On February 17, 2017, Pioneer Energy Services (NYSE: PES) shared with investors its Q4’16 results and some details from its Q1’17 guidance. The company’s drilling rig utilization was 48% in Q4’16, up from 38% in Q3’16; for Q1’17, utilization is expected to increase to 70-73%.

Forty-one percent of PES’ TTM revenue came from its US drilling services and 57% from its production services, encompassing well servicing, wireline, and coiled tubing:

The company reported that some of its Q4’16 results were affected by ramp-up costs associated with the anticipated increase in activity for Q1’17 across all service lines.

Drilling Fleet Upgrade to Be Completed in Q2’17

During 2016, PES started to upgrade its US drilling fleet to 16 high-spec AC rigs. Once the upgrade is completed in Q2’17, all rigs will include 7,500psi mud systems.

The company also sold three SCR walking drilling rigs and removed four SCR rigs from the marketed fleet, resulting in a domestic fleet of 16 pad-capable AC rigs. During Q4’16, PES moved one drilling rig from the Bakken to West Texas. [read more]