SAN ANTONIO, May 2, 2019 /PRNewswire/ -- Pioneer Energy
Services (NYSE: PES) today reported financial and operating results
for the quarter ended March 31, 2019. First quarter highlights
include:
- Domestic drilling fleet was fully contracted and generated an
average margin per day of $10,944.
- Production services revenues increased 6% sequentially,
primarily driven by the coiled tubing revenue increase of 16%.
- Deployed our newest 1,500 horsepower, super-spec, new-build
drilling rig, which began operations in West Texas on a three-year term contract.
Consolidated Financial Results
Revenues for the first quarter of 2019 were $146.6 million, up 4% from revenues of
$141.5 million in the fourth quarter
of 2018 ("the prior quarter"). Net loss for the first quarter of
2019 was $15.1 million, or
$0.19 per share, compared with net
loss of $14.5 million, or
$0.19 per share, in the prior
quarter. Adjusted net loss(1) for the first quarter was
$10.5 million, and adjusted
EPS(2) was a loss of $0.13
per share. These results compare to an adjusted net loss of
$13.6 million, and an adjusted EPS
loss of $0.17 per share in the prior
quarter. First quarter adjusted EBITDA(3) was
$19.9 million, down from $20.8 million in the prior quarter.
The increase in revenues from the prior quarter was primarily
due to an increase across all of our production services segments
as operators resumed operations after temporarily slowing activity
in the prior quarter as a result of lower commodity prices.
Adjusted EBITDA decreased sequentially, primarily driven by the
change in fair value of our phantom stock awards, for which we
recognized an expense of $0.8 million
in the first quarter, while we recognized a benefit of $2.8 million in the prior quarter. The impact of
the phantom stock expense was partially offset by improvement in
both the coiled tubing and domestic drilling segments as well as
$1.1 million of gains from the sale
of certain assets, primarily spare coiled tubing equipment.
Operating Results
Production Services Business
Revenue from our production services business was $86.9 million in the first quarter, up 6% from
the prior quarter. Gross margin as a percentage of revenue from our
production services business was 20% in the first quarter, up from
19% in the prior quarter. Both revenue and margin were positively
impacted in all businesses as operators increased
completion-related operations after a brief pause in activity in
the prior quarter given instability in commodity prices.
The increase in production services revenues from the prior
quarter was attributable to improvements in all business segments,
led by coiled tubing which benefited from the addition of a large
diameter unit delivered late in the prior quarter. Wireline's
completion-related activity stabilized over the prior quarter and
well servicing gradually expanded its activity levels in both
remedial and completion-related activity.
Well servicing average revenue per hour was $558 in the first quarter, down from $571 in the prior quarter, while rig utilization
was 54%, up from 50% in the prior quarter. Coiled tubing revenue
days totaled 351 in the first quarter, as compared to 346 in the
prior quarter. The number of wireline jobs completed in the first
quarter decreased by 3% sequentially.
Drilling Services Business
Revenue from our drilling services business was $59.7 million in the first quarter, reflecting a
1% increase from the prior quarter. Average margin per day was
$10,349, down from $10,872 in the prior quarter.
Our domestic drilling fleet was fully contracted during the
current quarter and the prior quarter with average revenues per day
of $26,767 in the first quarter, up
from $25,794 in the prior quarter.
Domestic drilling average margin per day was $10,944 in the first quarter, up from
$10,252 in the prior quarter due to
the full impact of rate increases effective during the prior
quarter as well as a benefit of $0.3
million, or approximately $235
per day, from recognition of the early termination of a domestic
drilling contract due to a customer's budget realignment, which had
34 days remaining on its term. After contract termination, the
drilling rig mobilized from South
Texas and resumed operations for a new client in
West Texas.
International drilling rig utilization was 81% for the first
quarter, up from 71% in the prior quarter. Average revenues per day
were $37,316, down from $41,230 in the prior quarter, while average
margin per day for the first quarter was $8,894, down from $12,590 in the prior quarter. The decrease in
revenue per day and margin per day was primarily due to the benefit
of revenue items negotiated during the prior quarter and reversal
of demobilization revenue in the first quarter as a contract that
was previously expected to terminate was extended.
Currently, 16 of our 17 domestic drilling rigs are earning
revenues, 13 of which are under term contracts, and seven of our
eight rigs in Colombia are earning
revenue under daywork contracts.
Comments from our President and
CEO
"As oil prices have steadily improved in 2019 and customers have
resumed activity, we are seeing stable demand for our drilling and
production services," said Wm. Stacy
Locke, President and Chief Executive Officer. "We
remain focused on achieving cash flow neutrality in 2019 as our
capital spending program was more heavily weighted towards the
first quarter, and our reduced spending program for the remainder
of 2019 is primarily for routine capital expenditures. Also, we
experienced a longer collection cycle in the first quarter, but we
expect to improve our working capital position as we move forward
through 2019.
