Pioneer Drilling Company's CEO Discusses Q1 2011 Results - Earnings Call Transcript
Thank you and good morning everyone. Joining us on the call today is Red West, President of our Drilling Services Division and Lorne Phillips, our Chief Financial Officer.
Overall, Q1 was about as we’d expected. Both revenues and EBITDA were up higher than expected quarter-over-quarter, a little over 3%. I’m not going to review many of the financials in my comments, Lorne is going to go over that in just a second, but what I think is exciting about our Q1 and where we are year to date is the achievement of what I would call our critical strategic objectives for 2011 – one is putting stacked rigs back to work, and two is growing our three core businesses in oil and liquid-rich unconventional plays: that’s land drilling, wire line and well services.
With respect to putting stacked rigs back to work, our new West Texas endeavor has exceeded our expectations by threefold and could end up exceeding by fourfold the end of the year. We had budgeted at the beginning of the year to relocate four rigs to West Texas on a timeframe of one in May, one in July, one in September and one in November. We were fortunate, we were received well in West Texas when we began intense bidding in that market at the beginning of the year, and it allowed us to put all four rigs into that market by the end of March. So we were way accelerated on that opportunity.More importantly, we have now executed an additional nine contracts for rigs that’ll be relocated mostly out of our stacked inventory of rigs in North and East Texas, but we will be relocating one that’s been quasi-active from our South Texas market. We anticipate, we are readying the first three of these rigs currently and we anticipate that we’ll have the first two working in West Texas by June, the second two working there by July, then I’m saying the beginning of June, the beginning of July; two more by the beginning of September and two more by the beginning of November, and one more by the beginning of December. That’s the nine rigs.
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