SAN ANTONIO, July 31, 2018
/PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today
reported financial and operating results for the quarter ended
June 30, 2018. Second quarter and recent notable items
include:
- Executed a three-year, new-build drilling contract for a
1,500-horsepower, AC pad-optimal rig at a premium to current spot
market dayrates for operations in West
Texas beginning in the first quarter of 2019.
- Revenues for our production services businesses increased 7%
from the prior quarter and generated a gross margin of 23%.
- Domestic drilling services utilization was 100% during the
quarter, with average margin per day of $9,550.
Consolidated Financial Results
Revenues for the second quarter of 2018 were $154.8 million, up 7% from revenues of
$144.5 million in the first quarter
of 2018 ("the prior quarter") and up 44% from revenues of
$107.1 million in the second quarter
of 2017 ("the year-earlier quarter"). The increase from the prior
quarter is primarily attributable to increased demand and pricing
in wireline and well servicing, as well as increased drilling rig
utilization in Colombia.
Net loss for the second quarter of 2018 was $18.2 million, or $0.23 per share, compared with net loss of
$11.1 million, or $0.14 per share, in the prior quarter and net
loss of $20.2 million, or
$0.26 per share, in the year-earlier
quarter. Adjusted net loss(1) for the second
quarter was $14.8 million, and
adjusted EPS(2) was a loss of $0.19 per share as compared to adjusted net loss
of $6.9 million, or an adjusted EPS
loss of $0.09 per share, in the prior
quarter.
Second quarter adjusted EBITDA(3) was $16.9 million, down from $23.4 million in the prior quarter and up from
$12.9 million in the year-earlier
quarter. The decrease from the prior quarter was primarily due to a
$5.4 million increase in phantom
stock expense during the latest quarter associated with the
increase in fair value of the awards, lower utilization in coiled
tubing services and higher mobilization and standby activity in
Colombia. The increase from the
year-earlier quarter was due to higher demand for all of our
service offerings as the market steadily improved with increasing
commodity prices throughout 2017 and 2018, which was partially
offset by the increased expense related to phantom stock unit
awards.
Operating Results
Production Services Business
Revenue from our production services business was $97.4 million in the second quarter, up 7% from
the prior quarter and up 42% from the year-earlier quarter. Gross
margin as a percentage of revenue from our production services
business was 23% in the second quarter, down slightly from 24% in
the prior quarter and flat with 23% in the year-earlier quarter.
The decrease from the prior quarter was primarily due to decreased
utilization of our coiled tubing services fleet, primarily small
diameter coil services, increased equipment rental costs and
additional expenses related to the closure of field offices
supporting the under-performing offshore market.
The increase in revenues from the prior quarter was driven by
increased demand for our wireline and well servicing operations,
each of which experienced revenue growth of 10% sequentially. As
compared to the year-earlier quarter, demand has improved for all
of our production services business segments, resulting in
increased revenues of 42%.
The number of wireline jobs completed in the second quarter
increased by 7% sequentially and increased by 4% as compared to the
year-earlier quarter, and continue to be weighted to more
completion-related jobs. Well servicing average revenue per hour
was $540 in the second quarter, up
from $518 in the prior quarter and up
from $514 in the year-earlier
quarter. Well servicing rig utilization was 49% in the second
quarter, up from 47% in both the prior and year-earlier quarters.
Coiled tubing revenue days totaled 350 in the second quarter, as
compared to 414 in the prior quarter and 400 in the year-earlier
quarter.
Drilling Services Business
Revenue from our drilling services business was $57.4 million in the second quarter, reflecting a
7% increase from the prior quarter and a 48% increase from the
year-earlier quarter.
Domestic drilling services rig utilization was 100% for both the
second quarter and the prior quarter, and up from 92% in the
year-earlier quarter. Domestic drilling average revenues per day
were $24,508 in the second quarter,
down from $24,949 in the prior
quarter and up from $22,657 in the
year-earlier quarter. Domestic drilling average margin per day was
$9,550 in the second quarter, down
from $10,436 in the prior quarter and
up from $7,505 in the year-earlier
quarter. Margin was negatively impacted in the second quarter by
higher repair and maintenance expenses, which are expected to
return to more typical levels in the third quarter. The increases
in revenue per day and margin per day from the year-earlier quarter
were driven by increasing dayrates.
International rig utilization was 85% for the second quarter, up
from 76% in the prior quarter and up from 36% in the year-earlier
quarter. International drilling average revenues per day were
$35,061, up from $32,020 in the prior quarter and up from
$31,702 in the year-earlier quarter,
primarily due to higher utilization in the second quarter, versus
both comparative periods. International drilling average margin per
day for the second quarter was $7,583, down from $8,455 in the prior quarter and down from
$8,923 in the year-earlier quarter,
as a result of higher-than-anticipated mobilization and standby
activity in the second quarter.