"In late March, we deployed our newest 1,500 horsepower,
super-spec, new-build drilling rig, which began operations in
West Texas on a three-year term
contract. We believe our premium rigs are the best designed moving
rigs in the market, helping customers continue to improve
efficiency. By focusing on safety and performance with superior
equipment, we have been able to generate industry-leading margins
and have successfully extended the contract terms on several of our
rigs. Our drilling services both domestically and in Colombia are benefiting from stable dayrates,
extended contract coverage and solid customer demand.
Internationally, the market outlook is currently strong, and we are
having success extending contract coverage as our customers
continue to have robust drilling programs through 2019.
"Our production services business is experiencing healthy
activity levels, although weather conditions in the Rockies
negatively impacted our wireline business in February, and wildlife
restrictions will impact activity in the Rockies in April and May.
Customer demand for large diameter coiled tubing equipment
contributed to a 16% increase in that segment's revenue in the
first quarter as we benefited from the deployment of a large
diameter unit at the end of the prior quarter. With commodity
prices continuing to firm up, we expect improved activity levels
for all business lines as we move through 2019."
Second Quarter 2019 Guidance
In the second quarter of 2019, revenue from our production
services business segments is expected to be up 1% to 4% as
compared to the first quarter of 2019. Margin from our production
services business is estimated to be 19% to 22% of revenue.
Domestic drilling services rig utilization is expected to be 93% to
95% as one rig will be idle during the second quarter as it
prepares to move to a new client in July, and generate average
margins per day of approximately $9,700 to $10,200.
International drilling services rig utilization is estimated to
average 83% to 86%, and generate average margins per day of
approximately $8,500 to $9,500.
We expect general and administrative expense to be approximately
$20.0 million to $21.0 million in the second quarter of 2019,
which as it relates to phantom stock compensation expense, is based
on the closing price of our common stock of $1.77 per share at March 31, 2019.
Liquidity
Working capital at March 31, 2019
was $103.7 million, down
from $110.3 million at
December 31, 2018. Cash and cash equivalents, including
restricted cash, were $27.9 million,
down from $54.6 million at year-end
2018. During the three months ended March 31, 2019, we used
$16.8 million of cash for the
purchase of property and equipment, and our cash used in operations
was $10.8 million.
Capital Expenditures
Cash capital expenditures during the three months ended
March 31, 2019 were $16.8
million, including capitalized interest. We estimate total
cash capital expenditures for 2019 to be approximately $55 million to $60
million, which includes approximately $7 million for final payments on the construction
of the new-build drilling rig that began operations in the first
quarter, and previous commitments on high-pressure pump packages
for coiled tubing completion operations.
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 May 9th. To access the replay, dial
(201) 612-7415 and enter the pass code 13689876.
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, the occurrence of cybersecurity incidents,
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, 2018,
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, Vice
President, Treasury and
|
|
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
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
146,568
|
|
|
$
|
144,478
|
