A few quick operational nuggets from today’s Q2 earnings releases.  Main takeaway is both PTEN and PDS see flattish U.S. drilling activity.


  • Averaged 82 rigs in Q2 with an expectation to average 59 rigs in Q3.
  • According to the company’s website, PTEN is running 59 rigs today.
  • Q2 revenue/day = $22,970 vs. $23,810 in Q1
  • Q2 rig margin/day = $11,280 (includes $8.6M of lump sum payments or ~$1,150/day).  Q1 margin/day = $9,310
  • Closed its Canadian land rig business and is attempting to sell those rigs.  We believe it’s about 18 rigs total, but we’ll check later this morning.
  • Pressure pumping revenue totaled $59.5M vs. $125.1M in Q1 (-52%)
  • Gross  profit in pressure pumping was $3.3M.
  • Pressure pumping results were in-line with the company’s guidance.
  • Q2 included one-time charges of $55.8M.
  • Cash increased $95M to $247M.
  • Total debt = $967M.
  • Cost reduction efforts implemented this year are expected to reduce costs by $100M.
  • PTEN will provide formal Q3 guidance on its earnings call.

Precision Drilling

  • Consolidated revenue totaled $190M with adjusted EBITDA of $58M. (Canadian $$).
  • Cash = $175M, up from $97M at the end of Q1
  • Total debt = $1.45B with first large maturity in December 2023.
  • Averaged 30 rigs in the U.S. in Q2 vs. 55 in Q1.
  • Averaged 9 rigs in Canada in Q2 vs. 63 in Q1 (seasonal break-up)
  • International held flat at 8 rigs.
  • U.S. revenue/day totaled $29,370 but included ~$19M on contract cancellation, idle but contracted rigs and/or turnkey revenue.
  • A clean U.S. revenue/day would be closer to $22,400/day if our math is correct.
  • A clean implied U.S. margin/day is roughly $8,300/day.
  • Company’s investment in technology continues.
  • PDS commercialized two drilling apps in Q2, bringing total to 6 with another 12 under development.
  • The company highlights success with its AlphaAnalytics technology which reduced drilling times in the Haynesville by 8% q/q in Q2.
  • The AlpahAnalytics have been used on 110 wells this year.
  • Company sees flattish U.S. activity, in Canada the Q3 normal seasonal rebound will be muted while the company’s Kuwait and Saudi rigs remain contracted.
  • PDS cost savings expected to be more than originally prophesied as total annualized fixed cost savings now expected to be 35% vs. 30%.
  • Normalized G&A savings expected to exceed $30M.
  • In recent years, PDS has consistently been focused on FCF / debt reduction – this focus appears to be continuing.
  • 2020 capex expected to total $48M.

Apologies for being late on the earnings takeaways….we overslept.

No views on the stocks….not our thing.  We’ll summarize the conference calls, hopefully today, but most likely this weekend.


Daniel Energy Partners is pleased to announce the publication of its first market research note. In this note, we reached out to executives across the oil service and E&P sectors to gauge leading edge sentiment.

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