SAN ANTONIO, July 31, 2019 /PRNewswire/ -- Pioneer Energy
Services (NYSE: PES) today reported financial and operating results
for the quarter ended June 30, 2019. Second quarter highlights
include:
- International drilling fleet was 86% utilized and generated an
average margin per day of $11,023.
- Well servicing revenues increased 12% sequentially, largely
driven by a 10% increase in rig hours.
- Domestic drilling fleet was 95% utilized and generated an
average margin per day of $10,131.
- Cash and cash equivalents increased $3.3
million to $31.1 million
sequentially.
Consolidated Financial Results
Revenues for the second quarter of 2019 were $152.8 million, up 4% from revenues of
$146.6 million in the first quarter
of 2019 ("the prior quarter"). Net loss for the second quarter of
2019 was $12.9 million, or
$0.17 per share, compared with net
loss of $15.1 million, or
$0.19 per share, in the prior
quarter. Adjusted net loss(1) for the second quarter was
$11.8 million, and adjusted
EPS(2) was a loss of $0.15
per share. These results compare to an adjusted net loss of
$10.5 million, and an adjusted EPS
loss of $0.13 per share in the prior
quarter which had higher adjustments for impairment charges and
valuation allowance adjustments on deferred tax assets. Second
quarter adjusted EBITDA(3) was $20.7 million, up from $19.9 million in the prior quarter.
The increases in revenues and Adjusted EBITDA were primarily due
to improvements in our international drilling and well servicing
segments. Adjusted EBITDA also increased sequentially due to the
reduced fair value of our phantom stock awards, for which we
recognized a benefit of $0.8 million
in the second quarter, while we recognized an expense of
$0.8 million in the prior quarter.
The increases in revenues and Adjusted EBITDA were partially offset
by the impact of lower utilization and pricing in our coiled tubing
services.
Operating Results
Production Services Business
Revenue from our production services business was $87.8 million in the second quarter, up 1% from
the prior quarter. Well servicing revenues increased 12%, primarily
driven by higher utilization for both maintenance and completion
activity. Well servicing average revenue per hour was $569 in the second quarter, up from $558 in the prior quarter, while rig utilization
was 60%, up from 54% in the prior quarter. Wireline services, our
largest production services business, experienced an increase in
perforating stage count of approximately 12%, yielding a revenue
increase of 3%. The revenue increases in well servicing and
wireline were offset by a 26% revenue decline in coiled tubing
services. Both the Rockies and Eagle Ford districts faced more
intense competition as completion activity slowed, which negatively
impacted utilization and pricing. In addition, the Rockies
experienced seasonal slowdowns due to wildlife stipulations, which
ended in early May. Coiled tubing revenue days totaled 307 in the
second quarter, as compared to 351 in the prior quarter, while
revenue per day was $35,430, down
from $42,131 in the prior
quarter.
Gross margin as a percentage of revenue from our production
services business was 17% in the second quarter, down from 20% in
the prior quarter. The decrease in gross margin was primarily due
to utilization and pricing declines in coiled tubing
services.
Drilling Services Business
Revenue from our drilling services business was $65.1 million in the second quarter, reflecting a
9% increase from the prior quarter. Average margin per day was
$10,396, up from $10,349 in the prior quarter.
Our domestic drilling fleet was 95% utilized with average
revenues per day of $26,864 in the
second quarter, up from $26,767 in
the prior quarter. Domestic drilling average margin per day was
$10,131 in the second quarter, down
from $10,944 in the prior quarter,
primarily due to increased expenses for routine annual maintenance
requirements, stacked rig costs for one rig at the end of its
contract, higher mobilization costs associated with a rig that
moved to a different region under a new contract, and the benefit
in the previous quarter of $0.3
million, or approximately $235
per day, from recognition of the early termination of a domestic
drilling contract.
International drilling rig utilization was 86% for the second
quarter, up from 81% in the prior quarter. Average revenues per day
were $40,806, up from $37,316 in the prior quarter, while average
margin per day for the second quarter was $11,023, up from $8,894 in the prior quarter. The increases in
revenue per day and margin per day were due to a greater number of
days drilling in the current quarter, versus the prior quarter, as
well as dayrate increases on certain rigs of approximately
$1,000 per day.
