Basic Energy Services Essay

Basic Energy Services, Inc. (BAS/NYSE)

Basic Energy provides well services to oil and natural gas drilling and producing companies in the U.S. and is headquartered in Fort Worth, Texas. Basic only operates in the U.S. at over 100 service points in 13 states and serves over 800,000 active wells, whereas Newpark operates in Canada, the U.S., Europe, Africa, and the Asia Pacific region. Basic’s business scope differs from Newpark’s in that Newpark only offers on-site products and services, whereas Basic’s services include the transportation and storage of oil and gas throughout the entire lifecycle of each of its wells. Newpark’s drilling fluids business, for instance, composes 88 percent of Newpark’s 2013 yearly revenues, whereas Basic’s fluids

It is a small cap stock that began focusing on energy services in 1988. The company operates in the U.S. and outside of the U.S., including areas in Russia and the Middle East. In Russia, Key owns 50 percent ($33.8 million) of Russian oilfield services company GeoStream. Key services more onshore, rig-based wells than any other oilfield services company. The company provides many different types of well services with its major businesses of rig services, coiled tubing services, fluid management services, and fishing and rental services. These sectors differ from Newpark’s Mats and Drilling Fluids sectors. Recently, Key has focused on increased commodity prices, a shift to horizontal wells, a relocation of international rigs to the U.S., and an aim toward a new customer base. The company has also recently dealt with stagnant capital expenditures. Key is not directly in competition with Newpark being that it does not offer drilling fluid systems nor does the company sell

Strad is the largest rig mat and matting board manufacturer in North America. However, Strad does not operate outside of Canada and the U.S., whereas Newpark operates in Canada, the U.S., Europe, Africa, and the Asia Pacific region. Since Newpark has a larger geographic incumbency and larger market capitalization, the company’s revenues have greatly exceeded Strad’s revenues. In 2013, Strad received $65 million in revenues from its matting solutions business and total revenue of $190 million. Newpark realized much larger revenues, receiving $115,964 million from its mats business and $1,042,356 million overall. Unlike Newpark, Strad produces fluid management systems, rather than the actual fluid systems themselves. For instance, Strad produces drying shakers, which remove solids from drilling fluids. Strad’s fluid management systems also serve to control waste and keep the environment clean. Strad operates several other businesses, making the company more diverse than Newpark. Strad’s surface equipment business provides rentals to E&P companies for oil tanks, transfer pumps, and light towers. Its “EcoPond” business provides large fluid storage. Strad also carries drilling pipes and other drill tools in its inventory, which are available for