Pioneer Energy Services Reports Second Quarter 2014 Results

SAN ANTONIO, July 31, 2014 /PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today reported financial and operating results for the quarter ended June 30, 2014. Highlights include: 

  • Production Services Segment revenue was $132.3 million in the second quarter, up 9% from the prior quarter.
  • Well servicing rigs achieved a 101% utilization rate and an average hourly rate of $648.
  • Drilling rig utilization is currently 90%, with 42 of our 56 working rigs, or 75%, under term contracts.
  • Planned growth for 2014 and 2015 has expanded to three new 1,500 horsepower AC drilling rigs, 25 well servicing rigs, 14 wireline units and four coiled tubing units.
  • Redeemed $200.5 million of our existing 9.875% Senior Notes with proceeds from our 6.125% Senior Notes, significantly lowering our interest expense.

Consolidated Financial Results

Revenues for the second quarter of 2014 were $259.8 million, up 9% from revenues of $239.0 million in the first quarter of 2014 ("the prior quarter") and up 5% from revenues of $248.4 million in the second quarter of 2013 ("the year-earlier quarter"). Revenues in the second quarter were positively impacted by increased demand which resulted in higher utilization in our Production Services Segment and our Drilling Services Segment in the U.S.

Net loss as reported for the second quarter, which includes the after tax impact of a loss on debt extinguishment of $9.3 million, was $0.3 million, or $0.01 per share.  Adjusted net income(1) for the second quarter, which excludes the after tax impact of the loss on debt extinguishment, was $8.9 million, and Adjusted diluted EPS(2) was $0.14.  This compares to the prior quarter's net loss as reported of $2.6 million, or $0.04 per share and Adjusted net income of $2.4 million, and Adjusted diluted EPS of $0.04.

Second quarter Adjusted EBITDA(3) was $69.7 million, up 10% from $63.3 million in the prior quarter and up 10% from $63.6 million in the year-earlier quarter.

Operating Results

Drilling Services Segment

Revenue for the Drilling Services Segment was $127.6 million in the second quarter, an 8% increase from the prior quarter and an 8% decrease from the year-earlier quarter. The increase in revenues for the second quarter as compared to the prior quarter was primarily due to increased utilization of certain lower horsepower vertical drilling rigs. The decrease from the year-earlier quarter is due to reduced revenue days due to the sale of eight drilling rigs in October 2013 and rigs on standby in Colombia as a result of customer delays in preparing well sites.

Currently, 56 rigs are earning revenues, of which 42 rigs, or 75%, are under term contracts. All eight of our drilling rigs in Colombia are currently under term contracts that extend through the end of 2014, seven of which are currently earning revenue with the remaining rig expected to be earning revenues again in the fourth quarter.

Average drilling revenues per day in the second quarter were $26,058, up from $25,471 in the prior quarter and $24,968 in the year-earlier quarter.  Dayrates remained firm during the second quarter with some modest increases on select contract renewals.  The increase in average drilling revenues per day year over year was due to the full impact of our new-build rigs working in 2014 and certain rigs earning lower standby dayrates during 2013.

Drilling Services Segment margin(4) per day remained flat at $8,946 in the second quarter when compared to $8,987 in the prior quarter and was up 1% from $8,841 in the year-earlier quarter. The second quarter Drilling Services Segment margin per day reflects the benefit from a scope-of-work agreement with our client in Colombia that resulted in additional billings of approximately $2.4 million, or $480 per revenue day, for work performed in prior quarters.

Production Services Segment

Revenue for the Production Services Segment was $132.3 million in the second quarter, up 9% from the prior quarter and up 20% from the year-earlier quarter. The increases in our Production Services Segment's revenues are primarily a result of the increased demand for our services, the contribution of unit additions and job mix. Well servicing pricing was $648 per hour in the second quarter, up slightly from $645 in the prior quarter and up from $606 in the year-earlier quarter. Well servicing rig utilization increased to 101% in the second quarter, up from 95% in the prior quarter and 92% in the year-earlier quarter due to increased demand and the impact of more 24-hour work.  Coiled tubing unit utilization increased to 53% in the second quarter, from 50% in the prior quarter and 46% in the year-earlier quarter as demand continues to improve.

Production Services Segment margin(4) as a percentage of revenue was 38% in the second quarter, up from 36% in the prior quarter and 36% in the year-earlier quarter.

