Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : ENERGY EXPLORATION & PRODUCTION -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (76)	5/8/2008 4:52:52 PM
From: Dennis Roth	Respond to of 111

Basic Energy Services, Inc. (BAS): In-line quarter, outlook is improving - Not Rated - Goldman Sachs - May 7, 2008 United States What's changed Basic reported 1Q08 EPS of $0.47, versus our $0.48 estimate and consensus of $0.46. We raised our 2008-2010E EPS to $2.05/$2.24/$2.18 from $1.92/$1.99/$1.94 due to higher activity and slightly better margin assumptions. We are Not Rated on Basic's shares. Implications Basic reported an in-line quarter. However, the outlook is improving due to higher commodity prices. Management is optimistic and expects to be able to raise prices in 2H008 an objective that has not been possible over that past couple of quarters. While we have been skeptical of price increases in well servicing due to increasing capacity, we now think that margins could increase later in the year given our forecast for higher commodity prices. We are also more optimistic on Basic's Fluid Transportation and Drilling & Completion segments which will also benefit from higher activity in 2H08 and 2009.