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Key Energy Services, Inc. (KEGX)

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Previous Close3.8375
Open3.6500
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Day's Range3.4500 - 3.6500
52 Week Range3.3200 - 11.8500
Volume3,280
Avg. Volume1,280
Market Cap48.924M
Beta (5Y Monthly)2.46
PE Ratio (TTM)N/A
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  • Key Energy Services Provides Financial and Operational Update
    GlobeNewswire

    Key Energy Services Provides Financial and Operational Update

    HOUSTON, June 14, 2021 (GLOBE NEWSWIRE) -- Key Energy Services, Inc. (“Key” or the “Company”)(OTC: KEGX) today provided the following operational and financial update. Operational Update Despite the impacts of winter storm Uri, which reduced consolidated revenues in the first quarter by approximately $3 million, first quarter 2021 consolidated revenue grew 10.9% or $5.2 million to $52.4 million, as compared to $47.2 million in the 2020 fourth quarter. Rig Services segment revenue and rig hours f

  • Key Energy Services Reports Third Quarter 2020 Earnings
    GlobeNewswire

    Key Energy Services Reports Third Quarter 2020 Earnings

    HOUSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) -- Key Energy Services, Inc. (“Key” or the “Company”)(OTC: KEGX) today reported third quarter 2020 consolidated revenues of $42.9 million and a net loss of $3.9 million, or $(0.28) per basic share, as compared to consolidated revenues of $34.8 million and a net loss of $19.1 million, or $(1.39) per basic share, for the second quarter of 2020. The results for the third quarter of 2020 include: (1) severance and restructuring related expense of $0.3 million, or $(0.02) per basic share, related to the Company’s ongoing cost reduction efforts and the first quarter debt restructuring; (2) a gain of $8.0 million, or $0.58 per basic share, related to a favorable settlement of a legal matter; (3) gains on the sale of assets of $0.5 million, or $0.04 per basic share; (4) non-recurring professional fees of $1.5 million, or $(0.11) per basic share; and (5) share-based compensation expense of $0.4 million, or $(0.03) per basic share. Excluding these items, the Company reported a net loss of $10.2 million, or $(0.74) per basic share, for the third quarter of 2020. Earnings per share amounts for the second quarter of 2020 included: (1) gains on sale of assets of $0.6 million, or $0.04 per basic share; (2) restructuring expense related to the Company’s debt restructuring completed in the first quarter of 2020 of $0.7 million, or $(0.05) per basic share; (3) severance expense of $2.2 million, or $(0.16) per basic share; and (4) share-based compensation expense of $0.3 million, or $(0.02) per basic share. Excluding these items, the Company reported a net loss of $16.5 million, or $(1.20) per basic share, for the second quarter of 2020.Financial OverviewThe following table sets forth summary data for the second of quarter 2020 and prior comparable quarterly periods (in millions, except per share amounts, unaudited):  Three Months Ended       September 30,           September 30,    2020  June 30, 2020  2019 Revenues $42.9  $34.8  $106.5  Net loss  (3.9)  (19.1)  (25.5) Basic and diluted loss per share  (0.28)  (1.39)  (62.32) Adjusted EBITDA (1)  (0.9)  (6.2)  (3.7) ____________ (1) Adjusted EBITDA is a non-GAAP measure. Please see "Non-GAAP Financial Measure" below for a definition of Adjusted EBITDA and a reconciliation to the GAAP measure net loss. Third quarter 2020 Rig Services revenues were $29.6 million, up approximately 42% as compared to second quarter 2020 revenues of $20.8 million. Third quarter 2020 rig hours were approximately 65,000 hours, an increase of approximately 50% from the second quarter of 2020. Completion hours increased 28% and comprised 10% of our third quarter rig activity, as compared to 12% in the second quarter. The Rig Services segment generated income before income taxes of $1.8 million (6.2% of revenues) and Adjusted EBITDA of $5.8 million (19.6% of revenue) in the third quarter of 2020 as compared to a loss before income taxes of $2.4 million ((11.4)% of revenue) and Adjusted EBITDA of $2.6 million (12.4% of revenue) in the second quarter of 2020. Higher customer activity, partially offset by slightly lower pricing attributable to geographic mix, positively impacted revenue, margins and Adjusted EBITDA during the third quarter.Third quarter 2020 Fluid Management Services revenues were $7.5 million as compared to second quarter 2020 revenues of $8.1 million. Truck hours were marginally lower at approximately 69,000 hours as compared to 71,000 hours in the second