Currently, 16 of our 17 domestic drilling rigs are earning
revenues, 14 of which are under term contracts. Nine rigs are
working in the Permian, five in Appalachia and two in the Bakken.
Seven of the nine rigs in the Permian have contracts up for renewal
in the third or fourth quarters of 2019. Five of those seven
contracts have been extended or verbally agreed to be renewed, and
two contracts are currently in negotiations to be extended. All
contracts are expected to be renewed at roughly overall flat
dayrates. In Appalachia, one rig is stacked and a second rig may
stack in the third quarter; however, we expect the remaining four
rigs to continue earning for the remainder of the year. In the
Bakken, both of the contracted rigs expiring in the fourth quarter
are in negotiations to be extended into the first quarter of
2020.
In Colombia, six of our eight
rigs are currently earning revenue under daywork contracts. While
overall demand for rigs remains strong, there are several rigs that
may begin new contracts, move to a different current client or move
to a new client which could cause a temporary reduction in
utilization. Despite short-term uncertainty on certain contracts,
we do expect five to seven of the rigs to remain active for the
remainder of 2019.
Comments from our President and
CEO
"We had solid performance once again from our drilling services
segments which helped us generate favorable operating results and
increase our cash position in the quarter," said Wm. Stacy Locke, President and Chief Executive
Officer. "In Colombia, we are pleased with the improvement in
average margins per day and level of demand for the premium 1,500
horsepower rig class, which gives us confidence that demand for our
rigs in that market will remain solid in 2020 despite uncertainty
about certain contract extensions for the balance of 2019. We are
very pleased with our Colombian team delivering first-rate
operational and safety performance while at the same time
generating some of the best financial results in many years.
"Our domestic drilling operations have proven to be strong and
resilient, also delivering best-in-class safety and operational
performance. Utilization rates for our domestic rigs continue to be
strong and dayrates have remained steady, although we do anticipate
some softness in the second half of the year, particularly in the
Appalachian region, where we currently have one rig idle. Our
outlook for our domestic operations remains positive.
"Our production services revenue improved sequentially; however,
our gross margins fell below expectations. Despite challenging
market conditions, we are focused on improving margins through
realignment of certain businesses and reducing costs. Our well
servicing business benefited from customers dedicating capital to
well maintenance to boost or maintain production volumes. We also
experienced higher utilization for completion-related services in
this business. While our wireline revenue improved sequentially,
coiled tubing activity was lower due to excess equipment capacity
and seasonal factors in the Rockies. Poor visibility concerning
completion activity in the second half of 2019 creates uncertainty
regarding production services activity levels in the next two
quarters. We do expect some customers to pause operations due to
budget constraints for a period of time during the second half of
2019.
"For the remainder of the year, we remain focused on cash flow
generation. We expect the second half of 2019 to be cash flow
positive, with the third quarter likely to reflect a use of cash
due to the semi-annual bond payment in September. Remaining capital
expenditures will be routine maintenance in nature as the majority
of discretionary spending was completed in the first half of 2019.
While the Term Loan does not mature until December 2021, we are proactively exploring
various strategic and other alternatives to address the
uncertainties related to our ability to refinance our outstanding
debts as their maturities approach," concluded Mr. Locke.
Third Quarter 2019 Guidance
In the third quarter of 2019, we expect continued weakness in
coiled tubing services, a modest softening in well servicing, and
certain clients reducing activity in wireline services. As a
result, we expect revenue from our production services business
segments to be down approximately 3% to 6% as compared to the
second quarter of 2019, and margins to be flat at approximately 17%
of revenue.
Due to the potential for an additional stacked rig in the
Appalachia market, we expect domestic drilling services rig
utilization to average approximately 88% to 92%, and generate
average margins per day of approximately $9,700 to $10,200.
Similarly, with the contract uncertainty in Colombia, we expect international drilling
services rig utilization to average approximately 70% to 75%, and
generate average margins per day of approximately $9,000 to $10,000.
We expect general and administrative expense to be approximately
$20 million in the third quarter of
2019 partially due to higher phantom stock compensation expense
relative to the prior quarter.
