BAS - Basic Energy Services Picks Areas To Focus On When The Tide Is Low
Midstream And Well Servicing Can Bring Back Cash Flow Stability
Basic Energy Services (BAS) provides completion and remedial services, water logistics, well servicing, and contract drilling for the upstream companies. Basic Energy’s negative free cash flow can become a concern if the energy market continues down the path. Although the company has limited near-term financial risks, it needs to maintain a steady FCF to meet its debt obligations in the medium-term. I do not expect the stock price to yield positive returns before 2020. Returns may improve in the long-term, but expect volatility