SAN ANTONIO, Oct. 30, 2018
/PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today
reported financial and operating results for the quarter ended
September 30, 2018. Third quarter and recent notable items
include:
- Domestic drilling fleet was fully utilized during the third
quarter, and generated an average margin per day of $10,237, up 7% from the prior quarter.
- In Colombia, we expect to
execute a contract with a new, multi-national client to begin
operations later in the fourth quarter.
- Steady improvement in well servicing activity as the outlook
for completion-related services in our operating areas continues to
strengthen.
Consolidated Financial Results
Revenues for the third quarter of 2018 were $149.3 million, down 4% from revenues of
$154.8 million in the second quarter
of 2018 ("the prior quarter") and up 27% from revenues of
$117.3 million in the third quarter
of 2017 ("the year-earlier quarter"). The decrease from the prior
quarter is primarily attributable to weaker activity levels in
wireline, which was partially offset by increased revenues in all
other segments.
Net loss for the third quarter of 2018 was $5.2 million, or $0.07 per share, compared with net loss of
$18.2 million, or $0.23 per share, in the prior quarter and net
loss of $17.2 million, or
$0.22 per share, in the year-earlier
quarter. Adjusted net loss(1) for the third quarter
was $5.6 million, and adjusted
EPS(2) was a loss of $0.07
per share as compared to adjusted net loss of $14.8 million, and an adjusted EPS loss of
$0.19 per share in the prior quarter,
and adjusted net loss of $11.3
million, and an adjusted EPS loss of $0.15 per share in the year-earlier quarter.
Third quarter adjusted EBITDA(3) was $28.6 million, up from $16.9 million in the prior quarter and up from
$14.0 million in the year-earlier
quarter. The increase from the prior quarter was primarily due to a
$9.7 million decrease in phantom
stock compensation expense associated with the decrease in the fair
value of the awards. Phantom stock compensation benefit during the
third quarter was $3.7 million, while
expense during the prior quarter was $6.1
million. The increase in adjusted EBITDA from the prior
quarter was also due to improved margin per day in domestic
drilling, and improved gross margin in both coiled tubing and well
servicing. The increase from the year-earlier quarter was due to
higher demand and pricing for all of our service offerings.
Operating Results
Production Services Business
Revenue from our production services business was $89.6 million in the third quarter, down 8% from
the prior quarter and up 20% from the year-earlier quarter. Gross
margin as a percentage of revenue from our production services
business was 24% in the third quarter, up from 23% in the prior
quarter and up from 22% in the year-earlier quarter. Despite
the sequential decrease in revenue, which was attributable to
softer wireline services activity and exacerbated by weather
conditions in Texas, gross margin
improved due to increased utilization in our coiled tubing segment
and slightly improved utilization and pricing in our well servicing
segment. During the third quarter, demand for our large-diameter
coiled tubing services increased. Our well servicing segment also
saw modest increases in completion-related services.
The decrease in production services revenues from the prior
quarter was attributable to certain wireline customers that delayed
completion activities in various regions in which we operate as
well as a reduction in activity from weather-related events in the
Gulf Coast region. This decline in wireline revenues was partially
offset by increased demand for our coiled tubing and well servicing
operations, both of which also experienced revenue growth
sequentially. As compared to the year-earlier quarter, revenue
rates have improved for all of our production services business
segments, resulting in revenue growth of 20%.
Well servicing average revenue per hour was $552 in the third quarter, up from $540 in the prior quarter and up from
$529 in the year-earlier quarter.
Well servicing rig utilization was 51% in the third quarter, up
from 49% in the prior quarter, and up from 43% in the year-earlier
quarter. Coiled tubing revenue days totaled 362 in the third
quarter, as compared to 350 in the prior quarter and 368 in the
year-earlier quarter. The number of wireline jobs completed in the
third quarter decreased 11% sequentially and decreased 3% as
compared to the year-earlier quarter.
Drilling Services Business
Revenue from our drilling services business was $59.7 million in the third quarter, reflecting a
4% increase from the prior quarter and a 40% increase from the
year-earlier quarter.