Liquidity
Working capital at June 30, 2019
was $106.5 million, up
from $103.7 million at March 31,
2019, and down from $110.3 million at
December 31, 2018. Cash and cash equivalents, including
restricted cash, were $31.1 million,
up from $27.9 million at
March 31, 2019, and down from $54.6
million at year-end 2018. During the six months ended
June 30, 2019, we used $31.4
million of cash for the purchase of property and equipment,
and our cash provided by operations was $4.0
million.
Capital Expenditures
Cash capital expenditures during the six months ended
June 30, 2019 were $31.4
million, including capitalized interest. We estimate total
cash capital expenditures for 2019 to be approximately $50 million, which includes approximately
$8 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 August 7th. To access the replay, dial
(201) 612-7415 and enter the pass code 13692092.
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. These
forward-looking statements are based on our current beliefs,
intentions, and expectations and are not guarantees or indicators
of future performance. Our actual results, performance or
achievements, or industry results, could differ materially from
those we express in the foregoing 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, future compliance with the listing requirements
of the NYSE, 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 Quarterly Report on Form 10-Q for the
quarterly period ended June 30, 2019
and in our Annual Report on Form 10-K for the year ended
December 31, 2018, including under
the headings "Risk Factors" in Item 1A and "Special Note Regarding
Forward-Looking Statements" in the Introductory Note to Part I.
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
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
152,843
|
|
|
$
|
154,782
|
|
|
$
|
146,568
|
|
|
$
|
299,411
|
|
|
$
|
299,260
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
115,970
|
|
|
114,197
|
|
|
108,585
|
|
|
224,555
|
|
|
216,963
|
|
|
Depreciation
|
22,851
|
|
|
23,287
|
|
|
22,653
|
|
|
45,504
|
|
|
47,034
|
|
|
General and
administrative
|
18,028
|
|
|
24,829
|
|
|
19,758
|
|
|
37,786
|
|
|
44,023
|
|
|
Bad debt expense
(recovery), net
|
(348)
|
|
|
(370)
|
|
|
62
|
|
|
(286)
|
|
|
(422)
|
|
|
Impairment
|
332
|
|
|
2,368
|
|
|
1,046
|
|
|
1,378
|
|
|
2,368
|
|
|
Gain on dispositions
of property and equipment, net
|
(1,126)
|
|
|
(726)
|
|
|
(1,075)
|
|
|
(2,201)
|
|
|
(1,061)
|
|
|
Total costs and
expenses
|
155,707
|
|
|
163,585
|
|
|
151,029
|
|
|
306,736
|
|
|
308,905
|
|
|
Loss from
operations
|
(2,864)
|
|
|
(8,803)
|
|
|
(4,461)
|
|
|
(7,325)
|
|
|
(9,645)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest capitalized
|
(10,105)
|
|
|
(9,642)
|
|
|
(9,885)
|
|
|
(19,990)
|
|
|
(19,155)
|
|
|
Other income,
net
|
349
|
|
|
44
|
|
|
684
|
|
|
1,033
|
|
|
548
|
|
|
Total other expense,
net
|
(9,756)
|
|
|
(9,598)
|
|
|
(9,201)
|
|
|
(18,957)
|
|
|
(18,607)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(12,620)
|
|
|
(18,401)
|
|
|
(13,662)
|
|
|
(26,282)
|
|
|
(28,252)
|
|
|
Income tax (expense)
benefit
|
(324)
|
|
|
249
|
|
|
(1,453)
|
|
|
(1,777)
|
|
|
(1,039)
|
|
|
Net loss
|
$
|
(12,944)
|
|
|
$
|
(18,152)
|
|
|
$
|
(15,115)
|
|
|
$
|
(28,059)
|
|
|
$
|
(29,291)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.17)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.38)
|
|
|
Diluted
|
$
|
(0.17)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.36)
|
|
|
$
|
(0.38)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
