PIONEER ENERGY SERVICES CORP. (NASDAQ:PES) Files An 8-K Regulation FD Disclosure

ME Staff 8-k
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PIONEER ENERGY SERVICES CORP. (NASDAQ:PES) Files An 8-K Regulation FD Disclosure

Item 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 Goldman Sachs Global Energy Conference. The slides provide
an update on the Company’s operations and certain recent
developments, which among others, include the following:
Overall
Finalized sale of three SCR walking rigs previously announced
for aggregate gross proceeds of $11.0 million.
Completed equity offering in December resulting in net
proceeds of $65.4 million. All proceeds from the rig sales
and equity offering were applied to reduce borrowings under
the revolving credit facility. Current revolver balance is
$39.7 million.
Fourth Quarter Guidance
Drilling Services margin per day expected to be at the
high-end or exceed the guided range of $6,500 to $7,000.
Production Services revenue expected to be flat to down
approximately 2% as compared to guidance of flat to up 3%.
Production Services gross margin % is expected to be
approximately 13 to 16% as compared to guidance of 20 to 22%,
due to start-up costs related to activity increases in late
December and unanticipated costs associated with recovering
well servicing drill pipe lost in a wellbore in December.
Despite lower production services margin guidance, we expect
to maintain compliance with the credit facility covenants.
Drilling
Of the four remaining SCR rigs in the US, two were retired
with components to be used as spare parts inventory, and two
were designated as held-for-sale effective 12/31/16.
Current marketed US fleet is 50% pad-capable AC rigs.
Current utilization is 71% based on a fleet of 24 rigs.
Production Services
Well servicing fourth quarter utilization was 40% as compared
to 41% in the prior quarter. Expect to put 10 to 15
additional rigs back to work by the end of January.
Coiled tubing fourth quarter utilization was 21% as compared
to 22% in the prior quarter.
Reactivated five additional wireline units in late December
to meet January demand.
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, 2015
which has been filed with the Securities and Exchange Commission.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Slides for Company presentations to be used from time to time.