BMO Capital Markets Reiterates Market Perform Rating, $11 PT on Basic Energy Services

In a report published Monday, BMO Capital Markets reiterated its Market Perform rating and $11.00 price target on Basic Energy Services

. BMO Capital Markets noted, “Basic reported monthly operating data for the month of November. Business lines across the board experienced declines in activity and pricing. Service rig utilization was 62%, down from 72% in October, while drilling utilization was down a similar amount, falling to 76% from 85% in October. Fluid service truck hours were 182,400 versus 194,700 a month earlier. Management indicated that the lower-than-expected utilization and resultant pricing pressure will result in Q4 revenues being down 12% to 14% quarter over quarter, more than previous guidance of a 5% to 7% decline.” Basic Energy Services closed on Friday at $10.27.