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 October 29, 2015 - 6:00 AM EDT
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Pioneer Energy Services Reports Third Quarter 2015 Results

SAN ANTONIO, Oct. 29, 2015 /PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today reported financial and operating results for the quarter ended September 30, 2015. Notable items for the third quarter and recent developments include: 

  • Deployed four 1,500-horsepower AC new-build drilling rigs year-to-date with the final rig to be completed by year end.
  • Well servicing rig utilization was 62% in the third quarter, with average pricing of $577 per hour.
  • Drilling utilization in the third quarter was 49% based on an average fleet of 36 rigs.
  • Amended revolving credit facility, which reduced overall facility capacity from $350 million to $300 million while allowing for more flexible covenants through 2017.

Consolidated Financial Results

Revenues for the third quarter of 2015 were $107.5 million, down 20% from revenues of $135.0 million in the second quarter of 2015 ("the prior quarter") and down 61% from revenues of $273.3 million in the third quarter of 2014 ("the year-earlier quarter"). The decline from the prior and year-earlier quarters was due to reduced activity and pricing of services as a result of lower oil and gas prices.

Net loss for the third quarter of 2015 was $17.5 million, or $0.27 per share, compared with net loss of $77.3 million, or $1.20 per share, in the prior quarter and net income of $12.5 million, or $0.19 per diluted share, in the year-earlier quarter. Excluding the impact of impairment charges, net of taxes and valuation allowances, our Adjusted Net Loss(1) for the third quarter was $16.1 million and Adjusted EPS(2) was a loss of $0.25 per share, as compared to Adjusted Net Loss of $11.0 million, or $0.17 per share, in the prior quarter. Our Adjusted Net Income for the year-earlier quarter was $6.2 million or $0.09 per diluted share, which excludes an after-tax gain on sale of our fishing and rental operations in September 2014.

Third quarter Adjusted EBITDA(3) was $18.8 million, down 47% from $35.2 million in the prior quarter, which included a gain on disposal of assets of $4.4 million, and down 76% from $78.1 million in the year-earlier quarter which included a gain on the sale of our fishing and rental services operations of $10.7 million. The sequential decrease in Adjusted EBITDA was primarily attributable to a reduction in revenue from drilling rigs earning revenue under early terminated contracts, lower utilization in Colombia and start-up costs for three rigs that went back to work in Colombia late in the third quarter.

Operating Results

Drilling Services Segment

Revenue for the Drilling Services Segment was $41.2 million in the third quarter, a 30% decrease from the prior quarter and a 68% decrease from the year-earlier quarter.

Average drilling revenues per day were $25,487 in the third quarter, down from $27,596 in the prior quarter and up slightly from $25,481 in the year-earlier quarter.  Drilling Services Segment margin(4) per day(5) was $11,349 in the third quarter, down from $12,061 in the prior quarter and up from $7,787 in the year-earlier quarter. The increase in Drilling Services Segment margin per day in the third quarter as compared to the year-earlier quarter was primarily attributable to rigs earning early termination revenue but not working and the removal of 28 lower horsepower electric and mechanical drilling rigs from our fleet that typically earned a lower margin per day. The decline in Drilling Services Segment margin per day from the prior quarter was primarily due to additional expenses associated with the start-up costs of three rigs going back to work in Colombia in the third quarter. Excluding the impact from early terminated rigs earning revenue but not working, margin per day in the third quarter was approximately $7,200.

In response to the significant decline in oil prices, term contracts for 16 of our drilling rigs have been terminated early, resulting in approximately $53.0 million of early termination revenues. Revenues derived from these early terminations are deferred and recognized over the remainder of the original term of the drilling contracts. We recognized $11.7 million and $39.0 million of revenue for early termination payments during the three and nine months ended September 30, 2015, respectively, and $0.3 million in the fourth quarter of 2014.

As of September 30, 2015, we had 38 actively marketed drilling rigs in our fleet. We currently have 21 drilling rigs earning revenues under drilling contracts, of which 19 rigs are earning under term contracts. Five of these 19 rigs are earning early termination revenues. Three of our eight drilling rigs in Colombia are currently earning revenues under term contracts with a new client, and we are actively marketing the remainder of the rigs to various operators in Colombia.

We have deployed four 1,500 horsepower AC new-build drilling rigs under multi-year term contracts during 2015 and we expect to complete construction of the fifth rig by year end. The multi-year contract that was initially assigned to the fifth new-build drilling rig has been transferred to an existing AC rig in North Dakota that has a contract expiring in November 2015, thereby allowing us to market the fifth new-build rig to a new client, most likely in the Eagle Ford or Permian Basin.

