July 31, 2019 - 6:00 AM EDT
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Pioneer Energy Services Reports Second Quarter 2019 Results

SAN ANTONIO, July 31, 2019 /PRNewswire/ -- Pioneer Energy Services (NYSE: PES) today reported financial and operating results for the quarter ended June 30, 2019. Second quarter highlights include:

  • International drilling fleet was 86% utilized and generated an average margin per day of $11,023.
  • Well servicing revenues increased 12% sequentially, largely driven by a 10% increase in rig hours.
  • Domestic drilling fleet was 95% utilized and generated an average margin per day of $10,131.
  • Cash and cash equivalents increased $3.3 million to $31.1 million sequentially.

Consolidated Financial Results

Revenues for the second quarter of 2019 were $152.8 million, up 4% from revenues of $146.6 million in the first quarter of 2019 ("the prior quarter"). Net loss for the second quarter of 2019 was $12.9 million, or $0.17 per share, compared with net loss of $15.1 million, or $0.19 per share, in the prior quarter. Adjusted net loss(1) for the second quarter was $11.8 million, and adjusted EPS(2) was a loss of $0.15 per share. These results compare to an adjusted net loss of $10.5 million, and an adjusted EPS loss of $0.13 per share in the prior quarter which had higher adjustments for impairment charges and valuation allowance adjustments on deferred tax assets. Second quarter adjusted EBITDA(3) was $20.7 million, up from $19.9 million in the prior quarter.

The increases in revenues and Adjusted EBITDA were primarily due to improvements in our international drilling and well servicing segments. Adjusted EBITDA also increased sequentially due to the reduced fair value of our phantom stock awards, for which we recognized a benefit of $0.8 million in the second quarter, while we recognized an expense of $0.8 million in the prior quarter. The increases in revenues and Adjusted EBITDA were partially offset by the impact of lower utilization and pricing in our coiled tubing services.

Operating Results

Production Services Business

Revenue from our production services business was $87.8 million in the second quarter, up 1% from the prior quarter. Well servicing revenues increased 12%, primarily driven by higher utilization for both maintenance and completion activity. Well servicing average revenue per hour was $569 in the second quarter, up from $558 in the prior quarter, while rig utilization was 60%, up from 54% in the prior quarter. Wireline services, our largest production services business, experienced an increase in perforating stage count of approximately 12%, yielding a revenue increase of 3%. The revenue increases in well servicing and wireline were offset by a 26% revenue decline in coiled tubing services. Both the Rockies and Eagle Ford districts faced more intense competition as completion activity slowed, which negatively impacted utilization and pricing. In addition, the Rockies experienced seasonal slowdowns due to wildlife stipulations, which ended in early May. Coiled tubing revenue days totaled 307 in the second quarter, as compared to 351 in the prior quarter, while revenue per day was $35,430, down from $42,131 in the prior quarter.

Gross margin as a percentage of revenue from our production services business was 17% in the second quarter, down from 20% in the prior quarter. The decrease in gross margin was primarily due to  utilization and pricing declines in coiled tubing services.      

Drilling Services Business

Revenue from our drilling services business was $65.1 million in the second quarter, reflecting a 9% increase from the prior quarter. Average margin per day was $10,396, up from $10,349 in the prior quarter.

Our domestic drilling fleet was 95% utilized with average revenues per day of $26,864 in the second quarter, up from $26,767 in the prior quarter. Domestic drilling average margin per day was $10,131 in the second quarter, down from $10,944 in the prior quarter, primarily due to increased expenses for routine annual maintenance requirements, stacked rig costs for one rig at the end of its contract, higher mobilization costs associated with a rig that moved to a different region under a new contract, and the benefit in the previous quarter of $0.3 million, or approximately $235 per day, from recognition of the early termination of a domestic drilling contract.

International drilling rig utilization was 86% for the second quarter, up from 81% in the prior quarter. Average revenues per day were $40,806, up from $37,316 in the prior quarter, while average margin per day for the second quarter was $11,023, up from $8,894 in the prior quarter. The increases in revenue per day and margin per day were due to a greater number of days drilling in the current quarter, versus the prior quarter, as well as dayrate increases on certain rigs of approximately $1,000 per day.

