Forbes Energy Svcs (FES)

Description:

Forbes Energy Services Ltd is incorporated in Bermuda. The Company is an independent oilfield services contractor that provides a wide range of well site services to oil and natural gas drilling and producing companies to help develop and enhance the production of oil and natural gas. These services include fluid hauling, fluid disposal, well maintenance, completion services, workovers and recompletions, plugging and abandonment, and tubing testing. The Company's operations are concentrated in the major onshore oil and natural gas producing regions of Texas, with additional locations in Mississippi, in Pennsylvania and, prior to the disposition of its Mexican assets in January 2012, which is discussed below, in Mexico. The Company believes that its broad range of services, which extends from initial drilling, through production, to eventual abandonment, is fundamental to establishing and maintaining the flow of oil and natural gas throughout the life cycle of its customers' wells. The Company currently provides a wide range of services to a diverse group of companies. Over the year ended December 31, 2011, it provided services to over 940 companies. The Company currently conducts its operations through the following two business segments: Well Servicing and Fluid Logistics and Other. The well servicing segment comprised 39.9% of its consolidated revenues for the year ended December 31, 2011. At December 31, 2011, its well servicing segment utilized its modern fleet of 159 owned well servicing rigs, which included 149 workover rigs and 10 swabbing rigs, and related assets and equipment. These assets are used to provide (i) well maintenance, including remedial repairs and removal and replacement of downhole production equipment, (ii) well workovers, including significant downhole repairs, re-completions and re-perforations, (iii) completion and swabbing activities, and (iv) plugging and abandoning services. In addition, the Company has a fleet of nine tubing testing units that are used to conduct pressure testing of oil and natural gas production tubing. The fluid logistics and other segment comprised 60.1% of its consolidated revenues for the year ended December 31, 2011. The Company's fluid logistics and other segment utilized its fleet of owned or leased fluid transport trucks and related assets, including specialized vacuum, high-pressure pump and tank trucks, frac tanks, water wells, salt water disposal wells and facilities, and related equipment. These assets are used to provide, transport, store, and dispose of a variety of drilling and produced fluids used in, and generated by, oil and natural gas production. The Company'slargest competitors are Basic Energy Services, Inc., Superior Energy Services, Inc., Heckman Corporation, Key Energy Services, Inc., Nabors Industries Ltd., and Stallion Oilfield Services, Ltd. The Company is subject to extensive federal, state, and local environmental laws and regulations.