Quick Win by the Algorithm: Pioneer Energy Services Corp. (PES)

Quick Win by the Algorithm

Pioneer Energy Services Corp. (PES)

Pioneer Energy Services provides land contract drilling services and production services to independent and major oil and gas exploration and production companies. Pioneer Energy Services Corp. was founded in 1968 and is headquartered in San Antonio, Texas.


Pioneer Energy Services Corp reported their fourth quarter results from 2015 on February 17th of this year. The report showed revenues of $104.5 million, a 3% decrease from the previous quarter and a 63% decrease from the same quarter the previous year. The company attributes this decline to reduced activity and pricing in response to lower demand as oil and gas prices have dropped.

In addition, the company sold four SCR drilling rigs for proceeds of $17.3 million and classified four additional rigs as held-for-sale at the end of the year. PES also amended its revolving credit facility and finished construction of a new drilling rig. The well servicing rig utilization was at 55% with an average pricing of $562 per hour, and drilling utilization was at 54% based on their average fleet of 37 rigs.

The company’s CEO commented that they have worked hard to navigate through difficult market conditions. They worked hard in 2015 to reduce costs in order to have sustainable spending in what is expected to be another difficult year.

The predictive algorithm is currently bullish on GLF for the short, mid and long-term time horizons. On the 1-year time period, the algorithm is showing a strong bullish signal of 32.12 with a predictability of 0.75.