Pioneer Energy Services Reports Fourth Quarter 2017 Results
SAN ANTONIO, Feb. 16, 2018 /PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today reported financial and operating results for the quarter ended December 31, 2017. Notable items and recent developments include:
-- Entered into a new $175 million term loan and a $75 million revolving
asset-based lending facility in November, which provides improved
liquidity, less restrictive covenants, and extended debt maturities.
-- Domestic drilling services utilization was 100% with an average margin
per day of $9,411 in the fourth quarter.
-- In Colombia, the seventh drilling rig is preparing to mobilize to begin
operations early in the second quarter, which will lead to approximately
87% utilization.
-- Coiled tubing revenue increased 29%, and generated 24% gross margins in
the fourth quarter.
-- Completed another year of safety excellence with a Total Recordable
Incident Rate of less than 1.0.
Consolidated Financial Results
Revenues for the fourth quarter of 2017 were $126.3 million, up 8% from revenues of $117.3 million in the third quarter of 2017 ("the prior quarter") and up 77% from revenues of $71.5 million in the fourth quarter of 2016 ("the year-earlier quarter"). The increase from the prior quarter is primarily attributable to an increase in drilling activity in Colombia, where we ended the year with six drilling rigs working.
Net loss for the fourth quarter of 2017 was $12.6 million, or $0.16 per share, compared with net loss of $17.2 million, or $0.22 per share, in the prior quarter and net loss of $36.1 million, or $0.53 per share, in the year-earlier quarter. Adjusted net loss(1) for the fourth quarter was $11.1 million, and adjusted EPS(2) was a loss of $0.14 per share as compared to adjusted net loss of $11.3 million, or an adjusted EPS loss of $0.15 per share, in the prior quarter.
The Tax Cuts and Jobs Act of 2017 was enacted in late December and significantly changed U.S. tax law by, among other things, lowering corporate income tax rates and repealing of the alternative minimum tax ("AMT"). Due to the reduction in tax rates, net deferred tax assets were re-valued resulting in a tax expense which was then fully offset by a reduction of the valuation allowance. Additionally, the repeal of the AMT resulted in a $5.4 million tax benefit for the year-ended December 31, 2017 due to a reduction in the valuation allowance.
Fourth quarter adjusted EBITDA((3)) was $17.0 million, up from $14.0 million in the prior quarter as two additional rigs were mobilized in Colombia and began operations in the quarter, and up from $0.9 million in the year-earlier quarter. The increase from the year-earlier quarter was due to increased demand for all of our service offerings as the market steadily improved with increasing commodity prices throughout 2017.
Operating Results
Production Services Business
Revenue from our production services business was $76.0 million in the fourth quarter, up 2% from the prior quarter and up 86% from the year-earlier quarter. Gross margin as a percentage of revenue from our production services business was 22% in the fourth quarter, flat with the prior quarter and up when compared with 14% in the year-earlier quarter.
The increase in revenues from our production services business from the prior quarter was driven by our coiled tubing services segment, for which revenues were up 29%, reflecting increased demand and revenue rates for our large-diameter, completion-related services. As compared to the year-earlier quarter, activity and revenue rates have improved for all of our production services business segments resulting in increased revenues of 86%. Fourth quarter results for our production services business reflect the impact of icy, winter weather conditions and the usual holiday-related activity slowdown at year-end.
The number of wireline jobs completed in the fourth quarter decreased by 6% sequentially, and increased by 11% as compared to the year-earlier quarter. Well servicing average revenue per hour was $518 in the fourth quarter, down from $529 in the prior quarter and up from $481 in the year-earlier quarter. Well servicing rig utilization was 40% in the fourth quarter, 43% in the prior quarter and 40% in the year-earlier quarter. Coiled tubing revenue days totaled 423 in the fourth quarter and 368 in the prior quarter while revenue days in the year-earlier quarter totaled 332.
Drilling Services Business
Revenue from our drilling services business was $50.3 million in the fourth quarter, an 18% increase from the prior quarter and a 64% increase from the year-earlier quarter.
Domestic drilling services rig utilization was 100% for both the fourth quarter and the prior quarter, up from 56% in the year-earlier quarter. Domestic drilling average revenues per day were $23,993 in the fourth quarter, up from $23,872 in the prior quarter and up from $22,225 in the year-earlier quarter. Domestic drilling average margin per day was $9,411 in the fourth quarter, up from $9,083 in the prior quarter and up from $8,044 in the year-earlier quarter driven by increasing dayrates and minimal operational downtime.