Production Services Segment

Revenue for the Production Services Segment was $66.2 million in the third quarter, down 13% from the prior quarter and down 54% from the year-earlier quarter due to decreased activity and pricing for our services. Production Services Segment margin(4) as a percentage of revenue was 27% in the third quarter, down from 31% in the prior quarter and down from 38% in the year-earlier quarter. Production Services Segment margin is down as compared to the prior quarter due to continued weakening in activity and pricing, partially offset by actions we have taken to reduce our cost structure. Well servicing average pricing was $577 per hour in the third quarter, down from $595 in the prior quarter and $661 in the year-earlier quarter. Well servicing rig utilization was 62% in the third quarter, down from 73% in the prior quarter and 101% in the year-earlier quarter. Coiled tubing utilization was 25% in the third quarter, up slightly from 24% in the prior quarter and down from 56% in the year-earlier quarter.

Comments from Our President and CEO 

"The severity of this market downturn underscores the prudence of our strategy to balance growth with a strong financial footing, which we initiated in 2013, well before the commodity price slump," said Wm. Stacy Locke, President and CEO of Pioneer Energy Services.

"After a period of substantial expansion in 2011 and 2012, we changed our focus in 2013 and 2014 to a balanced approach between measured growth and debt reduction to strengthen our balance sheet and reduce our interest expense. We began selling certain non-strategic assets as early as 2013 with the proceeds directed at debt repayment and investment in select, high-return organic growth. As a result, we have reduced debt by $150 million since March 2013.

"We continue to carefully manage our balance sheet and cost structure, and with the last of our new-build drilling and well servicing rigs scheduled to be completed before year-end, capital spending will be limited to routine items until the market improves.

"In our Drilling Services Segment, we have significantly high-graded our US drilling fleet by adding leading-edge AC walking rigs, while at the same time, selling 28 mechanical and lower-horsepower SCR rigs. In Colombia, three drilling rigs have gone back to work; two under three-year term contracts and one under a one-year term contract, and we are having ongoing discussions to put other rigs back to work.

In our Production Services Segment, activity levels and pricing were hit again when the second pull back in oil pricing occurred during the summer. We have further reduced the amount of equipment we are actively marketing to realign our cost structure to the current demand levels. Despite the difficult market conditions, we are pleased with our overall safety and performance," Mr. Locke said.

Fourth Quarter Guidance

In the fourth quarter of 2015, drilling rig utilization is estimated to average 50% to 53%. Drilling Services Segment margin is estimated to be approximately $10,500 to $11,000 per day, which includes recognition of $9.2 million of revenues from rigs earning early termination revenue but not working. Excluding early termination revenue, we estimate Drilling Services Segment margin to be $7,700 to $8,200 per day in the fourth quarter.

Production Services Segment revenue in the fourth quarter is estimated to be down 13% to 17% compared to the third quarter. Production Services Segment margin is estimated to be 23% to 25% of revenues in the fourth quarter.

Liquidity

Working capital at September 30, 2015 was $43.6 million, down from $121.9 million at December 31, 2014. Our cash and cash equivalents were $35.7 million, up from $34.9 million at year-end 2014.

The increase in cash and cash equivalents during the nine months ended September 30, 2015 is primarily due to $139.1 million of cash provided by operating activities, which includes early termination payments made on certain drilling contracts, and $37.8 million of proceeds from the sale of assets, offset by $130.4 million used for purchases of property and equipment and $45.0 million used for debt repayment. We currently have $110 million outstanding and $17.3 million in committed letters of credit under our $300 million revolving credit facility.

Capital Expenditures

Cash capital expenditures in the third quarter were $46.4 million, including capitalized interest. We now estimate that our total cash capital expenditures for 2015 will be approximately $150 million to $160 million. The total 2015 capital expenditure budget includes partial payments for five 1,500-horsepower AC drilling rigs, nine well servicing rigs, eight wireline units, routine capital expenditures and certain drilling equipment that was ordered in 2014 but requires a long lead time for delivery.

Conference Call

Pioneer Energy Services' management team will hold a conference call today at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss these results. To participate in the conference call, dial (412) 902-0003 approximately 10 minutes prior to the call and ask for the Pioneer Energy Services conference call. A telephone replay will be available after the call and will be accessible until November 5. To access the replay, dial (201) 612-7415 and enter the pass code 13621728.

