingMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMembersrt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2018-01-012018-03-310001109189srt:ReportableGeographicalComponentsMemberbas:RockyMountainMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:EasternUSAMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:EasternUSAMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:EasternUSAMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:EasternUSAMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:EasternUSAMembersrt:ReportableGeographicalComponentsMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2018-01-012018-03-310001109189bas:WaterLogisticsMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2018-01-012018-03-310001109189bas:WellServicingMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMembersrt:ReportableGeographicalComponentsMemberbas:WestCoastMember2018-01-012018-03-310001109189srt:ReportableGeographicalComponentsMemberbas:WestCoastMember2018-01-012018-03-310001109189srt:GeographyEliminationsMemberbas:CompletionAndRemedialServicesMemberbas:CorporateHeadquartersMember2018-01-012018-03-310001109189srt:GeographyEliminationsMemberbas:WaterLogisticsMemberbas:CorporateHeadquartersMember2018-01-012018-03-310001109189srt:GeographyEliminationsMemberbas:WellServicingMemberbas:CorporateHeadquartersMember2018-01-012018-03-310001109189srt:GeographyEliminationsMemberus-gaap:ServiceOtherMemberbas:CorporateHeadquartersMember2018-01-012018-03-310001109189srt:GeographyEliminationsMemberbas:CorporateHeadquartersMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMember2018-01-012018-03-310001109189bas:WaterLogisticsMember2018-01-012018-03-310001109189bas:WellServicingMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:FracEquipmentMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:FracEquipmentMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:FracEquipmentMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:FracEquipmentMember2018-01-012018-03-310001109189bas:FracEquipmentMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:WellServicesMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:WellServicesMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:WellServicesMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:WellServicesMember2018-01-012018-03-310001109189bas:WellServicesMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:TransportAndVaccuumMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:TransportAndVaccuumMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:TransportAndVaccuumMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:TransportAndVaccuumMember2018-01-012018-03-310001109189bas:TransportAndVaccuumMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:CoiledTubingMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:CoiledTubingMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:CoiledTubingMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:CoiledTubingMember2018-01-012018-03-310001109189bas:CoiledTubingMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:RentalToolRevenueMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:RentalToolRevenueMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:RentalToolRevenueMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:RentalToolRevenueMember2018-01-012018-03-310001109189bas:RentalToolRevenueMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:PluggingMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:PluggingMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:PluggingMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:PluggingMember2018-01-012018-03-310001109189bas:PluggingMember2018-01-012018-03-310001109189bas:ProductionAndDisposalFacilitiesMemberbas:CompletionAndRemedialServicesMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:ProductionAndDisposalFacilitiesMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:ProductionAndDisposalFacilitiesMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:ProductionAndDisposalFacilitiesMember2018-01-012018-03-310001109189bas:ProductionAndDisposalFacilitiesMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberbas:HotOilerMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberbas:HotOilerMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:HotOilerMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:HotOilerMember2018-01-012018-03-310001109189bas:HotOilerMember2018-01-012018-03-310001109189bas:OtherProductsandServicesMemberbas:CompletionAndRemedialServicesMember2018-01-012018-03-310001109189bas:OtherProductsandServicesMemberbas:WaterLogisticsMember2018-01-012018-03-310001109189bas:WellServicingMemberbas:OtherProductsandServicesMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberbas:OtherProductsandServicesMember2018-01-012018-03-310001109189bas:OtherProductsandServicesMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-03-310001109189bas:WellServicingMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberus-gaap:TransferredAtPointInTimeMember2018-01-012018-03-310001109189us-gaap:TransferredAtPointInTimeMember2018-01-012018-03-310001109189bas:CompletionAndRemedialServicesMemberus-gaap:TransferredOverTimeMember2018-01-012018-03-310001109189bas:WaterLogisticsMemberus-gaap:TransferredOverTimeMember2018-01-012018-03-310001109189bas:WellServicingMemberus-gaap:TransferredOverTimeMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberus-gaap:TransferredOverTimeMember2018-01-012018-03-310001109189us-gaap:TransferredOverTimeMember2018-01-012018-03-310001109189us-gaap:EmployeeStockOptionMember2019-01-012019-03-310001109189us-gaap:EmployeeStockOptionMember2018-01-012018-03-310001109189us-gaap:WarrantMember2019-01-012019-03-310001109189us-gaap:WarrantMember2018-01-012018-03-310001109189us-gaap:RestrictedStockMember2019-01-012019-03-310001109189us-gaap:RestrictedStockMember2018-01-012018-03-310001109189us-gaap:OperatingSegmentsMemberbas:CompletionAndRemedialServicesMember2019-01-012019-03-310001109189us-gaap:OperatingSegmentsMemberbas:WellServicingMember2019-01-012019-03-310001109189us-gaap:OperatingSegmentsMemberbas:WaterLogisticsMember2019-01-012019-03-310001109189us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMember2019-01-012019-03-310001109189bas:CorporateAndReconcilingItemsMember2019-01-012019-03-310001109189us-gaap:OperatingSegmentsMemberbas:CompletionAndRemedialServicesMember2019-03-310001109189us-gaap:OperatingSegmentsMemberbas:WellServicingMember2019-03-310001109189us-gaap:OperatingSegmentsMemberbas:WaterLogisticsMember2019-03-310001109189us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMember2019-03-310001109189bas:CorporateAndReconcilingItemsMember2019-03-310001109189us-gaap:OperatingSegmentsMemberbas:CompletionAndRemedialServicesMember2018-01-012018-03-310001109189us-gaap:OperatingSegmentsMemberbas:WellServicingMember2018-01-012018-03-310001109189us-gaap:OperatingSegmentsMemberbas:WaterLogisticsMember2018-01-012018-03-310001109189us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMember2018-01-012018-03-310001109189bas:CorporateAndReconcilingItemsMember2018-01-012018-03-310001109189us-gaap:OperatingSegmentsMemberbas:CompletionAndRemedialServicesMember2018-03-310001109189us-gaap:OperatingSegmentsMemberbas:WellServicingMember2018-03-310001109189us-gaap:OperatingSegmentsMemberbas:WaterLogisticsMember2018-03-310001109189us-gaap:ServiceOtherMemberus-gaap:OperatingSegmentsMember2018-03-310001109189bas:CorporateAndReconcilingItemsMember2018-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________________________________________________________________________________________________________________ 
Form 10-Q
______________________________________________________________________________________________________________________________________________ 
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019 
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to             
Commission File Number 001-32693
______________________________________________________________________________________________________________________________________________  
Basic Energy Services, Inc.
(Exact name of registrant as specified in its charter)
 ______________________________________________________________________________________________________________________________________________ 
Delaware54-2091194
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
801 Cherry Street, Suite 2100
Fort Worth, Texas
76102
(Address of principal executive offices)(Zip code)
(817) 334-4100
(Registrant’s telephone number, including area code)
______________________________________________________________________________________________________________________________________________ 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ☒   No  ☐ 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐ 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large accelerated filerAccelerated filer
Non-accelerated filer☐  Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No   ☒ 
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes  ☒    No   ☐ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, par value $0.01 per shareBASNew York Stock Exchange

