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As a reminder, information reported on this call speaks only as of today, May 8, 2012, so any time sensitive information may no longer be accurate at the time of replay. Management may make forward-looking statements today that are based on beliefs and assumptions and information currently available to them. While they believe these expectations are reasonable, they can give no assurance they will prove to be correct. They are subject to certain risks and uncertainties and assumptions that are described in this morning’s news release as well in a recent public filings with the SEC. If one or more of these risks materialize or underlying assumptions prove to be incorrect, results may differ materially.Also please note in this conference call we may contain references to non-GAAP measures. You’ll find a reconciliation to the GAAP measures in this morning’s news release. Now I would like to turn the call over to Stacy Locke, Pioneer’s President and CEO. Stacy? Stacy Locke Thank you Anne and good morning. We appreciate you all joining us on our first quarter call. In the room with me today, filling in for Red West is Blaine David, our Senior Vice President of operations for the Drilling Division and Joe Eustace, President of our Production Services division; and Lorne Phillips, our Chief Financial Officer. Well we have completed another very solid quarter for the company. About everything that could go right did so in this quarter. Revenues were up another 14% quarter over quarter and EBITDA was up 26% quarter-over-quarter. Unless the market changes from what we are seeing today, we’re on track to potentially hit a billion in revenues for the first time in our company’s history. That would be an approximate 40% year-over-year growth in revenue, and that would be on top of our 47% year-over-year growth in revenues from 2010 to 2011. Likewise, as we look out into 2013 with the unit additions in drilling and well service, and wireline and coiled tubing in 2012, we see another robust year revenue and EBITDA growth.
Now, turning to our four core business areas starting with drilling. Utilization held up better than expected at 87% in this first quarter. We pretty much completed our transition from gas to oil regions and liquid rich regions and it happened more seamlessly than we expected in this first quarter. Today on the drilling side we’re over 90% driven by oil or liquid rich related business.Due to this not having the impact of relocation and other factors are US day rate margins per day were up, our US turnkey margins per day were up considerably, our Colombia day rate margins per day were up and we also had a fuel, one time fuel reimbursement, in Colombia that helped the margins in this quarter. So it’s a great quarter. We’re operating at about 90% utilization today. Our mechanical fleet is performing very well at 91% utilizations. Day rates for the mechanical fleet are still trending upward particularly in the West Texas market as we’ve discussed on previous calls. The electric fleet is also performing very well at 90% utilizations. Day rates are firm in every market with the exception of the Marcellus where rates have declined in the 5% range or so. We will actually be moving our fourth rig out of the Marcellus this month that’s down from 7. We moved one out in the fourth quarter to Utah, and two out in the second quarter to the Granite Wash and we’ll be moving third rig this month out of the Marcellus into the Granite Wash. All of those will be on one year term contracts. We only have six rig down today, three mechanical, and three electric. One rig in South Texas is down, but it’s just down temporarily and will go back to work with a backlog of business. We have got one rig down in East Texas in the gas market. That’s one down out of two. That’s all that we have really remaining in East Texas today, and we have one down in Marcellus, but that’s the one that will be relocating here shortly to the Granite Wash and start its one year term. Read the rest of this transcript for free on seekingalpha.com