Energy

Drillers Report Operations Blues (BAS, RIG)

Oil_well_image_2Oil field services company Basic Energy Services, Inc. (NYSE:BAS) reported this morning that December 2008 operations were even lower than expected. Drilling rig utilization reached just 66% in December, down from 83% in November and down 88% from December 2007. The company had projected quarterly declines of 4-6% in revenues for the fourth quarter, but is now expecting a revenue shortfall of 11% for the quarter. Basic is lowering its rates and reducing capital spending, choosing to focus "controlling expenses and preserving liquidity."  Basic may have trouble finding customers, but Transocean, Inc. (NYSE:RIG) is firing its customers.

Transocean yesterday canceled a $550,000/day rig lease and stopped asecond drilling project after the client ran out of cash. In the secondcase, Oilexco Inc., a Canadian E&P company, has filed forbankruptcy protection. Transocean claims the $340,000/day contract forthe Oilexco project is still in force.

Basic’s share price is off more than 3% so far today, and Transocean isup more than 3% today, after dropping more than 8% yesterday.

Paul Ausick
January 13, 2008

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.