1109189--3/7/2008--BASIC_ENERGY_SERVICES

related topics

{acquisition, growth, future}

{debt, indebtedness, cash}

{customer, product, revenue}

{stock, price, share}

{stock, price, operating}

{provision, law, control}

{system, service, information}

{cost, operation, labor}

{personnel, key, retain}

{interest, director, officer}

{cost, regulation, environmental}

{loss, insurance, financial}

{competitive, industry, competition}

We may not be able to grow successfully through future acquisitions or successfully manage future growth, and we may not be able to effectively integrate the businesses we do acquire. We may require additional capital in the future. We cannot assure you that we will be able to generate sufficient cash internally or obtain alternative sources of capital on favorable terms, if at all. If we are unable to fund capital expenditures our business may be adversely affected. Competition within the well services industry may adversely affect our ability to market our services. We depend on several significant customers, and a loss of one or more significant customers could adversely affect our results of operations. Our industry has experienced a high rate of employee turnover. Any difficulty we experience replacing or adding personnel could adversely affect our business. We are dependent on particular suppliers for our newbuild rig program and are vulnerable to delayed deliveries and future price increases. Our success depends on key members of our management, the loss of any of whom could disrupt our business operations. Our operations are subject to inherent risks, some of which are beyond our control. These risks may be self-insured, or may not be fully covered under our insurance policies. We are subject to federal, state and local regulation regarding issues of health, safety and protection of the environment. Under these regulations, we may become liable for penalties, damages or costs of remediation. Any changes in laws and government regulations could increase our costs of doing business. Our indebtedness could restrict our operations and make us more vulnerable to adverse economic conditions. Our revolving credit facility and the indenture governing our Senior Notes impose restrictions on us that may affect our ability to successfully operate our business. One of our directors may have a conflict of interest because he is also currently an affiliate, director or officer of a private equity firm that makes investments in the energy sector. The resolution of this conflict of interest may not be in our or our stockholders best interests. Risks Relating to Our Relationship with DLJ Merchant Banking Affiliates of DLJ Merchant Banking will have a substantial influence on the outcome of stockholder voting and may exercise this voting power in a manner that may not be in the best interest of our other stockholders. Risks Relating to Ownership of Our Common Stock Our certificate of incorporation and bylaws, as well as Delaware law, contain provisions that could discourage acquisition bids or merger proposals, which may adversely affect the market price of our common stock. Because we have no plans to pay dividends on our common stock, investors must look solely to stock appreciation for a return on their investment in us.

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1109189--3/7/2008--BASIC_ENERGY_SERVICES_INC