Each one in plain English, with the numbers worked through for a shareholder.
5 Jan 2017capital raising announcement● NeutralMajor
In an investor presentation on January 5, 2017, Pioneer said it finalized the sale of three SCR walking rigs for $11.0 million. With the $65.4 million equity proceeds, this cut the revolver balance to $39.7 million (from about $95 million drawn in June 2016, per earlier filing). Two other SCR rigs were retired for spare parts and two were designated held-for-sale; current drilling utilization is 71% on 24 rigs. Pioneer lowered Q4 production services margin guidance to 13-16% (from 20-22%) citing start-up costs and lost well servicing drill pipe, but said it expects to stay in compliance with credit covenants.
12 Dec 2016capital raising announcement● NeutralMajor
The offering closed on December 12, 2016: 12,075,000 shares sold at $5.75, including the full 1,575,000-share underwriter option. Net proceeds were about $65.4 million, which Pioneer intends to use to repay its revolver. This completes the raise and increases the share count by 12,075,000, diluting existing holders.
What it means for a shareholder
12.1m new shares at $5.75 to raise about $65.4m. That's 16% dilution: every existing holder's slice gets 16% smaller. If you held $1,000 of shares (174 at the issue price), your slice goes from 0.000267% to 0.000225% of the company. To keep it you'd need 32 more shares - about $184 at the issue price.
7 Dec 2016capital raising announcement● NeutralMajor
Pioneer priced the offering on December 6, 2016, upsized from 9,000,000 to 10,500,000 shares at $5.75 per share, with a 30-day option for up to 1,575,000 more. Closing was expected December 12, and proceeds are to repay the revolver. The larger share count means more dilution for existing holders, but also more debt repayment.
6 Dec 2016capital raising announcement● NeutralMajor
On December 6, 2016 Pioneer announced an underwritten public offering of 9,000,000 new shares, with a 30-day option for the underwriter to buy up to 1,350,000 more. The stated use of the proceeds is to repay debt under its senior secured revolving credit facility. This starts the equity raise anticipated by the June 2016 credit amendment, which required net equity proceeds to go to the revolver; new shares mean existing holders' ownership will be diluted.
Pioneer furnished investor slides for the Goldman Sachs energy conference on January 5, 2016. It repeated the December sale of four SCR rigs for $17.3 million and said four more rigs (three mechanical, one non-walking SCR) were classified as held for sale at December 31, 2015. Fourth-quarter utilization was estimated at 54% for drilling (31-rig fleet), 55% for well servicing and 25% for coiled tubing. In Colombia only three of eight rigs are on contract, with operations suspended or about to be, and all expected to resume in April if commodity prices improve. It raises no capital despite the filing category label.
15 Nov 2011capital raising announcement● NeutralMajor
On November 15, 2011 the company announced plans to offer an additional $150 million of its 9.875% senior notes due 2018, on top of the $250 million issued in March 2010. Proceeds are for the new-build rig program and cash for possible acquisitions. It disclosed non-binding letters of intent to buy two production-services companies for about $155 million in total, with no assurance either will close. It also disclosed term contracts for ten new-build AC rigs (six expected to start in the first half of 2012, four by the end of 2012) and a 2012 capital budget of about $250-$280 million.
The underwriters exercised in full their option to buy the extra 900,000 shares from the July 2011 stock offering, so the offering totals 6,900,000 shares at the $14.50 price set on July 14 (the 900,000 figure and full exercise are from the filing; the total is simple addition). The filing also attaches investor slides for a July 18-19 conference, which state five new-build drilling term contracts for delivery in the first and second quarters of 2012 and 37 rigs on term contracts.
24 Aug 2004capital raising announcement▲ GoodMajor
The $28 million of 6.75% convertible debentures held by WEDGE and William White were converted on August 11, 2004 into 6,496,519 common shares, removing that debt. Pioneer also paid $2 million on its Merrill Lynch Capital note (about $12.6 million at June 30, 2004, due December 2007) and gave notice of intent to pay off the balance, and retired two Frost National Bank notes ($2.9 million and $4.1 million as of June 30, 2004). This completes the debenture conversion set up in the August offering.
6 Aug 2004capital raising announcement● NeutralMajor
On August 5, 2004 Pioneer signed an underwriting agreement for a public offering of up to 4,600,000 new company shares plus up to 6,419,320 shares sold by WEDGE Energy Services, Michael Little and William White. WEDGE and Mr. White agreed to convert all $28 million of the 6.75% convertible subordinated debentures into 6,496,519 shares just before closing, and Chesapeake Energy said it will use preemptive rights to buy 631,133 shares (725,803 with full over-allotment).
24 Feb 2004capital raising announcement● NeutralMajor
Pioneer Drilling sold 4,400,000 new shares at $5.40 each in a private placement on February 20, 2004, raising $23.8 million gross. About $12.0 million is earmarked for the previously announced seven-rig acquisition (expected to close in early March 2004), with the rest for more drilling equipment, trucking assets and general purposes. This follows the shelf registration filed days earlier; new shares dilute existing holders, and the company agreed to register them for resale.