There were 26,957,350 shares of the registrant’s common stock outstanding as of May 9, 2019.  




BASIC ENERGY SERVICES, INC.
Index to Form 10-Q 
 

i


CAUTIONARY STATEMENT
REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements are subject to risks and uncertainties. These statements may relate to, but are not limited to, information or assumptions about us, our capital and other expenditures, dividends, financing plans, capital structure, cash flows, pending legal or regulatory proceedings and claims, future economic performance, operating income, costs savings and management's plans, strategies, goals and objectives for future operations and goals. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, among other things, the risk factors  discussed in this quarterly report, and in our most recent Annual Report on Form 10-K and other factors, most of which are beyond our control.

The words “believe,” “estimate,” “expect,” “anticipate,” “project,” “intend,” “plan,” “seek,” “could,” “should,” “may,” “potential” and similar expressions are intended to identify forward-looking statements. All statements other than statements of current or historical fact contained in this quarterly report are forward-looking statements. Although we believe that the forward-looking statements contained in this quarterly report are based upon reasonable assumptions, the forward-looking events and circumstances discussed in this quarterly report may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.
Important factors that may affect our expectations, estimates or projections include:
a decline in, or substantial volatility of, oil and natural gas prices, and any related changes in expenditures by our customers;
competition within our industry;
the effects of future acquisitions on our business;
uncertainties about our ability to successfully execute our business and financial plans and strategies;
our access to current or future financing arrangements; 
changes in customer requirements in markets or industries we serve;
availability and cost of equipment;
general economic and market conditions;
our ability to replace or add workers at economic rates;
our borrowing capacity, covenant compliance under instruments governing any of our existing or future indebtedness and cash flows; and
environmental and other governmental regulations.

