Basic Energy Services OKs $50M share-buyback plan

Basic Energy Services Inc., a provider of oil and gas-well-site services, said Tuesday its board authorized the repurchase of up to $50 million of its shares.

Chief Executive Kenneth V. Huseman said the move "reflects our confidence in the long-term value of Basic's market position and financial performance, which have been severely discounted due to current conditions in financial markets."

Repurchased shares will become treasury shares, which may be reissued later in connection with acquisitions or with long-term incentive plans, he said in a statement.

"We believe our current share price presents an attractive investment opportunity for the company, and we expect the stock-repurchase program can be effected without modifications or extensions to our existing credit facility," Huseman said.

Last month, the company said it had bought nearly all the assets of Azurite Services Co. for $60 million in cash.

The purchase included Azurite Leasing Co. and Freestone Disposal L.P. and was expected to add to Basic Energy's earnings in 2008. The acquisition was expected to bring $51 million in revenue in the first year after the purchase.

Shares of Basic Energy rose 47 cents, or 4 percent, to $13.47 in midday trading.