Nature of Operations

12 Months Ended

Dec. 31, 2013

Nature of Operations [Abstract]

Nature of Operations

1.Nature of Operations

Basic Energy Services, Inc. (“Basic” or the “Company”) provides a wide range of well site services to oil and natural gas drilling and producing companies, including completion and remedial services, fluid services and wellsite construction services, well servicing and contract drilling. These services are primarily provided by Basic’s fleet of equipment. Basic’s operations are concentrated in major United States onshore oil and natural gas producing regions located in Texas, New Mexico, Oklahoma, Kansas, Arkansas, Louisiana, Pennsylvania, West Virginia, Ohio, Wyoming, North Dakota, Colorado, Utah, Montana, and Kentucky.

Basic’s reportable business segments are Completion and Remedial Services, Fluid Services, Well Servicing, and Contract Drilling. These segments are based on management’s resource allocation and performance assessment in making decisions regarding the Company.

Revision of prior period financial statements and out-of-period adjustments

During the year ended December 31, 2013, we identified and corrected immaterial errors that originated in prior periods. We assessed the materiality of the errors in accordance with the SEC guidance on considering the effects of prior period misstatements based on an analysis of quantitative and qualitative factors. Based on this analysis, we determined that the errors were immaterial to each of the prior reporting periods affected. However, we have concluded that correcting the errors in our 2013 financial statements would materially understate results for the year ending December 31, 2013. Accordingly, we have reflected the correction of these prior period errors in the periods in which they originated and revised our consolidated balance sheet for the year ended December 31, 2012, our consolidated statement of operations and comprehensive income (loss), our consolidated statement of equity, and our consolidated statement of cash flows for the years ended December 31, 2012 and 2011.

These errors consisted mainly of individual deferred compensation plans and compensation expense related to share-based payments that should have been recorded in prior periods for retirement eligible employees. At December 31, 2010, retained deficit was reported as $27.5 million and was revised to $30.3 million. The effect of the immaterial corrections on the consolidated balance sheet as of December 31, 2012 are as follows (in thousands):

		As Reported		Correction		As Revised
Deferred tax assets	$	29,113	$	3,088	$	32,201
Total current assets		438,300		3,088		441,388
Total assets	$	1,595,918	$	3,088	$	1,599,006
Accrued expenses	$	77,716	$	3,360	$	81,076
Other long-term liabilities		13,667		1,565		15,232
Total liabilities		1,221,671		4,925		1,226,596
Additional paid-in capital		355,687		3,473		359,160
Retained earnings		34,513		(5,310)		29,203
Total stockholders' equity		374,247		(1,837)		372,410
Total liabilities and stockholders' equity	$	1,595,918	$	3,088	$	1,599,006

The effect of the corrections on the Company’s consolidated statements of operations and comprehensive income for the years ended December 31, 2012 and 2011 are as follows:

		As Reported		Correction		As Revised
December 31, 2012
Total revenues	$	1,374,884	$	—	$	1,374,884
Total expenses		1,274,343		1,932		1,276,275
Operating income		100,541		(1,932)		98,609
Income (loss) from continuing operations before income taxes		31,781		(1,932)		29,849
Net income (loss)	$	20,854	$	(1,268)	$	19,586
		As Reported		Correction		As Revised
December 31, 2011
Total revenues	$	1,243,255	$	—	$	1,243,255
Total expenses		1,063,164		2,221		1,065,385
Operating income		180,091		(2,221)		177,870
Income (loss) from continuing operations before income taxes		78,951		(2,221)		76,730
Net income (loss)		47,163		(1,327)		45,836