Organization and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanyingunaudited condensed consolidatedfinancial statements include the accounts of Pioneer Energy Services Corp. and our wholly-owned subsidiaries.All intercompany balances and transactions have been eliminated in consolidation.The accompanyingunaudited condensed consolidatedfinancial statements have been prepared in accordance with accounting principles generally accepted in the United States of Americafor interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of our management, all adjustments (consisting of normal, recurring accruals) necessary for a fair presentation have been included. We suggest that you read theseunaudited condensed consolidatedfinancial statements together with the consolidated financial statements and the related notes included in our annual report on Form 10-K for the year endedDecember 31, 2019.

Use of Estimates

Use of Estimates — In preparing the accompanyingunaudited condensed consolidatedfinancial statements, we make various estimates and assumptions that affect the amounts of assets and liabilities we report as of the dates of the balance sheets and income and expenses we report for the periods shown in the income statements and statements of cash flows.Our actual results could differ significantly from those estimates.Material estimates that are particularly susceptible to significant changes in the near term relate to our estimates of certain variable revenues and amortization periods of certain deferred revenues and costs associated with drilling daywork contacts, our estimates of projected cash flows and fair values for impairment evaluations, our estimate of the valuation allowance for deferred tax assets, and our estimate of the liability relating to the self-insurance portion of our health and workers’ compensation insurance.

Subsequent Events

Subsequent Events— In preparing the accompanyingunaudited condensed consolidatedfinancial statements, we have reviewed events that have occurred afterMarch 31, 2020, through the filing of thisForm 10-Q, for inclusion as necessary. See Note 2, Chapter 11 Cases and Subsequent Events,for more information.

Change in Accounting Principle and Recently Issued Accounting Standards

Recently Issued Accounting Standards

Changes to accounting principles generally accepted in the United States of America (“U.S. GAAP”) are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification (ASC). We consider the applicability and impact of all ASUs and we have determined that there are currently no new or recently adopted ASUs which we believe will have a material impact on our consolidated financial position and results of operations.

Cash Equivalents and Restricted Cash

Cash and Cash Equivalents— We had no cash equivalents at March 31, 2020. Cash equivalents at December 31, 2019 were $8.9 million, consisting of investments in highly-liquid money-market mutual funds.

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets —Prepaid expenses and other current assets include items such as insurance, rent deposits, software subscriptions, and other fees, including professional fee deposits associated with the Chapter 11 Cases. We routinely expense these items in the normal course of business over the periods that we benefit from these expenses. Prepaid expenses and other current assets also include deferred mobilization costs for short-term drilling contracts and demobilization revenues recognized on drilling contracts expiring in the near term.