Global Hunter Securities Conference July 18-19, 2011
Overview Ticker Symbol: PDC Market Cap: 788 million (July 14, 2011) Stock price: 14.61 (July 14, 2011) Average 3-month daily 739,849 shares trading volume: Public float*: Approximately 54 million shares Employees: 2,692…
Pioneer Drilling Overview 4
Pioneer Drilling Company 71 Drilling Rigs in 8 Locations Approximately 9th largest contract driller 80 Well Service Rigs in 11 Locations Approximately 7th largest well service provider 99 Wireline Units in 21 Locations 81…
Leading Service Provider Across Well Life Cycle Diversified Business and Geography Mix TTM March 31, 2011 Total Revenue: 555 million Colombia Total Margin: 187 million 6
Investment Considerations Continued organic growth opportunities in core businesses: land drilling, well services and wireline Signed five new-build drilling term contracts for delivery in the first and second quarters of 2012…
High Quality Drilling Fleet, Focused on Unconventional Plays Historical Fleet Growth Current Rig Fleet Mix 1,500-2,000 550-999 Electric HP HP 20% 31% 42% 58% 49% 1,000-1,499 Mechanical HP Note: Rig counts for 2004, 2005 and…
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 69% currently(1) Comparable Utilization…
Modern, Efficient Drilling Fleet 50 Series Rig 35 rigs working with top drives (49% of fleet) 16 walking/skidding systems on rigs 34 pairs of 1,300/1,600 HP mud pumps 62% of rigs have iron roughnecks 42% of rigs are…
New-Builds Driving Visible Organic Growth Five state-of-the-art AC rigs under construction Rigs secured with long term contracts up to four years Attractive rates of return (20%+ IRR) Ideal for drilling complex shales…
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 Seventy-three 550 HP rigs Six 600 HP rigs One 400 HP rig Established in the…
Wireline and Fishing & Rental Overview Overview Wireline Locations Wireline Services Open and cased-hole wireline services Cut Bank Havre Williston Billings Dickinson Fleet of 99 wireline units has an Casper average age of less…
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 Horizontal Fall 08 Peak:…
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 91 92 95 200 Well Service / Workover Jobs…
Recent Developments New-Build Contracts 5 new-build AC drilling rigs with term contracts Preliminary 2Q 2011 Operating Result Expectations Drilling rig utilization is expected to be between approximately 68% to 70% Workover rig…
Recent Developments (cont.) Priced equity offering of 6,000,000 shares on July 14, 2011 Estimated net proceeds of 82MM Excludes exercise of over-allotment option of 15% (900,000 shares) Amended and Restated Credit Agreement…
Strong Liquidity and Capital Structure Pro Forma Capitalization (As of March 31, 2011) Pro Forma ( in millions) March 31, 2011 82MM Net Equity Offering Cash 15.3 55.2 Revolving Credit Facility (250)(1) 42.0 - Sr. Unsecured Notes…
Appendix 26
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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