Our forward-looking statements speak only as of the date of this quarterly report. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.


ii


PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Basic Energy Services, Inc.
Consolidated Balance Sheets 
(in thousands, except share and per share data)
March 31, 2019December 31, 2018
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$63,796 $90,300 
Trade accounts receivable, net of allowance of $1,573 and $1,838, respectively140,269 144,767 
Income tax receivable
3,425 1,574 
Inventories
33,740 36,449 
Prepaid expenses
16,164 17,479 
Other current assets
6,299 4,640 
Total current assets
263,693 295,209 
Property and equipment, net442,092 448,801 
Operating lease right-of-use assets19,321 — 
Deferred debt costs, net of amortization2,604 2,747 
Intangible assets, net of amortization2,925 2,984 
Other assets12,585 12,036 
Total assets
$743,220 $761,777 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$76,833 $98,323 
Accrued expenses
71,484 55,826 
Current portion of long-term debt, net of $359 and $479 discount at March 31, 2019 and December 31, 2018, respectively22,465 27,039 
Operating lease right-of-use liabilities, current portion5,347 — 
Other current liabilities
719 3,123 
Total current liabilities
176,848 184,311 
Long-term debt, net of discounts and deferred financing costs of $10,448 and $10,690, at March 31, 2019 and December 31, 2018, respectively322,358 322,701 
Operating lease right-of-use liabilities, long-term portion13,974 — 
Other long-term liabilities35,156 35,337 
Stockholders' equity:
Preferred stock; $0.01 par value; 5,000,000 shares authorized; zero outstanding at March 31, 2019 and December 31, 2018  
Common stock; $0.01 par value; 80,000,000 shares authorized; 27,267,899 and 26,990,034 shares issued and 26,957,350 and 26,747,712 shares outstanding at March 31, 2019 and December 31, 2018, respectively273 270 
Additional paid-in capital
467,373 464,264 
Retained deficit
(268,747)(241,271)
Treasury stock, at cost, 310,549 and 242,322 shares at March 31, 2019 and December 31, 2018, respectively(4,015)(3,835)
Total stockholders' equity
194,884 219,428 
Total liabilities and stockholders' equity
$743,220 $761,777 

See accompanying notes to unaudited consolidated financial statements.



1



Basic Energy Services, Inc.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended March 31,
20192018
Revenues:
Completion & Remedial Services
$76,834 $117,597 
Well Servicing
60,515 56,951 
Water Logistics
55,601 56,509 
Other Services
4,252 3,608 
Total revenues
197,202 234,665 
Expenses:
Completion & Remedial Services
63,433 89,659 
Well Servicing
47,196 46,511 
Water Logistics
37,299 40,923 
Other Services
3,914 4,223 
General and administrative, including stock-based compensation of $3,288 and $6,798 in the three months ended March 31, 2019 and 2018, respectively35,522 40,978 
Depreciation and amortization
27,498 30,235 
Loss on disposal of assets
1,455 1,779 
Total expenses
216,317 254,308 
Operating loss
(19,115)(19,643)
Other income (expense):
Interest expense
(10,756)(11,283)
Interest income
245 27 
Other income
299 309 
Loss before income taxes(29,327)(30,590)
Income tax benefit1,851 59 
Net loss$(27,476)$(30,531)
Loss per share of common stock:
Basic
$(1.02)$(1.16)
Diluted
$(1.02)$(1.16)

See accompanying notes to unaudited consolidated financial statements.













2


Basic Energy Services, Inc.
Consolidated Statements of Stockholders’ Equity
(in thousands, except share data)

Common StockAdditionalTreasuryTotal
IssuedCommon Paid-InTreasuryTreasuryRetainedStockholders'
SharesStockCapitalSharesStockDeficitEquity
Balance - December 31, 201826,990,034 $270 $464,264 242,322 $(3,835)$(241,271)$219,428 
Issuances of restricted stock277,865 3 (3)— — —  
Amortization of equity-classified share-based compensation— — 3,275 — — — 3,275 
Treasury stock, net— — (163)68,227 (180)— (343)
Net loss— — — — — (27,476)(27,476)
Balance - March 31, 2019 (unaudited)27,267,899 $273 $467,373 310,549 $(4,015)$(268,747)$194,884 


Common StockAdditionalTreasuryTotal
IssuedCommonPaid-InTreasuryTreasuryRetainedStockholders'
SharesStockCapitalSharesStockDeficitEquity
Balance - December 31, 201726,371,572 $264 $439,517 152,443 $(4,454)$(96,674)$338,653 
Issuances of restricted stock272,510 2 (2)— — —  
Amortization of equity-classified share-based compensation— — 6,798 — — — 6,798 
Treasury stock, net— — (291)69,337 (1,051)— (1,342)
Net loss— — — — — (30,531)(30,531)
Balance - March 31, 2018 (unaudited)26,644,082 $266 $446,022 221,780 $(5,505)$(127,205)$313,578 


See accompanying notes to unaudited consolidated financial statements.