quarter of 2020. The segment was essentially breakeven on an income before income tax basis and generated Adjusted EBITDA of $0.5 million (6.2% of revenue) in the third quarter of 2020 as compared to income before income taxes of $0.1 million (1.3% of revenue) and Adjusted EBITDA of $0.5 million (6.3% of revenue) in the second quarter of 2020. Fluid Management Services activity remained depressed due to lower completion and production activity attributable to low oil and gas prices.Third quarter 2020 Fishing & Rental Services revenues were $4.1 million, essentially flat as compared to second quarter 2020 revenues of $4.0 million. The segment generated a loss before income taxes of $0.4 million ((10.7)% of revenue) and Adjusted EBITDA of $0.4 million in the third quarter of 2020 as compared to a loss before income taxes of $1.7 million ((43.3)% of revenue) and Adjusted EBITDA of nil in the second quarter of 2020. Third quarter 2020 loss before income taxes and Adjusted EBITDA improved over the second quarter due to lower depreciation expense and lower operating expenses resulting from the Company’s cost reduction program.Third quarter 2020 Coiled Tubing Services revenues were $1.7 million as compared to second quarter 2020 revenues of $1.9 million. Utilization of large diameter coiled tubing units averaged 0.4 units during the third quarter of 2020 as compared to 0.4 during the second quarter of 2020. Pricing for Coiled Tubing Services in the third quarter was essentially flat versus the second quarter of 2020. Both pricing and utilization during the third quarter of 2020 continued to be negatively impacted by reduced customer demand attributable to lower completion activity resulting from low oil prices. The segment loss before income taxes was $1.3 million ((77.3)% of revenue) and Adjusted EBITDA was $(0.5) million ((27.2)% of revenue) in the third quarter of 2020 as compared to a loss before  income taxes of $1.8 million ((98.1)% of revenue) and Adjusted EBITDA of $(0.6) million ((30.5)% of revenue) in the second quarter of 2020. The improvement in the loss before income taxes and Adjusted EBITDA in the third quarter of 2020 was attributable to lower operating expenses resulting from the Company’s cost reduction initiatives.General and Administrative Expenses        General and Administrative (G&A) expenses were $12.3 million in the third quarter of 2020 compared to $13.6 million in the second quarter. Third quarter 2020 G&A expenses include $0.3 million of severance and restructuring expense and $1.5 million of nonrecurring professional fees. Second quarter 2020 G&A expenses included $1.6 million of severance and restructuring costs. Excluding these items, G&A expense was $10.5 million in the third quarter of 2020, a decrease of approximately 12% as compared to $12.0 million in the second quarter of 2020. G&A expenses continued to benefit from steps taken in the first half of 2020 to lower personnel costs, including wage cuts and the suspension of the Company’s match of 401(k) contributions.LiquidityAs of September 30, 2020, Key had total liquidity of $13.2 million, consisting of $4.5 million in unrestricted cash and $8.7 million of borrowing capacity under the ABL Credit Facility. As of September 30, 2020, Key’s total borrowing base under the ABL Credit Facility was $44.9 million, with collateral consisting of $17.5 million of eligible accounts receivable and $27.4 million of cash posted as additional collateral to support outstanding letters of credit. At November 6, 2020, Key’s liquidity was $13.0 million, consisting of $4.6 million of unrestricted cash and $8.4 million of borrowing capacity under the ABL Credit Facility. Capital expenditures and asset sales proceeds for the third quarter of 2020 were $0.2 million and $1.6 million, respectively, and for the nine months ended September 30, 2020, totaled $1.2 million and $5.0 million, respectively.Conference Call Information        The Company will not host a conference call in conjunction with today’s earnings release. Contact: Nelson Haight 713-651-4403 Consolidated Statements of Operations (in thousands, except per share amounts, unaudited):  Three Months Ended Nine Months Ended      September 30,    September 30, September 30, September 30,   2020 June 30, 2020 2019 2020 2019 REVENUES $42,911  $34,750  $106,523  $152,969  $328,739  COSTS AND EXPENSES:                Direct operating expenses  33,556   29,904   87,956   125,121   266,714  Depreciation and amortization expense  7,107   8,054   14,584   25,387   43,142  General and administrative expenses  12,269   13,637   21,375   41,159   66,014  Impairment expense  —   —   —   41,242   —  Operating loss  (10,021)  (16,845)  (17,392)  (79,940)  (47,131) Gain on debt restructuring  —   —   —   (170,648)  —  Interest expense, net of amounts capitalized  2,238   2,066   8,411   12,525   26,164  Other (income) loss, net  (8,362)  (15)  (351)  (8,762)  (1,732) Income (loss) before tax income taxes  (3,897)  (18,896)  (25,452)  86,945   (71,563) Income tax (expense) benefit  1   (229)  (37)  (972)  4,330  NET INCOME (LOSS) $(3,896) $(19,125) $(25,489) $85,973  $(67,233) Income (loss) per share:                Basic $(0.28) $(1.39) $(62.32) $8.14  $(164.79) Diluted $(0.28) $(1.39) $(62.32) $8.08  $(164.79) Weighted average shares outstanding:                Basic  13,781   13,781   409   10,562   408  Diluted  13,781   13,781   409   10,638   408  Segment Revenue and Operating Income (in thousands, except for percentages, unaudited):  Three Months Ended Nine Months Ended       September 30, June 30, September 30,  September 30, September 30,    2020 2020 2019 2020 2019  Revenues                 Rig Services $29,598  $20,825  $64,465  $98,332  $197,375   Fishing & Rental Services  4,085   3,971   14,135   17,648   43,534   Coiled Tubing Services  1,714   1,867   9,714   8,418   32,134   Fluid Management Services  7,514   8,087   18,209   28,571   55,696   Consolidated Total $42,911  $34,750  $106,523  $152,969  $328,739                     Income (Loss) Before Income Taxes                 Rig Services $1,845  $(2,364) $2,734  $2,786  $13,070   Fishing & Rental Services  (438)  (1,718)  (1,724)  (21,906)  (4,671)  Coiled Tubing Services  (1,325)  (1,831)  (1,558)  (4,125)  (5,171)  Fluid Management Services  (12)  104   (424)  (23,781)  (133)  Functional Support  (3,967)  (13,087)  (24,480)  133,971   (74,658)  Consolidated Total $(3,897) $(18,896) $(25,452) $86,945  $(71,563)                    Income (Loss) Before Income Taxes % of Revenues                 Rig Services  6.2 % (11.4)% 4.2 % 2.8 % 6.6 % Fishing & Rental Services  (10.7)% (43.3)% (12.2)% (124.1)% (10.7)% Coiled Tubing Services  (77.3)% (98.1)% (16.0)% (49.0)% (16.1)% Fluid Management Services  (0.2)% 1.3 % (2.3)% (83.2)% (0.2)% Consolidated Total  (9.1)% (54.4)% (23.9)% 56.8 % (21.8)% Following is a reconciliation of net loss as presented in accordance with United States generally accepted accounting principles (GAAP) to EBITDA and Adjusted EBITDA as required under Regulation G of the Securities Exchange Act of 1934.Reconciliations of EBITDA and Adjusted EBITDA to net loss (in thousands, except for percentages, unaudited):  Three Months Ended    September 30,    September 30,       2020 June 30, 2020 2019  Loss before income taxes $(3,897) $(18,896) $(25,452)  % of revenues  (9.1)% (54.4)% (23.9)% Interest expense, net of amounts capitalized  2,238   2,066   8,411   Interest income  (2)  (25)  (122)  Depreciation and amortization  7,107   8,054   14,584   EBITDA $5,446  $(8,801) $(2,579)  % of revenues  12.7 % (25.3)% (2.4)%             Stock-based compensation  445   325   1,225   Debt restructuring expenses  124   700   —   Gain on sales of assets  (513)  (602)  (2,326)  Severance costs  154   2,177   —   Gain on other non-income taxes  (8,005)  —   —   Non recurring professional fees  1,459   —   —   Adjusted EBITDA $(890) $(6,201) $(3,680)  % of revenues  (2.1)% (17.8)% (3.5)%             Revenues $42,911  $34,750  $106,523                          Three Months Ended September 30, 2020       Fishing and Coiled Fluid             Rental Tubing Management Functional          Rig Services Services Services Services Support Total  Income (loss) before income taxes $1,845  $(438) $(1,325) $(12) $(3,967) $(3,897)  % of revenues  6.2 % (10.7)% (77.3)% (0.2)% — % (9.1)% Interest expense, net of amounts capitalized  70   5   12   10   2,141   2,238   Interest income  —   —   —   —   (2)  (2)  Depreciation and amortization  4,108   843   1,008   470   678   7,107   EBITDA $6,023  $410  $(305) $468  $(1,150) $5,446   % of revenues  20.3 % 10.0 % (17.8)% 6.2 % — % 12.7 %                      Stock-based compensation  32   —   1   3   409   445   Debt restructuring expenses  —   —   —   —   124   124   Gain on sales of assets  (309)  (40)  (162)  (2)  —   (513)  Severance costs  59   —   —   —   95   154   Gain on other non-income taxes  —   —   —   —   (8,005)  (8,005)  Non recurring professional fees  —   —   —   —   1,459   1,459   Adjusted EBITDA $5,805  $370  $(466) $469  $(7,068) $(890)  % of revenues  19.6 % 9.1 % (27.2)% 6.2 % — % (2.1)%                      Revenues $29,598  $4,085  $1,714  $7,514  $—  $42,911                          Three Months Ended June 30, 2020       Fishing and Coiled Fluid             Rental Tubing Management Functional          Rig Services Services Services Services Support Total  Income (loss) before income taxes $(2,364) $(1,718) $(1,831) $104  $(13,087) $(18,896)  % of revenues  (11.4)% (43.3)% (98.1)% 1.3 % — % (54.4)% Interest expense, net of amounts capitalized  68   6   14   11   1,967   2,066   Interest income  —   —   —   —   (25)  (25)  Depreciation and amortization  4,138   1,349   1,164   717   686   8,054   EBITDA $1,842  $(363) $(653) $832  $(10,459) $(8,801)  % of revenues  8.8 % (9.1)% (35.0)% 10.3 % — % (25.3)%                      Stock-based compensation  25   —   1   3   296   325   Debt restructuring expenses  —   —   —   —   700   700   (Gain) loss on sales of assets  (371)  184   11   (405)  (21)  (602)  Severance costs  1,077   142   72   83   803   2,177   Adjusted EBITDA $2,573  $(37) $(569) $513  $(8,681) $(6,201)  % of revenues  12.4 % (0.9)% (30.5)% 6.3 % — % (17.8)%                      Revenues $20,825  $3,971  $1,867  $8,087  $—  $34,750   “EBITDA” is defined as income or loss attributable to Key before interest, taxes, depreciation, and amortization. “Adjusted EBITDA” is EBITDA as further adjusted for certain non-recurring or extraordinary items such as impairment expense, severance expense, loss on debt extinguishment, gains or losses on asset sales, asset retirements and impairments, stock-based compensation and certain non-recurring transaction or other costs (such as the gain on debt restructuring).EBITDA and Adjusted EBITDA are non-GAAP measures that are used as supplemental financial measures by the Company’s management and directors and by external users of the Company’s financial statements, such as investors, to assess: * The financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis; * The ability of the Company’s assets to generate cash sufficient to pay interest on its indebtedness; * The Company’s operating performance and return on invested capital as compared to those of other companies in the well services industry, without regard to financing methods and capital structure; and * The Company’s operating trends underlying the items that tend to be of a non-recurring nature.EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered an alternative to net income (loss) and segment income (loss) before income taxes or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and segment income (loss) before income taxes and these measures may vary among other companies. Limitations to using EBITDA and Adjusted EBITDA as an analytical tool include: * EBITDA and Adjusted EBITDA do not reflect Key’s current or future requirements for capital expenditures or capital commitments; * EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements necessary to service interest or principal payments on Key’s debt; * EBITDA and Adjusted EBITDA do not reflect income taxes; * Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; * Other companies in Key’s industry may calculate EBITDA and Adjusted EBITDA differently than Key does, limiting their usefulness as a comparative measure; and * EBITDA and Adjusted EBITDA are a different calculation from earnings before interest, taxes, depreciation and amortization as defined for purposes of the financial covenants in the Company’s credit facilities, and therefore should not be relied upon for assessing compliance with covenants. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature or that relate to future events and conditions are, or may be deemed to be, forward-looking statements. These forward-looking statements are based on Key’s current expectations, estimates and projections and its management’s beliefs and assumptions concerning future events and financial trends affecting its financial condition and results of operations. In some cases, you can identify these statements by terminology such as “may,” “will,” “should,” “predicts,” “expects,” “believes,” “anticipates,” “projects,” “potential” or “continue” or the negative of such terms and other comparable terminology. These statements are only predictions or estimates and are subject to substantial risks and uncertainties and are not guarantees of performance. Future actions, events and conditions and future results of operations may differ materially from those expressed in these statements and the assumptions on which they are based could prove incorrect. In evaluating forward-looking statements, you should carefully consider the information in this disclaimer as well as the risks and information provided in “Part I, Item 1A. Risk Factors” and elsewhere in Key’s Annual Report on Form 10-K for the year ended December 31, 2019 and in other reports Key files with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q.Key undertakes no obligation to update or withdraw any forward-looking