Key Energy Services Provides May 2010 Activity Data

Jun 14, 2010, 19:43 ET from Key Energy Services, Inc.

HOUSTON, June 14 /PRNewswire-FirstCall/ -- Key Energy Services, Inc. (NYSE: KEG) provides May 2010 activity data.  Adjusted for the sale of six marine rigs effective May 13, U.S. rig hours per working day in May were up 3.7% compared to April.  International rig hours increased 4.9% per calendar day compared to April.  

Hourly activity levels for the month of May 2010 and comparable periods are as follows:

For the Month Ended

% Change

% Change

5/31/10

4/30/10

5/31/09

vs 4/30/10

vs 5/31/09

U.S. Rig Hours

129,130

132,175

105,572

-2.3%

22.3%

U.S. Rig Hours Per Working Day

6,457

6,294

5,279

2.6%

22.3%

International Rig Hours

32,230

29,742

28,336

8.4%

13.7%

International Rig Hours Per Calendar Day

1,040

991

914

4.9%

13.7%

Total Rig Hours

161,360

161,917

133,908

-0.3%

20.5%

Total Trucking Hours

174,431

166,031

136,452

5.1%

27.8%

Total Trucking Hours Per Calendar Day

5,627

5,534

4,402

1.7%

27.8%

U.S. Working Days*

20

21

20

-4.8%

0.0%

Calendar Days

31

30

31

3.3%

0.0%

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

For the month of June 2010, there will be 22 working days.

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

For the Month Ended

% Change

% Change

5/31/10

4/30/10

5/31/09

vs 4/30/10

vs 5/31/09

Total Available U.S. Rigs*

740

743

820

-0.4%

-9.8%

Average Rigs Worked*

464

466

415

-0.4%

11.8%

Utilization

63%

63%

51%

*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.  For May 2010, available and average rigs worked take into account the sale of six marine rigs effective 5/13/10, three of which were working.

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 our current onshore and former marine business.

Chairman, President and CEO Dick Alario commented, "Both our domestic and international activity levels trended higher in May compared to April on a per working day basis.  Our U.S. rig hours per working day continued their upward monthly trend, up 6.0% since the end of the first quarter and up 16.9% year-to-date, adjusted for the sale of our marine barge business.  The U.S. activity increase in May was driven primarily by our larger independent and major oil company customers.  We remain encouraged by the fundamental outlook for our onshore business in all our geographic regions."

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, or even decreasing, among Key's customers; risks affecting Key's foreign operations and investments; 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.

Contact:

Gary Russell

713-651-4434

SOURCE Key Energy Services, Inc.



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