Pioneer Energy Services Corp. (NYSE:PES) Q1 2015 Earnings Conference Call - Final Transcript

Apr 30, 2015 • 11:00 am ET


Pioneer Energy Services Corp. (NYSE:PES) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Pioneer Energy Services First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions)

As a reminder, this conference is being recorded. I would now like to turn the conference to your host, Ms. Anne Pearson with Dennard-Lascar. Thank you, Ms. Pearson. You may begin.

Anne Pearson

Thank you, Doug, and good morning, everyone. Before I turn the call over to CEO, Stacy Locke; and CFO, Lorne Phillips for their formal remarks, I have a few of the usual items that we need to cover.

First of all, a replay of the call will be available by webcast and also by telephone replay. You will find the replay information for both in this morning's news release. Just as a reminder, information reported on this call speaks only as of today, April 30, 2015, so any time sensitive information may not be accurate at the time of a replay.

Management may make forward-looking statements based on beliefs and assumptions and information currently available to them. While they believe these expectations are reasonable, they can give no assurance they'll prove to be correct. They are subject to certain risks and uncertainties that are described in today's news release and also in recent public filings with the SEC. If one or more of these risks materialize actual results could differ materially.

Also, please note in this conference call may contain references to non-GAAP measures. You'll find a reconciliation to the GAAP measures in this morning's release.

Now, I'd like to turn the call over to Stacy Locke, Pioneer President and CEO. Stacy?

Stacy Locke

Thank you, Anne, and good morning. Joining me here in San Antonio is Brian Tucker, President of our Drilling Segment and Lorne Phillips, our Chief Financial Officer.

We appreciate you all being on the call. The first quarter came in about really as we expected drilling overall little bit better utilization and margin per day than we had anticipated. U.S. drilling probably exceeded a little bit on lower cost and maybe a little bit more early term payment than anticipated, Colombia slightly underperformed due primarily to three large mobilizations, two of which that I mentioned in the last quarter call. That we moved two rigs to a free zone to avoid some hefty V80 payments and we have done that and taken them back out again and restarted that clock there and but the cost was greater than the demo from our client. And then we also had a very long move from the upper middle Magdalena valley down to Bogota with another rig.

So on the production service side, well servicing performed very well, exceeded our expectations in the quarter. Wireline was probably the biggest surprise, we were hit fairly hard on the wireline front harder than we had anticipated in particularly the Bakken as you might imagine just due to completion oriented work. Coil, I would say came pretty