Our domestic drilling fleet was fully utilized during the
current, prior and year-earlier quarters. Domestic drilling average
revenues per day were $25,076 in the
third quarter, up from $24,508 in the
prior quarter and up from $23,873 in
the year-earlier quarter. Domestic drilling average margin per day
was $10,237 in the third quarter, up
from $9,550 in the prior quarter and
up from $9,084 in the year-earlier
quarter. Revenue per day increased as compared to the prior and
year-earlier quarters primarily due to certain contracts that
re-priced at higher dayrates. Margin per day increased primarily
from improvement in supplies, repair and maintenance costs that
returned to normalized levels, as well as improvement in average
dayrates from several rigs which repriced higher between
$2,000 per day and $5,000 per day, offset by two rigs which
re-priced lower by approximately $5,000 per day in August and September.
International drilling rig utilization was 76% for the third
quarter, down from 85% in the prior quarter and up from 38% in the
year-earlier quarter. International drilling average revenues per
day were $41,158, up from
$35,061 in the prior quarter and up
from $26,155 in the year-earlier
quarter, while average margin per day for the third quarter was
$7,327, down from $7,583 in the prior quarter and up from
$2,773 in the year-earlier quarter.
Utilization and margin per day in the third quarter were down
sequentially as one rig was released in early September as a client
made adjustments to its drilling program, and another rig incurred
non-revenue days as it changed operators in August. The increase in
revenue per day was primarily due to the recognition of
demobilization revenues during the third quarter. Utilization is
based on daywork days and mobilization days between wells, but does
not include initial mobilization days on new contracts or
demobilization days when contracts end, which impacted our
utilization for the third quarter.
Currently, all 16 of our domestic drilling rigs are earning
revenues, 14 of which are under term contracts, and five of our
eight rigs in Colombia are earning
revenue under daywork contracts, and one is earning revenue during
demobilization. We expect to execute a contract for the one rig in
Colombia that was idle for most of
September, and it is expected to begin mobilizing in mid-November
and begin drilling in early- to mid-December. A second rig was
released in late October and is currently demobilizing; however, we
are finalizing a new contract, and the rig is also expected to
begin mobilizing in mid-November with an anticipated start date in
early- to mid-December. In our domestic drilling operations, we
continue to expect our contracted new-build drilling rig to be
deployed to West Texas and begin
operations in the first quarter of 2019.
Comments from our President and
CEO
"Our third quarter results were driven by steady improvement in
our domestic drilling operations, which are benefiting from strong
demand and upward trending dayrates," said Wm. Stacy Locke, President and Chief Executive
Officer. "Our fleet of top performing drilling rigs is securing new
contracts at higher rates and staying fully utilized. The last
remaining legacy new-build contract will reprice downward
approximately $5,000 in the fourth
quarter, but will be offset by three rigs repricing at higher
dayrates between $2,000 per day and
$5,000 per day. Our new-build rig is
expected to mobilize to the Permian in the first quarter of 2019 to
begin a three year term contract with an existing client. Similar
to our most recent new-builds, this rig can walk 150 feet, pass
over wellheads 21 feet high, contains two 2,000 horsepower mud
pumps, a 7,500 psi mud system, a 500-ton high torque topdrive and
can rack approximately 25,000 feet of five inch drill pipe. We
believe it will be one of the highest margin and top performing
rigs in the U.S. The outlook for domestic drilling operations
remains very bright.
"In Colombia, we had one rig idle for the month of September but
we expect to execute a contract with a multi-national client to
begin mobilizing the rig in mid-November and to commence drilling
operations in early- to mid-December. This new opportunity reflects
our efforts in expanding our client base in Colombia and our growing reputation as a
provider of excellent service and safety. In late October, we
experienced another round of dayrate adjustments where several rigs
re-priced upward between $1,000 per
day and $3,000 per day. We are seeing
improvement in rig utilization and dayrates in Colombia across the industry, and we remain
optimistic that our international drilling operations will
experience stronger pricing and demand trends in 2019.
"In our production services business, our high-spec well
servicing rig fleet activity is gradually improving with modest
increases in 24-hour work which includes drill-out completion work.
