Basic Energy cuts 2020 planned capex by 60%

Basic Energy Services (BASX +7.7%) says it is cutting 2020 capital spending by 60% to $17M from previous plans to spend $43M and will suspending all new capital lease additions.

The company also expects to reduce annual run-rate costs by $20M by enacting cost controls across all business lines, including reducing staff and furloughs of all executive, office and administrative staff.

Basic believes it will accomplish these cost saving measures in addition to previously announced synergies from the recent acquisition of the C&J Well Services business.


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