Currently, 16 of our 17 domestic drilling rigs are earning revenues, 14 of which are under term contracts. Nine rigs are working in the Permian, five in Appalachia and two in the Bakken. Seven of the nine rigs in the Permian have contracts up for renewal in the third or fourth quarters of 2019. Five of those seven contracts have been extended or verbally agreed to be renewed, and two contracts are currently in negotiations to be extended. All contracts are expected to be renewed at roughly overall flat dayrates. In Appalachia, one rig is stacked and a second rig may stack in the third quarter; however, we expect the remaining four rigs to continue earning for the remainder of the year. In the Bakken, both of the contracted rigs expiring in the fourth quarter are in negotiations to be extended into the first quarter of 2020.

In Colombia, six of our eight rigs are currently earning revenue under daywork contracts. While overall demand for rigs remains strong, there are several rigs that may begin new contracts, move to a different current client or move to a new client which could cause a temporary reduction in utilization. Despite short-term uncertainty on certain contracts, we do expect five to seven of the rigs to remain active for the remainder of 2019.

Comments from our President and CEO 

"We had solid performance once again from our drilling services segments which helped us generate favorable operating results and increase our cash position in the quarter," said Wm. Stacy Locke, President and Chief Executive Officer. "In Colombia, we are pleased with the improvement in average margins per day and level of demand for the premium 1,500 horsepower rig class, which gives us confidence that demand for our rigs in that market will remain solid in 2020 despite uncertainty about certain contract extensions for the balance of 2019. We are very pleased with our Colombian team delivering first-rate operational and safety performance while at the same time generating some of the best financial results in many years.

"Our domestic drilling operations have proven to be strong and resilient, also delivering best-in-class safety and operational performance. Utilization rates for our domestic rigs continue to be strong and dayrates have remained steady, although we do anticipate some softness in the second half of the year, particularly in the Appalachian region, where we currently have one rig idle. Our outlook for our domestic operations remains positive.

"Our production services revenue improved sequentially; however, our gross margins fell below expectations. Despite challenging market conditions, we are focused on improving margins through realignment of certain businesses and reducing costs. Our well servicing business benefited from customers dedicating capital to well maintenance to boost or maintain production volumes. We also experienced higher utilization for completion-related services in this business. While our wireline revenue improved sequentially, coiled tubing activity was lower due to excess equipment capacity and seasonal factors in the Rockies. Poor visibility concerning completion activity in the second half of 2019 creates uncertainty regarding production services activity levels in the next two quarters. We do expect some customers to pause operations due to budget constraints for a period of time during the second half of 2019.

"For the remainder of the year, we remain focused on cash flow generation. We expect the second half of 2019 to be cash flow positive, with the third quarter likely to reflect a use of cash due to the semi-annual bond payment in September. Remaining capital expenditures will be routine maintenance in nature as the majority of discretionary spending was completed in the first half of 2019. While the Term Loan does not mature until December 2021, we are proactively exploring various strategic and other alternatives to address the uncertainties related to our ability to refinance our outstanding debts as their maturities approach," concluded Mr. Locke.

Third Quarter 2019 Guidance

In the third quarter of 2019, we expect continued weakness in coiled tubing services, a modest softening in well servicing, and certain clients reducing activity in wireline services. As a result, we expect revenue from our production services business segments to be down approximately 3% to 6% as compared to the second quarter of 2019, and margins to be flat at approximately 17% of revenue.

Due to the potential for an additional stacked rig in the Appalachia market, we expect domestic drilling services rig utilization to average approximately 88% to 92%, and generate average margins per day of approximately $9,700 to $10,200. Similarly, with the contract uncertainty in Colombia, we expect international drilling services rig utilization to average approximately 70% to 75%, and generate average margins per day of approximately $9,000 to $10,000.

We expect general and administrative expense to be approximately $20 million in the third quarter of 2019 partially due to higher phantom stock compensation expense relative to the prior quarter.

Liquidity

Working capital at June 30, 2019 was $106.5 million, up from $103.7 million at March 31, 2019, and down from $110.3 million at December 31, 2018. Cash and cash equivalents, including restricted cash, were $31.1 million, up from $27.9 million at March 31, 2019, and down from $54.6 million at year-end 2018. During the six months ended June 30, 2019, we used $31.4 million of cash for the purchase of property and equipment, and our cash provided by operations was $4.0 million.

Capital Expenditures

Cash capital expenditures during the six months ended June 30, 2019 were $31.4 million, including capitalized interest. We estimate total cash capital expenditures for 2019 to be approximately $50 million, which includes approximately $8 million for final payments on the construction of the new-build drilling rig that began operations in the first quarter, and previous commitments on high-pressure pump packages for coiled tubing completion operations.