|
|
$
|
141,505
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
Operating
costs
|
108,585
|
|
|
102,766
|
|
|
103,989
|
|
|
Depreciation
|
22,653
|
|
|
23,747
|
|
|
23,019
|
|
|
General and
administrative
|
19,758
|
|
|
19,194
|
|
|
16,051
|
|
|
Bad debt expense
(recovery), net
|
62
|
|
|
(52)
|
|
|
582
|
|
|
Impairment
|
1,046
|
|
|
—
|
|
|
1,815
|
|
|
Gain on dispositions
of property and equipment, net
|
(1,075)
|
|
|
(335)
|
|
|
(199)
|
|
|
Total costs and
expenses
|
151,029
|
|
|
145,320
|
|
|
145,257
|
|
|
Loss from
operations
|
(4,461)
|
|
|
(842)
|
|
|
(3,752)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Interest expense, net
of interest capitalized
|
(9,885)
|
|
|
(9,513)
|
|
|
(9,816)
|
|
|
Other income
(expense), net
|
684
|
|
|
504
|
|
|
(308)
|
|
|
Total other expense,
net
|
(9,201)
|
|
|
(9,009)
|
|
|
(10,124)
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(13,662)
|
|
|
(9,851)
|
|
|
(13,876)
|
|
|
Income tax
expense
|
(1,453)
|
|
|
(1,288)
|
|
|
(611)
|
|
|
Net loss
|
$
|
(15,115)
|
|
|
$
|
(11,139)
|
|
|
$
|
(14,487)
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
Basic
|
$
|
(0.19)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.19)
|
|
|
Diluted
|
$
|
(0.19)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
Basic
|
78,311
|
|
|
77,606
|
|
|
78,136
|
|
|
Diluted
|
78,311
|
|
|
77,606
|
|
|
78,136
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
March 31,
2019
|
|
December
31,
2018
|
|
(unaudited)
|
|
(audited)
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
26,855
|
|
|
$
|
53,566
|
|
|
Restricted
cash
|
998
|
|
|
998
|
|
|
Receivables, net of
allowance for doubtful accounts
|
148,085
|
|
|
130,881
|
|
|
Inventory
|
20,229
|
|
|
18,898
|
|
|
Assets held for
sale
|
4,794
|
|
|
3,582
|
|
|
Prepaid expenses and
other current assets
|
7,307
|
|
|
7,109
|
|
|
Total current
assets
|
208,268
|
|
|
215,034
|
|
|
|
|
|
|
Net property and
equipment
|
517,767
|
|
|
524,858
|
|
|
Operating lease
assets
|
9,423
|
|
|
—
|
|
|
Other noncurrent
assets
|
1,633
|
|
|
1,658
|
|
|
Total
assets
|
$
|
737,091
|
|
|
$
|
741,550
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
38,163
|
|
|
$
|
34,134
|
|
|
Deferred
revenues
|
1,659
|
|
|
1,722
|
|
|
Accrued
expenses
|
64,754
|
|
|
68,912
|
|
|
Total current
liabilities
|
104,576
|
|
|
104,768
|
|
|
|
|
|
|
Long-term debt, less
unamortized discount and debt issuance costs
|
465,315
|
|
|
464,552
|
|
|
Noncurrent operating
lease liabilities
|
6,929
|
|
|
—
|
|
|
Deferred income
taxes
|
4,844
|
|
|
3,688
|
|
|
Other noncurrent
liabilities
|
4,460
|
|
|
3,484
|
|
|
Total
liabilities
|
586,124
|
|
|
576,492
|
|
|
Total shareholders'
equity
|
150,967
|
|
|
165,058
|
|
|
Total liabilities and
shareholders' equity
|
$
|
737,091
|
|
|
$
|
741,550
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Three months
ended
|
|
March
31,
|
|
2019
|
|
2018
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
|
(15,115)
|
|
|
$
|
(11,139)
|
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation
|
22,653
|
|
|
23,747
|
|
|
Allowance for
doubtful accounts, net of recoveries
|
62
|
|
|
(52)
|
|
|
Gain on dispositions
of property and equipment, net
|
(1,075)
|
|
|
(335)
|
|
|
Stock-based
compensation expense
|
867
|
|
|
1,259
|
|
|
Phantom stock
compensation expense
|
848
|
|
|
430
|
|
|
Amortization of debt
issuance costs and discount
|
763
|
|
|
707
|
|
|
Impairment
|
1,046
|
|
|
—
|
|
|
Deferred income
taxes
|
1,156
|
|
|
911
|
|
|
Change in other
noncurrent assets
|
699
|
|
|
(463)
|
|
|
Change in other
noncurrent liabilities
|
(20)
|
|
|
1,414
|
|
|
Changes in current
assets and liabilities
|
(22,674)
|
|
|
(11,421)
|
|
|
Net cash provided by
(used in) operating activities
|
(10,790)
|
|
|
5,058
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of