Comments from Our President and CEO 

"Our second quarter results exceeded our expectations as demand increased for all of our services,  which led to higher utilization in most of the areas in which we operate," said Wm. Stacy Locke, President and CEO of Pioneer Energy Services Corp.  "Well servicing rig utilization was exceptionally strong during the second quarter, resulting in the highest utilization ever achieved in company history. We also had some modest pricing improvements on certain term contract renewals in our Drilling Services Segment in the U.S.  Additionally, there is increased interest for new-build drilling rigs as our clients continue to shift towards more horizontal drilling in the shale plays. Colombia had solid operating results for the second quarter partly due to the additional billing for the scope-of-work agreement, which is a non-recurring item.  We experienced some downtime in Colombia due to delays by our client in preparing well sites, which will continue in the third quarter.

"While we intend to de-lever over time, we are seeing strong growth opportunities and have decided to expand our 2014 and 2015 capital expenditure program to meet customer demand.  We have committed to add three new 1,500 horsepower AC drilling rigs that will begin working under term contracts in the Permian Basin and Eagle Ford Shale in the second and third quarters of 2015.  In the Production Services Segment, we are adding a total of nine well servicing rigs, six wireline units and four coiled tubing units in 2014, followed by another 16 well service rigs and eight wireline units in 2015.

"We reduced debt $10 million in June and another $10 million in July and will continue to pay down debt when possible.  The lower interest expense in the second quarter reflects our reduced debt outstanding as well as our success at replacing our higher interest notes with lower interest notes in the first and second quarters," continued Locke.

Third Quarter Guidance

In the third quarter of 2014, drilling rig utilization is expected to average between approximately 86% and 89%, based on a fleet of 62 rigs. Drilling Services Segment margin is expected to be approximately $8,500 to $8,700 per day, which is flat with the second quarter when excluding the non-recurring benefit from the scope-of-work agreement in Colombia.

Production Services Segment revenue in the third quarter is expected to be up approximately 3% to 5% as compared to the second quarter. Production Services Segment margin as a percentage of revenues is expected to be up approximately 1% as compared to the second quarter.

Liquidity

Working capital at June 30, 2014 was $149.2 million, up from $118.5 million at December 31, 2013. Our cash and cash equivalents were $23.7 million, down from $27.4 million at year-end 2013. 

The decrease in cash and cash equivalents during the six months ended June 30, 2014 is primarily due to $74.6 million used for purchases of property and equipment and $31.1 million of cash used in our financing activities, which were mostly offset by $95.5 million of cash provided by operating activities and $6.5 million of proceeds from the sale of assets.

On May 1, 2014, we redeemed $200.5 million of our 2010 and 2011 Senior Notes. We recognized a loss on debt extinguishment of approximately $14.6 million for the redemption premium, net unamortized discount and unamortized debt issuance costs.  In total, we have redeemed $300 million of the 9.875% Senior Notes with the proceeds from the issuance of the 6.125% Senior Notes in March 2014, which will significantly lower our interest expense.

We currently have $60 million outstanding and $14.0 million in committed letters of credit under our $250 million Revolving Credit Facility.

Capital Expenditures

Cash capital expenditures in the second quarter were $42.9 million, including capitalized interest. We estimate that our total cash capital expenditures in 2014 will be approximately $185 million to $200 million. The total 2014 capital expenditure budget includes partial payments for three 1,500 horsepower AC drilling rigs, nine well servicing rigs, six wireline units, four coiled tubing units, upgrades to certain drilling rigs and routine capital expenditures. In addition, the 2014 capital expenditure budget includes down payments for certain equipment that will be delivered in 2015, but requires long lead-time orders.

Conference Call

Pioneer Energy Services' management team will hold a conference call today at 10:00 a.m. Eastern Time (9:00 a.m. Central Time), to discuss these results. To participate in the call, dial (719) 325-2429 ten minutes early and ask for the Pioneer Energy Services conference call. A replay will be available after the call and will be accessible until August 7. To access the replay, dial (719) 457-0820 and enter the pass code 2737502#.

The conference call will also be webcast on the Internet and accessible from Pioneer Energy Services' Web site at www.pioneeres.com. To listen to the live call, visit Pioneer Energy Services' Web site at least 10 minutes early to register and download any necessary audio software.  A replay will be available shortly after the call. For more information, please contact Donna Washburn at Dennard ▪ Lascar Associates, LLC at (713) 529-6600 or e-mail dwashburn@dennardlascar.com.

