SAN ANTONIO, Aug. 1, 2017
/PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today
reported financial and operating results for the quarter ended
June 30, 2017. Notable items include:
- Production Services Segment revenue increased 20% from the
prior quarter with improved gross margins in all businesses.
- Drilling Services Segment average margin per day was
$7,735, up for the third consecutive
quarter.
- U.S. drilling fleet is 100% pad-optimal AC rigs and is 100%
utilized with dayrates that have continued to roll higher through
2017.
Consolidated Financial Results
Revenues for the second quarter of 2017 were $107.1 million, up 12% from revenues of
$95.8 million in the first quarter of
2017 ("the prior quarter") and up 72% from revenues of $62.3 million in the second quarter of 2016 ("the
year-earlier quarter"). The increase from the prior quarter
primarily resulted from increased activity and pricing in our
Production Services Segment.
Net loss for the second quarter of 2017 was $20.2 million, or $0.26 per share, compared with net loss of
$25.1 million, or $0.33 per share, in the prior quarter and net
loss of $30.0 million, or
$0.46 per share, in the year-earlier
quarter. Our Adjusted Net Loss(1) for the second
quarter was $16.2 million, and our
Adjusted EPS(2) was a loss of $0.21 per share, which excludes the after-tax
impact of impairment charges and the valuation allowance taken
against deferred tax assets primarily related to domestic net
operating losses. This compares to Adjusted Net Loss of
$15.4 million, or $0.20 per share, in the prior quarter.
Valuation allowance adjustments to deferred tax assets were
$3.5 million in the second quarter of
2017 and $9.8 million in the prior
quarter.
Second quarter Adjusted EBITDA(3) was $12.9 million, up from $6.0 million in the prior quarter primarily due
to higher activity from our Production Services Segment, as well as
increased utilization in our U.S. drilling operations. Compared to
the year-earlier quarter, second quarter Adjusted EBITDA was up
$9.3 million primarily due to
increased activity in our Production Services Segment.
Operating Results
Production Services Segment
Revenue for the Production Services Segment was $68.4 million in the second quarter, up 20% from
the prior quarter and up 99% from the year-earlier quarter.
Production Services Segment margin(4) as a percentage of
revenue was 23% in the second quarter, up from 20% in the prior
quarter and up from 16% in the year-earlier quarter.
Production Services Segment revenues increased 20% from the
prior quarter, led by the wireline business, due to a continued
increase in completion-related activity in all basins in which we
operate. The number of wireline jobs we completed in the second
quarter increased by 2% over the prior quarter, and by 55% over the
year-earlier quarter. Well servicing average pricing was
$514 per hour in the second quarter,
up from $497 in the prior quarter and
up from $485 in the year-earlier
quarter. Well servicing rig utilization was 47% in the second
quarter, up from 43% in the prior quarter and up from 40% in the
year-earlier quarter. Coiled tubing utilization was 26% in the
second quarter, up from 22% in the prior quarter and up from 20% in
the year-earlier quarter.
Drilling Services Segment
Revenue for the Drilling Services Segment was $38.8 million in the second quarter, a 1%
decrease from the prior quarter and a 39% increase from the
year-earlier quarter. Drilling rig utilization was 74% for the
second quarter, up from 72% in the prior quarter.
Average drilling revenues per day were $24,131 in the second quarter, down from
$25,091 in the prior quarter and down
from $25,188 in the year-earlier
quarter. Drilling Services Segment margin(4) per
day(5) was $7,735 in the
second quarter, up from $7,659 in the
prior quarter and down from $11,879
in the year-earlier quarter. The increase in Drilling Services
Segment margin per day from the prior quarter was primarily due to
increased dayrates in our domestic drilling operations. The
decrease from the year-earlier quarter is primarily due to reduced
revenues from rigs that were earning but not working during the
year-earlier quarter as well as more revenue days at current market
dayrates.
Currently, all of our 16 drilling rigs in the U.S are earning
revenues, 13 of which are under term contracts, and two of our rigs
in Colombia are earning revenue
under term contracts, for a total current utilization of 75%. One
additional rig in Colombia is
under term contract, but is waiting for the operator to prepare
drilling sites, which we expect will be completed by
mid-August.
Comments from our President and
CEO
"We are pleased with the solid improvement in our financial and
operating results and the sustained strength in customer activity
levels, despite some weakening in oil prices," said Wm.
Stacy Locke, President and CEO of
Pioneer Energy Services.