3


Basic Energy Services, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Three Months Ended March 31,
20192018
Cash flows from operating activities:
Net loss$(27,476)$(30,531)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation and amortization
27,498 30,235 
Accretion on asset retirement obligation
85 41 
Change in allowance for doubtful accounts
(265)(159)
Amortization of deferred financing costs
564 176 
Amortization of debt discounts262 1,474 
Non-cash compensation
3,288 6,798 
Loss on disposal of assets1,455 1,779 
Deferred income taxes
 (78)
Changes in operating assets and liabilities:
Accounts receivable
4,763 (7,618)
Inventories
2,709 (812)
Prepaid expenses and other current assets
(1,282)1,593 
Other assets
(549)44 
Accounts payable
(20,496)(5,987)
Income tax receivable
(1,851)19 
Other liabilities
(2,559)(1,641)
Accrued expenses
15,658 9,215 
Net cash provided by operating activities
1,804 4,548 
Cash flows from investing activities:
Purchase of property and equipment
(18,885)(15,412)
Proceeds from sale of assets
2,664 198 
Net cash used in investing activities
(16,221)(15,214)
Cash flows from financing activities:
Proceeds from debt 21,000 
Payments of debt(11,423)(13,657)
Change in treasury stock including restricted stock issuances(343)(1,342)
Deferred loan costs and other financing activities
(321) 
Net cash provided by (used in) financing activities
(12,087)6,001 
Net decrease  in cash and cash equivalents
(26,504)(4,665)
Cash and cash equivalents - beginning of period90,300 86,223 
Cash and cash equivalents - end of period$63,796 $81,558 
Noncash investing and financing activity:
Finance leases and notes issued for equipment$6,144 $3,321 
Change in accrued property and equipment(994)2,518 
Change in asset retirement obligations$124 $58 
Income tax paid  
See accompanying notes to unaudited consolidated financial statements.
4


BASIC ENERGY SERVICES, INC.
Notes to Consolidated Financial Statements
March 31, 2019 (unaudited) 
1. Basis of Presentation and Nature of Operations
Basis of Presentation
The accompanying unaudited consolidated financial statements of Basic Energy Services, Inc. and subsidiaries (“Basic” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. Certain information relating to Basic's organization and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted in this Quarterly Report on Form 10-Q in accordance with GAAP and financial statement requirements promulgated by the U.S. Securities and Exchange Commission (“SEC”). The notes to the consolidated financial statements (unaudited) should be read in conjunction with the notes to the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments which are of a normal recurring nature considered necessary for a fair presentation have been made in the accompanying unaudited financial statements.
On June 28, 2018, the SEC adopted amendments that expanded the definition of “smaller reporting company” by increasing the applicable public float and revenue thresholds. Under the amended definition, which became effective on September 10, 2018, a company qualifies as a smaller reporting company if it has (i) a public float of less than $250 million at the end of its most recently completed second fiscal quarter or (ii) less than $100 million in annual revenues and either no public float or a public float of less than $700 million. Based on the Company's public float (the aggregate market value of its common equity held by non-affiliates) as of June 29, 2018, the Company is considered a smaller reporting company under the revised SEC rules and, as such, is eligible to use certain scaled financial and non-financial disclosure requirements. Smaller reporting companies may elect to comply with the scaled reporting requirements separately, thereby permitting the Company to choose such disclosure requirements on an item-by-item basis.
Liquidity and Capital Resources
On October 2, 2018, the Company issued in a private offering $300.0 million aggregate principal amount of 10.75% senior secured notes due 2023 at 99.042% of par and entered into a new $150.0 million senior secured revolving credit facility. For further discussion see Note 4, "Long-Term Debt and Interest Expense".
Basic's current primary capital resources are cash flow from operations, the availability under the New ABL Facility, the ability to enter into finance leases, the ability to incur additional secured indebtedness, and a cash balance of $63.8 million at March 31, 2019. The Company had $66.2 million of available borrowing capacity under the New ABL Facility at March 31, 2019.
Nature of Operations  
Basic provides a wide range of well site services to oil and natural gas drilling and producing companies, including completion & remedial services, water logistics, well servicing and contract drilling. These services are primarily provided by Basic’s fleet of equipment. Basic’s operations are concentrated in major United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Kansas, Arkansas, Louisiana, Wyoming, North Dakota, Colorado and California.
Principles of Consolidation
The accompanying consolidated financial statements include the accounts of Basic's subsidiaries, for which Basic holds a majority voting interest. All intercompany transactions and balances have been eliminated.
Segment Information
In the first quarter of 2019, Basic revised its reportable segments for financial reporting purposes to combine its contract drilling operations with its rig manufacturing operations to form an Other Services segment. The Company's business now consists of the following four segments: Well Servicing, Water Logistics, Completion & Remedial Services, and Other Services. See Note 12, "Business Segment Information" for further information.
5