We will be slowly adding the ancillary equipment necessary to
provide operators with a complete drill-out solutions package and,
as we add, we expect margins will improve. We see drill-out
opportunity in a number of geographic areas. Similarly, coiled
tubing activity and margins are improving as we adjust our fleet
mix to more large-diameter coiled tubing units. Our new 2-3/8" unit
delivered in July performed well during the quarter and, in
December, we expect to deploy an additional new 2-3/8" coiled
tubing unit that we anticipate will immediately begin contributing.
Once this unit is delivered, five of our nine actively marketed
units will be large-diameter pipe serving two good markets.
"Although we anticipate the normal seasonal slowdown in the
fourth quarter and some impact from operators' exhausted capital
budgets, we expect overall activity to remain healthy and improve
as we enter into 2019."
Fourth Quarter 2018 Guidance
In the fourth quarter of 2018, revenue from our production
services business segments is estimated to be flat to down 4% as
compared to the third quarter of 2018. Margin from our production
services business is estimated to be 20% to 23% 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 67% to 72%, which is impacted by initial mobilization and
demobilization days, and generate average margins per day of
approximately $8,000 to $9,000. We expect to have seven rigs operating on
daywork rates in Colombia by the
end of the fourth quarter.
We expect general and administrative expense to be $19 million to $20
million in the fourth quarter of 2018, which as it relates
to phantom stock compensation expense, is based on the closing
price of our common stock at September 30,
2018, which was $2.95.
Liquidity
Working capital at September 30, 2018 was $120.1
million, down from $130.6 million at
December 31, 2017. Cash and cash equivalents, including
restricted cash, were $53.5 million,
down from $75.6 million at year-end
2017. During the nine months ended September 30, 2018, we used
$48.8 million of cash for the
purchase of property and equipment, and our cash provided by
operations was $21.5 million.
Capital Expenditures
Cash capital expenditures during the nine months ended
September 30, 2018 were $48.8
million, including capitalized interest. We estimate total
cash capital expenditures for 2018 to be approximately $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 November 6th. To access the replay, dial
(201) 612-7415 and enter the pass code 13683786.
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 /
pes@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
|
|
Nine months
ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
149,332
|
|
|
$
|
117,281
|
|
|
$
|
154,782
|
|
|
$
|
448,592
|
|
|
$
|
320,168
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
108,961
|
|
|
86,669
|
|
|
114,197
|
|
|
325,924
|
|
|
238,456
|
|
Depreciation and
amortization
|
23,501
|
|
|
24,623
|
|
|
23,287
|
|
|
70,535
|
|
|
74,355
|
|
General and
administrative
|
14,043
|
|
|
17,549
|
|
|
24,829
|
|
|
58,066
|
|
|
51,405
|
|
Bad debt expense
(recovery), net
|
111
|
|
|
491
|
|
|
(370)
|
|
|
(311)
|
|
|
(98)
|
|
Impairment
|
239
|
|
|
—
|
|
|
2,368
|
|
|
2,607
|
|
|
795
|
|
Gain on dispositions
of property and
equipment, net
|
(1,861)
|
|
|
(1,159)
|
|
|
(726)
|
|
|
(2,922)
|
|
|
(2,251)
|
|
Total costs and
expenses
|
144,994