"We continued to benefit from higher customer activity that
began late last year in both our Production Services and Drilling
Services Segments. Our Production Services Segment realized
double digit revenue growth in all three business lines in the
second quarter with improving margins. We expect our
Production Services Segment to continue to perform well as our
customers work through a backlog of drilled but uncompleted wells
and deferred maintenance on existing producing wells. In our
Drilling Services Segment, our U.S. drilling rig fleet is 100%
utilized and generating margins per day which we believe are among
the highest in the industry. Seven rigs have been renewed in
the second and third quarters of 2017 with dayrates increasing a
minimum of $2,000 per day, and two
rigs were extended through the end of 2018 and one extended for a
year beginning in July. In Colombia, three rigs are under contract today.
Two of these rigs are currently earning revenues and the third is
in the process of moving to the next location. One additional
rig is pending final negotiations on contracts. The outlook
in Colombia is very positive for
sustained work in the third and fourth quarters of 2017 with
improving utilization in 2018."
"While we are continuing to see improvement in the majority of
the regions in which we operate and we are benefiting from further
pricing increases, we intend to remain disciplined in our capital
expenditure program this year. With the majority of our
capital spending in 2017 front-end loaded for equipment upgrades
and additional units to meet current customer demand, we anticipate
being cash flow neutral in the second half of the year. We
are well positioned with high-quality equipment and best-in-class
service and safety that can compete and perform well in any of our
markets."
Third Quarter 2017 Guidance
In the third quarter of 2017, Production Services Segment
revenue is estimated to be up approximately 5% to 10% as compared
to the second quarter of 2017. Production Services Segment margin
is estimated to be 24% to 26% of revenues in the third quarter.
Drilling rig utilization in the third quarter is estimated to
average 74% to 77%. Drilling Services Segment margin is expected to
be approximately $8,100 to $8,500 per
day in the third quarter.
Liquidity
Working capital at June 30, 2017 was $52.8 million, up
from $48.0 million at
December 31, 2016. Our cash and cash equivalents were
$6.9 million, down from $10.2 million at year-end 2016.
The decrease in cash and cash equivalents during the first half
of 2017 was primarily due to $40.0
million of cash used for purchases of property and equipment
and $16.3 million of cash used in
operating activities, partially funded by $42.7 million of net borrowings under our
Revolving Credit Facility and $7.7
million of proceeds from the sale of assets.
We currently have $11.8 million in
committed letters of credit and $88.5
million in borrowings outstanding under our $150 million Revolving Credit Facility.
Capital Expenditures
Cash capital expenditures during the six months ended
June 30, 2017 were $40.0
million. We estimate total capital expenditures for 2017 to
be approximately $56 million to $59
million, which includes approximately $22 million for drilling rig upgrades, the
exchange of 20 well servicing rigs which was completed in the first
quarter of 2017 and the purchase of six wireline units.
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 in the conference call, 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 and will be accessible until
August 8th. To access the replay, dial (201)
612-7415 and enter the pass code 13666339.
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 Pioneer Energy
Services' Web site at least 10 minutes early to register and
download any necessary audio software. A replay will be
available shortly after the call. For more information, please
contact Donna Washburn at Dennard ▪
Lascar Associates, LLC at (713) 529-6600 or e-mail
dwashburn@dennardlascar.com.
About Pioneer
Pioneer Energy Services provides well, wireline, and coiled
tubing services to producers in the U.S. Gulf Coast, offshore
Gulf of Mexico, Mid-Continent and
Rocky Mountain regions through its Production Services Segment.
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 Drilling
Services Segment.
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 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 our senior secured revolving credit facility and
our senior notes, operating hazards inherent in our operations, the
supply of marketable drilling rigs, well servicing rigs, coiled
tubing and wireline units within the industry, the continued
availability of drilling rig, well servicing rig, coiled tubing and
wireline unit components, 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, 2016, 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 impairment
charges and loss on extinguishment of debt, if any, 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, and loss on
extinguishment of debt and impairments, if any. 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 adjusted EBITDA to net loss as reported is
included in the tables to this news release.
|
|
|
(4)
|
Production
Services Segment margin represents production services revenue less
production services operating costs. Drilling Services Segment
margin represents contract drilling revenues less contract drilling
operating costs. Production Services Segment margin and Drilling
Services Segment margin are non-GAAP financial measures which we
consider to be important supplemental measures of operating
performance. Our management uses these measures to facilitate
period-to-period comparisons in operating performance of our
reportable segments. We believe that Production Services Segment
margin and Drilling Services Segment margin are useful to investors
and analysts because they provide a means to evaluate the operating
performance of the segments on an ongoing basis using criteria that
are used by our internal decision makers. Additionally, the use of
these measures highlights operating trends and aids in analytical
comparisons. Production Services Segment margin and Drilling
Services Segment margin as presented may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of consolidated Production Services Segment margin
and Drilling Services Segment margin to net loss as reported
is included in the tables to this news release.
