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Filed by Basic Energy Services, Inc.
Commission File No. 001-32693
Pursuant to Rule 425 under the
Securities Act of 1933 and deemed
filed pursuant to Rule 14a-6 of
the Securities Exchange Act of 1934
Subject Company: Horsepower Holdings, Inc.
Commission File No.: 333-150895 |
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NEWS RELEASE |
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Contacts:
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Alan Krenek, Chief Financial Officer |
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Basic Energy Services, Inc. |
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432-620-5510 |
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FOR IMMEDIATE RELEASE |
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Jack Lascar/Sheila Stuewe |
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DRG&E / 713-529-6600 |
BASIC ENERGY SERVICES REPORTS SELECTED
OPERATING DATA FOR JUNE 2008
MIDLAND, Texas July 9, 2008 Basic Energy Services, Inc. (NYSE: BAS) (Basic) today reported
selected operating data for the month of June 2008. During the month, Basic added two newbuild
rigs and retired one rig increasing its well servicing rig count to 409. Rig hours for the month
of June 2008 were 74,200 producing a rig utilization rate of 79%, an increase from 76% last month,
and the same rate produced in June 2007.
Drilling rig days for the month of June 2008 came in at 224 generating a rig utilization rate of
83% for its nine rig fleet, a decrease from 88% last month and an increase from 63% in June 2007.
Basic increased its fluid service truck fleet by a net of three trucks, bringing its total fleet to
678 trucks as of June 30, 2008.
Ken Huseman, Basics President and Chief Executive Officer, stated, We benefited from stronger
demand in our markets in June and believe this trend will continue for the remainder of 2008. With
that outlook, we expect activity levels to increase in each of our segments, leading to pricing
improvements, which we anticipate will offset the labor and fuel cost increases that we have
experienced and believe to be a continuing factor.
OPERATING DATA
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Month ended |
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June 30, |
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May 31, |
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2008 |
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2007 |
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2008 |
Number of weekdays in period |
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21 |
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21 |
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22 |
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Number of well servicing rigs: 1 |
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Weighted average for period |
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408 |
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375 |
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399 |
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End of period |
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409 |
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379 |
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408 |
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Rig hours (000s) |
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74.2 |
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68.5 |
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73.4 |
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Rig utilization rate 2 |
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79 |
% |
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79 |
% |
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76 |
% |
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Number of drilling rigs: 1 |
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Weighted average for period |
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9 |
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9 |
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9 |
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End of period |
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9 |
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9 |
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9 |
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Drilling rig days |
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224 |
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170 |
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246 |
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Drilling utilization |
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83 |
% |
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63 |
% |
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88 |
% |
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Number of fluid service trucks: |
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Weighted average for period |
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677 |
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658 |
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673 |
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End of period |
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678 |
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659 |
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675 |
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(1) |
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Includes all rigs owned during periods presented and excludes rigs held for sale. |
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(2) |
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Rig utilization rate based on the weighted average number of rigs owned during
the periods being reported, a 55-hour work week per rig and the number of weekdays in the periods
being presented. |
Basic Energy Services provides well site services essential to maintaining production from the oil
and gas wells within its operating area. The company employs more than 4,700 employees in more
than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana,
Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain States.
Additional information on Basic Energy Services is available on the Companys website at
www.BasicEnergyServices.com.
Forward Looking Statements and Additional Information
This release includes forward-looking statements and projections made in reliance on the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Basic has made every
reasonable effort to ensure that the information and assumptions on which these statements and
projections are based are current, reasonable, and complete. However, a variety of factors could
cause actual results to differ materially from the projections, anticipated results or other
expectations expressed in this release, including (i) Basics ability to successfully execute,
manage and integrate acquisitions, including the merger with Grey Wolf, Inc. (Grey Wolf), (ii)
changes in demand for services and any related material impact on our pricing and utilizations
rates and (iii) changes in our expenses, including labor or fuel costs. Additional important risk
factors that could cause actual results to differ materially from expectations are disclosed in
Item 1A of Basics Form 10-K and Form 10-Qs filed with the SEC. While Basic makes these statements
and projections in good faith, neither Basic nor its management can guarantee that the transactions
will be consummated or that anticipated future results will be achieved. Basic assumes no
obligation to publicly update or revise any forward-looking statements made herein or any other
forward-looking statements made by Basic, whether as a result of new information, future events, or
otherwise.
Additional Information and Where to Find It
In connection with the proposed mergers, a registration statement of Horsepower Holdings, Inc.
(Holdings), which includes proxy statements of Basic and Grey Wolf and other materials, has been
filed with the Securities and Exchange Commission (File No. 333-150895). INVESTORS AND SECURITY
HOLDERS ARE URGED TO CAREFULLY READ THE REGISTRATION STATEMENT AND THE PROXY
STATEMENT/PROSPECTUS AND THESE OTHER MATERIALS REGARDING THE PROPOSED TRANSACTION WHEN THEY
BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT BASIC, GREY WOLF, HOLDINGS
AND THE PROPOSED TRANSACTION. Investors and security holders may obtain a free copy of the
registration statement and the definitive proxy statement/prospectus when they are available and
other documents containing information about Basic and Grey Wolf, without charge, at the SECs web
site at www.sec.gov, Basics web site at www.basicenergyservices.com, and Grey Wolfs web site at
www.gwdrilling.com. Copies of the registration statement and the definitive proxy
statement/prospectus and the SEC filings that will be incorporated by reference therein may also be
obtained for free by directing a request to either Investor Relations, Basic Energy Services, Inc.,
(432) 620-5510 or to Investor Relations, Grey Wolf, Inc., (713) 435-6100.
Participants in the Solicitation
Basic and Grey Wolf and their respective directors, officers and certain other members of
management may be deemed to be participants in the solicitation of proxies from their respective
stockholders in respect of the mergers. Information about these persons can be found in Grey Wolfs
proxy statement relating to its 2008 annual meetings of stockholders as filed with the SEC on April
8, 2008. Information concerning beneficial ownership of Basic stock by its directors and certain
of its executive officers is included in its Form 10-K/A filed on April 29, 2008 and subsequent
statements of changes in beneficial ownership on file with the SEC. Additional information about
the interests of such persons in the solicitation of proxies in respect of the mergers will be
included in the registration statement and the joint proxy statement/prospectus to be filed with
the SEC in connection with the proposed transaction.
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