Estimates, Risks and Uncertainties
Preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management uses historical and other pertinent information to determine these estimates. Actual results could differ from those estimates. Areas where critical accounting estimates are made by management include litigation and self-insured risk reserves. 
2. Property and Equipment
The following table summarizes the components of property and equipment (in thousands):
March 31, 2019December 31, 2018
Land$20,827 $21,431 
Buildings and improvements41,212 40,524 
Well service units and equipment128,960 122,694 
Fracturing/test tanks121,206 123,550 
Pumping equipment103,532 103,689 
Fluid services equipment80,061 78,524 
Disposal facilities66,995 63,229 
Rental equipment67,735 62,642 
Light vehicles29,828 27,080 
Contract drilling equipment9,039 9,846 
Other4,262 4,257 
Brine and fresh water stations3,192 3,296 
Software833 857 
Property and equipment, gross
677,682 661,619 
Less accumulated depreciation and amortization(235,590)(212,818)
Property and equipment, net$442,092 $448,801 
  
Basic is obligated under various finance leases for certain vehicles and equipment that expire at various dates during the next five years. The table below summarizes the gross amount of property and equipment and related accumulated amortization recorded under finance leases and included above (in thousands):
March 31, 2019December 31, 2018
Fluid services equipment$35,437 $35,034 
Pumping equipment24,393 48,929 
Light vehicles21,182 18,376 
Contract drilling equipment 314 
Well service units and equipment 199 
Property and equipment under finance lease, cost81,012 102,852 
Less accumulated amortization(22,513)(31,954)
Property and equipment under finance lease, net$58,499 $70,898 

6


3. Intangible Assets
Basic had trade names of $3.4 million as of each of March 31, 2019 and December 31, 2018. Trade names have a 15-year life and are tested for impairment when triggering events are identified.
Basic’s intangible assets subject to amortization were as follows (in thousands):
March 31, 2019December 31, 2018
Trade names$3,410 $3,410 
Other intangible assets48 48 
Intangible assets 3,458 3,458 
Less accumulated amortization(533)(474)
Intangible assets subject to amortization, net$2,925 $2,984 
Amortization expense of intangible assets for the three months ended March 31, 2019 and 2018 was as follows (in thousands):
Three Months Ended March 31,
20192018
Intangible amortization expense$59 $60 

4. Long-Term Debt and Interest Expense
Long-term debt consisted of the following (in thousands): 
March 31, 2019December 31, 2018
10.75% Senior Notes due 2023$300,000 $300,000 
Finance leases and other notes55,630 60,909 
Unamortized discounts and deferred financing costs(10,807)(11,169)
Total long-term debt344,823 349,740 
Less current portion22,465 27,039 
Total non-current portion of long-term debt$322,358 $322,701 
Debt Discounts
The following discounts on debt represent the unamortized discount to fair value of the Senior Notes and the short-term portions of the fair value discount of finance leases (in thousands):
March 31, 2019December 31, 2018
Unamortized discount on Senior Notes$2,589 $2,731 
Unamortized discount on finance leases - short-term359 479 
Unamortized deferred debt issuance costs7,859 7,959 
Total unamortized discounts and deferred financing costs$10,807 $11,169 

Interest Expense
Basic’s interest expense for the three months ended March 31, 2019 and 2018, consisted of the following (in thousands):
Three Months Ended March 31,
20192018
Cash payments for interest$1,752 $8,578 
Change in accrued interest8,148 221 
Amortization of discounts262 1,474 
Amortization of deferred debt costs564 177 
Commitment and other fees paid11 809 
Other19 24 
Total interest expense$10,756 $11,283 

7


Senior Secured Notes
On October 2, 2018, the Company issued $300.0 million aggregate principal amount of 10.75% senior secured notes due 2023 (the “Senior Notes”) in an offering exempt from registration under the Securities Act. The Senior Notes were issued at a price of 99.042% of par to yield 11.0%. The Senior Notes are secured by a first-priority lien on substantially all of the assets of the Company and the subsidiary guarantors other than accounts receivable, inventory and certain related assets. Net proceeds from the offering of approximately $290.0 million were used to repay the Company’s existing indebtedness under the Amended and Restated Term Loan Agreement, to repay the Company’s outstanding borrowings under its previous credit facility (the "Prior ABL Facility"), and for general corporate purposes.
Indenture
The Company’s Senior Notes were issued under and are governed by an indenture, dated as of October 2, 2018 (the “Indenture”), by and among the Company, the guarantors named therein (the “Guarantors”), and UMB Bank, N.A. as Trustee and Collateral Agent (the “Trustee”). The Senior Notes are jointly and severally, fully and unconditionally guaranteed (the “Guarantees”) on a senior secured basis by the Guarantors and are secured by first priority liens on substantially all of the Company’s and the Guarantors’ assets, other than accounts receivable, inventory and certain related assets.
The Indenture contains covenants that limit the ability of the Company and certain subsidiaries to:

