Pioneer Drilling Reports Fiscal Third Quarter Results
Third quarter revenues were up 76%
Feb 7, 2005
FEBRUARY 7, 2005 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported results for the third quarter and nine months ended December 31, 2004.
Revenues for the third quarter of the fiscal year ending March 31, 2005 grew to $46.4 million, compared to revenues of $26.4 million in the third quarter of fiscal 2004. This 76% increase in revenues was due to an improvement in rig revenue rates, a 43% increase in the average number of rigs in Pioneer’s fleet and a 10% increase in Pioneer’s rig utilization rate.
Net earnings in the third quarter of 2005 were $4.2 million, or $0.11 per diluted share, versus a net loss of $522,000, or $0.02 loss per share, during the third quarter of fiscal 2004.
Revenue days during the third quarter of fiscal 2005 grew 57% to 3,524, compared to 2,246 revenue days for the third quarter of fiscal 2004. Revenue days by type of contract in the third quarter of 2005 were 2,421 days for daywork contracts, 1,024 for turnkey contracts and 79 for footage contracts. Pioneer’s rig utilization rate for the third quarter increased to 98%, up from 88% in the corresponding period last year.
Wm. Stacy Locke, Pioneer’s President and Chief Executive Officer, stated, “We are pleased to have produced such solid third-quarter results and look forward to continued strong performance over the next several quarters. Average dayrates for daywork contracts increased approximately $1,150 per day, or 13%, to approximately $10,250, up from average dayrates of approximately $9,100 for the quarter ending September 30, 2004. We anticipate that average dayrates will continue to increase in our fiscal fourth quarter ending March 31, 2005. Turnkey contracts comprised 29% of our revenue days in our fiscal third quarter, down from 43% from the quarter ended September 30, 2004.”
Revenues for the first nine months of fiscal year 2005 were $129.9 million, compared to revenues of $74.5 million for the first nine months of fiscal year 2004. Net earnings during the first nine months of 2005 were $5.3 million, or $0.16 per diluted share, compared to a net loss of $2.2 million, or $0.10 loss per share, during the first nine months of fiscal 2004.
Revenue days were 9,687 days during the first nine months of fiscal 2005, compared to 6,268 days for the comparable period of fiscal 2004. Pioneer’s rig utilization rate for the first nine months of fiscal 2005 was 96%, up from 87% in last year’s nine-month period.
Pioneer’s management team will be holding a conference call on Tuesday, February 8, 2005, at 11:00 a.m., eastern time (10:00 a.m., central), to discuss these results. To participate in the call, dial (303) 262-0068 at least ten minutes before the conference call begins and ask for the Pioneer Drilling conference call. A replay of the call will be available approximately two hours after the call ends and will be accessible until February 15, 2005. To access the replay, dial (303) 590-3000 and enter the pass code 11023541#. Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by accessing Pioneer Drilling’s Website at http://www.pioneerdrlg.com . To listen to the live call on the Internet, please visit Pioneer&E at (713)529-kcroan@drg-e.com.
Pioneer Drilling Company provides land contract drilling services to independent and major oil and gas operators drilling wells in North, East and South Texas, Western Oklahoma and in the Rocky Mountain region. Pioneer’s fleet consists of 49 land drilling rigs that drill in depth ranges between 6,000 and 18,000 feet.
This press release contains various forward-looking statements and information that are based on management’s belief, as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the anticipated continuing increases in average dayrates and the gradual decline in turnkey contract revenue days as dayrates improve. Although the management of Pioneer Drilling believes that the expectations reflected in such forward-looking statements are reasonable, Pioneer Drilling can give no assurance that those expectations will prove to have been correct. Such statements are subject to various risks, uncertainties and assumptions, including, among other matters, risks and uncertainties relating to turnkey drilling contracts in progress. Should one or more of those risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in Pioneer’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2004.
