Basic Energy Services, Inc. has implemented several cost control and capital preservation measures in response to the rapidly changing market outlook in a lower commodity price environment as well as market uncertainty related to the impact of the COVID-19 virus.
In addition to reducing projected 2020 capital expenditures 60% from the previously announced $43 million to $17 million and suspending all new capital lease additions, the Company expects to reduce annual run-rate costs by approximately $20 million by taking the following actions immediately:
- Enact cost controls across all business lines, including adjusting staffing to current activity levels and furloughs of all executive, office, and administrative staff;
- Consolidate certain regional district operations and centralize specific business processes; and
- Initiate the closure of selected, lower-performing locations.
The Company expects to accomplish these cost saving measures in addition to the previously announced synergies from the recent acquisition of the C&J Well Services business ("C&J") of...