78,430
|
|
|
77,944
|
|
|
78,311
|
|
|
78,371
|
|
|
77,776
|
|
|
Diluted
|
78,430
|
|
|
77,944
|
|
|
78,311
|
|
|
78,371
|
|
|
77,776
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Condensed
Consolidated Balance Sheets
|
|
(in
thousands)
|
|
|
June 30,
2019
|
|
December 31,
2018
|
|
(unaudited)
|
|
(audited)
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
30,132
|
|
|
$
|
53,566
|
|
|
Restricted
cash
|
998
|
|
|
998
|
|
|
Receivables, net of
allowance for doubtful accounts
|
145,572
|
|
|
130,881
|
|
|
Inventory
|
22,800
|
|
|
18,898
|
|
|
Assets held for
sale
|
5,962
|
|
|
3,582
|
|
|
Prepaid expenses and
other current assets
|
7,061
|
|
|
7,109
|
|
|
Total current
assets
|
212,525
|
|
|
215,034
|
|
|
|
|
|
|
Net property and
equipment
|
500,843
|
|
|
524,858
|
|
|
Operating lease
assets
|
8,775
|
|
|
—
|
|
|
Other noncurrent
assets
|
1,526
|
|
|
1,658
|
|
|
Total
assets
|
$
|
723,669
|
|
|
$
|
741,550
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
41,019
|
|
|
$
|
34,134
|
|
|
Deferred
revenues
|
1,420
|
|
|
1,722
|
|
|
Accrued
expenses
|
63,561
|
|
|
68,912
|
|
|
Total current
liabilities
|
106,000
|
|
|
104,768
|
|
|
|
|
|
|
Long-term debt, less
unamortized discount and debt issuance costs
|
466,093
|
|
|
464,552
|
|
|
Noncurrent operating
lease liabilities
|
6,495
|
|
|
—
|
|
|
Deferred income
taxes
|
4,913
|
|
|
3,688
|
|
|
Other noncurrent
liabilities
|
1,823
|
|
|
3,484
|
|
|
Total
liabilities
|
585,324
|
|
|
576,492
|
|
|
Total shareholders'
equity
|
138,345
|
|
|
165,058
|
|
|
Total liabilities and
shareholders' equity
|
$
|
723,669
|
|
|
$
|
741,550
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Six months
ended
|
|
June
30,
|
|
2019
|
|
2018
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
|
(28,059)
|
|
|
$
|
(29,291)
|
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation
|
45,504
|
|
|
47,034
|
|
|
Allowance for
doubtful accounts, net of recoveries
|
(286)
|
|
|
(422)
|
|
|
Gain on dispositions
of property and equipment, net
|
(2,201)
|
|
|
(1,061)
|
|
|
Stock-based
compensation expense
|
1,194
|
|
|
2,356
|
|
|
Phantom stock
compensation expense
|
51
|
|
|
6,529
|
|
|
Amortization of debt
issuance costs and discount
|
1,541
|
|
|
1,422
|
|
|
Impairment
|
1,378
|
|
|
2,368
|
|
|
Deferred income
taxes
|
1,225
|
|
|
273
|
|
|
Change in other
noncurrent assets
|
1,476
|
|
|
(199)
|
|
|
Change in other
noncurrent liabilities
|
(2,493)
|
|
|
(10,009)
|
|
|
Changes in current
assets and liabilities:
|
(15,284)
|
|
|
(1,875)
|
|
|
Net cash provided by
operating activities
|
4,046
|
|
|
17,125
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment
|
(31,382)
|
|
|
(31,485)
|
|
|
Proceeds from sale of
property and equipment
|
3,439
|
|
|
2,225
|
|
|
Proceeds from
insurance recoveries
|
588
|
|
|
541
|
|
|
Net cash used in
investing activities
|
(27,355)
|
|
|
(28,719)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
exercise of options
|
—
|
|
|
12
|
|
|
Purchase of treasury
stock
|
(125)
|
|
|
(549)
|
|
|
Net cash used in
financing activities
|
(125)
|
|
|
(537)
|
|
|
|
|
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(23,434)
|
|
|
(12,131)
|
|
|
Beginning cash, cash
equivalents and restricted cash
|
54,564
|
|
|
75,648
|
|
|
Ending cash, cash
equivalents and restricted cash
|
$
|
31,130
|
|
|
$
|
63,517
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Operating Results
by Segment
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
39,652
|
|
|
$
|
35,634
|
|
|
$
|
38,009
|
|
|
$
|
77,661
|
|
|
$
|
71,560
|
|
|