property and equipment
|
(16,844)
|
|
|
(11,657)
|
|
|
Proceeds from sale of
property and equipment
|
1,043
|
|
|
1,283
|
|
|
Proceeds from
insurance recoveries
|
—
|
|
|
523
|
|
|
Net cash used in
investing activities
|
(15,801)
|
|
|
(9,851)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Debt issuance
costs
|
—
|
|
|
(33)
|
|
|
Purchase of treasury
stock
|
(120)
|
|
|
(96)
|
|
|
Net cash used in
financing activities
|
(120)
|
|
|
(129)
|
|
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(26,711)
|
|
|
(4,922)
|
|
|
Beginning cash, cash
equivalents and restricted cash
|
54,564
|
|
|
75,648
|
|
|
Ending cash, cash
equivalents and restricted cash
|
$
|
27,853
|
|
|
$
|
70,726
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Operating Results
by Segment
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Three months
ended
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
|
Revenues:
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
38,009
|
|
|
$
|
35,926
|
|
|
$
|
37,530
|
|
|
International
drilling
|
21,643
|
|
|
17,611
|
|
|
21,646
|
|
|
Drilling
services
|
59,652
|
|
|
53,537
|
|
|
59,176
|
|
|
Well
servicing
|
26,254
|
|
|
21,114
|
|
|
25,155
|
|
|
Wireline
services
|
45,874
|
|
|
56,601
|
|
|
44,466
|
|
|
Coiled tubing
services
|
14,788
|
|
|
13,226
|
|
|
12,708
|
|
|
Production
services
|
86,916
|
|
|
90,941
|
|
|
82,329
|
|
|
Consolidated
revenues
|
$
|
146,568
|
|
|
$
|
144,478
|
|
|
$
|
141,505
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
22,469
|
|
|
$
|
20,898
|
|
|
$
|
22,613
|
|
|
International
drilling
|
16,485
|
|
|
12,961
|
|
|
15,036
|
|
|
Drilling
services
|
38,954
|
|
|
33,859
|
|
|
37,649
|
|
|
Well
servicing
|
18,896
|
|
|
15,570
|
|
|
18,111
|
|
|
Wireline
services
|
39,347
|
|
|
42,486
|
|
|
37,295
|
|
|
Coiled tubing
services
|
11,388
|
|
|
10,851
|
|
|
10,934
|
|
|
Production
services
|
69,631
|
|
|
68,907
|
|
|
66,340
|
|
|
Consolidated
operating costs
|
$
|
108,585
|
|
|
$
|
102,766
|
|
|
$
|
103,989
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
15,540
|
|
|
$
|
15,028
|
|
|
$
|
14,917
|
|
|
International
drilling
|
5,158
|
|
|
4,650
|
|
|
6,610
|
|
|
Drilling
services
|
20,698
|
|
|
19,678
|
|
|
21,527
|
|
|
Well
servicing
|
7,358
|
|
|
5,544
|
|
|
7,044
|
|
|
Wireline
services
|
6,527
|
|
|
14,115
|
|
|
7,171
|
|
|
Coiled tubing
services
|
3,400
|
|
|
2,375
|
|
|
1,774
|
|
|
Production
services
|
17,285
|
|
|
22,034
|
|
|
15,989
|
|
|
Consolidated gross
margin
|
$
|
37,983
|
|
|
$
|
41,712
|
|
|
$
|
37,516
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
Net loss
|
$
|
(15,115)
|
|
|
$
|
(11,139)
|
|
|
$
|
(14,487)
|
|
|
Adjusted EBITDA
(1)
|
$
|
19,922
|
|
|
$
|
23,409
|
|
|
$
|
20,774
|
|
|
|
(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
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
Domestic
drilling:
|
|
|
|
|
|
|
Average number of
drilling rigs
|
16
|
|
|
16
|
|
|
16
|
|
|
Utilization
rate
|
97
|
%
|
|
100
|
%
|
|
99
|
%
|
|
Revenue
days
|
1,420
|
|
|
1,440
|
|
|
1,455
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
26,767
|
|
|
$
|
24,949
|
|
|
$
|
25,794
|
|
|
Average operating
costs per day
|
15,823
|
|
|
14,513
|
|
|
15,542
|
|
|
Average margin per
day
|
$
|
10,944
|
|
|
$
|
10,436
|
|
|
$
|
10,252
|
|
|
|
|
|
|
|
|
International
drilling:
|
|
|
|
|
|
|
Average number of
drilling rigs
|
8
|
|
|
8
|
|
|
8
|
|
|
Utilization
rate
|
81
|
%
|
|
76
|
%
|
|
71
|
%
|
|
Revenue
days
|
580
|
|
|
550
|
|
|
525
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
37,316
|
|
|
$
|
32,020
|
|
|
$
|
41,230
|
|
|
Average operating
costs per day
|
28,422
|
|
|
23,565
|
|
|
28,640
|
|
|
Average margin per
day
|
$
|
8,894
|
|
|
$
|
8,455
|
|
|
$
|
12,590
|
|
|
|
|
|
|
|
|
Drilling services
business:
|
|
|
|
|
|
|