About Pioneer

Pioneer Energy Services provides contract land drilling services to independent and major oil and gas operators in Texas, the Mid-Continent, Rocky Mountain and Appalachian regions and internationally in Colombia through its Drilling Services Segment. Pioneer also provides well, wireline, coiled tubing and fishing and rental services to producers in the U.S. Gulf Coast, offshore Gulf of Mexico, Mid-Continent and Rocky Mountain regions through its Production Services Segment.

Cautionary Statement Regarding Forward-Looking Statements,

Non-GAAP Financial Measures and Reconciliations
Statements we make in this news release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements that are subject to risks, uncertainties and assumptions. Our actual results, performance or achievements, or industry results, could differ materially from those we express in the following discussion as a result of a variety of factors, including general economic and business conditions and industry trends, levels and volatility of oil and gas prices, decisions about exploration and development projects to be made by oil and gas exploration and production companies, economic cycles and their impact on capital markets and liquidity, the continued demand for drilling services or production services in the geographic areas where we operate, the highly competitive nature of our business, our future financial performance, including availability, terms and deployment of capital, future compliance with covenants under our senior secured revolving credit facility and our senior notes, the supply of marketable drilling rigs, well servicing rigs, coiled tubing and wireline units within the industry, changes in technology and improvements in our competitors' equipment, the continued availability of drilling rig, well servicing rig, coiled tubing and wireline unit components, the continued availability of qualified personnel, the success or failure of our acquisition strategy, including our ability to finance acquisitions, manage growth and effectively integrate acquisitions, 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, 2013. These factors are not necessarily all the important factors that could affect us. Unpredictable or unknown factors we have not discussed in this news release, in our Annual Report on Form 10-K for the year ended December 31, 2013, or in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 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) be aware 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 income (loss) represents net income (loss) as reported less the loss on debt extinguishment and the related tax benefit. We believe that adjusted net income (loss) is a useful measure for evaluating our core operating performance, although it is not a measure of financial performance under GAAP. Adjusted net income (loss) may not be comparable to other similarly titled measures reported by other companies.



(2)

Adjusted (diluted) EPS represents adjusted net income (loss) divided by the weighted-average number of shares outstanding during the period, including the effect of dilutive securities as applicable. We believe that adjusted (diluted) EPS is a useful measure for evaluating our core operating performance, although it is not a measure of financial performance under GAAP. A reconciliation of (diluted) EPS as reported to adjusted (diluted) EPS is included in the tables to this news release. Adjusted (diluted) EPS may not be comparable to other similarly titled measures reported by other companies. A reconciliation of net income (loss) as reported to adjusted net income (loss) is included in the tables to this news release.



(3)

Adjusted EBITDA is a financial measure that is not in accordance with GAAP and 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. We define Adjusted EBITDA as income (loss) before interest income (expense), taxes, depreciation, amortization, loss on extinguishment of debt and any impairments. We use this measure, together with our GAAP financial metrics, to assess our financial performance and evaluate our overall progress towards meeting our long-term financial objectives. We believe that this non-GAAP financial measure is useful to investors and analysts in allowing for greater transparency of our operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA, as we calculate it, may not be comparable to Adjusted EBITDA measures reported by other companies. A reconciliation of Adjusted EBITDA to net loss as reported is included in the tables to this news release.



(4)

Drilling Services Segment margin represents contract drilling revenues less contract drilling operating costs. Production Services Segment margin represents production services revenue less production services operating costs. We believe that Drilling Services Segment margin and Production Services Segment margin are useful measures for evaluating financial performance, although they are not measures of financial performance under GAAP. However, Drilling Services Segment margin and Production Services Segment margin are common measures of operating performance used by investors, financial analysts, rating agencies and Pioneer's management. Drilling Services Segment margin and Production Services Segment margin as presented may not be comparable to other similarly titled measures reported by other companies. A reconciliation of Drilling Services Segment margin and Production Services Segment margin to net loss as reported is included in the tables to this news release.



(5)

Drilling Services Segment margin per revenue day represents the Drilling Services Segment's average revenue per revenue day less average operating costs per revenue day.

 

Contacts:

Dan Petro, CFA, Director of Corporate Development
and Investor Relations

Pioneer Energy Services Corp.

