HOUSTON, Oct. 12 /PRNewswire-FirstCall/ -- Key Energy Services, Inc. (NYSE: KEG) provides September 2010 activity data.
Activity levels for the month of September 2010 and comparable periods are as follows:
For the Month Ended
U.S. Rig Hours
U.S. Rig Hours Per Working Day
International Rig Hours
International Rig Hours Per Calendar Day
Total Rig Hours
Total Trucking Hours
Total Trucking Hours Per Calendar Day
U.S. Working Days*
*Key calculates U.S. working days as total weekdays for the month less any holidays that occur in the month.
For the month of October 2010, there will be 21 working days.
The following reflects utilization data relative to Key's U.S. rig services fleet:
For the Month Ended
Total Available U.S. Rigs
Average Rigs Worked*
*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.
Additional comparable information for prior monthly periods is available on Key's website at www.keyenergy.com under "Investor Relations."
Chairman, President, and CEO, Dick Alario, commented, "Activity trends in the U.S. remain favorable. Rig hours per working day in September were up moderately compared to August, and total rig hours for the third quarter 2010 were up 4% compared to the second quarter. Trucking hours in our fluid management business were up 8% in the third quarter compared to the second quarter. Roughly half of the increase in third quarter trucking hours was driven by our previously announced Bakken contract, where our activity is now approximately half of expected full deployment."
"Third quarter 2010 international hours were down 2% compared to the prior quarter. Gains in Argentina and Russia, together with new work in Colombia that began late in September, somewhat offset a 25% reduction in activity in Mexico in the third quarter. The quarterly decline in Mexico was primarily the result of a field-wide, mandated complete work stoppage which temporarily impacted our operations during September."
Alario continued, "As previously disclosed, we completed the acquisition of businesses from OFS Energy Services on October 1st. Although not included in Key's reported hours since it was prior to closing the transaction, during the third quarter, the OFS businesses generated approximately 16,000 rig service hours and approximately 110,000 trucking hours. We are excited about the new opportunities these businesses are expected to provide Key, and we welcome our newest employees. Overall, we are encouraged by continued strengthening of our business in the U.S. as well as new business opportunities in foreign markets we currently serve and those that are high on our targeted expansion list."
Third Quarter 2010 Conference Call
Key Energy Services will host a conference call to discuss its third quarter 2010 financial results on Thursday, October 28, 2010 at 10 a.m. CDT. To access the call in the U.S. and Canada please dial 888-794-4637. International callers should dial 660-422-4879. All callers should ask for the "Key Energy Services Conference Call" or provide the access code 10487084. 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, October 28, 2010, beginning immediately after the conference call and will remain available for one week. To access the replay, please call 800-642-1687. The access code for the replay is 10487084.
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 any decline or volatility of oil and natural gas commodity prices, the risk that recent favorable domestic activity trends will not continue to recover from the recent economic downturn, or may even decrease in the future, among Key's customers; risks that Key may be unable to achieve higher activity or full deployment of its expected future operations in the Bakken region; risks affecting Key's foreign operations and investments, including the possibility of further activity declines in Mexico, the risk that Key may be unable to successfully execute on its new operations in Colombia, and other risks affecting Key's operations in Argentina and Russia; risks associated with the recently completed acquisition of businesses from OFS Energy Services, LLC, including the risk that Key may be unable to achieve the benefits contemplated under the acquisition and the risk that rig and trucking hours of the acquired businesses for periods prior to the acquisition's closing may not be indicative of such businesses' post-closing contribution to Key's operations for future periods; and risks affecting Key's ability to maintain or improve operations generally, including 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.