Currently, all 16 of our domestic drilling rigs are earning
revenues, 14 of which are under term contracts, and seven of our
eight rigs in Colombia are earning
revenue, resulting in current utilization of 96%. The domestic
new-build drilling rig is expected to begin operations in the first
quarter of 2019.
Comments from our President and
CEO
"Our second quarter results reflect solid top-line performance,"
said Wm. Stacy Locke, President and
Chief Executive Officer. "Despite continued strong demand for our
services, we experienced some higher-than-anticipated expenses in
all businesses during the quarter, which impacted our bottom
line.
"Our domestic drilling operations delivered another strong
quarter of results with utilization of 100% and a margin per day of
$9,550. Higher repair and maintenance
costs, largely attributable to the timing of annual inspections and
re-certifications of rig masts, substructures and mud pumps,
depressed margin per day relative to the first quarter. Our 16
domestic drilling rigs performed very well during the quarter
allowing us to renew several contracts at higher dayrates and for
longer term contract durations. In addition, we executed a
three-year term contract with an existing client for a new-build
drilling rig. This new-build will require an incremental investment
of approximately $10 million to
complete and will utilize stacked equipment previously ordered in
2014. We expect the rig to begin operations in the Permian in the
first quarter of 2019.
"Similarly, our seven operating rigs in Colombia performed well during the quarter;
however, two of the rigs experienced unanticipated events that
negatively impacted our margins. One rig had two long mobilizations
during the quarter that resulted in less than 30 days of full
dayrate revenues, and another rig was placed on standby for a
portion of June. The outlook for Colombia is bright and we expect margins to
gradually improve in future quarters.
"In production services, demand for our onshore services
increased sequentially and remains stable. Our strategic focus
continues to be on the key shale provinces in the U.S.; therefore,
in June, we exited the wireline and coiled tubing offshore markets
due to reduced activity, and began redeploying and divesting of
certain assets. We absorbed some additional costs associated with
this strategic decision in the second quarter.
"Both wireline and well services performed well in the quarter.
Demand continued to weaken for small diameter coil services;
however, demand for large diameter coil is robust. We took delivery
of a new 2 3/8" coiled tubing unit in July and this unit
immediately went to work. We have an additional large diameter
coiled tubing unit scheduled for delivery in the fourth quarter of
2018.
"Lateral lengths are increasing in all shale plays in the U.S.
driving increased demand for large diameter coil and greater
pumping capacities. Some operators are preferring to perform drill
outs with a well servicing rig rather than a coiled tubing unit.
These operators also require larger pump capacities and other
ancillary equipment. We are positioning Pioneer to be a leader in
this ever-changing marketplace.
"While we have experienced some near-term activity moderation in
wireline and coiled tubing, it is not related to softness in the
Permian due to takeaway capacity limitations. Several of our key
clients in other markets in the U.S. are temporarily delayed due to
events such as changing out frac providers, permitting issues, and
being caught up on their backlog of uncompleted wells, but we are
optimistic that activity will increase in the fall. The vast
majority of Pioneer's exposure to the Permian is in land contract
drilling with eight rigs which are fully contracted through 2018
and much of 2019. While we have limited exposure to the Permian on
the production services side of our business, we are currently
evaluating new, higher-margin opportunities that we see developing
there," Mr. Locke said.
Third Quarter 2018 Guidance
In the third quarter of 2018, revenue from our production
services business segments is estimated to be down 3% to 5% as
compared to the second quarter of 2018. Margin from our production
services business is estimated to be 23% to 25% of revenue.
Domestic drilling services rig utilization is expected to be 100%
and generate average margins per day of approximately $9,700 to $10,200.
International drilling services rig utilization is estimated to
average 85% to 87% and generate average margins per day of
approximately $8,000 to $9,000.
Liquidity
Working capital at June 30, 2018 was $116.9 million,
down from $130.6 million at
December 31, 2017. Cash and cash equivalents, including
restricted cash, were $63.5 million,
down from $75.6 million at year-end
2017. In the first half of 2018, we used $31.5 million of cash for the purchase of
property and equipment, and our cash provided by operations was
$17.1 million.