incur additional indebtedness or issue preferred stock;
pay dividends or make other distributions to its stockholders;
repurchase or redeem capital stock or subordinated indebtedness and certain refinancings thereof;
make certain investments;
incur liens;
enter into certain types of transactions with affiliates;
limit dividends or other payments by restricted subsidiaries to the Company; and
sell assets or consolidate or merge with or into other companies.
These limitations are subject to a number of important qualifications and exceptions. Upon an Event of Default (as defined in the Indenture), the Trustee or the holders of at least 25.0% in aggregate principal amount of the outstanding Senior Notes may declare the entire principal of, premium, if any, and accrued and unpaid interest, if any, on all the Senior Notes to be due and payable immediately.
At any time on or prior to October 15, 2020, the Company may redeem up to 35.0% of the aggregate principal amount of the Senior Notes at a redemption price equal to 110.8% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, with an amount of cash not greater than the net proceeds from certain equity offerings. At any time prior to October 15, 2020, the Company may redeem the Senior Notes, in whole or in part, at a redemption price equal to 100.0% of the principal amount of the Senior Notes plus a “make-whole” premium plus accrued and unpaid interest, if any, to the redemption date. The Company may also redeem all or a part of the Senior Notes at any time on or after October 15, 2020, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to the redemption date.
The Company may redeem all, but not less than all, of the Senior Notes in connection with a company sale transaction, at a redemption price of 105.4% of principal for a company sale that occurs on or after April 15, 2019 and on or before October 15, 2019, or 108.1% of principal amount for a company sale that occurs after October 15, 2019 and before October 15, 2020, in each case plus accrued and unpaid interest, if any, to the redemption date. If the Company experiences a change of control, the Company may be required to offer to purchase the Senior Notes at a purchase price equal to 101.0% of the principal amount, plus accrued and unpaid interest, if any, to the purchase date.
The Senior Notes and the Guarantees rank equally in right of payment with all of the Company’s and the Guarantors’ existing and future unsubordinated indebtedness, effectively senior to all of the Company’s and the Guarantors’ existing and future indebtedness to the extent of the value of the collateral securing the Senior Notes but junior to other indebtedness that is secured by liens on assets other than collateral for the Senior Notes to the extent of the value of such assets, and senior to all of the Company’s and the Guarantors’ future subordinated indebtedness.
Pursuant to a collateral rights agreement, the Senior Notes and Guarantees are secured by first priority liens, subject to limited exceptions, on the collateral securing the Senior Notes, consisting of substantially all of the property and assets now owned or hereafter acquired by the Company and the Guarantors, except for certain excluded property described in the Indenture.
8


New ABL Facility
On October 2, 2018, the Company terminated the Prior ABL Facility and Amended and Restated Term Loan Agreement and entered into an ABL Credit Agreement (the “New ABL Credit Agreement”) among the Company, as borrower (in such capacity, the “Borrower”), Bank of America, N.A., as administrative agent (the “Administrative Agent”), swing line lender and letter of credit issuer, UBS Securities LLC, as syndication agent, PNC Bank National Association, as documentation agent and letter of credit issuer, and the other lenders from time to time party thereto (collectively, the “New ABL Lenders”). Pursuant to the New ABL Credit Agreement, the New ABL Lenders have extended to the Borrower a revolving credit facility in the maximum aggregate principal amount of $150.0 million, subject to borrowing base capacity (the “New ABL Facility”). The New ABL Facility includes a sublimit for letters of credit of up to $50.0 million in the aggregate, and for borrowings on same-day notice under swingline loans subject to a sublimit of the lesser of (a) $15.0 million and (b) the aggregate commitments of the New ABL Lenders. The New ABL Facility also provides capacity for base rate protective advances up to $10.0 million at the discretion of the Administrative Agent and provisions relating to overadvances. The New ABL Facility contains no restricted cash requirements.
Borrowings under the New ABL Facility bear interest at a rate per annum equal to an applicable rate, plus, at Borrower’s option, either (a) a base rate or (b) a LIBO rate. The applicable rate was fixed from the closing date to April 1, 2019. Following April 1, 2019, the applicable rate is determined by reference to the average daily availability as a percentage of the borrowing base during the fiscal quarter immediately preceding such applicable quarter.
Principal amounts outstanding under the New ABL Facility will be due and payable in full on the maturity date, which is five years from the closing of the facility; provided that if the Senior Notes have not been redeemed by July 3, 2023, then the maturity date shall be July 3, 2023.
Substantially all of the domestic subsidiaries of the Company guarantee the borrowings under the New ABL Facility, and Borrower guarantees the payment and performance by each specified loan party of its obligations under its guaranty with respect to swap obligations. All obligations under the New ABL Facility and the related guarantees are secured by a perfected first-priority security interest in substantially all accounts receivable, inventory, and certain other assets, not including equity interests. As of March 31, 2019, Basic had no borrowings and $39.6 million of letters of credit outstanding under the New ABL Facility.

