Pioneer Drilling Company (AMEX: PDC) today reported results for the quarter and six months ended September 30, 2004.
Second quarter revenues were up 76 % Second quarter net income was $0.03 per diluted share
Nov 4, 2004
NOVEMBER 4, 2004 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported results for the quarter and six months ended September 30, 2004.
Revenues for the second quarter of fiscal 2005 grew to $42.8 million, compared to revenues of $24.2 million in the second quarter of fiscal 2004. This 76% increase in revenues was due to an improvement in rig revenue rates, a 37% increase in the average number of rigs in Pioneer’s fleet and an 11% increase in Pioneer’s rig utilization rate. Net earnings in the second quarter of 2005 were $923,000, or $0.03 per diluted share, versus a net loss of $621,000, or $0.03 loss per share, during the second quarter of fiscal 2004.
Revenue days during the second quarter of fiscal 2005 grew 53% to 3,166, compared to 2,064 revenue days for the second quarter of fiscal 2004. Revenue days by type of contract in the second quarter of 2005 were 1,674 days for daywork contracts, 1,347 for turnkey contracts and 145 for footage contracts. Pioneer’s rig utilization rate increased 11% for the fiscal second quarter to 96%, up from 85% in the corresponding period last year.
Wm. Stacy Locke, Pioneer’s President and Chief Executive Officer, stated, “This quarter marks a turning point for Pioneer Drilling. At September 30, we were essentially debt-free and had positive working capital of $14.5 million. In addition, average dayrates increased approximately $500 per day, or 6%, to approximately $9,100, up from average dayrates of approximately $8,600 for the quarter ending June 30, 2004. We anticipate that average dayrates will increase another 10% or more in our third fiscal quarter ending December 31, 2004.
Turnkey contracts comprised 43% of our revenue days in our fiscal second quarter, and we anticipate that this percentage will continue to gradually decline as dayrates improve.”
Revenues for the first six months of fiscal year 2005 were $83.5 million, compared to revenues of $48.1 million for the first six months of fiscal year 2004. Net earnings during the first six months of 2005 were $1.1 million, or $0.04 per share, compared to a net loss of $1.7 million, or $0.08 loss per share, during the first six months of fiscal 2004.
Revenue days were 6,163 days during the first half of fiscal 2005, compared to 4,022 days for the comparable period of fiscal 2004. Pioneer’s rig utilization rate for the first si months of fiscal 2005 was 94%, up from 86% in last year’s first half.
Pioneer’s management team will be holding a conference call on Thursday, November 4, 2004, at 11:00 a.m. eastern time to discuss these results. To participate in the call, dial (303) 262-2211 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 November 11, 2004. To access the replay, dial (303) 590-3000 and enter the pass code 11012216#.
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 Web site at http://www.pioneerdrlg.com. To listen to the live call on the Web, please visit Pioneer Drilling’s Web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live Web cast, an archive will be available shortly after the call. For more information, please contact Karen Roan at DRG&E at (713) 529-6600 or email 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 and North Louisiana. Pioneer’s fleet consists of 36 land drilling rigs that drill in depth ranges between 8,000 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 Six Months Ended 9/30/04 9/30/03 6/30/04 9/30/04 9/30/03 Contract drilling revenues $42,783 $24,244 $40,719 $83,502 $48,094 Costs and Expenses: Contract drilling 34,591 19,791 33,855 68,445 40,158 Depreciation 5,306 3,927 5,048 10,355 7,552 General and administrative 926 692 770 1,696 1,339 Total operating costs 40,823 24,410 39,673 80,496 49,049 Operating income (loss) 1,960 (166) 1,046 3,006 (955) Other income (expense): Interest expense (398) (700) (718) (1,116) (1,433) Loss on early extinguishment of debt (101) --- --- (101) --- Interest income 40 29 24 64 76 Other 12 31 3 15 40 Total other (447) (640) (691) (1,138) (1,317) Income (loss) before taxes 1,513 (806) 355 1,868 (2,272) Income tax benefit (expense) (590) 185 (138) (728) 594 Net earnings (loss) $923 $(621) $217 $1,140 $(1,678) Earnings (loss) per share: Basic $0.03 $(0.03) $0.01 $0.04 $(0.08) Diluted $0.03 $(0.03) $0.01 $0.04 $(0.08) Weighted average number of shares outstanding: Basic 33,211 22,037 27,300 30,272 21,873 Diluted 34,271 22,037 28,274 31,289 21,873 PIONEER DRILLING COMPANY AND SUBSIDIARIES Operating Statistics (In thousands, except averages per day) (Unaudited) Three Months Ended Six Months Ended 9/30/04 9/30/03 6/30/04 9/30/04 9/30/03 Average number of rigs 36.0 26.3 35.3 35.7 25.4 Utilization rate 96% 85% 93% 94% 86% Revenue days by contract: Daywork contracts 1,674 1,362 1,477 3,151 2,548 Turnkey contracts 1,347 610 1,376 2,723 1,319 Footage contracts 145 92 144 289 155 Total 3,166 2,064 2,997 6,163 4,022 Revenues by contract: Daywork contracts $17,277 $11,832 $14,141 $31,418 $21,628 Turnkey contracts 23,821 11,258 24,619 48,440 24,562 Footage contracts 1,685 1,154 1,959 3,644 1,904 Total $42,783 $24,244 $40,719 $83,502 $48,094 Drilling costs by contract: Daywork contracts $13,743 $10,131 $11,529 $25,272 $18,849 Turnkey contracts 19,476 8,872 20,861 40,336 19,869 Footage contracts 1,372 788 1,465 2,837 1,440 Total $34,591 $19,791 $33,855 $68,445 $40,158 Average revenues per day: Daywork contracts $10,321 $8,687 $9,574 $9,971 $8,488 Turnkey contracts 17,684 18,456 17,892 17,789 18,622 Footage contracts 11,621 12,543 13,602 12,609 12,284 Total $13,513 $11,746 $13,587 $13,549 $11,958 Average costs per day: Daywork contracts $8,210 $7,438 $7,806 $8,020 $7,398 Turnkey contracts 14,459 14,544 15,160 14,813 15,064 Footage contracts 9,462 8,565 10,171 9,817 9,290 Total $10,926 $9,589 $11,296 $11,106 $9,985 Capital expenditures: Rig additions $1,628 $8,822 $2,614 $4,242 $14,502 Other 7,296 1,792 5,802 13,098 3,042 $8,924 $10,614 $8,416 $17,340 $17,544 PIONEER DRILLING COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands) (Unaudited) 9/30/2004 3/31/2004 Assets Current assets: Cash and cash equivalents $11,073 $6,366 Receivables, net 20,047 10,902 Contract drilling in progress 5,499 9,131 Current deferred income taxes 403 285 Prepaid expenses 476 1,336 Total current assets 37,498 28,020 Net property, plant and equipment 121,929 115,342 Other assets 263 369 Total assets $159,690 $143,731 Liabilities and Equity Current liabilities: Notes payable $--- $558 Current portion of long-term debt 110 3,865 Accounts payable 17,822 13,271 Accrued expenses 5,081 4,298 Total current liabilities 23,013 21,992 Long-term debt 60 44,892 Deferred taxes 6,887 6,011 Total liabilities 29,960 72,895 Total shareholders' equity 129,730 70,836 Total liabilities and shareholders' equity $159,690 $143,731
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