Capital Expenditures
Cash capital expenditures during the six months ended
June 30, 2018 were $31.5
million, including capitalized interest. We estimate total
cash capital expenditures for 2018 to be approximately $65 million to $70
million, which includes $23
million for two large-diameter coiled tubing units, one of
which was delivered in early July, three wireline units, two of
which were delivered in January, high-pressure pump packages for
completion operations, and the construction of the new-build
drilling rig expected to be completed in 2019.
Conference Call
Pioneer Energy Services' management team will hold a conference
call today at 11:00 a.m. Eastern Time
(10:00 a.m. Central Time) to discuss
these results. To participate, dial (412) 902-0003 approximately 10
minutes prior to the call and ask for the Pioneer Energy Services
conference call. A telephone replay will be available after the
call until August 7th. To access the replay, dial
(201) 612-7415 and enter the pass code 13681398.
The conference call will also be webcast on the Internet and
accessible from Pioneer Energy Services' web site at
www.pioneeres.com. To listen to the live call, visit our web site
at least 10 minutes early to register and download any necessary
audio software. For more information, please contact Donna Washburn at Dennard Lascar Investor
Relations at (713) 529-6600 or e-mail
dwashburn@dennardlascar.com.
About Pioneer
Pioneer Energy Services provides well servicing, wireline, and
coiled tubing services to producers in the U.S. Gulf Coast,
Mid-Continent and Rocky Mountain regions through its three
production services business segments. Pioneer also provides
contract land drilling services to oil and gas operators in
Texas, the Mid-Continent and
Appalachian regions and internationally in Colombia through its two drilling services
business segments.
Cautionary Statement Regarding Forward-Looking
Statements,
Non-GAAP Financial Measures and
Reconciliations
Statements we make in this news release that express a belief,
expectation or intention, as well as those that are not historical
fact, are forward-looking statements made in good faith that are
subject to risks, uncertainties and assumptions. Our actual
results, performance or achievements, or industry results, could
differ materially from those we express in the following discussion
as a result of a variety of factors, including general economic and
business conditions and industry trends, levels and volatility of
oil and gas prices, the continued demand for drilling services or
production services in the geographic areas where we operate,
decisions about exploration and development projects to be made by
oil and gas exploration and production companies, the highly
competitive nature of our business, technological advancements and
trends in our industry and improvements in our competitors'
equipment, the loss of one or more of our major clients or a
decrease in their demand for our services, future compliance with
covenants under debt agreements, including our senior secured term
loan, our senior secured revolving asset-based credit facility, and
our senior notes, operating hazards inherent in our operations, the
supply of marketable drilling rigs, well servicing rigs, coiled
tubing units and wireline units within the industry, the continued
availability of new components for drilling rigs, well servicing
rigs, coiled tubing units and wireline units, the continued
availability of qualified personnel, the success or failure of our
acquisition strategy, including our ability to finance
acquisitions, manage growth and effectively integrate acquisitions,
the political, economic, regulatory and other uncertainties
encountered by our operations, and changes in, or our failure or
inability to comply with, governmental regulations, including those
relating to the environment. We have discussed many of these
factors in more detail in our Annual Report on Form 10-K for the
year ended December 31, 2017,
including under the headings "Special Note Regarding
Forward-Looking Statements" in the Introductory Note to Part I and
"Risk Factors" in Item 1A. These factors are not necessarily
all the important factors that could affect us. Other unpredictable
or unknown factors could also have material adverse effects on
actual results of matters that are the subject of our
forward-looking statements. All forward-looking statements speak
only as of the date on which they are made and we undertake no
obligation to publicly update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise. We advise our shareholders that they should
(1) recognize that important factors not referred to above
could affect the accuracy of our forward-looking statements and
(2) use caution and common sense when considering our
forward-looking statements.
This news release contains non-GAAP financial measures as
defined by SEC Regulation G. A reconciliation of each such measure
to its most directly comparable U.S. Generally Accepted Accounting
Principles (GAAP) financial measure, together with an explanation
of why management believes that these non-GAAP financial measures
provide useful information to investors, is provided in the
following tables.