Conference Call

Pioneer Energy Services' management team will hold a conference call today at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss these results. To participate, dial (412) 902-0003 approximately 10 minutes prior to the call and ask for the Pioneer Energy Services conference call. A telephone replay will be available after the call until August 7th. To access the replay, dial (201) 612-7415 and enter the pass code 13692092.

The conference call will also be webcast on the Internet and accessible from Pioneer Energy Services' web site at www.pioneeres.com. To listen to the live call, visit our web site at least 10 minutes early to register and download any necessary audio software. For more information, please contact Donna Washburn at Dennard Lascar Investor Relations at (713) 529-6600 or e-mail [email protected].

About Pioneer

Pioneer Energy Services provides well servicing, wireline, and coiled tubing services to producers in the U.S. Gulf Coast, Mid-Continent and Rocky Mountain regions through its three production services business segments. Pioneer also provides contract land drilling services to oil and gas operators in Texas, the Mid-Continent and Appalachian regions and internationally in Colombia through its two drilling services business segments.

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

Statements we make in this news release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements made in good faith that are subject to risks, uncertainties and assumptions. These forward-looking statements are based on our current beliefs, intentions, and expectations and are not guarantees or indicators of future performance. Our actual results, performance or achievements, or industry results, could differ materially from those we express in the foregoing discussion as a result of a variety of factors, including general economic and business conditions and industry trends, levels and volatility of oil and gas prices, the continued demand for drilling services or production services in the geographic areas where we operate, decisions about exploration and development projects to be made by oil and gas exploration and production companies, the highly competitive nature of our business, technological advancements and trends in our industry and improvements in our competitors' equipment, the loss of one or more of our major clients or a decrease in their demand for our services, future compliance with covenants under debt agreements, including our senior secured term loan, our senior secured revolving asset-based credit facility, and our senior notes, future compliance with the listing requirements of the NYSE, operating hazards inherent in our operations, the supply of marketable drilling rigs, well servicing rigs, coiled tubing units and wireline units within the industry, the continued availability of new components for drilling rigs, well servicing rigs, coiled tubing units and wireline units, the continued availability of qualified personnel, the success or failure of our acquisition strategy, the occurrence of cybersecurity incidents, the political, economic, regulatory and other uncertainties encountered by our operations, and changes in, or our failure or inability to comply with, governmental regulations, including those relating to the environment. We have discussed many of these factors in more detail in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019 and in our Annual Report on Form 10-K for the year ended December 31, 2018, including under the headings "Risk Factors" in Item 1A and "Special Note Regarding Forward-Looking Statements" in the Introductory Note to Part I. These factors are not necessarily all the important factors that could affect us. Other unpredictable or unknown factors could also have material adverse effects on actual results of matters that are the subject of our forward-looking statements. All forward-looking statements speak only as of the date on which they are made and we undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. We advise our shareholders that they should (1) recognize that important factors not referred to above could affect the accuracy of our forward-looking statements and (2) use caution and common sense when considering our forward-looking statements.

This news release contains non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of each such measure to its most directly comparable U.S. Generally Accepted Accounting Principles (GAAP) financial measure, together with an explanation of why management believes that these non-GAAP financial measures provide useful information to investors, is provided in the following tables.

_________________________________



(1)

Adjusted net loss represents net loss as reported adjusted to exclude impairments and the related tax benefit and valuation allowance adjustments on deferred tax assets. We believe that adjusted net loss is a useful measure to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers, although it is not a measure of financial performance under GAAP. Adjusted net loss may not be comparable to other similarly titled measures reported by other companies. A reconciliation of net loss as reported to adjusted net loss is included in the tables to this news release.



(2)

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



(3)

Adjusted EBITDA represents income (loss) before interest expense, income tax (expense) benefit, depreciation and amortization, impairment, and any loss on extinguishment of debt. Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities or (c) as a measure of liquidity. In addition, Adjusted EBITDA does not represent funds available for discretionary use. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.  A reconciliation of net loss as reported to adjusted EBITDA is included in the tables to this news release.

 

Contacts:

Dan Petro, CFA, Vice President, Treasury and


Investor Relations


Pioneer Energy Services Corp.