Average number of
drilling rigs
|
24
|
|
|
24
|
|
|
24
|
|
|
Utilization
rate
|
92
|
%
|
|
92
|
%
|
|
90
|
%
|
|
Revenue
days
|
2,000
|
|
|
1,990
|
|
|
1,980
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
29,826
|
|
|
$
|
26,903
|
|
|
$
|
29,887
|
|
|
Average operating
costs per day
|
19,477
|
|
|
17,015
|
|
|
19,015
|
|
|
Average margin per
day
|
$
|
10,349
|
|
|
$
|
9,888
|
|
|
$
|
10,872
|
|
|
|
|
|
|
|
|
Well
servicing:
|
|
|
|
|
|
|
Average number of
rigs
|
125
|
|
|
125
|
|
|
125
|
|
|
Utilization
rate
|
54
|
%
|
|
47
|
%
|
|
50
|
%
|
|
Rig hours
|
47,064
|
|
|
40,774
|
|
|
44,051
|
|
|
Average revenue per
hour
|
$
|
558
|
|
|
$
|
518
|
|
|
$
|
571
|
|
|
|
|
|
|
|
|
Wireline
services:
|
|
|
|
|
|
|
Average number of
units
|
105
|
|
|
110
|
|
|
105
|
|
|
Number of
jobs
|
2,342
|
|
|
2,830
|
|
|
2,407
|
|
|
Average revenue per
job
|
$
|
19,588
|
|
|
$
|
20,000
|
|
|
$
|
18,474
|
|
|
|
|
|
|
|
|
Coiled tubing
services:
|
|
|
|
|
|
|
Average number of
units
|
9
|
|
|
14
|
|
|
8
|
|
|
Revenue
days
|
351
|
|
|
414
|
|
|
346
|
|
|
Average revenue per
day
|
$
|
42,131
|
|
|
$
|
31,947
|
|
|
$
|
36,728
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
and Consolidated
Gross Margin
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Three months
ended
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(15,115)
|
|
|
$
|
(11,139)
|
|
|
$
|
(14,487)
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
22,653
|
|
|
23,747
|
|
|
23,019
|
|
|
Impairment
|
1,046
|
|
|
—
|
|
|
1,815
|
|
|
Interest
expense
|
9,885
|
|
|
9,513
|
|
|
9,816
|
|
|
Income tax
expense
|
1,453
|
|
|
1,288
|
|
|
611
|
|
|
Adjusted
EBITDA(1)
|
19,922
|
|
|
23,409
|
|
|
20,774
|
|
|
|
|
|
|
|
|
General and
administrative
|
19,758
|
|
|
19,194
|
|
|
16,051
|
|
|
Bad debt expense
(recovery), net
|
62
|
|
|
(52)
|
|
|
582
|
|
|
Gain on dispositions
of property and equipment, net
|
(1,075)
|
|
|
(335)
|
|
|
(199)
|
|
|
Other expense
(income)
|
(684)
|
|
|
(504)
|
|
|
308
|
|
|
Consolidated gross
margin
|
$
|
37,983
|
|
|
$
|
41,712
|
|
|
$
|
37,516
|
|
|
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
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(15,115)
|
|
|
$
|
(11,139)
|
|
|
$
|
(14,487)
|
|
|
Impairment
|
1,046
|
|
|
—
|
|
|
1,815
|
|
|
Tax benefit related
to adjustments
|
(242)
|
|
|
—
|
|
|
(426)
|
|
|
Valuation allowance
adjustments on deferred tax assets
|
3,846
|
|
|
4,190
|
|
|
(2,236)
|
|
|
Effect of
change in tax rates
|
—
|
|
|
—
|
|
|
1,692
|
|
|
Adjusted net
loss(2)
|
$
|
(10,465)
|
|
|
$
|
(6,949)
|
|
|
$
|
(13,642)
|
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding, as reported
|
78,311
|
|
|
77,606
|
|
|
78,136
|
|
|
Effect of dilutive
securities
|
—
|
|
|
—
|
|
|
—
|
|
|
Diluted weighted
average number of shares outstanding, as adjusted
|
78,311
|
|
|
77,606
|
|
|
78,136
|
|
|
|
|
|
|
|
|
Adjusted (diluted)
EPS(3)
|
$
|
(0.13)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.17)
|
|
|
|
|
|
|
|
|
Diluted EPS as
reported
|
$
|
(0.19)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.19)
|
|
|
|
(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 May 2,
2019
|
|
|
Multi-well,
Pad-capable
|
|
Drilling Services
Business Segments:
|
AC
rigs
|
|
SCR
rigs
|
|
Total
|
|
Domestic
drilling
|
17
|
|
|
—
|
|
|
17
|
|
|
International
drilling
|
—
|
|
|
8
|
|
|
8
|
|
|
|
|
|
|
25
|
|
|
|
|
|
|
|
|
Production
Services Business Segments:
|
550
HP
|
|
600
HP
|
|
Total
|
|
Well servicing rigs,
by horsepower (HP) rating
|
113
|
|
|
12
|
|
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Wireline services
units
|
|
95
|
|
|
Coiled tubing
services units
|
|
9
|
|
View original
content:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-first-quarter-2019-results-300842394.html
SOURCE Pioneer Energy Services
