Pioneer Energy Services Corp. reported unaudited consolidated financial results for the first quarter ended March 31, 2017. Revenues for the first quarter of 2017 were $95.8 million, up 34% from revenues of $71.5 million in the fourth quarter of 2016 and up 28% from revenues of $75.0 million in the first quarter of 2016. The increase from the prior quarter primarily resulted from increased activity for the production services businesses and increased drilling activity in Colombia. Net loss for the first quarter of 2017 was $25.1 million, or $0.33 per diluted share, compared with net loss of $36.1 million, or $0.53 per diluted share, in the prior quarter and net loss of $27.7 million, or $0.43 per diluted share, in the year-earlier quarter. The net loss for the first quarter of 2017 includes a charge of $9.8 million for a valuation allowance taken against deferred tax assets primarily related to domestic net operating losses. Adjusted net loss for the first quarter was $15.4 million, and adjusted EPS was a loss of $0.20 per share, which excludes the valuation allowance adjustment. This compares to adjusted net loss of $23.1 million, or $0.34 per diluted share, in the prior quarter and adjusted net loss of $25.3 million, or $0.39 per share, for the year-earlier quarter, which exclude valuation allowance adjustments and the after-tax impact of impairment charges. First quarter Adjusted EBITDA was $6.0 million, up from $0.9 million in the prior quarter and down from $6.4 million in the year-earlier quarter. First quarter Adjusted EBITDA was up from the prior quarter primarily due to contributions from the Production Services Segment, as well as drilling operations in Colombia. Cash capital expenditures in the first quarter were $24.7 million which included approximately $16.6 million related to drilling rig upgrades, the exchange of 20 well servicing rigs and other discretionary expenditures. Loss from operations was $18,873,000 against $23,014,000 for the same period of last year. Loss before income taxes was $25,076,000 against $29,657,000 for the same period of last year. Net cash used in operating activities was $21,820,000 against inflow of $9,627,000 for the same period of last year. Purchases of property and equipment was $24,683,000 against $5,532,000 for the same period of last year.

In the second quarter of 2017, drilling rig utilization is estimated to average 72% to 75%. Drilling Services Segment margin will be down due to the temporary reduced activity in Colombia and is estimated to be approximately $6,800 to $7,200 per day in the second quarter. Production Services Segment revenue in the second quarter is estimated to be up approximately 10% to 15% as compared to the first quarter of 2017. Production Services Segment margin is estimated to be 22% to 25% of revenues in the second quarter.

The company estimate total capital expenditures for 2017 to be approximately $50 million, which includes approximately $20 million for fleet upgrades and additions.