International drilling services rig utilization was 65% for the fourth quarter, up from 38% in the prior quarter and up from 24% in the year-earlier quarter. International drilling average revenues per day were $31,188, up from $26,159 in the prior quarter and up from $27,913 in the year-earlier quarter. International drilling average margin per day for the fourth quarter was $6,582, up from $2,777 in the prior quarter and up from $676 in the year-earlier quarter. In the fourth quarter, we achieved the highest level of utilization in Colombia since year-end 2014.
Currently, all 16 of our domestic drilling rigs are earning revenues, 14 of which are under term contracts, and six of our eight rigs in Colombia are earning revenue, resulting in current utilization of 92%.
Comments from our President and CEO
"Looking back at 2017, we took numerous steps to strengthen our business, make all of our service lines more competitive in the current environment, and further drive efficiencies to lower costs and increase profitability," said Wm. Stacy Locke, Pioneer President and Chief Executive Officer.
"Continuing our multi-year fleet transformation program, during 2017 we sold two less competitive domestic drilling rigs, 16 older wireline units and two smaller-diameter coiled tubing units. We also exchanged 20 older well servicing rigs for 20 new-model well servicing rigs, and took delivery of four new wireline units.
"We have taken delivery of two additional wireline units in 2018 and have ordered a third wireline unit and a new large-diameter coiled tubing unit to improve our positioning in the well-completion business that drove revenue growth throughout 2017. We will continue to evaluate additional, yet modest, accretive organic growth opportunities over the course of the year in all service lines; however, those decisions will be based on our ability to fund those opportunities through cash flow from operations or the sale of assets.
"Our continued focus on providing best-in-class service and performance in our core services: drilling, wireline, well servicing and coiled tubing; has positioned us well for the improved market conditions we see today. We are very encouraged by the sustained higher oil prices and the increased demand for our services.
"Our domestic and international drilling operations continue to perform at high levels. Our industry-leading domestic drilling average margins per day increased another 4% to $9,411 per day in the fourth quarter, as compared to the prior quarter. In Colombia, we expect to have seven of eight rigs working by the second quarter. The outlook in both domestic and international markets is very positive for 2018.
"In production services, activity remained strong in the fourth quarter, and we anticipate higher demand in 2018, as rig count and completion activity gradually increase. Higher demand will allow us to activate idled equipment and improve pricing in all three businesses in 2018. Throughout 2017, we used idle equipment to expand into new markets, and we will continue to seek new opportunities in 2018. In wireline services, we established a leadership position in three key markets. In coiled tubing services, we successfully established a new market position, which immediately contributed to the revenue growth in the fourth quarter. We also established a new market position in well servicing; however, 2017 remained somewhat sluggish for a majority of the year. So far in 2018, with higher oil prices, we see utilization increasing.
"Late in 2017, we closed on a new $175 million term loan and $75 million asset-based lending facility to replace our $150 million revolving credit facility. This transaction provides significant liquidity, relief from restrictive covenants, and extends our debt maturities, which will allow us to better participate in the gradually strengthening market," Mr. Locke said.
First Quarter 2018 Guidance
In the first quarter of 2018, revenue from our production services business segments is estimated to be up approximately 10% to 15% as compared to the fourth quarter of 2017. Margin from our production services business is estimated to be 24% to 26% of revenue in the first quarter. Domestic drilling services rig utilization in the first quarter is estimated to be 100% and generate average margins per day of approximately $9,400 to $9,700. International drilling services rig utilization is estimated to average 70% to 75%, and generate average margins per day of approximately $7,000 to $8,000.
Liquidity
In November 2017, we entered into a new $175 million term loan and a $75 million senior secured revolving asset-based lending facility. We used the proceeds from the term loan to, among other things, repay and retire the outstanding balance on our previous revolving credit facility.
Working capital at December 31, 2017 was $130.6 million, up from $48.0 million at December 31, 2016. Cash and cash equivalents were $73.6 million, up from $10.2 million at year-end 2016.