__________________________
|
|
|
(1)
|
Adjusted net loss
represents net loss as reported adjusted to exclude impairments and
the related tax benefit and valuation allowance adjustments on
deferred tax assets. We believe that adjusted net loss is a useful
measure to facilitate period-to-period comparisons of our core
operating performance and to evaluate our long-term financial
performance against that of our peers, although it is not a measure
of financial performance under GAAP. Adjusted net loss may not be
comparable to other similarly titled measures reported by other
companies. A reconciliation of net loss as reported to adjusted net
loss is included in the tables to this news release.
|
|
|
(2)
|
Adjusted (diluted)
EPS represents adjusted net loss divided by the weighted-average
number of shares outstanding during the period, including the
effect of dilutive securities, if any. We believe that adjusted
(diluted) EPS is a useful measure to facilitate period-to-period
comparisons of our core operating performance and to evaluate our
long-term financial performance against that of our peers, although
it is not a measure of financial performance under GAAP. Adjusted
(diluted) EPS may not be comparable to other similarly titled
measures reported by other companies. A reconciliation of diluted
EPS as reported to adjusted (diluted) EPS is included in the tables
to this news release.
|
|
|
(3)
|
Adjusted EBITDA
represents income (loss) before interest expense, income tax
(expense) benefit, depreciation and amortization, impairment, and
any loss on extinguishment of debt. Adjusted EBITDA is a non-GAAP
measure that our management uses to facilitate period-to-period
comparisons of our core operating performance and to evaluate our
long-term financial performance against that of our peers. We
believe that this measure is useful to investors and analysts in
allowing for greater transparency of our core operating performance
and makes it easier to compare our results with those of other
companies within our industry. Adjusted EBITDA should not be
considered (a) in isolation of, or as a substitute for, net
income (loss), (b) as an indication of cash flows from
operating activities or (c) as a measure of liquidity. In
addition, Adjusted EBITDA does not represent funds available for
discretionary use. Adjusted EBITDA may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of net loss as reported to adjusted EBITDA is
included in the tables to this news release.
|
Contacts:
|
Dan Petro, CFA,
Treasurer and
|
|
Director of Investor
Relations
|
|
Pioneer Energy
Services Corp.
|
|
(210)
828-7689
|
|
|
|
Lisa Elliott /
lelliott@dennardlascar.com
|
|
Anne Pearson /
apearson@dennardlascar.com
|
|
Dennard Lascar
Investor Relations / (713) 529-6600
|
- Financial Statements and
Operating Information Follow -
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Operations
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
154,782
|
|
|
$
|
107,130
|
|
|
$
|
144,478
|
|
|
$
|
299,260
|
|
|
$
|
202,887
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
114,197
|
|
|
79,059
|
|
|
102,766
|
|
|
216,963
|
|
|
151,787
|
|
Depreciation and
amortization
|
23,287
|
|
|
24,740
|
|
|
23,747
|
|
|
47,034
|
|
|
49,732
|
|
General and
administrative
|
24,829
|
|
|
16,112
|
|
|
19,194
|
|
|
44,023
|
|
|
33,856
|
|
Bad debt recovery,
net of expense
|
(370)
|
|
|
(226)
|
|
|
(52)
|
|
|
(422)
|
|
|
(589)
|
|
Impairment
|
2,368
|
|
|
795
|
|
|
—
|
|
|
2,368
|
|
|
795
|
|
Gain on dispositions
of property and equipment, net
|
(726)
|
|
|
(621)
|
|
|
(335)
|
|
|
(1,061)
|
|
|
(1,092)
|
|
Total costs and
expenses
|
163,585
|
|
|
119,859
|
|
|
145,320
|
|
|
308,905
|
|
|
234,489
|
|
Loss from
operations
|
(8,803)
|
|
|
(12,729)
|
|
|
(842)
|
|
|
(9,645)
|
|
|