5. Leases
Basic adopted ASU No. 2016-02, Topic 842 - Leases, effective January 1, 2019. This ASU requires lessees to recognize an operating lease right-of-use ("ROU") asset and liability on the balance sheet for all operating leases with an initial lease term greater than twelve months.
Per ASU 2018-11 Leases – Targeted Improvements, allowed for a practical expedient wherein all periods previously reported under ASC 840 will continue to be reported under ASC 840, and periods beginning January 1, 2019 and after are reported under ASC 842. Basic elected to adopt this practical expedient along with the package of practical expedients which allows Basic to combine lease and non-lease costs, and not to assess whether existing or or expired land easements that were not previously accounted for as leases under Topic 840 are or contain a lease under this Topic.  
Under this transition option, Basic will continue to apply the legacy guidance in ASC 840, including its disclosure requirements, in the comparative periods presented and will make only annual disclosures for the comparative periods because ASC 840 does not require interim disclosures. Prior period amounts have not been adjusted and continue to be reflected in accordance with Basic’s historical accounting. The adoption of this standard resulted in the recording of ROU assets and lease liabilities of approximately of $20.8 million as of January 1, 2019, with no related impact on Basic’s Consolidated Statement of Equity or Consolidated Statement of Income (Loss).
As a lessee, Basic leases its corporate office headquarters in Fort Worth, Texas, and conducts its business operations through various regional offices located throughout the United States. These operating locations typically include regional offices, storage and maintenance yards, disposal facilities and employee housing sufficient to support its operations in the area. Basic leases most of these properties under non-cancelable term and month-to-month operating leases, many of which contain renewal options that can extend the lease term from one to five years and some of which contain escalation clauses. Basic also leases supplemental equipment, typically under cancelable short-term and very short term (less than 30 days) leases. Due to the nature of the Company's business, any option to renew these short-term leases, and the options to extend certain of its long-term real estate leases, are generally not considered reasonably certain to be exercised. Therefore, the periods covered by such optional periods are not included in the determination of the term of the lease, and the lease payments during these periods are similarly excluded from the calculation of operating lease asset and lease liability balances.
9


Basic recognizes rent expense on a straight-line basis, except for certain variable expenses which are recognized when the variability is resolved, typically during the period in which they are paid. Variable lease payments typically include charges for property taxes and insurance, and some leases contain variable payments related to non-lease components, including common area maintenance and usage of facilities or office equipment (for example, copiers), which totaled approximately $0.3 million during the three months ended March 31, 2019. Prepaid rent total $0.2 million during the three months ended March, 31, 2019. Operating lease expense consists of rent expense related to leases which were included in ROU assets under Topic 842. The following table summarizes the components of the Company's lease expense recognized for the three months ending March 31, 2019, excluding variable lease and prepaid rent costs (amounts in thousands):  
Three Months ended
March 31, 2019
Operating lease expense:
Short-term operating lease expense$1,974 
Long-term operating lease expense2,185 
Total operating lease expense$4,159 
Finance lease expense:
Amortization of right-of-use assets$5,440 
Interest on lease liabilities1,382 
Total finance lease expense$6,822 
Supplemental information related to leases was as follows:
Weighted Average Remaining Lease Term (in years)
Operating leases3.0
Finance leases2.6
Weighted Average Discount Rate
Operating leases14.4 
Finance leases8.0 
10


Supplemental cash flow information related to leases was as follows for the periods presented (in thousands):
Three Months ended
March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities: 
Operating cash outflows from operating leases$4,159 
Operating cash outflows from finance leases1,382 
Financing cash outflows from finance leases11,423 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$ 
Finance leases6,144 
Supplemental balance sheet information related to leases was as follows for the periods presented (in thousands):
March 31, 2019December 31, 2018
Right-of-Use Assets under Operating Leases
Operating lease right-of-use assets$19,321 $20,819 
Operating lease right-of-use liabilities, current portion5,347 5,649 
Operating lease right-of-use liabilities, long-term portion13,974 15,170 
Total operating lease liabilities$19,321 $20,819 
Right-of-Use Assets under Finance Leases
Property and equipment, at cost$81,012 $102,852 
Accumulated depreciation(22,513)(31,954)
Property and equipment, net$58,499 $70,898 
Current portion of long-term debt$22,824 $27,519 
Long-term debt32,806 33,390 
Total finance lease liabilities$55,630 $60,909 
The Company adopted ASU 2016-02 on January 1, 2019 as noted above, and as required, the following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 31, 2018 were as follows (in thousands):
Operating LeasesFinance Leases
2019$8,179 $27,519 
20206,323 19,322
20215,438 10,697
20224,696 3,233
20231,248 83
Thereafter1,215 55
Total lease payments$27,099 $60,909 

11


Maturities of lease liabilities were as follows at March 31, 2019 (in thousands):
Operating LeasesFinance Leases
2019$5,926 $17,575 
20206,398 20,463
20215,517 12,156
20224,775 4,786
20231,308 595
Thereafter1,158 55
Total lease payments$25,082 $55,630 
Impact of discounting(5,761)
Discounted value of operating lease obligations$19,321 
Current operating lease liabilities$4,151 
Noncurrent operating lease liabilities15,170 
$19,321 


6. Fair Value Measurements
The following is a summary of the carrying amounts, net of discounts, and estimated fair values of the Company's Senior Notes as of March 31, 2019 and December 31, 2018:
March 31, 2019December 31, 2018
Hierarchy LevelCarrying AmountFair ValueCarrying AmountFair Value
(In thousands)
10.75% Senior Notes due 20231$297,411 $245,568 $297,269 $257,806 
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other accrued liabilities approximate fair value due to the short maturities of these instruments. 
Basic did not have any assets or liabilities that were measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018.