(210) 828-7689

 

Lisa Elliott / lelliott@dennardlascar.com

Anne Pearson / apearson@dennardlascar.com

Dennard ▪ Lascar Associates / (713) 529-6600

 

- 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,


2014


2013


2014


2014


2013











Revenues:










  Drilling services

$

127,553


$

138,250


$

117,957


$

245,510


$

271,324

  Production services

132,259


110,104


121,077


253,336


206,700

  Total revenues

259,812


248,354


239,034


498,846


478,024











  Costs and expenses:










  Drilling services

83,762


89,294


76,338


160,100


178,280

  Production services

82,505


70,450


77,752


160,257


131,069

  Depreciation and amortization

45,791


47,348


45,526


91,317


93,633

  General and administrative

25,276


23,605


24,483


49,759


46,659

  Bad debt expense (recovery)

561


137


(124)


437


418

  Impairment charges


44,788




44,788

Total costs and expenses

237,895


275,622


223,975


461,870


494,847

Income (loss) from operations

21,917


(27,268)


15,059


36,976


(16,823)











Other (expense) income:










  Interest expense

(10,728)


(12,331)


(12,388)


(23,116)


(23,793)

  Loss on extinguishment of debt

(14,595)



(7,887)


(22,482)


  Other

2,017


(1,249)


2,674


4,691


(2,070)

  Total other expense

(23,306)


(13,580)


(17,601)


(40,907)


(25,863)











Loss before income taxes

(1,389)


(40,848)


(2,542)


(3,931)


(42,686)

Income tax (expense) benefit

1,070


14,953


(37)


1,033


15,499

Net loss

$

(319)


$

(25,895)


$

(2,579)


$

(2,898)


$

(27,187)











Loss per common share:










  Basic

$

(0.01)


$

(0.42)


$

(0.04)


$

(0.05)


$

(0.44)

  Diluted

$

(0.01)


$

(0.42)


$

(0.04)


$

(0.05)


$

(0.44)











Weighted-average number of shares outstanding:










  Basic

62,877


62,177


62,542


62,710


62,073

  Diluted

62,877


62,177


62,542


62,710


62,073

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)



June 30,
 2014


December 31,
 2013


(unaudited)


(audited)

ASSETS




Current assets:




   Cash and cash equivalents

$

23,711


$

27,385

   Receivables, net of allowance for doubtful accounts

200,537


176,360

   Deferred income taxes

32,365


13,092

   Inventory

13,466


13,232

   Prepaid expenses and other current assets

9,390


9,311

   Total current assets

279,469


239,380





Net property and equipment

923,440


937,657

Intangible assets, net of accumulated amortization

28,276


32,269

Noncurrent deferred income taxes

4,010


1,156

Other long-term assets

16,236


19,161

Total assets

$

1,251,431


$

1,229,623





LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




   Accounts payable

$

54,735


$

43,718

   Current portion of long-term debt

429


2,847

   Deferred revenues

3,306


699

   Accrued expenses

71,783


73,569

Total current liabilities

130,253


120,833





Long-term debt, less current portion

493,630


499,666

Noncurrent deferred income taxes

102,988


84,636

Other long-term liabilities

4,771


6,055

Total liabilities

731,642


711,190

Total shareholders' equity

519,789


518,433

Total liabilities and shareholders' equity

$

1,251,431


$

1,229,623

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Six months ended


June 30,


2014


2013





Cash flows from operating activities:




Net loss

$

(2,898)


$

(27,187)

Adjustments to reconcile net loss to net cash provided by operating activities:




Depreciation and amortization

91,317


93,633

Allowance for doubtful accounts

396


408

Gain on dispositions of property and equipment

(1,731)


(1,721)

Stock-based compensation expense

3,827


3,064

Amortization of debt issuance costs, discount and premium

1,504


1,534

Loss on extinguishment of debt

22,482


Impairment charges


44,788

Deferred income taxes

(3,762)


(16,717)

Change in other long-term assets

4,448


(2,113)

Change in other long-term liabilities

(1,284)


(1,340)

Changes in current assets and liabilities

(18,812)


(23,672)

Net cash provided by operating activities

95,487


70,677





Cash flows from investing activities:




Purchases of property and equipment

(74,567)


(112,179)

Proceeds from sale of property and equipment

6,538


6,059

Net cash used in investing activities

(68,029)


(106,120)





Cash flows from financing activities:




Debt repayments

(330,013)


(10,862)

Proceeds from issuance of debt

320,000


40,000

Debt issuance costs

(6,187)


(13)

Tender premium costs

(15,381)