(31,602)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest capitalized
|
(9,642)
|
|
|
(6,418)
|
|
|
(9,513)
|
|
|
(19,155)
|
|
|
(12,477)
|
|
Other income
(expense), net
|
44
|
|
|
73
|
|
|
504
|
|
|
548
|
|
|
(71)
|
|
Total other expense,
net
|
(9,598)
|
|
|
(6,345)
|
|
|
(9,009)
|
|
|
(18,607)
|
|
|
(12,548)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(18,401)
|
|
|
(19,074)
|
|
|
(9,851)
|
|
|
(28,252)
|
|
|
(44,150)
|
|
Income tax (expense)
benefit
|
249
|
|
|
(1,135)
|
|
|
(1,288)
|
|
|
(1,039)
|
|
|
(1,183)
|
|
Net loss
|
$
|
(18,152)
|
|
|
$
|
(20,209)
|
|
|
$
|
(11,139)
|
|
|
$
|
(29,291)
|
|
|
$
|
(45,333)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.23)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.59)
|
|
Diluted
|
$
|
(0.23)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.59)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
77,944
|
|
|
77,377
|
|
|
77,606
|
|
|
77,776
|
|
|
77,225
|
|
Diluted
|
77,944
|
|
|
77,377
|
|
|
77,606
|
|
|
77,776
|
|
|
77,225
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
June
30, 2018
|
|
December
31, 2017
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
61,517
|
|
|
$
|
73,640
|
|
Restricted
cash
|
2,000
|
|
|
2,008
|
|
Receivables, net of
allowance for doubtful accounts
|
126,826
|
|
|
113,005
|
|
Inventory
|
17,719
|
|
|
14,057
|
|
Assets held for
sale
|
6,433
|
|
|
6,620
|
|
Prepaid expenses and
other current assets
|
6,710
|
|
|
6,229
|
|
Total current
assets
|
221,205
|
|
|
215,559
|
|
|
|
|
|
Net property and
equipment
|
533,277
|
|
|
549,623
|
|
Other noncurrent
assets
|
2,562
|
|
|
1,687
|
|
Total
assets
|
$
|
757,044
|
|
|
$
|
766,869
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
38,014
|
|
|
$
|
29,538
|
|
Deferred
revenues
|
1,921
|
|
|
905
|
|
Accrued
expenses
|
64,348
|
|
|
54,471
|
|
Total current
liabilities
|
104,283
|
|
|
84,914
|
|
|
|
|
|
Long-term debt, less
unamortized discount and debt issuance costs
|
463,072
|
|
|
461,665
|
|
Deferred income
taxes
|
3,429
|
|
|
3,151
|
|
Other noncurrent
liabilities
|
3,569
|
|
|
7,043
|
|
Total
liabilities
|
574,353
|
|
|
556,773
|
|
Total shareholders'
equity
|
182,691
|
|
|
210,096
|
|
Total liabilities and
shareholders' equity
|
$
|
757,044
|
|
|
$
|
766,869
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
Six months
ended
|
|
June
30,
|
|
2018
|
|
2017
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(29,291)
|
|
|
$
|
(45,333)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
47,034
|
|
|
49,732
|
|
Allowance for
doubtful accounts, net of recoveries
|
(422)
|
|
|
(589)
|
|
Gain on dispositions
of property and equipment, net
|
(1,061)
|
|
|
(1,092)
|
|
Stock-based
compensation expense
|
2,356
|
|
|
2,335
|
|
Amortization of debt
issuance costs and discount
|
1,422
|
|
|
930
|
|
Impairment
|
2,368
|
|
|
795
|
|
Deferred income
taxes
|
273
|
|
|
768
|
|
Change in other
noncurrent assets
|
(199)
|
|
|
299
|
|
Change in other
noncurrent liabilities
|
(3,480)
|
|
|
(1,563)
|
|
Changes in current
assets and liabilities
|
(1,875)
|
|
|
(22,579)
|
|
Net cash provided by
(used in) operating activities
|
17,125
|
|
|
(16,297)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(31,485)
|
|
|
(40,032)
|
|
Proceeds from sale of
property and equipment
|
2,225
|
|
|
7,748
|
|
Proceeds from
insurance recoveries
|
541
|
|
|
3,119
|
|
Net cash used in
investing activities
|
(28,719)
|
|
|
(29,165)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Debt
repayments
|
—
|
|
|
(12,305)
|
|
Proceeds from
issuance of debt
|
—
|
|
|
55,000
|
|
Proceeds from
exercise of options
|
12
|
|
|
—
|
|
Purchase of treasury
stock
|
(549)
|
|
|
(533)
|
|
Net cash provided by
(used in) financing activities
|
(537)
|
|
|
42,162
|
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(12,131)
|
|
|
(3,300)
|
|