|
|
|
128,173
|
|
|
163,585
|
|
|
453,899
|
|
|
362,662
|
|
Income (loss) from
operations
|
4,338
|
|
|
(10,892)
|
|
|
(8,803)
|
|
|
(5,307)
|
|
|
(42,494)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest
capitalized
|
(9,811)
|
|
|
(6,613)
|
|
|
(9,642)
|
|
|
(28,966)
|
|
|
(19,090)
|
|
Other income,
net
|
498
|
|
|
295
|
|
|
44
|
|
|
1,046
|
|
|
224
|
|
Total other expense,
net
|
(9,313)
|
|
|
(6,318)
|
|
|
(9,598)
|
|
|
(27,920)
|
|
|
(18,866)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(4,975)
|
|
|
(17,210)
|
|
|
(18,401)
|
|
|
(33,227)
|
|
|
(61,360)
|
|
Income tax (expense)
benefit
|
(258)
|
|
|
(17)
|
|
|
249
|
|
|
(1,297)
|
|
|
(1,200)
|
|
Net loss
|
$
|
(5,233)
|
|
|
$
|
(17,227)
|
|
|
$
|
(18,152)
|
|
|
$
|
(34,524)
|
|
|
$
|
(62,560)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.07)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.81)
|
|
Diluted
|
$
|
(0.07)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.81)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
78,136
|
|
|
77,552
|
|
|
77,944
|
|
|
77,897
|
|
|
77,335
|
|
Diluted
|
78,136
|
|
|
77,552
|
|
|
77,944
|
|
|
77,897
|
|
|
77,335
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
September 30,
2018
|
|
December 31,
2017
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
51,468
|
|
|
$
|
73,640
|
|
Restricted
cash
|
2,000
|
|
|
2,008
|
|
Receivables, net of
allowance for doubtful accounts
|
139,680
|
|
|
113,005
|
|
Inventory
|
18,992
|
|
|
14,057
|
|
Assets held for
sale
|
6,102
|
|
|
6,620
|
|
Prepaid expenses and
other current assets
|
5,634
|
|
|
6,229
|
|
Total current
assets
|
223,876
|
|
|
215,559
|
|
|
|
|
|
Net property and
equipment
|
527,260
|
|
|
549,623
|
|
Other noncurrent
assets
|
1,739
|
|
|
1,687
|
|
Total
assets
|
$
|
752,875
|
|
|
$
|
766,869
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
34,747
|
|
|
$
|
29,538
|
|
Deferred
revenues
|
1,130
|
|
|
905
|
|
Accrued
expenses
|
67,948
|
|
|
54,471
|
|
Total current
liabilities
|
103,825
|
|
|
84,914
|
|
|
|
|
|
Long-term debt, less
unamortized discount and debt issuance costs
|
463,805
|
|
|
461,665
|
|
Deferred income
taxes
|
3,344
|
|
|
3,151
|
|
Other noncurrent
liabilities
|
3,404
|
|
|
7,043
|
|
Total
liabilities
|
574,378
|
|
|
556,773
|
|
Total shareholders'
equity
|
178,497
|
|
|
210,096
|
|
Total liabilities and
shareholders' equity
|
$
|
752,875
|
|
|
$
|
766,869
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
Nine months
ended
|
|
September
30,
|
|
2018
|
|
2017
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(34,524)
|
|
|
$
|
(62,560)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
70,535
|
|
|
74,355
|
|
Allowance for
doubtful accounts, net of recoveries
|
(311)
|
|
|
(98)
|
|
Gain on dispositions
of property and equipment, net
|
(2,922)
|
|
|
(2,251)
|
|
Stock-based
compensation expense
|
3,396
|
|
|
3,225
|
|
Phantom stock
compensation expense
|
2,807
|
|
|
397
|
|
Amortization of debt
issuance costs and discount
|
2,153
|
|
|
1,395
|
|
Impairment
|
2,607
|
|
|
795
|
|
Deferred income
taxes
|
189
|
|
|
434
|
|
Change in other
noncurrent assets
|
541
|
|
|
335
|
|
Change in other
noncurrent liabilities
|
(735)
|
|
|
(261)
|
|
Changes in current
assets and liabilities
|
(22,246)
|
|
|
(27,028)
|
|
Net cash provided by
(used in) operating activities
|
21,490
|
|
|
(11,262)
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(48,778)