(210) 828-7689




Lisa Elliott / [email protected]


Dennard Lascar Investor Relations / (713) 529-6600

 - Financial Statements and Operating Information Follow -

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)



Three months ended


Six months ended


June 30,


March 31,


June 30,


2019


2018


2019


2019


2018















Revenues

$

152,843



$

154,782



$

146,568



$

299,411



$

299,260












Costs and expenses:










Operating costs

115,970



114,197



108,585



224,555



216,963


Depreciation

22,851



23,287



22,653



45,504



47,034


General and administrative

18,028



24,829



19,758



37,786



44,023


Bad debt expense (recovery), net

(348)



(370)



62



(286)



(422)


Impairment

332



2,368



1,046



1,378



2,368


Gain on dispositions of property and equipment, net

(1,126)



(726)



(1,075)



(2,201)



(1,061)


Total costs and expenses

155,707



163,585



151,029



306,736



308,905


Loss from operations

(2,864)



(8,803)



(4,461)



(7,325)



(9,645)












Other income (expense):










Interest expense, net of interest capitalized

(10,105)



(9,642)



(9,885)



(19,990)



(19,155)


Other income, net

349



44



684



1,033



548


Total other expense, net

(9,756)



(9,598)



(9,201)



(18,957)



(18,607)












Loss before income taxes

(12,620)



(18,401)



(13,662)



(26,282)



(28,252)


Income tax (expense) benefit

(324)



249



(1,453)



(1,777)



(1,039)


Net loss

$

(12,944)



$

(18,152)



$

(15,115)



$

(28,059)



$

(29,291)












Loss per common share:










Basic

$

(0.17)



$

(0.23)



$

(0.19)



$

(0.36)



$

(0.38)


Diluted

$

(0.17)



$

(0.23)



$

(0.19)



$

(0.36)



$

(0.38)












Weighted-average number of shares outstanding:










Basic

78,430



77,944



78,311



78,371



77,776


Diluted

78,430



77,944



78,311



78,371



77,776


 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands)



June 30,
2019


December 31,
2018


(unaudited)


(audited)

ASSETS




Current assets:




Cash and cash equivalents

$

30,132



$

53,566


Restricted cash

998



998


Receivables, net of allowance for doubtful accounts

145,572



130,881


Inventory

22,800



18,898


Assets held for sale

5,962



3,582


Prepaid expenses and other current assets

7,061



7,109


Total current assets

212,525



215,034






Net property and equipment

500,843



524,858


Operating lease assets

8,775




Other noncurrent assets

1,526



1,658


Total assets

$

723,669



$

741,550






LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

41,019



$

34,134


Deferred revenues

1,420



1,722


Accrued expenses

63,561



68,912


Total current liabilities

106,000



104,768






Long-term debt, less unamortized discount and debt issuance costs

466,093



464,552


Noncurrent operating lease liabilities

6,495




Deferred income taxes

4,913



3,688


Other noncurrent liabilities

1,823



3,484


Total liabilities

585,324



576,492


Total shareholders' equity

138,345



165,058


Total liabilities and shareholders' equity

$

723,669



$

741,550


 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Six months ended


June 30,


2019


2018





Cash flows from operating activities:




Net loss

$

(28,059)



$

(29,291)


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




Depreciation

45,504



47,034


Allowance for doubtful accounts, net of recoveries

(286)



(422)


Gain on dispositions of property and equipment, net

(2,201)



(1,061)


Stock-based compensation expense

1,194



2,356


Phantom stock compensation expense

51



6,529


Amortization of debt issuance costs and discount

1,541



1,422


Impairment

1,378



2,368


Deferred income taxes

1,225



273


Change in other noncurrent assets

1,476



(199)


Change in other noncurrent liabilities

(2,493)



(10,009)


Changes in current assets and liabilities:

(15,284)



(1,875)


Net cash provided by operating activities

4,046



17,125






Cash flows from investing activities:




Purchases of property and equipment

(31,382)



(31,485)


Proceeds from sale of property and equipment

3,439



2,225


Proceeds from insurance recoveries

588



541


Net cash used in investing activities

(27,355)



(28,719)






Cash flows from financing activities:




Proceeds from exercise of options



12


Purchase of treasury stock

(125)



(549)


Net cash used in financing activities

(125)



(537)






Net decrease in cash, cash equivalents and restricted cash

(23,434)



(12,131)


Beginning cash, cash equivalents and restricted cash

54,564



75,648


Ending cash, cash equivalents and restricted cash

$

31,130



$

63,517


 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Operating Results by Segment

(in thousands)

(unaudited)



