EX-99.1 2 a2141441zex-99_1.htm EXHIBIT 99.1
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Exhibit 99.1

GRAPHIC   Contacts:   Bill Hibbetts, Senior VP & CFO
Pioneer Drilling Company
210-828-7689

 
 
 
 
Ken Dennard/ksdennard@drg-e.com
Lisa Elliott/lelliott@drg-e.com
DRG&E/713-529-6600

FOR IMMEDIATE RELEASE

PIONEER DRILLING REPORTS
FISCAL FIRST QUARTER RESULTS
First quarter revenues were up 70 percent
First quarter net income was $0.01 per diluted share

        AUGUST 4, 2004—SAN ANTONIO, TEXAS—Pioneer Drilling Company (AMEX: PDC) today reported results for the three months ended June 30, 2004.

        Revenues for the first quarter of fiscal 2005 were $40.7 million, compared to revenues of $23.9 million in the first quarter of 2004. Net earnings in the first quarter of 2005 were $217,000, or $0.01 per diluted share, versus a net loss of $1.1 million, or $0.05 loss per share, during the first quarter of 2004.

        There were 2,997 revenue days during the first quarter of fiscal 2005, compared to 1,958 revenue days for the first quarter of fiscal 2004. Average rig utilization for the first quarter was 93 percent, up from 87 percent in the corresponding period last year.

        Wm. Stacy Locke, Pioneer's President and Chief Executive Officer, stated, "We experienced a solid quarter, while battling weather in all three of our markets in Texas and lower than anticipated earnings contribution from turnkey operations. Overall, operating income per revenue day from turnkey projects remained positive and, in fact, was higher than operating income per revenue day from daywork projects. However, turnkey operations were not as profitable in the fiscal first quarter as we had experienced throughout fiscal 2004. We are pleased with this utilization rate of 93%, a level we haven't seen since 2001 when we had less than 20 land rigs in our fleet. Now that our fleet has grown to 36 rigs and our customer demand is quite strong, we expect to benefit from the operating leverage of these additional rigs as utilization is high and dayrates appear to be continuing to increase."

        Pioneer Drilling's management team will be holding a conference call on Thursday, August 5, 2004, at 9:30 a.m., Eastern time. To participate in the call, dial (303) 262-2143 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 August 12, 2004. To access the replay, dial (303) 590-3000 and enter the pass code 11004875#.

        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 expected benefits from the operating leverage of Pioneer Drilling's additional rigs and the continuing increases in dayrates. 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 the Company'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
Statements of Operations

 
   Three Months Ended
  
 
   6/30/04
   6/30/03
  
 
   (Unaudited)

  
Revenues:              
  Contract drilling   $ 40,718,811   $ 23,850,083  
   
 
 

Costs and Expenses:
 
 
 
 
 
 
 
  Contract drilling     33,854,370     20,366,406  
  Depreciation and amortization     5,048,317     3,624,181  
  General and administrative     770,141     648,248  
   
 
 
  Total operating costs     39,672,828     24,638,835  
   
 
 

Operating income (loss)
 
 
1,045,983
 
 
(788,752
)
   
 
 

Other income (expense):
 
 
 
 
 
 
 
  Interest expense     (718,232 )   (733,655 )
  Interest income     23,837     47,690  
  Other     3,389     8,947  
   
 
 
  Total other     (691,006 )   (677,018 )
   
 
 

Income (loss) before taxes
 
 
354,977
 
 
(1,465,770
)

Income tax benefit (expense)
 
 
(138,449
)
 
409,469
 
   
 
 

Net earnings (loss)
 
$
216,528
 
$
(1,056,301
)
   
 
 

Earnings (loss) per share:
 
 
 
 
 
 
 
  Basic   $ 0.01   $ (0.05 )
   
 
 
  Diluted   $ 0.01   $ (0.05 )
   
 
 

Weighted average number of shares outstanding:
 
 
 
 
 
 
 
    Basic     27,300,126     21,707,935  
    Diluted     28,273,561     21,707,935  

Operating statistics:
 
 
 
 
 
 
 
  Average number of rigs     35.3     24.6  
  Utilization rate     93 %   87 %
  Revenue days     2,997     1,958  
  Drilling revenue/revenue day   $ 13,587   $ 12,181  
  Drilling cost/revenue day   $ 11,296   $ 10,402  
  Capital expenditures:              
    Rig additions   $ 2,614,051   $ 5,416,693  
    Other   $ 5,801,471   $ 1,512,857  
   
 
 
    $ 8,415,522   $ 6,929,550  
   
 
 


PIONEER DRILLING COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets

 
   6/30/2004
   3/31/2004
 
   (Unaudited)
Assets
Current assets:            
  Cash and cash equivalents   $ 5,919,748   $ 6,365,759
  Receivables, net     12,571,346     10,901,991
  Contract drilling in progress     10,461,223     9,130,794
  Current deferred income taxes     271,844     285,384
  Prepaid expenses     972,149     1,336,337
   
 
    Total current assets     30,196,310     28,020,265
Net property, plant and equipment     118,543,601     115,341,612
Other assets     354,819     369,278
   
 
Total assets   $ 149,094,730   $ 143,731,155
   
 

Liabilities and Equity
Current liabilities:            
  Notes payable   $ 223,967   $ 558,070
  Current long-term debt     3,860,183     3,865,236
  Accounts payable     17,773,694     13,270,989
  Accrued expenses     6,087,083     4,297,952
   
 
    Total current liabilities     27,944,927     21,992,247
Long-term debt     43,931,131     44,891,674
Deferred taxes     6,165,825     6,010,916
   
 
    Total liabilities     78,041,883     72,894,837
Total shareholders' equity     71,052,847     70,836,318
   
 
    $ 149,094,730   $ 143,731,155
   
 



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PIONEER DRILLING COMPANY AND SUBSIDIARIES Statements of Operations
PIONEER DRILLING COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets