Key Energy Services Provides February 2011 Activity Data

Mar 15, 2011, 20:04 ET from Key Energy Services, Inc.

HOUSTON, March 15, 2011 /PRNewswire/ -- Key Energy Services, Inc. (NYSE: KEG) provides February 2011 activity data.

Activity levels for the month of February 2011 and comparable periods are as follows:

For the Month Ended

% Change

% Change

2/28/11

1/31/11

2/28/10

vs 1/31/11

vs 2/28/10

U.S. Rig Hours

123,669

138,425

118,228

-10.7%

4.6%

U.S. Rig Hours Per Working Day

6,183

6,592

5,911

-6.2%

4.6%

International Rig Hours

33,329

36,806

36,040

-9.4%

-7.5%

International Rig Hours Per Calendar Day

1,190

1,187

1,287

0.3%

-7.5%

Total Rig Hours

156,998

175,231

154,268

-10.4%

1.8%

Total Trucking Hours

210,207

237,923

140,916

-11.6%

49.2%

Total Trucking Hours Per Calendar Day

7,507

7,675

5,033

-2.2%

49.2%

U.S. Working Days*

20

21

20

-4.8%

0.0%

Calendar Days

28

31

28

-9.7%

0.0%

*Key calculates U.S. working days as total weekdays for the month less any company holidays that occur in the month.

For the month of March 2011, there will be 23 working days.

The following reflects utilization data relative to Key's U.S. rig services fleet: 

For the Month Ended

% Change

% Change

2/28/11

1/31/11

2/28/10

vs 1/31/11

vs 2/28/10

Total Available U.S. Rigs

787

787

743

0.0%

5.9%

Average Rigs Worked*

459

489

447

-6.1%

2.7%

Utilization

58%

62%

60%

*Average U.S. rigs worked is calculated as the total number of rigs worked per working day during a period divided

by the number of workdays in that period.  

Chairman, President, and CEO, Dick Alario, commented, "As anticipated, weather negatively impacted our overall U.S. operations during February.  We estimate our U.S. rig and trucking operations experienced weather related interruptions of 9,000 and 15,000 hours, respectively.  International rig hours per day were flat compared to January as minor delays related to job timing in Mexico and Colombia were offset by increased activity in Russia and Bahrain."

About Key Energy Services

Key Energy Services is the largest onshore, rig-based well servicing contractor based on the number of rigs owned. Key provides a complete range of well intervention services and has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Mexico, Colombia, the Middle East, Russia, and Argentina.

Forward-Looking Statements

Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any matters that are not of historic fact are forward-looking statements. These forward-looking statements are based on Key Energy Services, Inc.'s current expectations, estimates and projections about the company, its industry, its management's beliefs and certain assumptions made by management. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these "forward-looking statements" are identified by words such as "expects," "believes," "anticipates" and similar phrases.  

Any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: risks affecting activity levels for Key's services, including the possibility that the perceived cyclical recovery or future growth opportunities in Key's industry may not materialize and may not result in activity increases; risks that Key's customers may not increase, or may even decrease, their activity levels; risks associated with recently completed transactions, including the risk that Key may be unable to achieve the benefits contemplated under these transactions; risks related to integration of the acquired operations; risks affecting Key's foreign operations, including risks related to activity levels in Mexico, other risks affecting Key's operations in Argentina and Russia, risks associated with expanding operations in Colombia and Bahrain, and risks that Key may not be able to achieve its overall international growth and mobilization strategy; risks that Key may not be able to achieve its capital expenditure budget and/or that any such capital expenditure investments, if made, will not generate adequate returns; and other risks affecting Key's ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.

Because such statements involve risks and uncertainties, Key's actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. Other important risk factors that may affect Key's business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and in other Securities and Exchange Commission filings. Unless otherwise required by law, Key also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. However, you should review carefully reports and documents that Key files periodically with the Securities and Exchange Commission.

Contact:

Gary Russell

713-651-4434

SOURCE Key Energy Services, Inc.



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