Beginning cash, cash
equivalents and restricted cash
|
75,648
|
|
|
10,194
|
|
Ending cash, cash
equivalents and restricted cash
|
$
|
63,517
|
|
|
$
|
6,894
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Operating Results
by Segment
|
(in
thousands)
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
35,634
|
|
|
$
|
30,473
|
|
|
$
|
35,926
|
|
|
$
|
71,560
|
|
|
$
|
58,818
|
|
International
drilling
|
21,773
|
|
|
8,306
|
|
|
17,611
|
|
|
39,384
|
|
|
18,977
|
|
Drilling
services
|
57,407
|
|
|
38,779
|
|
|
53,537
|
|
|
110,944
|
|
|
77,795
|
|
Well
servicing
|
23,162
|
|
|
21,017
|
|
|
21,114
|
|
|
44,276
|
|
|
39,751
|
|
Wireline
services
|
62,137
|
|
|
39,832
|
|
|
56,601
|
|
|
118,738
|
|
|
72,378
|
|
Coiled tubing
services
|
12,076
|
|
|
7,502
|
|
|
13,226
|
|
|
25,302
|
|
|
12,963
|
|
Production
services
|
97,375
|
|
|
68,351
|
|
|
90,941
|
|
|
188,316
|
|
|
125,092
|
|
Consolidated
revenues
|
$
|
154,782
|
|
|
$
|
107,130
|
|
|
$
|
144,478
|
|
|
$
|
299,260
|
|
|
$
|
202,887
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
21,749
|
|
|
$
|
20,380
|
|
|
$
|
20,898
|
|
|
$
|
42,647
|
|
|
$
|
39,889
|
|
International
drilling
|
17,064
|
|
|
5,968
|
|
|
12,961
|
|
|
30,025
|
|
|
13,566
|
|
Drilling
services
|
38,813
|
|
|
26,348
|
|
|
33,859
|
|
|
72,672
|
|
|
53,455
|
|
Well
servicing
|
16,680
|
|
|
15,091
|
|
|
15,570
|
|
|
32,250
|
|
|
29,128
|
|
Wireline
services
|
46,716
|
|
|
30,032
|
|
|
42,486
|
|
|
89,202
|
|
|
55,978
|
|
Coiled tubing
services
|
11,988
|
|
|
7,588
|
|
|
10,851
|
|
|
22,839
|
|
|
13,226
|
|
Production
services
|
75,384
|
|
|
52,711
|
|
|
68,907
|
|
|
144,291
|
|
|
98,332
|
|
Consolidated
operating costs
|
$
|
114,197
|
|
|
$
|
79,059
|
|
|
$
|
102,766
|
|
|
$
|
216,963
|
|
|
$
|
151,787
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
13,885
|
|
|
$
|
10,093
|
|
|
$
|
15,028
|
|
|
$
|
28,913
|
|
|
$
|
18,929
|
|
International
drilling
|
4,709
|
|
|
2,338
|
|
|
4,650
|
|
|
9,359
|
|
|
5,411
|
|
Drilling
services
|
18,594
|
|
|
12,431
|
|
|
19,678
|
|
|
38,272
|
|
|
24,340
|
|
Well
servicing
|
6,482
|
|
|
5,926
|
|
|
5,544
|
|
|
12,026
|
|
|
10,623
|
|
Wireline
services
|
15,421
|
|
|
9,800
|
|
|
14,115
|
|
|
29,536
|
|
|
16,400
|
|
Coiled tubing
services
|
88
|
|
|
(86)
|
|
|
2,375
|
|
|
2,463
|
|
|
(263)
|
|
Production
services
|
21,991
|
|
|
15,640
|
|
|
22,034
|
|
|
44,025
|
|
|
26,760
|
|
Consolidated gross
margin
|
$
|
40,585
|
|
|
$
|
28,071
|
|
|
$
|
41,712
|
|
|
$
|
82,297
|
|
|
$
|
51,100
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(18,152)
|
|
|
$
|
(20,209)
|
|
|
$
|
(11,139)
|
|
|
$
|
(29,291)
|
|
|
$
|
(45,333)
|
|
Adjusted EBITDA
(1)
|
$
|
16,896
|
|
|
$
|
12,879
|
|
|
$
|
23,409
|
|
|
$
|
40,305
|
|
|
$
|
18,854
|
|
|
(1)
Adjusted EBITDA represents income (loss) before interest expense,
income tax (expense) benefit, depreciation and amortization,
impairment, and any loss on extinguishment of debt. Adjusted EBITDA
is a non-GAAP measure that our management uses to facilitate
period-to-period comparisons of our core operating performance and
to evaluate our long-term financial performance against that of our
peers. We believe that this measure is useful to investors and
analysts in allowing for greater transparency of our core operating
performance and makes it easier to compare our results with those
of other companies within our industry. Adjusted EBITDA should not
be considered (a) in isolation of, or as a substitute for, net
income (loss), (b) as an indication of cash flows from
operating activities or (c) as a measure of liquidity. In
addition, Adjusted EBITDA does not represent funds available for
discretionary use. Adjusted EBITDA may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of net loss as reported to adjusted EBITDA is
included in the table on page 13.
