Pioneer Drilling Reports Record Fiscal Fourth Quarter 2006 Results
Pioneer Drilling Company (Amex: PDC) reported results for the three months and twelve months ended March 31, 2006, which are the fourth quarter and full-year of its fiscal year 2006.
Revenues for the fourth quarter of fiscal 2006 grew to $82.8 million, compared to revenues of $55.4 million for the fourth quarter of fiscal 2005, due to the continued strong demand for rigs in the Company's operating markets. This 50% increase in revenues was generated by a 34% increase in average revenues per day to $17,622 per day, coupled with a 13% increase in the average number of rigs in Pioneer Drilling's fleet to 55.3 rigs. Average drilling margin(A) per day increased 97% to $8,259 in the fourth quarter of fiscal 2006 compared to $4,202 in the fourth quarter of fiscal 2005 and sequentially increased 24% from the third quarter of fiscal 2006. Net earnings for the fourth quarter of fiscal 2006 were $18.0 million, or $0.36 per diluted share, compared to net earnings of $5.5 million, or $0.14 per diluted share, for the fourth quarter of fiscal 2005. Weighted average shares of common stock outstanding on a diluted basis increased 23% to 49.1 million shares for the fourth quarter of fiscal 2006 from 40.0 million shares for the fourth quarter of fiscal 2005.
Revenue days during the fourth quarter of fiscal 2006 increased 12% to 4,701, compared to 4,207 revenue days for the fourth quarter of fiscal 2005. In the fourth quarter of fiscal 2006, revenue days by type of contract were 4,503 for daywork contracts, zero for turnkey contracts and 198 for footage contracts. In contrast, revenue days by type of contract in the fourth quarter of fiscal 2005 were 3,005 for daywork contracts, 804 for turnkey contracts and 398 for footage contracts. Pioneer Drilling's rig utilization rate was 95% for the fourth quarter of fiscal 2006 compared to 97% in the prior fourth quarter.
Revenues for the twelve months of fiscal year 2006 were $284.1 million, compared to revenues of $185.2 million for the twelve months of fiscal year 2005. Net earnings during the twelve months of fiscal 2006 were $50.6 million, or $1.06 per diluted share, compared to net earnings of $10.8 million, or $0.30 per diluted share, during the twelve months of fiscal 2005. Revenue days were 18,164 during the twelve months of fiscal 2006, compared to 13,894 revenue days for the comparable period of fiscal 2005. Pioneer Drilling's rig utilization rate for the twelve months of fiscal 2006 was 95%, compared to 96% in last year's comparable twelve month period.
Wm. Stacy Locke, Pioneer Drilling's President and Chief Executive Officer, stated, "We are very pleased with our results throughout our 2006 fiscal year. During the period we broadened our geographic footprint, established new customer relationships and expanded and enhanced our fleet of drilling rigs. As a result, our average drilling margin per day was 92% greater for the 2006 fiscal year compared to a year ago. With demand remaining strong, we intend to continue to expand and strengthen our market position.
"Our 13 rig new-build program remains on track and we completed the third and fourth rig in the program during the fourth quarter. The third rig is a 1500 horsepower diesel electric rig, which began operations in the Williston Basin in January. The fourth rig spudded in the Piceance Basin in March. This rig was the first of our 1000 horsepower trailer-mounted rigs, which we refer to as our 'resource' rig. As of today, the fifth and sixth rig of the new- build program has been completed. A second 1000 horsepower 'resource' rig began operations in southeast Oklahoma in April. In May, one of the 'heavy' 1000 horsepower SCR rigs, rated to 15,000 feet, was delivered to Wyoming. Also, in late April we sold one of the lowest horsepower rigs in our fleet. This brings our marketable rig fleet to 57 rigs, with seven more new-build rigs expected to be delivered by the end of this fiscal year," continued Mr. Locke.
"In addition to building new rigs, we have steadily performed major upgrades to rigs which we have acquired over the years. During fiscal 2006, we spent over $21 million upgrading older rigs which included material upgrades to seven rigs. We have budgeted an additional $22 million for rig upgrades in fiscal 2007."
"As we enter our 2007 fiscal year, we have continued to pursue term contracts," added Mr. Locke. "Presently, 65% of our fleet is operating under term contracts of six months to two years in length."
Pioneer Drilling provides land contract drilling services to independent
and major oil and gas operators drilling wells in Texas, Louisiana, Oklahoma
and in the Rocky Mountain region. Its fleet consists of 57 land drilling rigs
that drill in depth ranges between 6,000 and 18,000 feet.
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