During 2017, we used $63.3 million of cash for the purchases of property and equipment and used $5.8 million in operating activities, primarily funded by $119.2 million of net borrowings (net of debt issuance costs), $12.6 million of proceeds from the sale of assets, as well as $3.3 million of insurance proceeds received from drilling rig and wireline unit damages.
Capital Expenditures
Cash capital expenditures during 2017 were $63.3 million, including capitalized interest. We estimate total cash capital expenditures for 2018 to be approximately $55 million, which includes approximately $40 million of routine capital expenditures and $15 million of discretionary spending for the purchase of one large-diameter coiled tubing unit and remaining payments on three wireline units, two of which were delivered in January, and additional drilling and production services equipment. As the year progresses, we will continue to evaluate additional discretionary spending as long as it can be funded by cash from operations or proceeds from sales of non-strategic assets.
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 February 23(rd). To access the replay, dial (201) 612-7415 and enter the pass code 13675319.
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 Investor Relations, LLC 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, offshore Gulf of Mexico, 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 that are subject to risks, uncertainties and assumptions. Our actual results, performance or achievements, or industry results, could differ materially from those we express in the following discussion as a result of a variety of factors, including general economic and business conditions and industry trends, levels and volatility of oil and gas prices, the continued demand for drilling services or production services in the geographic areas where we operate, decisions about exploration and development projects to be made by oil and gas exploration and production companies, the highly competitive nature of our business, technological advancements and trends in our industry and improvements in our competitors' equipment, the loss of one or more of our major clients or a decrease in their demand for our services, future compliance with covenants under debt agreements, including our senior secured term loan, our senior secured revolving asset-based credit facility, and our senior notes, operating hazards inherent in our operations, the supply of marketable drilling rigs, well servicing rigs, coiled tubing units and wireline units within the industry, the continued availability of new components for drilling rigs, well servicing rigs, coiled tubing units and wireline units, the continued availability of qualified personnel, the success or failure of our acquisition strategy, including our ability to finance acquisitions, manage growth and effectively integrate acquisitions, the political, economic, regulatory and other uncertainties encountered by our operations, and changes in, or our failure or inability to comply with, governmental regulations, including those relating to the environment. We have discussed many of these factors in more detail in our Annual Report on Form 10-K for the year ended December 31, 2017, including under the headings "Special Note Regarding Forward-Looking Statements" in the Introductory Note to Part I and "Risk Factors" in Item 1A. These factors are not necessarily all the important factors that could affect us. Other unpredictable or unknown factors could also have material adverse effects on actual results of matters that are the subject of our forward-looking statements. All forward-looking statements speak only as of the date on which they are made and we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. We advise our shareholders that they should (1) recognize that important factors not referred to above could affect the accuracy of our forward-looking statements and (2) use caution and common sense when considering our forward-looking statements.
This news release contains non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable U.S. Generally Accepted Accounting Principles (GAAP) financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided in the following tables.
______________________________
(1) Adjusted net loss represents net loss as reported adjusted to exclude
impairments and loss on extinguishment of debt and the related tax
benefit, valuation allowance adjustments on deferred tax assets and
effect of change in tax rates. 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, loss on
extinguishment of debt and impairments. 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 is
included in the tables to this news release.
Contacts: Dan Petro, CFA, Treasurer and
Director of Investor Relations
Pioneer Energy Services Corp.