Proceeds from exercise of options

1,581


789

Purchase of treasury stock

(1,132)


(628)

Net cash provided by (used in) financing activities

(31,132)


29,286





Net decrease in cash and cash equivalents

(3,674)


(6,157)

Beginning cash and cash equivalents

27,385


23,733

Ending cash and cash equivalents

$

23,711


$

17,576

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Operating Statistics

(in thousands, except average number of drilling rigs, utilization rate, revenue days and per day information)

(unaudited)



Three months ended


Six months ended


June 30,


March 31,


June 30,


2014


2013


2014


2014


2013











Drilling Services Segment:










  Revenues

$

127,553


$

138,250


$

117,957


$

245,510


$

271,324

  Operating costs

83,762


89,294


76,338


160,100


178,280

  Drilling Services Segment margin (1)

$

43,791


$

48,956


$

41,619


$

85,410


$

93,044











  Average number of drilling rigs

62.0


70.3


62.0


62.0


70.4

  Utilization rate

87%


87%


83%


85%


85%

  Revenue days

4,895


5,537


4,631


9,526


10,876











  Average revenues per day

$

26,058


$

24,968


$

25,471


$

25,773


$

24,947

  Average operating costs per day

17,112


16,127


16,484


16,807


16,392

  Drilling Services Segment margin per day (2)

$

8,946


$

8,841


$

8,987


$

8,966


$

8,555











Production Services Segment:










  Revenues

$

132,259


$

110,104


$

121,077


$

253,336


$

206,700

  Operating costs

82,505


70,450


77,752


160,257


131,069

  Production Services Segment margin (1)

$

49,754


$

39,654


$

43,325


$

93,079


$

75,631











Combined:










  Revenues

$

259,812


$

248,354


$

239,034


$

498,846


$

478,024

  Operating Costs

166,267


159,744


154,090


320,357


309,349

  Combined margin

$

93,545


$

88,610


$

84,944


$

178,489


$

168,675











Adjusted EBITDA (3)

$

69,725


$

63,619


$

63,259


$

132,984


$

119,528













(1)     Drilling Services Segment margin represents contract drilling revenues less contract drilling operating costs. Production Services Segment margin represents production services revenue less production services operating costs. We believe that Drilling Services Segment margin and Production Services Segment margin are useful measures for evaluating financial performance, although they are not measures of financial performance under U.S. Generally Accepted Accounting Principles (GAAP). However, Drilling Services Segment margin and Production Services Segment margin are common measures of operating performance used by investors, financial analysts, rating agencies and Pioneer's management. Drilling Services Segment margin and Production Services Segment margin as presented may not be comparable to other similarly titled measures reported by other companies. A reconciliation of combined Drilling Services Segment margin and Production Services Segment margin to net income (loss) as reported is included in the table on the following page.


(2)     Drilling Services Segment margin per revenue day represents the Drilling Services Segment's average revenue per revenue day less average operating costs per revenue day.


(3)     Adjusted EBITDA is a financial measure that is not in accordance with GAAP and 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. We define Adjusted EBITDA as income (loss) before interest income (expense), taxes, depreciation, amortization, loss on extinguishment of debt and any impairments. We use this measure, together with our GAAP financial metrics, to assess our financial performance and evaluate our overall progress towards meeting our long-term financial objectives. We believe that this non-GAAP financial measure is useful to investors and analysts in allowing for greater transparency of our operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA, as we calculate it, may not be comparable to Adjusted EBITDA measures reported by other companies. A reconciliation of Adjusted EBITDA to net income (loss) as reported is included in the table on the following page.

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Reconciliation of Combined Drilling Services and Production Services

Margin and Adjusted EBITDA to Net Income (Loss)

(in thousands)

(unaudited)



Three months ended


Six months ended


June 30,


March 31,


June 30,


2014


2013


2014


2014


2013











Combined margin

$

93,545


$

88,610


$

84,944


$

178,489


$

168,675











   General and administrative

(25,276)


(23,605)


(24,483)


(49,759)


(46,659)

   Bad debt (recovery) expense

(561)


(137)


124


(437)


(418)

   Other income (expense)

2,017


(1,249)


2,674


4,691


(2,070)

Adjusted EBITDA (3)

69,725


63,619


63,259


132,984


119,528











   Depreciation and amortization

(45,791)


(47,348)


(45,526)


(91,317)


(93,633)

   Impairment charges


(44,788)