International
drilling
|
25,422
|
|
|
21,773
|
|
|
21,643
|
|
|
47,065
|
|
|
39,384
|
|
|
Drilling
services
|
65,074
|
|
|
57,407
|
|
|
59,652
|
|
|
124,726
|
|
|
110,944
|
|
|
Well
servicing
|
29,506
|
|
|
23,162
|
|
|
26,254
|
|
|
55,760
|
|
|
44,276
|
|
|
Wireline
services
|
47,386
|
|
|
62,137
|
|
|
45,874
|
|
|
93,260
|
|
|
118,738
|
|
|
Coiled tubing
services
|
10,877
|
|
|
12,076
|
|
|
14,788
|
|
|
25,665
|
|
|
25,302
|
|
|
Production
services
|
87,769
|
|
|
97,375
|
|
|
86,916
|
|
|
174,685
|
|
|
188,316
|
|
|
Consolidated
revenues
|
$
|
152,843
|
|
|
$
|
154,782
|
|
|
$
|
146,568
|
|
|
$
|
299,411
|
|
|
$
|
299,260
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
24,698
|
|
|
$
|
21,749
|
|
|
$
|
22,469
|
|
|
$
|
47,167
|
|
|
$
|
42,647
|
|
|
International
drilling
|
18,555
|
|
|
17,064
|
|
|
16,485
|
|
|
35,040
|
|
|
30,025
|
|
|
Drilling
services
|
43,253
|
|
|
38,813
|
|
|
38,954
|
|
|
82,207
|
|
|
72,672
|
|
|
Well
servicing
|
21,038
|
|
|
16,680
|
|
|
18,896
|
|
|
39,934
|
|
|
32,250
|
|
|
Wireline
services
|
41,804
|
|
|
46,716
|
|
|
39,347
|
|
|
81,151
|
|
|
89,202
|
|
|
Coiled tubing
services
|
9,875
|
|
|
11,988
|
|
|
11,388
|
|
|
21,263
|
|
|
22,839
|
|
|
Production
services
|
72,717
|
|
|
75,384
|
|
|
69,631
|
|
|
142,348
|
|
|
144,291
|
|
|
Consolidated
operating costs
|
$
|
115,970
|
|
|
$
|
114,197
|
|
|
$
|
108,585
|
|
|
$
|
224,555
|
|
|
$
|
216,963
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
|
|
|
Domestic
drilling
|
$
|
14,954
|
|
|
$
|
13,885
|
|
|
$
|
15,540
|
|
|
$
|
30,494
|
|
|
$
|
28,913
|
|
|
International
drilling
|
6,867
|
|
|
4,709
|
|
|
5,158
|
|
|
12,025
|
|
|
9,359
|
|
|
Drilling
services
|
21,821
|
|
|
18,594
|
|
|
20,698
|
|
|
42,519
|
|
|
38,272
|
|
|
Well
servicing
|
8,468
|
|
|
6,482
|
|
|
7,358
|
|
|
15,826
|
|
|
12,026
|
|
|
Wireline
services
|
5,582
|
|
|
15,421
|
|
|
6,527
|
|
|
12,109
|
|
|
29,536
|
|
|
Coiled tubing
services
|
1,002
|
|
|
88
|
|
|
3,400
|
|
|
4,402
|
|
|
2,463
|
|
|
Production
services
|
15,052
|
|
|
21,991
|
|
|
17,285
|
|
|
32,337
|
|
|
44,025
|
|
|
Consolidated gross
margin
|
$
|
36,873
|
|
|
$
|
40,585
|
|
|
$
|
37,983
|
|
|
$
|
74,856
|
|
|
$
|
82,297
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(12,944)
|
|
|
$
|
(18,152)
|
|
|
$
|
(15,115)
|
|
|
$
|
(28,059)
|
|
|
$
|
(29,291)
|
|
|
Adjusted EBITDA
(1)
|
$
|
20,668
|
|
|
$
|
16,896
|
|
|
$
|
19,922
|
|
|
$
|
40,590
|
|
|
$
|
40,305
|
|
|
|
(1) Adjusted
EBITDA represents income (loss) before interest expense, income tax
(expense) benefit, depreciation and amortization, impairment, and
any loss on extinguishment of debt. Adjusted EBITDA is a non-GAAP
measure that our management uses to facilitate period-to-period
comparisons of our core operating performance and to evaluate our
long-term financial performance against that of our peers. We
believe that this measure is useful to investors and analysts in
allowing for greater transparency of our core operating performance
and makes it easier to compare our results with those of other
companies within our industry. Adjusted EBITDA should not be
considered (a) in isolation of, or as a substitute for, net
income (loss), (b) as an indication of cash flows from
operating activities or (c) as a measure of liquidity. In
addition, Adjusted EBITDA does not represent funds available for
discretionary use. Adjusted EBITDA may not be comparable to other
similarly titled measures reported by other companies. A
reconciliation of net loss as reported to adjusted EBITDA is
included in the table on page 13.