|
|
|
(52,806)
|
|
Proceeds from sale of
property and equipment
|
4,665
|
|
|
10,407
|
|
Proceeds from
insurance recoveries
|
980
|
|
|
3,119
|
|
Net cash used in
investing activities
|
(43,133)
|
|
|
(39,280)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Debt
repayments
|
—
|
|
|
(13,267)
|
|
Proceeds from
issuance of debt
|
—
|
|
|
65,000
|
|
Proceeds from
exercise of options
|
12
|
|
|
—
|
|
Purchase of treasury
stock
|
(549)
|
|
|
(533)
|
|
Net cash provided by
(used in) financing activities
|
(537)
|
|
|
51,200
|
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(22,180)
|
|
|
658
|
|
Beginning cash, cash
equivalents and restricted cash
|
75,648
|
|
|
10,194
|
|
Ending cash, cash
equivalents and restricted cash
|
$
|
53,468
|
|
|
$
|
10,852
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Operating Results
by Segment
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
36,586
|
|
|
$
|
35,141
|
|
|
$
|
35,634
|
|
|
$
|
108,146
|
|
|
$
|
93,959
|
|
International
drilling
|
23,131
|
|
|
7,402
|
|
|
21,773
|
|
|
62,515
|
|
|
26,379
|
|
Drilling
services
|
59,717
|
|
|
42,543
|
|
|
57,407
|
|
|
170,661
|
|
|
120,338
|
|
Well
servicing
|
24,369
|
|
|
19,103
|
|
|
23,162
|
|
|
68,645
|
|
|
58,854
|
|
Wireline
services
|
52,654
|
|
|
46,085
|
|
|
62,137
|
|
|
171,392
|
|
|
118,463
|
|
Coiled tubing
services
|
12,592
|
|
|
9,550
|
|
|
12,076
|
|
|
37,894
|
|
|
22,513
|
|
Production
services
|
89,615
|
|
|
74,738
|
|
|
97,375
|
|
|
277,931
|
|
|
199,830
|
|
Consolidated
revenues
|
$
|
149,332
|
|
|
$
|
117,281
|
|
|
$
|
154,782
|
|
|
$
|
448,592
|
|
|
$
|
320,168
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
21,650
|
|
|
$
|
21,769
|
|
|
$
|
21,749
|
|
|
$
|
64,297
|
|
|
$
|
61,658
|
|
International
drilling
|
19,013
|
|
|
6,617
|
|
|
17,064
|
|
|
49,038
|
|
|
20,183
|
|
Drilling
services
|
40,663
|
|
|
28,386
|
|
|
38,813
|
|
|
113,335
|
|
|
81,841
|
|
Well
servicing
|
17,193
|
|
|
13,988
|
|
|
16,680
|
|
|
49,443
|
|
|
43,116
|
|
Wireline
services
|
40,840
|
|
|
35,692
|
|
|
46,716
|
|
|
130,042
|
|
|
91,670
|
|
Coiled tubing
services
|
10,265
|
|
|
8,603
|
|
|
11,988
|
|
|
33,104
|
|
|
21,829
|
|
Production
services
|
68,298
|
|
|
58,283
|
|
|
75,384
|
|
|
212,589
|
|
|
156,615
|
|
Consolidated
operating costs
|
$
|
108,961
|
|
|
$
|
86,669
|
|
|
$
|
114,197
|
|
|
$
|
325,924
|
|
|
$
|
238,456
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
14,936
|
|
|
$
|
13,372
|
|
|
$
|
13,885
|
|
|
$
|
43,849
|
|
|
$
|
32,301
|
|
International
drilling
|
4,118
|
|
|
785
|
|
|
4,709
|
|
|
13,477
|
|
|
6,196
|
|
Drilling
services
|
19,054
|
|
|
14,157
|
|
|
18,594
|
|
|
57,326
|
|
|
38,497
|
|
Well
servicing
|
7,176
|
|
|
5,115
|
|
|
6,482
|
|
|
19,202
|
|
|
15,738
|
|
Wireline
services
|
11,814
|
|
|
10,393
|
|
|
15,421
|
|
|
41,350
|
|
|
26,793
|
|
Coiled tubing
services
|
2,327
|
|
|
947
|
|
|
88
|
|
|
4,790
|
|
|
684
|
|
Production
services
|
21,317
|
|
|
16,455
|
|
|
21,991
|
|
|
65,342
|
|
|
43,215
|
|
Consolidated gross
margin
|
$
|
40,371
|
|
|
$
|
30,612
|
|
|
$
|
40,585
|
|
|
$
|
122,668
|
|
|
$
|
81,712
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(5,233)
|
|
|
$
|
(17,227)
|
|
|
$
|
(18,152)
|
|
|
$
|
(34,524)
|
|
|
$
|
(62,560)
|
|
Adjusted EBITDA
(1)
|
$
|
28,576
|
|
|
$
|
14,026
|
|
|
$
|
16,896
|
|
|
$
|
68,881
|
|
|
$
|
32,880
|
|
|
(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 14.