|
|
|
|
This news release
also included a forward-looking non-GAAP financial measure,
Production Services Segment margin for the third quarter 2017,
which as previously described excludes all other costs or income
(including but not limited to bad debt (expense) recovery, gain
(loss) on dispositions of property and equipment, impairment
charges, if any, other income (expense) and income tax expense or
benefit). No reconciliation of this forward-looking non-GAAP
financial measure was included in the news release due to the
variability and difficulty in making an accurate forecast and
projection of the excluded information referenced
above. Accordingly, we do not believe that reconciling
information for such forward-looking non-GAAP financial measure
would be meaningful.
|
|
|
(5)
|
Drilling Services
Segment margin per day represents the Drilling Services Segment's
average revenue per revenue day less average operating costs per
revenue day.
|
|
|
|
This news release
also included a forward-looking non-GAAP financial measure,
Drilling Services Segment margin per revenue day for the third
quarter of 2017, which as previously described, is a calculation of
revenues less operating costs, divided by the number of revenue
days, and therefore excludes all other costs or income (including
but not limited to bad debt (expense) recovery, gain (loss) on
dispositions of property and equipment, impairment charges, if any,
other income (expense) and income tax expense or benefit). No
reconciliation of this forward-looking non-GAAP financial measure
was included in the news release due to the variability and
difficulty in making an accurate forecast and projection of the
excluded information referenced above. Accordingly, we do not
believe that reconciling information for such forward-looking
non-GAAP financial measure would be meaningful.
|
- 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,
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Production
services
|
$
|
68,351
|
|
|
$
|
34,331
|
|
|
$
|
56,741
|
|
|
$
|
125,092
|
|
|
$
|
76,099
|
|
Drilling
services
|
38,779
|
|
|
27,959
|
|
|
39,016
|
|
|
77,795
|
|
|
61,143
|
|
Total
revenues
|
107,130
|
|
|
62,290
|
|
|
95,757
|
|
|
202,887
|
|
|
137,242
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Production
services
|
52,733
|
|
|
28,742
|
|
|
45,641
|
|
|
98,374
|
|
|
63,591
|
|
Drilling
services
|
26,348
|
|
|
14,773
|
|
|
27,107
|
|
|
53,455
|
|
|
32,213
|
|
Depreciation and
amortization
|
24,740
|
|
|
28,922
|
|
|
24,992
|
|
|
49,732
|
|
|
58,746
|
|
General and
administrative
|
16,090
|
|
|
15,258
|
|
|
17,724
|
|
|
33,814
|
|
|
31,766
|
|
Bad debt expense
(recovery)
|
(226)
|
|
|
112
|
|
|
(363)
|
|
|
(589)
|
|
|
57
|
|
Impairment
charges
|
795
|
|
|
—
|
|
|
—
|
|
|
795
|
|
|
—
|
|
Loss (gain) on
dispositions of property and equipment
|
(621)
|
|
|
508
|
|
|
(471)
|
|
|
(1,092)
|
|
|
(92)
|
|
Total costs and
expenses
|
119,859
|
|
|
88,315
|
|
|
114,630
|
|
|
234,489
|
|
|
186,281
|
|
Loss from
operations
|
(12,729)
|
|
|
(26,025)
|
|
|
(18,873)
|
|
|
(31,602)
|
|
|
(49,039)
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest capitalized
|
(6,418)
|
|
|
(6,375)
|
|
|
(6,059)
|
|
|
(12,477)
|
|
|
(12,629)
|
|
Loss on
extinguishment of debt
|
—
|
|
|
(299)
|
|
|
—
|
|
|
—
|
|
|
(299)
|
|
Other
|
73
|
|
|
718
|
|
|
(144)
|
|
|
(71)
|
|
|
329
|
|
Total other
expense
|
(6,345)
|
|
|
(5,956)
|
|
|
(6,203)
|
|
|
(12,548)
|
|
|
(12,599)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(19,074)
|
|
|
(31,981)
|
|
|
(25,076)
|
|
|
(44,150)
|
|
|
(61,638)
|
|
Income tax benefit
(expense)
|
(1,135)
|
|
|
1,990
|
|
|
(48)
|
|
|
(1,183)
|
|
|
3,948
|
|
Net loss
|
$
|
(20,209)
|
|
|
$
|
(29,991)
|
|
|
$
|
(25,124)
|
|
|
$
|
(45,333)
|
|
|
$