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Operating
Statistics
|
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
drilling:
|
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
17
|
|
|
16
|
|
|
16
|
|
|
17
|
|
|
16
|
|
|
Utilization
rate
|
95
|
%
|
|
100
|
%
|
|
97
|
%
|
|
96
|
%
|
|
100
|
%
|
|
Revenue
days
|
1,476
|
|
|
1,454
|
|
|
1,420
|
|
|
2,896
|
|
|
2,894
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
26,864
|
|
|
$
|
24,508
|
|
|
$
|
26,767
|
|
|
$
|
26,817
|
|
|
$
|
24,727
|
|
|
Average operating
costs per day
|
16,733
|
|
|
14,958
|
|
|
15,823
|
|
|
16,287
|
|
|
14,736
|
|
|
Average margin per
day
|
$
|
10,131
|
|
|
$
|
9,550
|
|
|
$
|
10,944
|
|
|
$
|
10,530
|
|
|
$
|
9,991
|
|
|
|
|
|
|
|
|
|
|
|
|
International
drilling:
|
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
8
|
|
|
Utilization
rate
|
86
|
%
|
|
85
|
%
|
|
81
|
%
|
|
83
|
%
|
|
81
|
%
|
|
Revenue
days
|
623
|
|
|
621
|
|
|
580
|
|
|
1,203
|
|
|
1,171
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
40,806
|
|
|
$
|
35,061
|
|
|
$
|
37,316
|
|
|
$
|
39,123
|
|
|
$
|
33,633
|
|
|
Average operating
costs per day
|
29,783
|
|
|
27,478
|
|
|
28,422
|
|
|
29,127
|
|
|
25,640
|
|
|
Average margin per
day
|
$
|
11,023
|
|
|
$
|
7,583
|
|
|
$
|
8,894
|
|
|
$
|
9,996
|
|
|
$
|
7,993
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling services
business:
|
|
|
|
|
|
|
|
|
|
|
Average number of
drilling rigs
|
25
|
|
|
24
|
|
|
24
|
|
|
25
|
|
|
24
|
|
|
Utilization
rate
|
92
|
%
|
|
95
|
%
|
|
92
|
%
|
|
92
|
%
|
|
94
|
%
|
|
Revenue
days
|
2,099
|
|
|
2,075
|
|
|
2,000
|
|
|
4,099
|
|
|
4,065
|
|
|
|
|
|
|
|
|
|
|
|
|
Average revenues per
day
|
$
|
31,002
|
|
|
$
|
27,666
|
|
|
$
|
29,826
|
|
|
$
|
30,428
|
|
|
$
|
27,292
|
|
|
Average operating
costs per day
|
20,606
|
|
|
18,705
|
|
|
19,477
|
|
|
20,055
|
|
|
17,877
|
|
|
Average margin per
day
|
$
|
10,396
|
|
|
$
|
8,961
|
|
|
$
|
10,349
|
|
|
$
|
10,373
|
|
|
$
|
9,415
|
|
|
|
|
|
|
|
|
|
|
|
|
Well
servicing:
|
|
|
|
|
|
|
|
|
|
|
Average number of
rigs
|
125
|
|
|
125
|
|
|
125
|
|
|
125
|
|
|
125
|
|
|
Utilization
rate
|
60
|
%
|
|
49
|
%
|
|
54
|
%
|
|
57
|
%
|
|
48
|
%
|
|
Rig hours
|
51,895
|
|
|
42,871
|
|
|
47,064
|
|
|
98,959
|
|
|
83,645
|
|
|
Average revenue per
hour
|
$
|
569
|
|
|
$
|
540
|
|
|
$
|
558
|
|
|
$
|
563
|
|
|
$
|
529
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireline
services:
|
|
|
|
|
|
|
|
|
|
|
Average number of
units
|
95
|
|
|
108
|
|
|
105
|
|
|
100
|
|
|
108
|
|
|
Number of
jobs
|
2,278
|
|
|
3,022
|
|
|
2,342
|
|
|
4,620
|
|
|
5,852
|
|
|
Average revenue per
job
|
$
|
20,802
|
|
|
$
|
20,562
|
|
|
$
|
19,588
|
|
|
$
|