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Operating
Statistics
|
(unaudited)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Domestic
drilling:
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
16
|
|
|
16
|
|
|
16
|
|
|
16
|
|
|
16
|
|
Utilization
rate
|
99
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
93
|
%
|
Revenue
days
|
1,459
|
|
|
1,472
|
|
|
1,454
|
|
|
4,353
|
|
|
4,052
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
25,076
|
|
|
$
|
23,873
|
|
|
$
|
24,508
|
|
|
$
|
24,844
|
|
|
$
|
23,188
|
|
Average operating
costs per day
|
14,839
|
|
|
14,789
|
|
|
14,958
|
|
|
14,771
|
|
|
15,217
|
|
Average margin per
day
|
$
|
10,237
|
|
|
$
|
9,084
|
|
|
$
|
9,550
|
|
|
$
|
10,073
|
|
|
$
|
7,971
|
|
|
|
|
|
|
|
|
|
|
|
International
drilling:
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
Utilization
rate
|
76
|
%
|
|
38
|
%
|
|
85
|
%
|
|
79
|
%
|
|
40
|
%
|
Revenue
days
|
562
|
|
|
283
|
|
|
621
|
|
|
1,733
|
|
|
865
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
41,158
|
|
|
$
|
26,155
|
|
|
$
|
35,061
|
|
|
$
|
36,073
|
|
|
$
|
30,496
|
|
Average operating
costs per day
|
33,831
|
|
|
23,382
|
|
|
27,478
|
|
|
28,297
|
|
|
23,333
|
|
Average margin per
day
|
$
|
7,327
|
|
|
$
|
2,773
|
|
|
$
|
7,583
|
|
|
$
|
7,776
|
|
|
$
|
7,163
|
|
|
|
|
|
|
|
|
|
|
|
Drilling services
business:
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
24
|
|
|
24
|
|
|
24
|
|
|
24
|
|
|
24
|
|
Utilization
rate
|
92
|
%
|
|
79
|
%
|
|
95
|
%
|
|
93
|
%
|
|
75
|
%
|
Revenue
days
|
2,021
|
|
|
1,755
|
|
|
2,075
|
|
|
6,086
|
|
|
4,917
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
29,548
|
|
|
$
|
24,241
|
|
|
$
|
27,666
|
|
|
$
|
28,042
|
|
|
$
|
24,474
|
|
Average operating
costs per day
|
20,120
|
|
|
16,174
|
|
|
18,705
|
|
|
18,622
|
|
|
16,644
|
|
Average margin per
day
|
$
|
9,428
|
|
|
$
|
8,067
|
|
|
$
|
8,961
|
|
|
$
|
9,420
|
|
|
$
|
7,830
|
|
|
|
|
|
|
|
|
|
|
|
Well
servicing:
|
|
|
|
|
|
|
|
|
|
Average number of
rigs
|
125
|
|
|
125
|
|
|
125
|
|
|
125
|
|
|
125
|
|
Utilization
rate
|
51
|
%
|
|
43
|
%
|
|
49
|
%
|
|
49
|
%
|
|
44
|
%
|
Rig hours
|
44,155
|
|
|
36,108
|
|
|
42,871
|
|
|
127,800
|
|
|
114,697
|
|
Average revenue per
hour
|
$
|
552
|
|
|
$
|
529
|
|
|
$
|
540
|
|
|
$
|
537
|
|
|
$
|
513
|
|
|
|
|
|
|
|
|
|
|
|
Wireline
services:
|
|
|
|
|
|
|
|
|
|
Average number of
units
|
104
|
|
|
117
|
|
|
108
|
|
|
107
|
|
|
115
|
|
Number of
jobs
|
2,684
|
|
|
2,778
|
|
|
3,022
|
|
|
8,536
|
|
|
8,540
|
|
Average revenue per
job
|
$
|
19,618
|
|
|
$
|
16,589
|
|
|
$
|
20,562
|
|
|
$
|
20,079
|
|
|
$
|
13,872
|
|
|
|
|
|
|
|
|
|
|
|
Coiled tubing
services:
|
|
|
|
|
|
|
|
|
|
Average number of
units
|