(44,788)

   Interest expense

(10,728)


(12,331)


(12,388)


(23,116)


(23,793)

   Loss on extinguishment of debt

(14,595)



(7,887)


(22,482)


   Income tax (expense) benefit

1,070


14,953


(37)


1,033


15,499

Net loss

$

(319)


$

(25,895)


$

(2,579)


$

(2,898)


$

(27,187)

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Reconciliation of Net Loss as Reported to Adjusted Net Loss Excluding the Impact of Loss on Extinguishment of Debt and Diluted EPS as Reported to Adjusted Diluted EPS Excluding the Impact of Loss on Extinguishment of Debt

(in thousands, except per share data)

(unaudited)



Three months ended


June 30,


March 31,


2014


2014





Net loss as reported

$

(319)


$

(2,579)

    Loss on extinguishment of debt

14,595


7,887

    Tax benefit from loss on extinguishment of debt

(5,342)


(2,887)

Adjusted net income (loss) (4)

8,934


2,421





Basic weighted average number of shares outstanding, as reported

62,877


62,542

    Effect of dilutive securities

2,465


1,775

Diluted weighted average number of shares outstanding, adjusted for loss on extinguishment of debt impact

65,342


64,317





Adjusted diluted EPS  (5)

$

0.14


$

0.04





Diluted EPS as reported (6)

$

(0.01)


$

(0.04)



(4)     Adjusted net income (loss) represents net income (loss) as reported less the loss on debt extinguishment and the related tax benefit. We believe that adjusted net income (loss) is a useful measure for evaluating our core operating performance, although it is not a measure of financial performance under GAAP. Adjusted net income (loss) may not be comparable to other similarly titled measures reported by other companies.


(5)     Adjusted (diluted) EPS represents adjusted net income (loss) divided by the weighted-average number of shares outstanding during the period, including the effect of dilutive securities as applicable. We believe that adjusted (diluted) EPS is a useful measure for evaluating our core operating performance, although it is not a measure of financial performance under GAAP. A reconciliation of (diluted) EPS as reported to adjusted (diluted) EPS is included in the tables to this news release. Adjusted (diluted) EPS may not be comparable to other similarly titled measures reported by other companies. A reconciliation of net income (loss) as reported to adjusted net income (loss) is included in the table above.


(6)     The effect of dilutive securities is not reflected in diluted earnings per share (EPS) as reported because the effect of their inclusion would be antidilutive, or would decrease the reported loss per share. Therefore, basic EPS as reported is the same as diluted EPS as reported.

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Capital Expenditures

(in thousands)

(unaudited)



Three months ended


Six months ended


June 30,


March 31,


June 30,


2014


2013


2014


2014


2013












Drilling Services Segment:










  Routine and tubulars

$

11,774


$

12,927


$

8,769


$

20,543


$

19,789

  Discretionary

6,076


8,345


9,872


15,948


22,063

  Fleet additions

3,575


7,492


153


3,728


40,954


21,425


28,764


18,794


40,219


82,806

Production Services Segment:










  Routine

9,306


6,267


5,389


14,695


11,976

  Discretionary

3,148


4,996


5,854


9,002


13,562

  Fleet additions

9,014


839


1,637


10,651


3,835


21,468


12,102


12,880


34,348


29,373

Net cash used for purchases of property and equipment

42,893


40,866


31,674


74,567


112,179

  Net effect of accruals

(1,897)


(8,206)


5,243


3,346


(37,469)

Total capital expenditures

$

40,996


$

32,660


$

36,917


$

77,913


$

74,710

 

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Drilling Rig, Well Servicing Rig, Wireline and Coiled Tubing Unit

Current Information


Drilling Services Segment:

Rig Type




Mechanical


Electric


Total Rigs







Drilling rig horsepower ratings:






     550 to 700 HP

1



1

     750 to 950 HP

4


2


6

     1000 HP

12


9


21

     1200 to 2000 HP

6


28


34

          Total

23


39


62







Drilling rig depth ratings:






     Less than 10,000 feet

3


2


5

     10,000 to 13,900 feet

10


6


16

     14,000 to 25,000 feet

10


31


41

          Total

23


39


62







Production Services Segment:












Well servicing rig horsepower ratings:






     550 HP





102

     600 HP





10

          Total





112







Wireline units





121







Coiled tubing units





15







 

SOURCE Pioneer Energy Services



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http://www.pioneeres.com

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