Basic Energy Services Inc. of Fort Worth entered Chapter 11 bankruptcy this week while at the same time undertaking asset purchase agreements with Axis Energy Services Holdings, LLC, Berry Corporation and Select Energy Services, Inc.
The deal will give Axis all of the company’s Well Servicing and Completion & Remedial segment assets outside of California, and likely include the company’s operations located in El Reno, Oklahoma.
Further, Berry will acquire substantially all of the company’s assets in California.
The move will leave Select Energy with all of the company’s Water Logistics segment assets outside of California including all of the assets of Agua Libre Midstream, LLC.
Basic filed Chapter 11 bankruptcy proceedings in order to facilitate the sales. Under the agreement, Axis, Berry and Select served as the “stalking horse” bidders in the court-supervised sale process.
Following the announcement, Basic stated it remains focused on serving customers and expects to continue operating without interruption including paying its workers.
“We believe the asset purchase agreements will enable us to maximize the value of our businesses and create the best path forward for our customers, partners, employees and the communities we serve,” said Keith Schilling, President and Chief Executive Officer of Basic.
He cited the “extraordinary challenges” the company faced during the COVID-19 pandemic.