(210) 828-7689
Lisa Elliott / lelliott@dennardlascar.com
-----------------------------------------
Anne Pearson / apearson@dennardlascar.com
-----------------------------------------
Dennard Lascar Investor Relations / (713) 529-6600
- Financial Statements and Operating Information Follow -
PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data)
Three months ended Year ended
December 31, September 30, December 31,
2017 2016 2017 2017 2016
---- ---- ---- ---- ----
(unaudited) (audited)
Revenues $126,287 $71,481 $117,281 $446,455 $277,076
-------- ------- -------- -------- --------
Costs and expenses:
Operating costs 92,361 56,457 86,669 330,880 203,949
Depreciation and
amortization 24,422 26,903 24,623 98,777 114,312
General and administrative 18,339 15,106 17,549 69,681 61,184
Bad debt expense 151 458 491 53 156
Impairment 1,107 8,553 - 1,902 12,815
Gain on dispositions of
property and equipment,
net (1,357) (1,472) (1,159) (3,608) (1,892)
Total costs and expenses 135,023 106,005 128,173 497,685 390,524
------- ------- ------- ------- -------
Loss from operations (8,736) (34,524) (10,892) (51,230) (113,448)
------ ------- ------- ------- --------
Other income (expense):
Interest expense, net of
interest capitalized (7,949) (6,627) (6,613) (27,039) (25,934)
Loss on extinguishment of
debt (1,476) - - (1,476) (299)
Other income (expense), net 200 (16) 295 424 558
--- --- --- --- ---
Total other expense, net (9,225) (6,643) (6,318) (28,091) (25,675)
------ ------ ------ ------- -------
Loss before income taxes (17,961) (41,167) (17,210) (79,321) (139,123)
Income tax benefit 5,403 5,086 (17) 4,203 10,732
Net loss $(12,558) $(36,081) $(17,227) $(75,118) $(128,391)
======== ======== ======== ======== =========
Loss per common share:
Basic $(0.16) $(0.53) $(0.22) $(0.97) $(1.96)
====== ====== ====== ====== ======
Diluted $(0.16) $(0.53) $(0.22) $(0.97) $(1.96)
====== ====== ====== ====== ======
Weighted-average number of shares
outstanding:
Basic 77,552 67,530 77,552 77,390 65,452
====== ====== ====== ====== ======
Diluted 77,552 67,530 77,552 77,390 65,452
====== ====== ====== ====== ======
PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)
(audited)
December 31, December 31,
2017 2016
---- ----
ASSETS
------
Current assets:
Cash and cash
equivalents $73,640 $10,194
Restricted
cash 2,008 -
Receivables,
net of
allowance
for doubtful
accounts 113,005 72,123
Inventory 14,057 9,660
Assets held
for sale 6,620 15,093
Prepaid
expenses and
other
current
assets 6,229 6,926
Total current
assets 215,559 113,996
Net property
and
equipment 549,623 584,080
Other long-
term assets 1,687 2,026
Total assets $766,869 $700,102
======== ========
LIABILITIES AND SHAREHOLDERS'
EQUITY
-----------------------------
Current liabilities:
Accounts
payable $29,538 $19,208
Deferred
revenues 905 1,449
Accrued
expenses 54,471 45,345
Total current
liabilities 84,914 66,002
Long-term
debt, less
unamortized
discount and
debt
issuance
costs 461,665 339,473
Deferred
income taxes 3,151 8,180
Other long-
term
liabilities 7,043 5,049
Total
liabilities 556,773 418,704
Total
shareholders'
equity 210,096 281,398
Total
liabilities
and
shareholders'
equity $766,869 $700,102
======== ========
PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(audited)
Year ended
December 31,
2017 2016
---- ----
Cash flows from operating
activities:
Net loss $(75,118) $(128,391)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating
activities:
Depreciation
and
amortization 98,777 114,312
Allowance
for
doubtful
accounts,
net of
recoveries 53 156
Write-off
of obsolete
inventory - 101
Gain on
dispositions
of property
and
equipment,
net (3,608) (1,892)
Stock-based
compensation
expense 4,349 3,944
Amortization
of debt
issuance
costs and
discount 1,548 1,776
Loss on
extinguishment