11
|
|
|
14
|
|
|
14
|
|
|
13
|
|
|
16
|
|
Revenue
days
|
362
|
|
|
368
|
|
|
350
|
|
|
1,126
|
|
|
1,106
|
|
Average revenue per
day
|
$
|
34,785
|
|
|
$
|
25,951
|
|
|
$
|
34,503
|
|
|
$
|
33,654
|
|
|
$
|
20,355
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
and Consolidated
Gross Margin
|
(in
thousands)
|
(unaudited)
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(5,233)
|
|
|
$
|
(17,227)
|
|
|
$
|
(18,152)
|
|
|
$
|
(34,524)
|
|
|
$
|
(62,560)
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
23,501
|
|
|
24,623
|
|
|
23,287
|
|
|
70,535
|
|
|
74,355
|
|
Impairment
|
239
|
|
|
—
|
|
|
2,368
|
|
|
2,607
|
|
|
795
|
|
Interest
expense
|
9,811
|
|
|
6,613
|
|
|
9,642
|
|
|
28,966
|
|
|
19,090
|
|
Income tax expense
(benefit)
|
258
|
|
|
17
|
|
|
(249)
|
|
|
1,297
|
|
|
1,200
|
|
Adjusted
EBITDA(1)
|
28,576
|
|
|
14,026
|
|
|
16,896
|
|
|
68,881
|
|
|
32,880
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
14,043
|
|
|
17,549
|
|
|
24,829
|
|
|
58,066
|
|
|
51,405
|
|
Bad debt recovery,
net of expense
|
111
|
|
|
491
|
|
|
(370)
|
|
|
(311)
|
|
|
(98)
|
|
Gain on dispositions
of property and
equipment, net
|
(1,861)
|
|
|
(1,159)
|
|
|
(726)
|
|
|
(2,922)
|
|
|
(2,251)
|
|
Other
income
|
(498)
|
|
|
(295)
|
|
|
(44)
|
|
|
(1,046)
|
|
|
(224)
|
|
Consolidated gross
margin
|
$
|
40,371
|
|
|
$
|
30,612
|
|
|
$
|
40,585
|
|
|
$
|
122,668
|
|
|
$
|
81,712
|
|
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
|
|
September
30,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(5,233)
|
|
|
$
|
(17,227)
|
|
|
$
|
(18,152)
|
|
Impairment
|
239
|
|
|
—
|
|
|
2,368
|
|
Tax benefit related
to adjustments
|
(56)
|
|
|
—
|
|
|
(556)
|
|
Valuation allowance
adjustments on deferred tax assets
|
(581)
|
|
|
5,894
|
|
|
1,501
|
|
Adjusted net
loss(2)
|
$
|
(5,631)
|
|
|
$
|
(11,333)
|
|
|
$
|
(14,839)
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding, as reported
|
78,136
|
|
|
77,552
|
|
|
77,944
|
|
Effect of dilutive
securities
|
—
|
|
|
—
|
|
|
—
|
|
Diluted weighted
average number of shares outstanding, as adjusted
|
78,136
|
|
|
77,552
|
|
|
77,944
|
|
|
|
|
|
|
|
Adjusted (diluted)
EPS(3)
|
$
|
(0.07)
|
|
|
$
|
(0.15)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
Diluted EPS as
reported
|
$
|
(0.07)
|
|
|
$
|
(0.22)
|
|
|
$
|
(0.23)
|
|
|
(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
October 30, 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
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
Wireline services
units
|
|
104
|
Coiled tubing
services units
|
|
8
|
View original
content:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-third-quarter-2018-results-300740126.html
SOURCE Pioneer Energy Services