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

Cautionary Statement Regarding Forward-Looking Statements,
Non-GAAP Financial Measures and Reconciliations

Statements we make in this news release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements that are subject to risks, uncertainties and assumptions. Our actual results, performance or achievements, or industry results, could differ materially from those we express in the following discussion as a result of a variety of factors, including general economic and business conditions and industry trends, levels and volatility of oil and gas prices, the continued demand for drilling services or production services in the geographic areas where we operate, decisions about exploration and development projects to be made by oil and gas exploration and production companies, the highly competitive nature of our business, technological advancements and trends in our industry and improvements in our competitors' equipment, the loss of one or more of our major clients or a decrease in their demand for our services, future compliance with covenants under our senior secured revolving credit facility and our senior notes, operating hazards inherent in our operations, the supply of marketable drilling rigs, well servicing rigs, coiled tubing and wireline units within the industry, the continued availability of drilling rig, well servicing rig, coiled tubing and wireline unit components, the continued availability of qualified personnel, the success or failure of our acquisition strategy, including our ability to finance acquisitions, manage growth and effectively integrate acquisitions, the political, economic, regulatory and other uncertainties encountered by our operations, and changes in, or our failure or inability to comply with, governmental regulations, including those relating to the environment. We have discussed many of these factors in more detail in our Annual Report on Form 10-K for the year ended December 31, 2014, 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. 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) 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 adjusted to exclude the impairment charges, gain on the sale of our fishing and rental services operations and the related tax benefit, net of valuation allowances. 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. A reconciliation of net income (loss) as reported to adjusted net income (loss) is included in the tables to this news release.



(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. 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. We use this non-GAAP 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 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 should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities or (c) as a measure of liquidity. In addition, Adjusted EBITDA does not represent funds available for discretionary use. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.  A reconciliation of adjusted EBITDA to net income (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 Energy Services Corp.'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 tables to this news release.



(5)

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


Nine months ended


September 30,


June 30,


September 30,


2015


2014


2015


2015


2014











Revenues:










   Drilling services

$

41,238


$

128,117


$

58,559


$

198,212


$

373,627

   Production services

66,242


145,150


76,452


238,093


398,486

   Total revenues

107,480


273,267


135,011


436,305


772,113











Costs and expenses:










   Drilling services

22,875


88,963


32,965


118,114


250,904

   Production services

48,643


89,993


53,106


170,517


250,140

   Depreciation and amortization

35,257


46,081


38,489


115,528


137,398

   General and administrative

16,814


26,613


18,213


56,909


76,372

   Bad debt expense (recovery)

(1,071)


19


394


(358)


456

   Impairment charges

2,329


678


71,329


79,648


678

   Loss (gain) on dispositions of property and equipment

605


142


(4,377)


(2,639)


(1,589)

   Gain on sale of fishing and rental services operations


(10,702)




(10,702)

   Gain on litigation


(1,324)




(4,200)

   Total costs and expenses

125,452


240,463


210,119


537,719


699,457

Income (loss) from operations

(17,972)


32,804


(75,108)


(101,414)


72,656











Other (expense) income:










   Interest expense, net of interest capitalized

(5,465)


(8,969)


(5,245)


(16,165)


(32,085)

   Loss on extinguishment of debt





(22,482)

   Other

(785)


(1,455)


486


(2,979)


360

   Total other expense

(6,250)


(10,424)


(4,759)


(19,144)


(54,207)











Income (loss) before income taxes

(24,222)


22,380


(79,867)


(120,558)


18,449

Income tax (expense) benefit

6,682


(9,927)


2,586


13,718


(8,894)

Net income (loss)

$

(17,540)


$

12,453


$

(77,281)


$

(106,840)


$

9,555











Income (loss) per common share:










   Basic

$

(0.27)


$

0.20


$

(1.20)


$

(1.66)


$

0.15

   Diluted

$

(0.27)


$

0.19


$

(1.20)


$

(1.66)


$

0.15











Weighted-average number of shares outstanding:










   Basic

64,449


63,451


64,342


64,262


62,960

   Diluted

64,449


65,876


64,342


64,262


65,167

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)



September 30,
 2015


December 31,
 2014


(unaudited)


(audited)

ASSETS




Current assets:




Cash and cash equivalents

$

35,679


$

34,924

Receivables, net of allowance for doubtful accounts

81,973


190,201

Deferred income taxes

6,299


10,998

Inventory

8,995


14,117

Assets held for sale

2,065


9,909

Prepaid expenses and other current assets

5,927


8,925

Total current assets

140,938


269,074





Net property and equipment

778,696


856,541

Intangible assets, net of accumulated amortization

18,268


24,223

Noncurrent deferred income taxes


2,753

Other long-term assets

11,226


18,998

Total assets

$

949,128


$

1,171,589





LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

35,072


$

64,305

Current portion of long-term debt


27

Deferred revenues

14,772


3,315

Accrued expenses

47,463


79,545

Total current liabilities

97,307


147,192





Long-term debt, less current portion

410,000


455,053

Noncurrent deferred income taxes

48,745


69,578

Other long-term liabilities

4,193


4,702

Total liabilities

560,245


676,525

Total shareholders' equity

388,883


495,064

Total liabilities and shareholders' equity

$

949,128


$

1,171,589

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Nine months ended


September 30,


2015


2014





Cash flows from operating activities:




Net income (loss)

$

(106,840)


$

9,555

Adjustments to reconcile net income (loss) to net cash provided by operating activities:




Depreciation and amortization

115,528


137,398

Allowance for doubtful accounts

(358)


408

Gain on dispositions of property and equipment

(2,639)


(1,589)

Stock-based compensation expense

2,275


5,761

Amortization of debt issuance costs, discount and premium

1,737


2,193

Gain on sale of fishing and rental services operations


(10,702)

Loss on extinguishment of debt


22,482

Impairment charges

79,648


678

Deferred income taxes

(15,048)


5,395

Change in other long-term assets

438


8,247

Change in other long-term liabilities

(509)


(1,385)

Changes in current assets and liabilities

64,833


(23,511)

Net cash provided by operating activities

139,065


154,930





Cash flows from investing activities:




Purchases of property and equipment

(130,390)


(120,738)

Proceeds from sale of fishing and rental services operations


15,090

Proceeds from sale of property and equipment

37,803


7,197

Proceeds from insurance recoveries

227


Net cash used in investing activities

(92,360)


(98,451)





Cash flows from financing activities:




Debt repayments

(45,003)


(360,019)

Proceeds from issuance of debt


320,000

Debt issuance costs

(999)


(9,173)

Tender premium costs


(15,381)

Proceeds from exercise of options

781


8,280

Purchase of treasury stock

(729)


(1,132)

Net cash used in financing activities

(45,950)


(57,425)





Net increase (decrease) in cash and cash equivalents

755


(946)

Beginning cash and cash equivalents

34,924


27,385

Ending cash and cash equivalents

$

35,679


$

26,439

 

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


Nine months ended


September 30,


June 30,


September 30,


2015


2014


2015


2015


2014











Drilling Services Segment:










Revenues

$

41,238


$

128,117


$

58,559


$

198,212


$

373,627

Operating costs

22,875


88,963


32,965


118,114


250,904

Drilling Services Segment margin(1)

$

18,363


$

39,154


$

25,594


$

80,098


$

122,723











Average number of drilling rigs

35.9


62.0


37.0


39.7


62.0

Utilization rate

49%


88%


63%


67%


86%











   Revenue days - working

1,120


5,028


1,393


5,517


14,554

   Revenue days - earning but not working

498



729


1,680


Total revenue days

1,618


5,028


2,122


7,197


14,554











Average revenues per day

$

25,487


$

25,481


$

27,596


$

27,541


$

25,672

Average operating costs per day

14,138


17,694


15,535


16,412


17,240

Drilling Services Segment margin per day(2)

$

11,349


$

7,787


$

12,061


$

11,129


$

8,432











Production Services Segment:










Revenues

$

66,242


$

145,150


$

76,452


$

238,093


$

398,486

Operating costs

48,643


89,993


53,106


170,517


250,140

Production Services Segment margin(1)

$

17,599


$

55,157


$

23,346


$

67,576


$

148,346











Combined:










Revenues

$

107,480


$

273,267


$

135,011


$

436,305


$

772,113

Operating costs

71,518


178,956


86,071


288,631


501,044

Combined margin

$

35,962


$

94,311


$

48,940


$

147,674


$

271,069











Adjusted EBITDA(3)