statement to reflect events or circumstances after the date of this press release, except as required by law. All of Key’s written and oral forward-looking statements are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements.Important factors that may affect Key’s expectations, estimates or projections include, but are not limited to, the following: public health crises, such as the COVID-19 pandemic, including its impact on economic and other conditions globally and any related actions taken by businesses and governments, among others; adverse conditions in the services and oil and natural gas industries, especially oil and natural gas prices and reduced activity and capital expenditures by oil and natural gas companies; a failure of customer activity to reach or remain at expected levels; the failure to meet requirements necessary for a releasee of cash collateral posted by Key under its credit facility; Key’s ability to satisfy its cash and liquidity needs, including its ability to generate sufficient liquidity or cash flow from operations or to obtain adequate financing to fund its operations or otherwise meet its obligations as they come due; Key’s ability to retain and access employees, customers or suppliers as a result of its financial condition generally or as a result of its recent restructuring; Key’s inability to achieve the potential benefits of the restructuring; Key’s ability to achieve the benefits of cost-cutting initiatives, including its plan to optimize its geographic footprint, including exiting certain locations and reducing its regional and corporate overhead costs; Key’s ability to implement price increases or maintain pricing on its core services; risks that Key may not be able to reduce, and could even experience increases in, the costs of labor, fuel, equipment and supplies employed in its businesses; industry capacity; actions by OPEC and non-OPEC oil producing countries; asset impairments or other charges; the low demand for Key’s services and resulting operating losses and negative cash flows; the highly competitive nature of Key’s industry, as well as operating risks, which are primarily self-insured, and the possibility that its insurance may not be adequate to cover all of its losses or liabilities; significant costs and potential liabilities resulting from compliance with applicable laws, including those resulting from environmental, health and safety laws and regulations, specifically those relating to hydraulic fracturing, as well as climate change legislation or initiatives; changes in government; Key’s historically high employee turnover rate and its ability to replace or add workers, including executive officers and skilled workers; Key’s ability to implement technological developments and enhancements; severe weather impacts on Key’s business, including hurricane activity; Key’s ability to successfully identify, make and integrate acquisitions and its ability to finance future growth of its operations or future acquisitions; Key’s ability to achieve the benefits expected from business combinations, disposition or acquisition transactions; the loss of one or more of Key’s larger customers; the amount of Key’s debt and the limitations imposed by the covenants in the agreements governing its debt, including its ability to comply with covenants under its current debt agreements; Key’s ability to maintain sufficient liquidity and access to capital; an increase in Key’s debt service obligations due to variable rate indebtedness; Key’s inability to achieve its financial, capital expenditure and operational projections, including quarterly and annual projections of revenue and/or operating income and its inaccurate assessment of future activity levels, customer demand, and pricing stability which may not materialize (whether for Key as a whole or for geographic regions and/or business segments individually); Key’s ability to respond to changing or declining market conditions, including Key’s ability to restart operations or to reduce the costs of labor, fuel, equipment and supplies employed and used in its businesses; the adverse impact of litigation and disputes; and other factors affecting Key’s business described in “Part I, Item 1A. Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, in “Part II, Item 1A. Risk Factors” in its Quarterly Report on Forms 10-Q and other reports Key files with the Securities and Exchange Commission. The unprecedented nature of the COVID-19 pandemic and recent market decline may make it more difficult to identify potential risks, give rise to risks that are currently unknown, or amplify the impact of known risks.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.

