Basic Energy Service slips on lower revenue outlook

|About: Basic Energy Services, Inc. (BAS)|By:, SA News Editor

Basic Energy Services (BAS -4%) expects Q4 revenue will fall 6%-7% Q/Q due to seasonal factors, and lower utilization levels could pressure pricing and margins in some markets.

As of Sept. 30, BAS' well servicing rig count was unchanged at 425; well servicing rig hours totaled 69,300 producing a rig utilization rate of 71%, vs. 77% in the prior month and 71% a year ago.

Iberia Capital downgrades shares to Sector Perform from Outperform, saying BAS "indicated lower utilization levels, coupled with seasonal slowdowns, could pressure pricing in crowded markets."