Fort Worth company reports $88 million in losses as it makes $94 million purchase

The same day that Basic Energy Services Inc. in Forth Worth announced a loss of $88 million in the fourth quarter, the company bought Houston-based NexTier Oilfield Solutions Inc.’s Well Support Services group.

Basic Energy paid $94 million in cash and notes. The NexTier production operations, known as C&J Well Services, were originally established in San Angelo in 1948 by Frank Pool, founder of Pool Well Servicing. The sale includes NexTier’s rig services, special services and fluids management businesses.

The boards of both companies approved the transaction, which closed Monday. Jack Renshaw, senior vice president of C&J Well Services, will join Basic to lead the newly formed Western Region, consisting of all California and Rocky Mountain operations.

 

 Basic Energy Services Inc. reported a loss of $87.8 million in its fourth quarter on Monday. On a per-share basis, the Fort Worth-based wellsite services company said it had a loss of $3.52. Losses, adjusted to account for discontinued operations, were $1.30 per share.

The oil and gas field service company posted revenue of $121.9 million in the period. For the year, the company reported that its loss widened to $181.9 million, or $6.96 per share. Revenue was reported as $567.3 million. The company’s shares closed Monday at 13 cents. A year ago, they were trading at $3.95.

Source: Dallas Morning News