Pioneer Energy Services Corp. Reports Unaudited Consolidated Financial Results for the First Quarter Ended March 31, 2018; Provides Production and Earnings Guidance for the Second Quarter of 2018 and Capital Expenditure Guidance for the Full Year of 2018
In the second quarter of 2018, revenue from its production services business segments is estimated to be up approximately 7% to 10% as compared to the first quarter of 2018. Margin from production services business is estimated to be 25% to 27% of revenue. Domestic drilling services rig utilization is estimated to be 100% and generate average margins per day of approximately $10,000 to $10,500. International drilling services rig utilization is estimated to average 83% to 86%, and generate average margins per day of approximately $8,000 to $9,000. The company expects G&A expense to be $19.5 million to $20 million. Depreciation and amortization is expected to be approximately $23.5 million in the second quarter. Interest expense is expected to be about the same, $9.5 million, in the second quarter.
The company estimates total capital expenditures for 2018 to be approximately $60 million, which includes approximately $40 million for routine capital expenditures and $20 million for the purchase of two large-diameter coiled tubing units, remaining payments on three wireline units, two of which were delivered in January, and additional drilling and production services equipment. As the year progresses, the company will continue to evaluate additional discretionary spending provided that it can be funded by cash from operations or proceeds from sales of non-strategic assets.