PIONEER ENERGY SERVICES CORP. (NYSE:PES) Files An 8-K Regulation FD DisclosureItem 7.01 Regulation FD Disclosure.
From time to time, senior management of Pioneer Energy Services (the “Company”) meets with groups of investors and business analysts. The slides attached to this report have been prepared in connection with management's participation in such meetings and participation in the Jefferies 2017 Energy Conference. The slides provide an update on the Company's operations and certain recent developments, which among others, include the following:
US Drilling
|
Continue operating at 50% utilization. |
|
Average margins per day exceed $9,000, the highest of reported publicly-traded drillers. |
|
Continue to push up dayrates and term contract coverage with 13 of 16 U.S. rigs on term ranging from six months to two years. |
Colombia Drilling
|
Six of eight rigs under contract; four rigs currently drilling and two rigs mobilizing to new locations. |
|
Pioneer comprises almost 50% of the active 1,500HP-class market in country. |
|
Average margins per day expected to be $8,000 to $10,000 beginning in Q1 2018, once all six rigs are up and running. |
Wireline
|
Continues to be very active across most basins. |
|
Two new electric wireline units will begin working in January which increases unit count to 119 units. |
Well Servicing
|
Well Servicing October utilization was 46% as compared to 43% in the prior quarter. November month-to-date utilization is 43%. |
|
Anticipate gradual improvement if oil pricing remains in the upper $50’s/bbl. |
|
Currently expanding footprint into new geographic areas. |
Coiled Tubing
|
Experiencing steady pick up in utilization, and pricing firm to slightly up. |
|
Having success expanding footprint into new geographic areas. |
Other – Balance Sheet
|
Completed $175 million senior secured term loan and $75 million asset-based lending facility in November 2017. Proceeds were used, among other things, to retire the outstanding balance of $101.7 million on the previous $150 million revolving credit facility scheduled to mature in 2019. |
|
Pro-forma cash balance of $81.7 million with no borrowings under the $75 million asset-based lending facility. |
|
Total pro-forma liquidity of $128.3 million. |
(1) Cash plus availability under asset-based lending facility net letters of credit
The slides are included in Exhibit 99.1 to this report and are incorporated herein by reference. The slides are available on the Company's website at www.pioneeres.com.
Safe Harbor Statement
Statements contained in this report and Exhibit 99.1 to this report that state the Company's or its management's expectations and assumptions about future events are forward-looking statements intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. It is important to note that the Company's actual results could differ materially from those projected or assumed in such forward-looking statements. Factors that could affect those results include, among others, those mentioned in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2016 which has been filed with the Securities and Exchange Commission.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1Slides for Company presentations to be used from time to time.
PIONEER ENERGY SERVICES CORP ExhibitEX-99.1 2 slides28november2017.htm EXHIBIT 99.1 slides28november2017 ibdrootProjectsIBD-NYthaw2016595552_1 6. Road ShowPES Company Presentation GS EQUITY v02.pptx
JEFFERIES 2017 ENERGY CONFERENCE
November 28th,…To view the full exhibit click here
About PIONEER ENERGY SERVICES CORP. (NYSE:PES)
Pioneer Energy Services Corp. provides land-based drilling services and production services to oil and gas exploration, and production companies in the United States and internationally in Colombia. The Company operates through two segments: Drilling Services and Production Services. The Drilling Services Segment provides contract land drilling services to a group of exploration and production companies through its four drilling divisions in the United States, and internationally in Colombia. The Production Services Segment provides a range of services, including well servicing, wireline services and coiled tubing services, to a group of exploration and production companies, with its operations concentrated in the United States onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states and in the Gulf Coast, both onshore and offshore. The Company also provides coiled tubing and wireline services offshore in the Gulf of Mexico.
