Pioneer Energy Services Corp. Announces Impairment Charges for the Second Quarter Ended June 30, 2019; Provides Production Guidance for the Third Quarter of 2019
In the third quarter of 2019, The company expects continued weakness in coiled tubing services, a modest softening in well servicing, and certain clients reducing activity in wireline services. As a result, The company expects revenue from production services business segments to be down approximately 3% to 6% as compared to the second quarter of 2019, and margins to be flat at approximately 17% of revenue. Due to the potential for an additional stacked rig in the Appalachia market, The company expects domestic drilling services rig utilization to average approximately 88% to 92%, and generate average margins per day of approximately $9,700 to $10,200. Similarly, with the contract uncertainty in Colombia, The company expects international drilling services rig utilization to average approximately 70% to 75%, and generate average margins per day of approximately $9,000 to $10,000.