Three months ended


Six months ended


June 30,


March 31,


June 30,


2019


2018


2019


2019


2018

Revenues:










Domestic drilling

$

39,652



$

35,634



$

38,009



$

77,661



$

71,560


International drilling

25,422



21,773



21,643



47,065



39,384


Drilling services

65,074



57,407



59,652



124,726



110,944


Well servicing

29,506



23,162



26,254



55,760



44,276


Wireline services

47,386



62,137



45,874



93,260



118,738


Coiled tubing services

10,877



12,076



14,788



25,665



25,302


Production services

87,769



97,375



86,916



174,685



188,316


Consolidated revenues

$

152,843



$

154,782



$

146,568



$

299,411



$

299,260












Operating costs:










Domestic drilling

$

24,698



$

21,749



$

22,469



$

47,167



$

42,647


International drilling

18,555



17,064



16,485



35,040



30,025


Drilling services

43,253



38,813



38,954



82,207



72,672


Well servicing

21,038



16,680



18,896



39,934



32,250


Wireline services

41,804



46,716



39,347



81,151



89,202


Coiled tubing services

9,875



11,988



11,388



21,263



22,839


Production services

72,717



75,384



69,631



142,348



144,291


Consolidated operating costs

$

115,970



$

114,197



$

108,585



$

224,555



$

216,963












Gross margin:










Domestic drilling

$

14,954



$

13,885



$

15,540



$

30,494



$

28,913


International drilling

6,867



4,709



5,158



12,025



9,359


Drilling services

21,821



18,594



20,698



42,519



38,272


Well servicing

8,468



6,482



7,358



15,826



12,026


Wireline services

5,582



15,421



6,527



12,109



29,536


Coiled tubing services

1,002



88



3,400



4,402



2,463


Production services

15,052



21,991



17,285



32,337



44,025


Consolidated gross margin

$

36,873



$

40,585



$

37,983



$

74,856



$

82,297












Consolidated:










Net loss

$

(12,944)



$

(18,152)



$

(15,115)



$

(28,059)



$

(29,291)


Adjusted EBITDA (1)

$

20,668



$

16,896



$

19,922



$

40,590



$

40,305



(1)  Adjusted EBITDA represents income (loss) before interest expense, income tax (expense) benefit, depreciation and amortization, impairment, and any loss on extinguishment of debt. Adjusted EBITDA is a non-GAAP measure that our management uses to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers. We believe that this measure is useful to investors and analysts in allowing for greater transparency of our core operating performance and makes it easier to compare our results with those of other companies within our industry. Adjusted EBITDA should not be considered (a) in isolation of, or as a substitute for, net income (loss), (b) as an indication of cash flows from operating activities or (c) as a measure of liquidity. In addition, Adjusted EBITDA does not represent funds available for discretionary use. Adjusted EBITDA may not be comparable to other similarly titled measures reported by other companies.  A reconciliation of net loss as reported to adjusted EBITDA is included in the table on page 13.

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Operating Statistics

(unaudited)



Three months ended


Six months ended


June 30,


March 31,


June 30,


2019


2018


2019


2019


2018











Domestic drilling:










Average number of drilling rigs

17



16



16



17



16


Utilization rate

95

%


100

%


97

%


96

%


100

%

Revenue days

1,476



1,454



1,420



2,896



2,894












Average revenues per day

$

26,864



$

24,508



$

26,767



$

26,817



$

24,727


Average operating costs per day

16,733



14,958



15,823



16,287



14,736


Average margin per day

$

10,131



$

9,550



$

10,944



$

10,530



$

9,991












International drilling:










Average number of drilling rigs

8



8



8



8



8


Utilization rate

86

%


85

%


81

%


83

%


81

%

Revenue days

623



621



580



1,203



1,171












Average revenues per day

$

40,806



$

35,061



$

37,316



$

39,123



$

33,633


Average operating costs per day

29,783



27,478



28,422



29,127



25,640


Average margin per day

$

11,023



$

7,583



$

8,894



$

9,996



$

7,993












Drilling services business:










Average number of drilling rigs

25



24



24



25



24


Utilization rate

92

%


95

%


92

%


92

%


94

%

Revenue days

2,099



2,075



2,000



4,099



4,065












Average revenues per day

$

31,002



$

27,666



$

29,826



$

30,428



$

27,292


Average operating costs per day

20,606



18,705



19,477



20,055



17,877


Average margin per day

$

10,396



$

8,961



$

10,349



$

10,373



$

9,415












Well servicing:










