Basic Energy Services, Inc. announced the implementation of changes to the organizational structure of the Company, reducing the number of operating regions from five to three. Company believes this internal consolidation will result in approximately $20 million in annual cost savings, in addition to the previously announced $17 million of expected annual cost synergies related to the acquisition of C&J Well Services (“C&J”) and $20 million cost savings previously disclosed in response to market volatility related to the COVID-19 pandemic. To further reduce costs, Basic announces the reorganization and consolidation of its current operating structure, which previously consisted of five regions: Permian Basin, Central, Rocky Mountains, California, and Agua Libre Midstream. The streamlined structure will result in three regions, which will operate on a hub-and-spoke model and will allow for the removal of a layer of General and Administrative costs by removing yard-level P&Ls, increasing operating leverage and flexibility through the business cycle. The three new regions are as follows: Central, consisting of operations in the Permian Basin, Gulf Coast, Louisiana, North Texas and Oklahoma; Western, consisting of operations in California and the Rocky Mountains; and Agua Libre, which is unaffected by this reorganization.