Jefferies 2011 Global Energy Conference November 30, 2011
Overview Ticker Symbol: PDC Market Cap: 598.4 million (Nov 22, 2011) Stock price: 9.99 (Nov 22, 2011) Average 3-month daily 1,003,080 shares trading volume: Public float: Approximately 61 million shares Employees: 3,067…
Pioneer Drilling Overview 4
Pioneer Drilling Company 64 Drilling Rigs in 7 Locations Approximately 9th largest contract driller 88 Well Service Rigs operating in 9 Locations Approximately 7th largest well service provider 105 Wireline Units in 25…
Leading Service Provider Across Well Life Cycle Diversified Business and Geography Mix TTM Sep 30, 2011 Drilling Services 38% 62% Production Services Total Revenue: 661 million Colombia Drilling Services 44% 56%…
Investment Considerations Strong contract backlog Over 70% of working rigs backed by term contracts Fleet of modern drilling and production servicing assets generate revenue throughout the well life cycle Majority of assets…
High Quality Drilling Fleet, Focused on Unconventional Plays Historical Fleet Growth Current Rig Fleet Mix 70 71 71 (1) 66 64 61 1,500-2,000 550-999 52 HP HP Electric 40 22% 20% 45% 55% 58% 2004 2005 2006 2007 2008 2009…
Strong Utilization Through the Cycles Averaged 80% utilization through cycles since 2001, comparing favorably to peers Utilization has rebounded from a monthly low of 33% in June 2009 to 89% currently(1) Comparable Utilization…
Modern, Efficient Drilling Fleet 50 Series Rig 35 rigs working with top drives (55% of fleet) 16 walking/skidding systems on rigs 35 pairs of 1,300/1,600 HP mud pumps 80% of rigs have iron roughnecks 45% of rigs are…
New-Builds Driving Visible Organic Growth Ten state-of-the-art AC rigs contracted for construction Rigs secured with long term contracts up to four years Attractive rates of return (20%+ IRR) Ideal for drilling complex…
New-Build Features State-of-the-art 550K and 750K sub & mast AC new- builds Integrated 500 ton top drives in mast section for faster rig up and rig down Crane free rig up / rig down design 30 loads on base rig for fast moves…
New-Build Pad Drilling Capability Pin On Walking System Can walk in either direction or spin the rig Can walk with full set back of drill pipes in mast Accumulator & HPU walks with sub BOP handling system walks with sub Pin On…
New-Build Advanced Electrical System Festoon System to Manage Electrical Supply to Substructure 14
Premium Well Servicing Fleet, Established Positions in Emerging Shale Plays One of the newest and most highly capable well service fleets in the industry 88 total units with all but one of the units 550 HP or greater Established in…
Wireline and Fishing & Rental Overview Overview Wireline Locations Wireline Services Open and cased-hole wireline services Cut Bank Havre Williston Billings Dickinson Fleet of 105 wireline units has an Casper average age of…
Industry and Market Conditions 17
Resurgence in U.S. Land Rig Count Steady rig count improvement since the second half of 2009 Horizontal and oil rig counts have surpassed Fall 2008 peak levels Land Rig Count Horizontal & Oil Rig Count 2,200 5.0% 1,400…
Benefits of Growing Shale Plays Oilfield service companies stand to benefit from shale production due to its lower risk development and increased service intensity (up to 3 - 5x conventional) Shale gas is expected to make up 47% of…
Conclusion: Improving Oil Service Outlook North American capital spending and activity outlook is much improved Upstream Spending Outlook Well Service / Workover Jobs Outlook 100 95 200 84 83 85 Well Service / Workover…
Strong Liquidity and Capital Structure Pro Forma Capitalization (As of September 30, 2011) September 30, 2011 As Adjusted for ( in millions) Actual 175MM Senior Notes Cash 21.9 194.5 Revolving Credit Facility 0.0 0.0 Sr. Unsecured…
Appendix 24
Reconciliation of Adjusted EBITDA to Net Income We define Adjusted EBITDA as earnings (loss) before interest income (expense), taxes, depreciation, amortization, impairments, and the Colombian Net Equity Tax. Although not prescribed…
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