Pioneer Drilling’s stock goes up in early trading.
Pioneer Drilling (AMEX: PDC, Stock Forum) today reported EPS of 38 cents, and earnings of $19.1 million on revenue of $152.5 million. This beat analysts' estimates of 29 cents EPS on revenues of $147 million. The company appears to be drilling more, but enjoying it less. Depreciation and amortization increased by almost $7 million, leading to a decline in net cash from operations.
The company also reported an increase in rig utilization to 90%, compared with 84% in the previous quarter, coupled with an increase in margin to $8,026/day from $7,047/day. Pioneer previously announced a two-year contract for a new rig, along with the possibility of a second by year's end. The stock is being rewarded today, up more than a buck in early trading.
Even though the news from Pioneer was mixed, the combined profits and outlook are positive. Now, they just need to straighten out their cash flow.
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