Key Energy Services Provides June 2010 Activity Data and Second Quarter 2010 Conference Call Information

HOUSTON, July 14 /PRNewswire-FirstCall/ -- Key Energy Services, Inc. (NYSE: KEG) provides June 2010 activity data.  Adjusted for the previously reported sale of six marine rigs effective May 13, 2010, U.S. rig hours per working day in June were down 3.8% compared to May.  International rig hours in June decreased 2.8% per calendar day compared to May.  

Additional comparable information for prior monthly periods is available on Key's website at www.keyenergy.com under "Investor Relations", including rig and activity splits between the company's current onshore and former marine business.

Chairman, President, and CEO, Dick Alario, commented, "Overall activity in our U.S. rig business in the second quarter was up 8% compared to the first quarter, although we did experience a decline in June's rig hours worked per day.  This is the first monthly decline in our underlying rig activity since July 2009.  We are pleased that activity in our trucking business continued to improve in June compared to May, both in absolute hours and per calendar day, partially as a result of the commencement of service under our previously-disclosed new customer contract for fluid management services in the Williston Basin."

Mr. Alario continued, "The decline in international rig hours in June was driven primarily by further activity reductions in Mexico.  Based on discussions with PEMEX early in the second quarter, we believed that 6 of our 14 idled rigs would return to service during the quarter, and we expected a seventh rig to work for a multi-national service company on a PEMEX integrated project by the end of the quarter.  In June, PEMEX notified us of further budget cuts in its North Region, which included ATG and affected the PEMEX integrated projects, and consequently we are presently working 13 rigs in Mexico.  We believe our operational performance has been excellent, and we remain optimistic about opportunities for additional work in Mexico."

SECOND QUARTER CONFERENCE CALL

The company will hold a conference call to discuss its second quarter 2010 financial results on Thursday, July 29, 2010 at 10 a.m. CDT. To access the call in the U.S. and Canada please dial 877-794-4637 and ask for the "Key Energy Services Conference Call" or provide the access code 88000978. International callers should dial 660-422-4879. The conference call will also be available live via the internet. To access the webcast, go to www.keyenergy.com and select "Investor Relations". A replay of the conference call will be available on Thursday, July 29, 2010, beginning at 11 a.m. CDT and will remain available for one week. To access the replay, please call 800-642-1687. The access code for the replay is 88000978.

Forward Looking Statements

This press release contains "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's current expectations, estimates and projections, 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.

A number of factors could cause actual results to differ materially from the expectations, estimates and projections expressed in this press release, including, but not limited to: risks affecting activity levels for Key's services, including the impact of declines or instability of commodity prices, future decreases or other changes in the capital budgets of customers, the impact of activity levels not continuing to recover from the recent economic downturn, or even decreasing further, among Key's customers; risks affecting Key's foreign operations and investments, including its work in Mexico, which is performed under Key's remaining contract that expires in 2010 and which may not be renewed; risks associated with a slow recovery from, or further continuation of, the recent economic downturn and credit market instability; and risks affecting Key's ability to maintain or improve operations, including the impact of rig capacity in the market and weather risk.

Given these uncertainties, readers 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, readers should review carefully reports and documents that Key files periodically with the Securities and Exchange Commission.

SOURCE Key Energy Services, Inc.