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Operating
Statistics
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Domestic
drilling:
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
16
|
|
|
16
|
|
|
16
|
|
|
16
|
|
|
16
|
|
Utilization
rate
|
100
|
%
|
|
92
|
%
|
|
100
|
%
|
|
100
|
%
|
|
89
|
%
|
Revenue
days
|
1,454
|
|
|
1,345
|
|
|
1,440
|
|
|
2,894
|
|
|
2,580
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
24,508
|
|
|
$
|
22,657
|
|
|
$
|
24,949
|
|
|
$
|
24,727
|
|
|
$
|
22,798
|
|
Average operating
costs per day
|
14,958
|
|
|
15,152
|
|
|
14,513
|
|
|
14,736
|
|
|
15,461
|
|
Average margin per
day
|
$
|
9,550
|
|
|
$
|
7,505
|
|
|
$
|
10,436
|
|
|
$
|
9,991
|
|
|
$
|
7,337
|
|
|
|
|
|
|
|
|
|
|
|
International
drilling:
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
Utilization
rate
|
85
|
%
|
|
36
|
%
|
|
76
|
%
|
|
81
|
%
|
|
40
|
%
|
Revenue
days
|
621
|
|
|
262
|
|
|
550
|
|
|
1,171
|
|
|
582
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
35,061
|
|
|
$
|
31,702
|
|
|
$
|
32,020
|
|
|
$
|
33,633
|
|
|
$
|
32,607
|
|
Average operating
costs per day
|
27,478
|
|
|
22,779
|
|
|
23,565
|
|
|
25,640
|
|
|
23,309
|
|
Average margin per
day
|
$
|
7,583
|
|
|
$
|
8,923
|
|
|
$
|
8,455
|
|
|
$
|
7,993
|
|
|
$
|
9,298
|
|
|
|
|
|
|
|
|
|
|
|
Drilling services
business:
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
24
|
|
|
24
|
|
|
24
|
|
|
24
|
|
|
24
|
|
Utilization
rate
|
95
|
%
|
|
74
|
%
|
|
92
|
%
|
|
94
|
%
|
|
73
|
%
|
Revenue
days
|
2,075
|
|
|
1,607
|
|
|
1,990
|
|
|
4,065
|
|
|
3,162
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
27,666
|
|
|
$
|
24,131
|
|
|
$
|
26,903
|
|
|
$
|
27,292
|
|
|
$
|
24,603
|
|
Average operating
costs per day
|
18,705
|
|
|
16,396
|
|
|
17,015
|
|
|
17,877
|
|
|
16,905
|
|
Average margin per
day
|
$
|
8,961
|
|
|
$
|
7,735
|
|
|
$
|
9,888
|
|
|
$
|
9,415
|
|
|
$
|
7,698
|
|
|
|
|
|
|
|
|
|
|
|
Well
servicing:
|
|
|
|
|
|
|
|
|
|
Average number of
rigs
|
125
|
|
|
125
|
|
|
125
|
|
|
125
|
|
|
125
|
|
Utilization
rate
|
49
|
%
|
|
47
|
%
|
|
47
|
%
|
|
48
|
%
|
|
45
|
%
|
Rig hours
|
42,871
|
|
|
40,880
|
|
|
40,774
|
|
|
83,645
|
|
|
78,589
|
|
Average revenue per
hour
|
$
|
540
|
|
|
$
|
514
|
|
|
$
|
518
|
|
|
$
|
529
|
|
|
$
|
506
|
|
|
|
|
|
|
|
|
|
|
|
Wireline
services:
|
|
|
|
|
|
|
|
|
|
Average number of
units
|
108
|
|
|
114
|
|
|
110
|
|
|
108
|
|
|
114
|
|
Number of
jobs
|
3,022
|
|
|
2,908
|
|
|
2,830
|
|
|
5,852
|
|
|
5,762
|
|
Average revenue per
job
|
$
|
20,562
|
|
|
$
|
13,697
|
|
|
$
|
20,000
|
|
|
$
|
20,290
|
|
|
$
|
12,561
|
|
|
|
|
|
|
|
|
|
|
|
Coiled tubing
services:
|
|
|
|
|
|
|
|
|
|
Average number of
units
|
14
|
|
|
17
|
|
|
14
|
|
|
14
|
|
|
17
|
|
Revenue
days
|
350
|
|
|
400
|
|
|
414
|
|
|
764
|
|
|
738
|
|
Average revenue per
day
|
$
|
34,503
|
|
|
$
|
18,755
|
|
|
$
|
31,947
|
|
|
$
|
33,118
|
|
|
$
|
17,565
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
and Consolidated
Gross Margin
|
(in
thousands)
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(18,152)
|
|
|
$
|
(20,209)
|
|
|
$
|
(11,139)
|
|
|
$
|
(29,291)
|
|
|
$
|
(45,333)
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
23,287
|
|
|
24,740
|
|
|
23,747
|
|
|
47,034
|
|
|
49,732
|
|
Impairment
|
2,368
|
|
|
795
|
|
|
—
|
|
|
2,368
|
|
|
795
|
|
Interest
expense
|
9,642
|
|
|
6,418
|
|
|
9,513
|
|
|
19,155
|
|
|
12,477
|
|
Income tax expense
(benefit)
|
(249)
|
|
|
1,135
|
|
|
1,288
|
|
|
1,039
|
|
|
1,183
|
|
Adjusted
EBITDA(1)
|
16,896
|
|
|
12,879
|
|
|
23,409
|
|
|
40,305
|
|
|
18,854
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
24,829
|
|
|
16,112
|
|
|