of debt 1,476 299
Impairment 1,902 12,815
Deferred
income
taxes (5,030) (11,608)
Change in
other long-
term assets (1) 662
Change in
other long-
term
liabilities 1,994 478
Changes in
current
assets and
liabilities (32,159) 12,479
------- ------
Net cash
provided by
(used in)
operating
activities (5,817) 5,131
------ -----
Cash flows from investing
activities:
Purchases of
property
and
equipment (63,277) (32,381)
Proceeds
from sale
of property
and
equipment 12,569 7,577
Proceeds
from
insurance
recoveries 3,344 37
----- ---
Net cash
used in
investing
activities (47,364) (24,767)
------- -------
Cash flows from financing
activities:
Debt
repayments (120,000) (71,000)
Proceeds
from
issuance of
debt 245,500 22,000
Debt
issuance
costs (6,332) (819)
Proceeds
from
exercise of
options - 183
Proceeds
from
issuance of
common
stock, net
of offering
costs of
$4,001 - 65,430
Purchase of
treasury
stock (533) (124)
Net cash
provided by
financing
activities 118,635 15,670
------- ------
Net increase
(decrease)
in cash,
cash
equivalents
and
restricted
cash 65,454 (3,966)
Beginning
cash, cash
equivalents
and
restricted
cash 10,194 14,160
------ ------
Ending cash,
cash
equivalents
and
restricted
cash $75,648 $10,194
======= =======
PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES
Operating Results by Segment
(in thousand)
(unaudited)
Three months ended Year ended
December 31, September 30, December 31,
2017 2016 2017 2017 2016
---- ---- ---- ---- ----
Revenues:
Domestic drilling $35,317 $25,781 $35,140 $129,276 $112,399
International drilling 14,970 4,829 7,403 41,349 6,808
------ ----- ----- ------ -----
Drilling services 50,287 30,610 42,543 170,625 119,207
------ ------ ------ ------- -------
Well servicing 18,403 16,848 19,103 77,257 71,491
Wireline services 45,253 19,153 46,085 163,716 67,419
Coiled tubing services 12,344 4,870 9,550 34,857 18,959
------ ----- ----- ------ ------
Production services 76,000 40,871 74,738 275,830 157,869
------ ------ ------ ------- -------
Consolidated revenues $126,287 $71,481 $117,281 $446,455 $277,076
======== ======= ======== ======== ========
Operating costs:
Domestic drilling $21,464 $16,450 $21,769 $83,122 $63,686
International drilling 11,811 4,712 6,617 31,994 9,465
------ ----- ----- ------ -----
Drilling services 33,275 21,162 28,386 115,116 73,151
------ ------ ------ ------- ------
Well servicing 13,246 13,203 13,988 56,379 53,208
Wireline services 36,430 16,599 35,692 128,137 57,634
Coiled tubing services 9,410 5,493 8,603 31,248 19,956
----- ----- -----
Production services 59,086 35,295 58,283 215,764 130,798
------ ------ ------ ------- -------
Consolidated operating costs $92,361 $56,457 $86,669 $330,880 $203,949
======= ======= ======= ======== ========
Gross margin:
Domestic drilling $13,853 $9,331 $13,371 $46,154 $48,713
International drilling 3,159 117 786 9,355 (2,657)
----- --- --- ----- ------
Drilling services 17,012 9,448 14,157 55,509 46,056
------ ----- ------ ------ ------
Well servicing 5,157 3,645 5,115 20,878 18,283
Wireline services 8,823 2,554 10,393 35,579 9,785
Coiled tubing services 2,934 (623) 947 3,609 (997)
----- ---- --- ----- ----
Production services 16,914 5,576 16,455 60,066 27,071
------ ----- ------ ------ ------
Consolidated gross margin $33,926 $15,024 $30,612 $115,575 $73,127
======= ======= ======= ======== =======
Consolidated:
Net loss $(12,558) $(36,081) $(17,227) $(75,118) $(128,391)
======== ======== ======== ======== =========
Adjusted EBITDA (1) $16,993 $916 $14,026 $49,873 $14,237
======= ==== ======= ======= =======
(1) Adjusted EBITDA represents
income (loss) before interest
expense, income tax (expense)
benefit, depreciation and
amortization, loss on extinguishment
of debt and impairments. 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 15.
PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES
Operating Statistics
(unaudited)
Three months ended Year ended
December 31, September 30, December 31,
2017 2016 2017 2017 2016
---- ---- ---- ---- ----
Well servicing:
Average number of
rigs 125 125 125 125 125
Utilization rate 40% 40% 43% 43% 41%
Rig hours 35,543 35,008 36,108 150,240 144,151
Average revenue per
hour $518 $481 $529 $514 $496
Wireline services:
Average number of
units 117 114 117 115 122
Number of jobs 2,599 2,333 2,778 11,139 8,169
Average revenue per
job $17,412 $8,210 $16,589 $14,698 $8,253
Coiled tubing services:
Average number of
units 14 17 14 16 17
Revenue days 423 332 368 1,529 1,352
Average revenue per
day $29,182 $14,669 $25,951 $22,797 $14,023
Three months ended Year ended
December 31, September 30, December 31,
2017 2016 2017 2017 2016
---- ---- ---- ---- ----
Domestic drilling:
Average number of
drilling rigs 16 23 16 16 23
Utilization rate 100% 56% 100% 95% 55%
Revenue days 1,472 1,160 1,472 5,524 4,628
Average revenues per
day $23,993 $22,225 $23,872 $23,403 $24,287
Average operating
costs per day 14,582 14,181 14,789 15,047 13,761
------ ------ ------ ------ ------
Average margin per
day $9,411 $8,044 $9,083 $8,356 $10,526
====== ====== ====== ====== =======
International drilling:
Average number of
drilling rigs 8 8 8 8 8
Utilization rate 65% 24% 38% 46% 7%
Revenue days 480 173 283 1,345 218
Average revenues per
day $31,188 $27,913 $26,159 $30,743 $31,229
Average operating
costs per day 24,606 27,237 23,382 23,787 43,417
Average margin per
day $6,582 $676 $2,777 $6,956 $(12,188)
====== ==== ====== ====== ========
Drilling services business:
Average number of
drilling rigs 24 31 24 24 31
Utilization rate 88% 48% 79% 78% 43%
Revenue days 1,952 1,333 1,755 6,869 4,846
Average revenues per
day $25,762 $22,963 $24,241 $24,840 $24,599
Average operating
costs per day 17,047 15,875 16,174 16,759 15,095
------ ------ ------ ------ ------
Average margin per
day $8,715 $7,088 $8,067 $8,081 $9,504
====== ====== ====== ====== ======
PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES
Reconciliation of Net Loss to Adjusted EBITDA
and Consolidated Gross Margin
(in thousands)
(unaudited)
Three months ended Year ended
December 31, September 30, December 31,
2017 2016 2017 2017 2016
---- ---- ---- ---- ----
Net loss as reported $(12,558) $(36,081) $(17,227) $(75,118) $(128,391)
Depreciation and
amortization 24,422 26,903 24,623 98,777 114,312
Impairment 1,107 8,553 - 1,902 12,815
Interest expense 7,949 6,627 6,613 27,039 25,934
Loss on extinguishment of
debt 1,476 - - 1,476 299
Income tax benefit
(expense) (5,403) (5,086) 17 (4,203) (10,732)
------ ------ --- ------ -------
Adjusted EBITDA(2) 16,993 916 14,026 49,873 14,237
General and administrative 18,339 15,106 17,549 69,681 61,184
Bad debt expense 151 458 491 53 156
Gain on dispositions of
property and equipment,
net (1,357) (1,472) (1,159) (3,608) (1,892)
Other income (200) 16 (295) (424) (558)
Consolidated gross margin $33,926 $15,024 $30,612 $115,575 $73,127
======= ======= ======= ======== =======
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
December 31, September 30,
2017 2016 2017
---- ---- ----
Net loss as reported $(12,558) $(36,081) $(17,227)
Impairment 1,107 8,553 -
Loss on extinguishment of
debt 1,476 - -
Tax benefit related to
adjustments (942) (3,116) -
Valuation allowance
adjustments on deferred
tax assets (20,321) 7,552 5,894
Effect of change in tax
rates 20,147 - -
Adjusted net loss(3) $(11,091) $(23,092) $(11,333)
======== ======== ========
Basic weighted average
number of shares
outstanding, as reported 77,552 67,530 77,552
Effect of dilutive
securities - - -
--- --- ---
Diluted weighted average
number of shares
outstanding, as adjusted 77,552 67,530 77,552
====== ====== ======
Adjusted (diluted) EPS(4) $(0.14) $(0.34) $(0.15)
====== ====== ======
Diluted EPS as reported $(0.16) $(0.53) $(0.22)
====== ====== ======
(3) Adjusted net loss represents net
loss as reported adjusted to exclude
impairments and loss on
extinguishment of debt and the
related tax benefit, valuation
allowance adjustments on deferred
tax assets and effect of change in
tax rates. 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.
(4) 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 February 16, 2018
Drilling Services Business Segments:
Domestic AC Rigs 16
International SCR Rigs 8
---
Total 24
===
Production Services Business Segments:
Well servicing rigs (by horsepower
rating):
550 HP 113
600 HP 12
---
Total 125
===
Wireline services units:
Onshore 104
Offshore 4
---
Total 108
===
Coiled tubing services units:
Onshore 10
Offshore 4
Total 14
===
View original content:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-fourth-quarter-2017-results-300599919.html
SOURCE Pioneer Energy Services