Average number of rigs

125



125



125



125



125


Utilization rate

60

%


49

%


54

%


57

%


48

%

Rig hours

51,895



42,871



47,064



98,959



83,645


Average revenue per hour

$

569



$

540



$

558



$

563



$

529












Wireline services:










Average number of units

95



108



105



100



108


Number of jobs

2,278



3,022



2,342



4,620



5,852


Average revenue per job

$

20,802



$

20,562



$

19,588



$

20,186



$

20,290












Coiled tubing services:










Average number of units

9



14



9



9



14


Revenue days

307



350



351



658



764


Average revenue per day

$

35,430



$

34,503



$

42,131



$

39,005



$

33,118


 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Reconciliation of Net Loss to Adjusted EBITDA

and Consolidated Gross Margin

(in thousands)

(unaudited)



Three months ended


Six months ended


June 30,


March 31,


June 30,


2019


2018


2019


2019


2018











Net loss as reported

$

(12,944)



$

(18,152)



$

(15,115)



$

(28,059)



$

(29,291)












Depreciation and amortization

22,851



23,287



22,653



45,504



47,034


Impairment

332



2,368



1,046



1,378



2,368


Interest expense

10,105



9,642



9,885



19,990



19,155


Income tax expense (benefit)

324



(249)



1,453



1,777



1,039


Adjusted EBITDA(1)

20,668



16,896



19,922



40,590



40,305












General and administrative

18,028



24,829



19,758



37,786



44,023


Bad debt expense (recovery), net

(348)



(370)



62



(286)



(422)


Gain on dispositions of property and equipment, net

(1,126)



(726)



(1,075)



(2,201)



(1,061)


Other income

(349)



(44)



(684)



(1,033)



(548)


Consolidated gross margin

$

36,873



$

40,585



$

37,983



$

74,856



$

82,297


 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Reconciliation of Net Income (Loss) as Reported to Adjusted Net Income (Loss)

and Diluted EPS as Reported to Adjusted (Diluted) EPS

(in thousands, except per share data)

(unaudited)



Three months ended


June 30,


March 31,


2019


2019





Net loss as reported

$

(12,944)



$

(15,115)


Impairment

332



1,046


Tax benefit related to adjustments

(77)



(242)


Valuation allowance adjustments on deferred tax assets

884



3,846


Adjusted net loss(2)

$

(11,805)



$

(10,465)






Basic weighted average number of shares outstanding, as reported

78,430



78,311


Effect of dilutive securities




Diluted weighted average number of shares outstanding, as adjusted

78,430



78,311






Adjusted (diluted) EPS(3)

$

(0.15)



$

(0.13)






Diluted EPS as reported

$

(0.17)



$

(0.19)



(2)  Adjusted net loss represents net loss as reported adjusted to exclude impairments and the related tax benefit and valuation allowance adjustments on deferred tax assets. We believe that adjusted net loss is a useful measure to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers, although it is not a measure of financial performance under GAAP. Adjusted net loss may not be comparable to other similarly titled measures reported by other companies. A reconciliation of net loss as reported to adjusted net loss is included in the table above.


(3)  Adjusted (diluted) EPS represents adjusted net loss divided by the weighted-average number of shares outstanding during the period, including the effect of dilutive securities, if any. We believe that adjusted (diluted) EPS is a useful measure to facilitate period-to-period comparisons of our core operating performance and to evaluate our long-term financial performance against that of our peers, although it is not a measure of financial performance under GAAP. Adjusted (diluted) EPS may not be comparable to other similarly titled measures reported by other companies. A reconciliation of diluted EPS as reported to adjusted (diluted) EPS is included in the table above.

 

PIONEER ENERGY SERVICES CORP. AND SUBSIDIARIES

Equipment Information

As of July 31, 2019



Multi-well, Pad-capable

Drilling Services Business Segments:

AC rigs


SCR rigs


Total

Domestic drilling

17



17

International drilling


8


8






25







Production Services Business Segments:

550 HP


600 HP


Total

Well servicing rigs, by horsepower (HP) rating

113


12


125












Total

Wireline services units


93

Coiled tubing services units


9

 

Cision View original content:http://www.prnewswire.com/news-releases/pioneer-energy-services-reports-second-quarter-2019-results-300893659.html

SOURCE Pioneer Energy Services


Source: PR Newswire (July 31, 2019 - 6:00 AM EDT)

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