Pioneer Energy +3.8% as Q1 earnings, revenues beat expectations

|About: Pioneer Energy Services (PES)|By:, SA News Editor

Pioneer Energy Services (PES +3.8%) posts strong gains after reporting Q1 earnings and revenues that topped analyst estimates, supported by increased demand in its production services unit offset somewhat by a drop for its drilling services segment.

Expects Q2 drilling rig utilization to average 85%-88%, based on a fleet of 62 rigs, with drilling services margin of $8.5K-$8.7K/day; projects 5%-6% growth in production services during Q2 compared to year-ago levels.

Says recent market improvements support new equipment additions in 2014; PES recently committed to add another six well servicing rigs and two coiled tubing units, which will result in nine well servicing rigs and three coiled tubing units to be added in 2014.