(NYSE AMEX: PDC) www.pioneerdrlg.com UBS Global Oil & Gas Conference May 25, 2010
Overview Ticker Symbol: PDC Market Cap: 299 million (May 21, 2010) Stock price: 5.53 (May 21, 2010) Average 3-month daily 878,000 shares trading volume: Public float: Approximately 54 million shares Employees: 2,200 Headquarters:…
Pioneer Drilling Overview 4
Investment Considerations Rig fleet trading at a significant discount to replacement value Focused on protecting cash flow from softening gas prices Approximately 50% of working rigs on term contracts(1) Approximately 50% of…
Overview of Pioneer 9th largest contract driller, 6th largest well services provider and a significant wireline provider in the U.S. 71 high-quality and well-maintained land drilling rigs among the youngest in the industry…
Corporate Strategy Focused on value-added organic growth in three core businesses: land drilling, well services and wireline Maintaining emphasis on new-build equipment and state-of-the-art technology Focused on increasing mix of…
Recent Developments Focused on the most attractive shale plays and oil markets Position rigs to achieve highest internal rate of return Balanced mix of oil and natural gas exposure Locking in rig utilization with term contracts…
Drilling Services-Segment Overview Historical Fleet Growth Current Rig Fleet Mix 1,500-2,000 550-999 80 70 71 Electric HP HP 66 61 60 52 20% 31% 40 42% 40 58% 20 49% 0 2004 2005 2006 2007 2008 2009 1,000-1,499 Mechanical HP…
Strong Utilization Through the Cycles Averaged 85% utilization through cycles since 2001, comparing favorably to peers Utilization has rebounded from a monthly low of 33% in June 2009 to 62% currently(1) Comparable Utilization…
Modern, Efficient Drilling Fleet 50 Series Rig Over 75% of fleet is shale capable 31 new builds (44%) since 2001 with most constructed during 2004 - 2006 69% with 1,000 HP - 2,000 HP 29 top drives (41%) with another 7 on order…
60 Series Rig Mast Traveling Power Equipment SCR House Package Drawworks Fuel-Water Tank Accumulator Suitcases Handling Mud Pumps Equipment Pipe Racks Mud Tanks Mud Cleaning Equipment Choke Gas Buster Manifold 12
Workover Fleet Overview One of the newest and most highly capable workover fleets in the industry Sixty-nine 550 HP rigs and four 600 HP rigs with an average age of 2.4 years Initial entry via WEDGE acquisition in 2008 with…
Wireline and Fishing & Rental Overview Overview Locations Wireline Services Open and cased-hole wireline services Cut Bank Havre Williston Billings Dickinson 71 wireline units with an average age Casper Punxsutawney of 4.2…
Blue Chip Customers & Strong Safety Record Long-standing Relationships Safety Key component of employee culture Strengthens customer relationships Consistently beat the IADC average for recordable incidents Total recordable…
Industry and Market Conditions 16
Recovery in U.S. Land Rig Count Steady rig count improvement during the second half of 2009 and 2010 YTD Horizontal and oil rig counts have returned to Fall 2008 peak levels Land Rig Count Horizontal & Oil Rig Count Horizontal…
Benefits of Growing Shale Plays Service firms stand to benefit from shale production due to its lower risk development and increased service intensity (up to 3 - 5x conventional) Reintroduction of the Majors should provide increased…
Conclusion: Improving Oil Service Outlook North American oilfield services pricing and activity appear to have bottomed Most analysts expect a moderate recovery in upstream spending and drilling activity over the next few years…
Colombia: Strong, Growing Country World Bank Business Rankings Exports ( in billions) S. & Central America 2008 Production 37.6 Business Rank MBoe/d 30.0 Puerto Rico 1 1 26.8 24.4 St. Lucia 2 0 21.2 25.4 Colombia 3 601 16.8 22.7…
Financials 21
Capitalization ( in millions) March 31, 2010 Cash 11.0 (1) Revolving Credit Facility (225) 22.7 Sr. Unsecured Notes 239.5 Other 3.6 Total Debt 265.8 Stockholders' Equity 408.5 Total Capitalization 674.3 (2) Total Liquidity 213.3…
Segment Financials Drilling Services Avg Number of Rigs and Utilization Revenues and Op Costs per Day 100 96% 95% 95% 100% 25 89% 89% 21 21 20 19 80 71 71 80% 20 67 ( in thousands) 66 61 62% 16 60 52 60% 15 13 14 12 12…
Segment Financials Production Services Workover Rigs and Wireline Units Revenue and Division Margin 90 75 60% 48% 49% 50% 74 74 71 74 45% 50% 75 65 60 50 36% 36% 37% 55 59 ( in millions) 60 43 47 33% 40% 45 45 34% 45 29…
Appendix 26
Reconciliation of EBITDA to Net Income We define EBITDA as earnings (loss) before interest income (expense), taxes, depreciation, amortization and impairments. Although not prescribed under GAAP, we believe the presentation of EBITDA is…
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