Pioneer Energy Services Corp was incorporated under the laws of the State of Texas in 1979 as the successor to a business that had been operating since 1968. The Company operates through two operating segments: Drilling Services Segment and Production Services Segment. Its Drilling Services segment provides contract land drilling services to a diverse group of oil and gas exploration and production companies with its fleet of 62 drilling rigs. The materials and supplies it uses in its drilling and production services operations include fuels to operate its equipment, drilling mud, drill pipe, drill collars, drill bits and cement. It encounters substantial competition from other drilling contractors. Its competitors are Helmerich & Payne, Inc., Precision Drilling Trust, Patterson-UTI Energy, Inc. and Nabors Industries, Ltd. Its Production Services segment provides a range of services to exploration and production companies, including well servicing, wire-line services, coiled tubing services, and fishing and rental services. Its production services operations are concentrated in the major United States onshore oil and gas producing regions in the Mid-Continent and Rocky Mountain states and in the Gulf Coast, both onshore and offshore. It provides its services to a diverse group of oil and gas exploration and production companies. The primary production services it offers are: Well Services, Wire-line Services, Coiled Tubing Services and Fishing and Rental Services. The market for production services is highly competitive. The largest well servicing providers that it competes with are Key Energy Services, Basic Energy Services, Nabors Industries, Superior Energy Services, Inc. and CC Forbes. In addition, there are numerous smaller companies that compete in its well servicing markets. Its operations are subject to stringent laws and regulations relating to containment, disposal and controlling the discharge of hazardous oilfield waste and other non-hazardous waste material into the environment, requiring removal and cleanup under certain circumstances, or otherwise relating to the protection of the environment.