19,194
|
|
|
44,023
|
|
|
33,856
|
|
Bad debt recovery,
net of expense
|
(370)
|
|
|
(226)
|
|
|
(52)
|
|
|
(422)
|
|
|
(589)
|
|
Gain on dispositions
of property and equipment, net
|
(726)
|
|
|
(621)
|
|
|
(335)
|
|
|
(1,061)
|
|
|
(1,092)
|
|
Other expense
(income)
|
(44)
|
|
|
(73)
|
|
|
(504)
|
|
|
(548)
|
|
|
71
|
|
Consolidated gross
margin
|
$
|
40,585
|
|
|
$
|
28,071
|
|
|
$
|
41,712
|
|
|
$
|
82,297
|
|
|
$
|
51,100
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Reconciliation of
Net Income (Loss) as Reported to Adjusted Net Income
(Loss)
|
and Diluted EPS as
Reported to Adjusted (Diluted) EPS
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
Three months
ended
|
|
June
30,
|
|
March
31,
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(18,152)
|
|
|
$
|
(20,209)
|
|
|
$
|
(11,139)
|
|
Impairment
|
2,368
|
|
|
795
|
|
|
—
|
|
Tax benefit related
to adjustments
|
(556)
|
|
|
(295)
|
|
|
—
|
|
Valuation allowance
adjustments on deferred tax assets
|
1,501
|
|
|
3,492
|
|
|
4,190
|
|
Adjusted net
loss(2)
|
$
|
(14,839)
|
|
|
$
|
(16,217)
|
|
|
$
|
(6,949)
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding, as reported
|
77,944
|
|
|
77,377
|
|
|
77,606
|
|
Effect of dilutive
securities
|
—
|
|
|
—
|
|
|
—
|
|
Diluted weighted
average number of shares outstanding, as adjusted
|
77,944
|
|
|
77,377
|
|
|
77,606
|
|
|
|
|
|
|
|
Adjusted (diluted)
EPS(3)
|
$
|
(0.19)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.09)
|
|
|
|
|
|
|
|
Diluted EPS as
reported
|
$
|
(0.23)
|
|
|
$
|
(0.26)
|
|
|
$
|
(0.14)
|
|
|
(2)
Adjusted net loss represents net loss as reported adjusted to
exclude impairments and the related tax benefit and valuation
allowance adjustments on deferred tax assets. We believe that
adjusted net loss is a useful measure to facilitate
period-to-period comparisons of our core operating performance and
to evaluate our long-term financial performance against that of our
peers, although it is not a measure of financial performance under
GAAP. Adjusted net loss may not be comparable to other similarly
titled measures reported by other companies. A reconciliation of
net loss as reported to adjusted net loss is included in the table
above.
|
|
(3)
Adjusted (diluted) EPS represents adjusted net loss divided by the
weighted-average number of shares outstanding during the period,
including the effect of dilutive securities, if any. We believe
that adjusted (diluted) EPS is a useful measure to facilitate
period-to-period comparisons of our core operating performance and
to evaluate our long-term financial performance against that of our
peers, although it is not a measure of financial performance under
GAAP. Adjusted (diluted) EPS may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of diluted EPS as reported to adjusted (diluted) EPS
is included in the table above.
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Equipment
Information
|
As of
July 31, 2018
|
|
|
Multi-well,
Pad-capable
|
Drilling Services
Business Segments:
|
AC
rigs
|
|
SCR
rigs
|
|
Total
|
Domestic
drilling
|
16
|
|
|
—
|
|
|
16
|
|
International
drilling
|
—
|
|
|
8
|
|
|
8
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
Production
Services Business Segments:
|
550
HP
|
|
600
HP
|
|
Total
|
Well servicing rigs,
by horsepower (HP) rating
|
113
|
|
|
12
|
|
|
125
|
|
|
|
|
|
|
|
|
Onshore
|
|
Offshore
|
|
Total
|
Wireline services
units
|
104
|
|
|
—
|
|
|
104
|
|
Coiled tubing
services units
|
9
|
|
|
2
|
|
|
11
|
|
View original
content:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-second-quarter-2018-results-300688842.html
SOURCE Pioneer Energy Services