7. Commitments and Contingencies
Environmental
Basic is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for protection of the environment. Basic cannot predict the future impact of such standards and requirements, which are subject to change and can have retroactive effectiveness. Basic continues to monitor the status of these laws and regulations.
Currently, Basic has not been fined, cited or notified of any environmental violations that would have a material adverse effect upon its financial position, liquidity or capital resources. However, management recognizes that by the very nature of its business, material costs could be incurred in the near term to maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, the unknown timing and extent of the corrective actions which may be required, the determination of Basic’s liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or indemnification.
Litigation
From time to time, Basic is a party to litigation or other legal proceedings that Basic considers to be a part of the ordinary course of business. Basic is not currently involved in any legal proceedings that it considers probable or
12


reasonably possible, individually or in the aggregate, to result in a material adverse effect on its financial condition, results of operations or liquidity.
Sales and Use Tax Audit
In 2014, Basic was notified by the Texas State Comptroller’s office that a sales and use tax audit for the period from 2010 through 2013 would be conducted. A preliminary report was issued in the second quarter of 2018 for this audit, and Basic will appeal the preliminary report through the redetermination process. Based on the Company's analysis, the potential liability associated with this audit ranges from $6.0 million to $24.0 million. This range could potentially change in future periods as the appeal and redetermination process progresses. Net of good faith payments made by the Company, the Company currently has $5.1 million in its financial statements as liabilities and the related interest associated with the taxes of $0.3 million is included in interest expense for the three months ended March 31, 2019.
Self-Insured Risk Accruals
Basic is self-insured up to retention limits as it relates to workers’ compensation, general liability claims, and medical and dental coverage of its employees. Basic generally maintains no physical property damage coverage on its rig fleet, with the exception of certain of its 24-hour workover rigs, newly manufactured rigs and pumping services equipment. Basic has deductibles per occurrence for workers’ compensation, general liability claims, and medical and dental coverage of $4.0 million, $1.0 million, and $0.4 million, respectively. Basic has a $1.0 million deductible per occurrence for automobile liability. Basic maintains accruals in the accompanying consolidated balance sheets related to self-insurance retentions based upon third-party data and claims history. At March 31, 2019, short-term and long-term self-insured risk reserves were $7.2 million and $16.3 million, respectively. At December 31, 2018, short-term and long-term self-insured risk reserves were $6.7 million and $16.3 million, respectively.
8. Stockholders’ Equity
Common Stock
Basic did not make any equity grants or issue any new shares in the quarter ended March 31, 2019. In February 2018, Basic granted certain members of management 203,625 performance-based restricted stock units and 203,625 restricted stock units, which each vest over a three-year period. 
9. Incentive Plan
During the three-month periods ended March 31, 2019 and 2018, compensation expense related to share-based arrangements under the Basic Energy Services, Inc. Management Incentive Plan (the “MIP”), including restricted stock, restricted stock units and stock option awards, was approximately $3.3 million and $6.8 million respectively. Basic did not recognize a tax benefit for compensation expense recognized during the three-month periods ended March 31, 2019 and 2018.
At March 31, 2019, there was $13.2 million unrecognized compensation expense related to non-vested share-based compensation arrangements granted under the MIP. That cost is expected to be recognized over a weighted average period of 1.9 years.
Stock Option Awards
The fair value of each stock option is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. Stock options granted under the MIP expire ten years from the date they are granted, and vest over a three-year service period. Total expense related to stock options in three-month periods ended March 31, 2019 and 2018, was approximately $755,000 and $1.1 million, respectively. Future expense for all options is expected to be approximately $2.5 million in total through February 2020.
13


The following table reflects changes during the three-month period and a summary of stock options outstanding at March 31, 2019:
Weighted
Average
WeightedRemainingAggregate
Number ofAverageContractualIntrinsic
OptionsExerciseTermValue
Non-statutory stock options:GrantedPrice(Years)(000's)
Outstanding, beginning of period595,736 $39.23 
Options granted
  
Options forfeited(6,474)$40.12 
Options exercised
  
Options expired(71,228)$39.23 
Outstanding, end of period
518,034 $39.21 7.8$