|
(57,690)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.26)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.59)
|
|
|
$
|
(0.89)
|
|
Diluted
|
$
|
(0.26)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.59)
|
|
|
$
|
(0.89)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
77,377
|
|
|
64,781
|
|
|
77,072
|
|
|
77,225
|
|
|
64,679
|
|
Diluted
|
77,377
|
|
|
64,781
|
|
|
77,072
|
|
|
77,225
|
|
|
64,679
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Condensed
Consolidated Balance Sheets
|
(in
thousands)
|
|
|
June
30, 2017
|
|
December
31, 2016
|
|
(unaudited)
|
|
(audited)
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
6,894
|
|
|
$
|
10,194
|
|
Receivables, net of
allowance for doubtful accounts
|
90,849
|
|
|
72,123
|
|
Inventory
|
11,811
|
|
|
9,660
|
|
Assets held for
sale
|
11,104
|
|
|
15,093
|
|
Prepaid expenses and
other current assets
|
7,289
|
|
|
6,926
|
|
Total current
assets
|
127,947
|
|
|
113,996
|
|
|
|
|
|
Net property and
equipment
|
579,030
|
|
|
584,080
|
|
Other long-term
assets
|
1,564
|
|
|
2,026
|
|
Total
assets
|
$
|
708,541
|
|
|
$
|
700,102
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
28,379
|
|
|
$
|
19,208
|
|
Deferred
revenues
|
1,009
|
|
|
1,449
|
|
Accrued
expenses
|
45,755
|
|
|
45,345
|
|
Total current
liabilities
|
75,143
|
|
|
66,002
|
|
|
|
|
|
Long-term debt, less
debt issuance costs
|
383,098
|
|
|
339,473
|
|
Deferred income
taxes
|
8,949
|
|
|
8,180
|
|
Other long-term
liabilities
|
3,486
|
|
|
5,049
|
|
Total
liabilities
|
470,676
|
|
|
418,704
|
|
Total shareholders'
equity
|
237,865
|
|
|
281,398
|
|
Total liabilities and
shareholders' equity
|
$
|
708,541
|
|
|
$
|
700,102
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited, in
thousands)
|
|
|
Six months
ended
|
|
June
30,
|
|
2017
|
|
2016
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(45,333)
|
|
|
$
|
(57,690)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
49,732
|
|
|
58,746
|
|
Allowance for
doubtful accounts, net of recoveries
|
(589)
|
|
|
57
|
|
Gain on dispositions
of property and equipment, net
|
(1,092)
|
|
|
(92)
|
|
Stock-based
compensation expense
|
2,335
|
|
|
2,065
|
|
Amortization of debt
issuance costs
|
930
|
|
|
844
|
|
Loss on
extinguishment of debt
|
—
|
|
|
299
|
|
Impairment
charges
|
795
|
|
|
—
|
|
Deferred income
taxes
|
768
|
|
|
(4,348)
|
|
Change in other
long-term assets
|
299
|
|
|
102
|
|
Change in other
long-term liabilities
|
(1,563)
|
|
|
(1,063)
|
|
Changes in current
assets and liabilities
|
(22,579)
|
|
|
14,676
|
|
Net cash provided by
(used in) operating activities
|
(16,297)
|
|
|
13,596
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(40,032)
|
|
|
(13,240)
|
|
Proceeds from sale of
property and equipment
|
7,748
|
|
|
812
|
|
Proceeds from
insurance recoveries
|
3,119
|
|
|
—
|
|
Net cash used in
investing activities
|
(29,165)
|
|
|
(12,428)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Debt
repayments
|
(12,305)
|
|
|
—
|
|
Proceeds from
issuance of debt
|
55,000
|
|
|
—
|
|
Debt issuance
costs
|
—
|
|
|
(809)
|
|
Purchase of treasury
stock
|
(533)
|
|
|
(124)
|
|
Net cash provided by
(used in) financing activities
|
42,162
|
|
|
(750)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
(3,300)
|
|
|
418
|
|
Beginning cash and
cash equivalents
|
10,194
|
|
|
14,160
|
|
Ending cash and cash
equivalents
|
$
|
6,894
|
|
|
$
|
14,578
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Operating
Statistics
|
(in thousands, except
average number of drilling rigs, utilization rate, revenue days and
per day information)
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
Production
Services Segment:
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
68,351
|
|
|
$
|
34,331
|
|
|
$
|