20,186
|
|
|
$
|
20,290
|
|
|
|
|
|
|
|
|
|
|
|
|
Coiled tubing
services:
|
|
|
|
|
|
|
|
|
|
|
Average number of
units
|
9
|
|
|
14
|
|
|
9
|
|
|
9
|
|
|
14
|
|
|
Revenue
days
|
307
|
|
|
350
|
|
|
351
|
|
|
658
|
|
|
764
|
|
|
Average revenue per
day
|
$
|
35,430
|
|
|
$
|
34,503
|
|
|
$
|
42,131
|
|
|
$
|
39,005
|
|
|
$
|
33,118
|
|
|
PIONEER ENERGY
SERVICES CORP. AND SUBSIDIARIES
|
|
Reconciliation of
Net Loss to Adjusted EBITDA
|
|
and Consolidated
Gross Margin
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Net loss as
reported
|
$
|
(12,944)
|
|
|
$
|
(18,152)
|
|
|
$
|
(15,115)
|
|
|
$
|
(28,059)
|
|
|
$
|
(29,291)
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
22,851
|
|
|
23,287
|
|
|
22,653
|
|
|
45,504
|
|
|
47,034
|
|
|
Impairment
|
332
|
|
|
2,368
|
|
|
1,046
|
|
|
1,378
|
|
|
2,368
|
|
|
Interest
expense
|
10,105
|
|
|
9,642
|
|
|
9,885
|
|
|
19,990
|
|
|
19,155
|
|
|
Income tax expense
(benefit)
|
324
|
|
|
(249)
|
|
|
1,453
|
|
|
1,777
|
|
|
1,039
|
|
|
Adjusted
EBITDA(1)
|
20,668
|
|
|
16,896
|
|
|
19,922
|
|
|
40,590
|
|
|
40,305
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
18,028
|
|
|
24,829
|
|
|
19,758
|
|
|
37,786
|
|
|
44,023
|
|
|
Bad debt expense
(recovery), net
|
(348)
|
|
|
(370)
|
|
|
62
|
|
|
(286)
|
|
|
(422)
|
|
|
Gain on dispositions
of property and equipment, net
|
(1,126)
|
|
|
(726)
|
|
|
(1,075)
|
|
|
(2,201)
|
|
|
(1,061)
|
|
|
Other
income
|
(349)
|
|
|
(44)
|
|
|
(684)
|
|
|
(1,033)
|
|
|
(548)
|
|
|
Consolidated gross
margin
|
$
|
36,873
|
|
|
$
|
40,585
|
|
|
$
|
37,983
|
|
|
$
|
74,856
|
|
|
$
|
82,297
|
|
|
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,
|
|
2019
|
|
2019
|
|
|
|
|
|
Net loss as
reported
|
$
|
(12,944)
|
|
|
$
|
(15,115)
|
|
|
Impairment
|
332
|
|
|
1,046
|
|
|
Tax benefit related
to adjustments
|
(77)
|
|
|
(242)
|
|
|
Valuation allowance
adjustments on deferred tax assets
|
884
|
|
|
3,846
|
|
|
Adjusted net
loss(2)
|
$
|
(11,805)
|
|
|
$
|
(10,465)
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding, as reported
|
78,430
|
|
|
78,311
|
|
|
Effect of dilutive
securities
|
—
|
|
|
—
|
|
|
Diluted weighted
average number of shares outstanding, as adjusted
|
78,430
|
|
|
78,311
|
|
|
|
|
|
|
Adjusted (diluted)
EPS(3)
|
$
|
(0.15)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
Diluted EPS as
reported
|
$
|
(0.17)
|
|
|
$
|
(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
July 31, 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
|
|
93
|
|
Coiled tubing
services units
|
|
9
|
View original
content:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-second-quarter-2019-results-300893659.html
SOURCE Pioneer Energy Services