$

18,829


$

78,108


$

35,196


$

90,783


$

211,092












(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 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 Energy Services Corp.'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 represents income (loss) before interest expense, income tax (expense) benefit, depreciation and amortization, loss on extinguishment of debt and impairments. We use this non-GAAP 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 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 should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities or (c) as a measure of liquidity. In addition, Adjusted EBITDA does not represent funds available for discretionary use. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies. A reconciliation of adjusted EBITDA to net 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


Nine months ended


September 30,


June 30,


September 30,


2015


2014


2015


2015


2014












Combined margin

$

35,962


 

$

94,311


 

$

48,940


 

$

147,674


$

271,069











   General and administrative

(16,814)


 

(26,613)


 

(18,213)


 

(56,909)


(76,372)

   Bad debt expense (recovery)

1,071


 

(19)


 

(394)


 

358


(456)

   Loss (gain) on dispositions of property and equipment

(605)


 

(142)


4,377


2,639


1,589

   Gain on sale of fishing and rental services operations


10,702




10,702

   Gain on litigation


1,324




4,200

   Other expense

(785)


(1,455)


486


(2,979)


360

Adjusted EBITDA(3)

18,829


78,108


35,196


90,783


211,092











   Depreciation and amortization

(35,257)


(46,081)


(38,489)


(115,528)


(137,398)

   Impairment charges

(2,329)


(678)


(71,329)


(79,648)


(678)

   Interest expense

(5,465)


(8,969)


(5,245)


(16,165)


(32,085)

   Loss on extinguishment of debt





(22,482)

   Income tax (expense) benefit

6,682


(9,927)


2,586


13,718


(8,894)

Net income (loss)

$

(17,540)


 

$

12,453


$

(77,281)


 

$

(106,840)


 

$

9,555


 

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


September 30,


June 30,


2015


2014


2015










Net income (loss) as reported

$

(17,540)


$

12,453


$

(77,281)

   Impairment charges


2,329


678


71,329

   Gain on sale of fishing and rental services operations



 

(10,702)


   Tax benefit related to adjustments, net of valuation allowances


(862)


 

3,811


(5,028)

Adjusted net income (loss)(4)

$

(16,073)


$

6,240


$

(10,980)








Basic weighted average number of shares outstanding, as reported


64,449


63,451


64,342

   Effect of dilutive securities



2,425


Diluted weighted average number of shares outstanding, as adjusted


64,449


65,876


64,342








Adjusted (diluted) EPS(5)

$

(0.25)


$

0.09


$

(0.17)








Diluted EPS as reported

$

(0.27)


$

0.19


$

(1.20)









(4)    Adjusted net income (loss) represents net income (loss) as reported adjusted to exclude the impairment charges, gain on the sale of our fishing and rental services operations and the related tax benefit, net of valuation allowances. 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. A reconciliation of net income (loss) as reported to adjusted net income (loss) is included in the table above.


(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. 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

Capital Expenditures

(in thousands)

(unaudited)



Three months ended


Nine months ended


September 30,


June 30,


September 30,


2015


2014


2015


2015


2014
















Drilling Services Segment:















     Routine and tubulars

$

1,601


$

12,484


$

3,053


$

10,669


$

33,027

     Discretionary

1,169


3,850


1,400


5,503


19,798

     Fleet additions

38,128


11,813


27,699


86,409


15,541


40,898


28,147


32,152


102,581


68,366











Production Services Segment:










   Routine

1,414


3,914


2,364


8,305


18,609

  Discretionary

1,112


7,136


824


5,191


16,138

   Fleet additions

2,939


6,974


3,012


14,313


17,625


5,465


18,024


6,200


27,809


52,372

Net cash used for purchases of property and equipment

46,363


46,171


38,352


130,390


120,738

     Net effect of accruals

(10,825)


6,494


7,992


308


9,840

Total capital expenditures

$

35,538


 

$

52,665


$

46,344


$

130,698


$

130,578

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

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

Current Information

As of October 29, 2015


Drilling Services Segment:

Rig Type




Mechanical


Electric


Total Rigs







Drilling rig horsepower ratings:






    900 HP

1



1

    1000 HP

1


3


4

    1200 to 2000 HP

1


32


33

        Total

3


35


38







Production Services Segment:












Well servicing rig horsepower ratings:






    550 HP





113

    600 HP





11

        Total





124







Wireline units





125







Coiled tubing units





17













 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-third-quarter-2015-results-300168508.html

SOURCE Pioneer Energy Services


Source: PR Newswire (October 29, 2015 - 6:00 AM EDT)

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