Pioneer Drilling CEO Discusses Q2 2011 Results - Earnings Call Transcript

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

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

Stacy Locke

Thank you, Anne, and good morning. Joining me here in San Antonia on the call this morning is Red West, President of our Drilling Services Division; and Joe Eustace, President of our Production Services business; and Lorne Phillips, our Chief Financial Officer. We appreciate everyone joining the call today.

Overall, we had very solid second quarter. Topline revenue growth was 12%. But more importantly, EBITDA grew by 16%. And this was primarily driven by the 21% revenue growth in our Production Services, which is a very high-margin business, just under 42% in this second quarter. And finally, we had enough business and earnings to generate $0.07 on the diluted EPS line, which we're very proud to accomplish.

These good results were achieved by essentially just executing on our strategic plan. In Drilling, we put stacked rigs back to work in our new West Texas division. Today, we have 12 rigs working in West Texas with four additional rigs contracted. Two of those four rigs will be in West Texas, working in mid-September; a third one in mid-October; and the fourth one by the beginning of November.

Incidentally, two of the 16 total rigs were part of these six cold-stacked rigs that have been cold-stacked in Western Oklahoma since the summer of '08. So we're very pleased to activate those two units, one of those with a 550 horsepower and one with an 800 horsepower. The vast majority of other rigs that we have in West Texas are 1,000-horsepower to 1,300-horsepower rigs. And we continue to market stacked East Texas rigs and hope to have 18 to 20 rigs working in the West Texas division by the first quarter of 2012.

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