56,741
|
|
|
$
|
125,092
|
|
|
$
|
76,099
|
|
Operating
costs
|
52,733
|
|
|
28,742
|
|
|
45,641
|
|
|
98,374
|
|
|
63,591
|
|
Production Services Segment margin(1)
|
$
|
15,618
|
|
|
$
|
5,589
|
|
|
$
|
11,100
|
|
|
$
|
26,718
|
|
|
$
|
12,508
|
|
|
|
|
|
|
|
|
|
|
|
Drilling Services
Segment:
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
38,779
|
|
|
$
|
27,959
|
|
|
$
|
39,016
|
|
|
$
|
77,795
|
|
|
$
|
61,143
|
|
Operating
costs
|
26,348
|
|
|
14,773
|
|
|
27,107
|
|
|
53,455
|
|
|
32,213
|
|
Drilling
Services Segment margin(1)
|
$
|
12,431
|
|
|
$
|
13,186
|
|
|
$
|
11,909
|
|
|
$
|
24,340
|
|
|
$
|
28,930
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
24.0
|
|
|
31.0
|
|
|
24.0
|
|
|
24.0
|
|
|
31.0
|
|
Utilization
rate
|
74
|
%
|
|
39
|
%
|
|
72
|
%
|
|
73
|
%
|
|
43
|
%
|
|
|
|
|
|
|
|
|
|
|
Revenue days -
working
|
1,607
|
|
|
928
|
|
|
1,555
|
|
|
3,162
|
|
|
1,942
|
|
Revenue days -
earning but not working
|
—
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|
478
|
|
Total
revenue days
|
1,607
|
|
|
1,110
|
|
|
1,555
|
|
|
3,162
|
|
|
2,420
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
24,131
|
|
|
$
|
25,188
|
|
|
$
|
25,091
|
|
|
$
|
24,603
|
|
|
$
|
25,266
|
|
Average operating
costs per day
|
16,396
|
|
|
13,309
|
|
|
17,432
|
|
|
16,905
|
|
|
13,311
|
|
Drilling
Services Segment margin per day(2)
|
$
|
7,735
|
|
|
$
|
11,879
|
|
|
$
|
7,659
|
|
|
$
|
7,698
|
|
|
$
|
11,955
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
107,130
|
|
|
$
|
62,290
|
|
|
$
|
95,757
|
|
|
$
|
202,887
|
|
|
$
|
137,242
|
|
Operating
costs
|
79,081
|
|
|
43,515
|
|
|
72,748
|
|
|
151,829
|
|
|
95,804
|
|
Consolidated margin
|
$
|
28,049
|
|
|
$
|
18,775
|
|
|
$
|
23,009
|
|
|
$
|
51,058
|
|
|
$
|
41,438
|
|
|
|
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(20,209)
|
|
|
$
|
(29,991)
|
|
|
$
|
(25,124)
|
|
|
$
|
(45,333)
|
|
|
$
|
(57,690)
|
|
Adjusted
EBITDA(3)
|
$
|
12,879
|
|
|
$
|
3,615
|
|
|
$
|
5,975
|
|
|
$
|
18,854
|
|
|
$
|
10,036
|
|
|
(1)
Production Services Segment margin
represents production services revenue less production services
operating costs. Drilling Services Segment margin represents
contract drilling revenues less contract drilling operating costs.
Production Services Segment margin and Drilling Services Segment
margin are non-GAAP financial measures which we consider to be
important supplemental measures of operating performance. Our
management uses these measures to facilitate period-to-period
comparisons in operating performance of our reportable segments. We
believe that Production Services Segment margin and Drilling
Services Segment margin are useful to investors and analysts
because they provide a means to evaluate the operating performance
of the segments on an ongoing basis using criteria that are used by
our internal decision makers. Additionally, the use of these
measures highlights operating trends and aids in analytical
comparisons. Production Services Segment margin and Drilling
Services Segment margin as presented may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of consolidated Production Services Segment margin
and Drilling Services Segment margin to net loss as reported is
included in the table on the following page.
|
|
(2)
Drilling Services Segment margin per day
represents the Drilling Services Segment's average revenue per
revenue day less average operating costs per revenue
day.
|
|
(3)
Adjusted EBITDA represents income (loss)
before interest expense, income tax (expense) benefit, depreciation
and amortization, and loss on extinguishment of debt and
impairments, if any. 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 adjusted
EBITDA to net loss as reported is included in the table on the
following page.
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
and Consolidated
Margin
|
(in
thousands)
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(20,209)
|
|
|
$
|
(29,991)
|
|
|
$
|
(25,124)
|
|
|
$
|
(45,333)
|
|
|
$
|
(57,690)
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
24,740
|
|
|
28,922
|
|
|
24,992
|
|
|
49,732
|
|
|
58,746
|
|
Impairment
charges
|
795
|
|
|
—
|
|
|
—
|
|
|
795
|
|
|
—
|
|
Interest
expense
|
6,418
|
|
|
6,375
|
|
|
6,059
|
|
|
12,477
|
|
|
12,629
|
|
Loss on
extinguishment of debt
|
—
|
|
|
299
|
|
|
—
|
|
|
—
|
|
|
299
|
|
Income tax benefit
(expense)
|
1,135
|
|
|
(1,990)
|
|
|
48
|
|
|
1,183
|
|
|
(3,948)
|
|
Adjusted
EBITDA(3)
|
12,879
|
|
|
3,615
|
|
|
5,975
|
|
|
18,854
|
|
|
10,036
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
16,090
|
|
|
15,258
|
|
|
17,724
|
|
|
33,814
|
|
|
31,766
|
|
Bad debt expense
(recovery)
|
(226)
|
|
|
112
|
|
|
(363)
|
|
|
(589)
|
|
|
57
|
|
Gain on dispositions
of property and equipment
|
(621)
|
|
|
508
|
|
|
(471)
|
|
|
(1,092)
|
|
|
(92)
|
|
Other
expense
|
(73)
|
|
|
(718)
|
|
|
144
|
|
|
71
|
|
|
(329)
|
|
Consolidated
margin
|
$
|
28,049
|
|
|
$
|
18,775
|
|
|
$
|
23,009
|
|
|
$
|
51,058
|
|
|
$
|
41,438
|
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(20,209)
|
|
|
$
|
(29,991)
|
|
|
$
|
(25,124)
|
|
Impairment
charges
|
795
|
|
|
—
|
|
|
—
|
|
Loss on
extinguishment of debt
|
—
|
|
|
299
|
|
|
—
|
|
Tax benefit related
to adjustments
|
(295)
|
|
|
(108)
|
|
|
—
|
|
Valuation allowance
adjustments on deferred tax assets
|
3,492
|
|
|
10,526
|
|
|
9,754
|
|
Adjusted net
loss(4)
|
$
|
(16,217)
|
|
|
$
|
(19,274)
|
|
|
$
|
(15,370)
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding, as reported
|
77,377
|
|
|
64,781
|
|
|
77,072
|
|
Effect of dilutive
securities
|
—
|
|
|
—
|
|
|
—
|
|
Diluted weighted
average number of shares outstanding, as adjusted
|
77,377
|
|
|
64,781
|
|
|
77,072
|
|
|
|
|
|
|
|
Adjusted (diluted)
EPS(5)
|
$
|
(0.21)
|
|
|
$
|
(0.30)
|
|
|
$
|
(0.20)
|
|
|
|
|
|
|
|
Diluted EPS as
reported
|
$
|
(0.26)
|
|
|
$
|
(0.46)
|
|
|
$
|
(0.33)
|
|
|
(4)
Adjusted Net Loss represents net loss as
reported adjusted to exclude impairment charges and loss on
extinguishment of debt, if any, 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.
|
|
(5)
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
|
Drilling Rig, Well
Servicing Rig, Wireline and Coiled Tubing Unit
|
Current
Information
|
As of
August 1, 2017
|
|
Production
Services Segment:
|
|
|
|
|
|
Well servicing rigs
(by horsepower rating):
|
|
|
550 HP
|
|
113
|
600 HP
|
|
12
|
Total
|
|
125
|
|
|
|
Wireline
units
|
|
115
|
|
|
|
Coiled tubing
units
|
|
14
|
|
|
|
Drilling Services
Segment:
|
|
|
|
|
|
Electric drilling
rigs:
|
|
|
U.S. - AC
Rigs
|
|
16
|
Colombia - SCR
Rigs
|
|
8
|
Total
|
|
24
|
|
|
|
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 Associates / (713)
529-6600
|
View original
content:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-second-quarter-2017-results-300497029.html
SOURCE Pioneer Energy Services