- Tables to Follow -
PIONEER DRILLING COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
12/31/04 12/31/03 9/30/04 12/31/04 12/31/03
Contract drilling revenues $46,388 $26,414 $42,783 $129,889 $74,509
Costs and Expenses:
Contract drilling 32,357 21,600 34,591 100,802 61,757
Depreciation 5,770 4,119 5,306 16,124 11,671
General and administrative 1,215 687 926 2,911 2,027
Bad debt expense 342 --- --- 342 ---
Total operating costs 39,684 26,406 40,823 120,179 75,455
Operating income (loss) 6,704 8 1,960 9,710 (946)
Other income (expense):
Interest expense (159) (683) (398) (1,275) (2,117)
Loss on early
extinguishment of debt --- --- (101) (101) ---
Interest income 55 10 40 119 87
Other 7 25 12 22 65
Total other (97) (648) (447) (1,235) (1,965)
Income (loss) before taxes 6,607 (640) 1,513 8,475 (2,911)
Income tax benefit (expense) (2,428) 118 (590) (3,157) 712
Net earnings (loss) $4,179 $(522) $923 $5,318 $(2,199)
Earnings (loss) per share:
Basic $0.11 $(0.02) $0.03 $0.16 $(0.10)
Diluted $0.11 $(0.02) $0.03 $0.16 $(0.10)
Weighted average number
of shares outstanding:
Basic 38,428 22,203 33,211 33,001 21,984
Diluted 39,535 22,203 34,271 37,167 21,984
PIONEER DRILLING COMPANY AND SUBSIDIARIES
Operating Statistics
(in thousands, except averages per day)
(Unaudited)
Three Months Ended Nine Months Ended
12/31/04 12/31/03 9/30/04 12/31/04 12/31/03
Average number of rigs 39.7 27.7 36.0 37.1 26.2
Utilization rate 98% 88% 96% 96% 87%
Revenue days by contract:
Daywork contracts 2,421 1,524 1,674 5,680 4,072
Turnkey contracts 1,024 594 1,347 3,667 1,913
Footage contracts 79 128 145 340 283
Total 3,524 2,246 3,166 9,687 6,268
Revenues by contract:
Daywork contracts $26,824 $14,524 $17,277 $ 59,277 $36,152
Turnkey contracts 18,544 10,624 23,821 66,235 35,185
Footage contracts 1,020 1,266 1,685 4,377 3,171
Total $46,388 $26,414 $42,783 $129,889 $74,508
Drilling costs by
contract:
Daywork contracts $18,146 $11,912 $13,743 $ 44,401 $30,761
Turnkey contracts 13,582 8,575 19,476 53,153 28,444
Footage contracts 628 1,112 1,372 3,248 2,552
Total $32,356 $21,599 $34,591 $100,802 $61,757
Average revenues per day:
Daywork contracts $11,080 $ 9,530 $10,321 $10,436 $8,878
Turnkey contracts 18,109 17,886 17,684 18,062 18,393
Footage contracts 12,911 9,891 11,621 12,874 11,205
Total $13,163 $11,760 $13,513 $13,409 $11,887
Average costs per day:
Daywork contracts $ 7,495 $ 7,816 $ 8,210 $ 7,817 $ 7,554
Turnkey contracts 13,264 14,436 14,459 14,495 14,869
Footage contracts 7,949 8,688 9,462 9,553 9,018
Total $ 9,182 $ 9,617 $10,926 $10,406 $ 9,853
Capital expenditures:
Rig additions $39,027 $ 5,874 $ 1,628 $43,270 $19,170
Other 5,972 1,640 7,296 19,069 5,889
$44,999 $ 7,514 $ 8,924 $62,339 $25,059
PIONEER DRILLING COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
12/31/2004 03/31/2004
Assets
Current assets:
Cash and cash equivalents $ 6,713 $ 6,366
Receivables, net 19,924 10,902
Contract drilling in progress 7,351 9,131
Current deferred income taxes 426 285
Prepaid expenses 2,061 1,336
Total current assets 36,475 28,020
Net property and equipment 160,262 115,342
Other assets 1,337 369
Total assets $198,074 $143,731
Liabilities and Equity
Current liabilities:
Notes payable $ 1,086 $ 558
Current long-term debt 5,951 3,865
Accounts payable 11,207 13,271
Federal income taxes payable 70 ---
Accrued expenses 6,318 4,298
Total current liabilities 24,632 21,992
Long-term debt 29,380 44,892
Other non-current liability 400 ---
Deferred taxes 9,116 6,011
Total liabilities 63,528 72,895
Total shareholders' equity 134,546 70,836
$198,074 $143,731
Email Alerts/RSS Feeds