  • GlobeNewswire

    Key Energy Services Reports Second Quarter 2020 Earnings

    HOUSTON, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Key Energy Services, Inc. (“Key” or the “Company”) (OTC: KEGX) reported second quarter 2020 consolidated revenues of $34.8 million and a net loss of $19.1 million, or $(1.39) per basic share, as compared to consolidated revenues of $75.3 million and net income of $109.0 million, or $26.66 per basic share, for the first quarter of 2020.  The results for the second quarter of 2020 include: (1) severance expense of $2.2 million, or $0.16 per basic share, related to the Company’s ongoing cost reduction efforts; (2) restructuring expenses of $0.7 million, or $0.05 per basic share, related to the Company’s debt restructuring completed in the first quarter of 2020; (3) gains on the sale of assets of $0.6 million, or $0.04 per basic share; and (4) share-based compensation expense of $0.3 million, or $0.02 per basic share, related to certain outstanding equity awards.  Excluding these items, the Company reported a net loss of $16.5 million, or $(1.20) per basic share, for the second quarter of 2020. Earnings per share amounts for the first quarter of 2020 included a gain of $170.6 million, or $41.70 per basic share, associated with the Company’s exchange of term loan indebtedness for 13.4 million common shares issued in connection with the restructuring of its debt on March 6, 2020. The results for the first quarter of 2020 also included: (1) gains on sale of assets of $0.2 million, or $0.04 per basic share; (2) the reversal of costs and expenses previously related to debt restructuring that are now included in the calculation of gain on refinancing of $7.3 million, or $1.79 per share; (3) severance costs of $0.8 million, or $(0.20) per basic share; and (4) an asset impairment of $41.2 million, or $(10.09) per basic share. Excluding these items, the Company reported a net loss of $21.8 million, or $5.33 per basic share, for the first quarter of 2020.Overview and OutlookKey’s President and Chief Executive Officer, Marshall Dodson, stated, “The unprecedented energy demand destruction and the related commodity price collapse due to the steps implemented to control the spread of COVID-19 created a severely challenging second quarter for the entire energy sector.  In response, our customers shut-in production and dramatically reduced activity, which reduced demand for our services during the period.”Dodson continued, “We averaged 55 well service rigs working in the second quarter of 2020, compared to 117 well service rigs in the first quarter of 2020 and 167 well service rigs in the second quarter of 2019, with May representing the low point in the second quarter of 2020 with an average of 47 well service rigs active during the month.  Our other operating segments experienced a similar decline in activity quarter over quarter.  Declining customer activity also negatively impacted our liquidity and we were required to post $21.2 million of additional cash to collateralize our outstanding letters of credit due to a corresponding decline in our accounts receivable borrowing base under our ABL Facility. With activity improving off the May lows, we have seen our revenues and accounts receivable increase, allowing for a return of a portion of the cash collateral to us.”“During the second quarter, we began to realize the benefits from the aggressive actions we began implementing in March to reduce our operating and general and administrative costs.  We reduced our ongoing run rate general and administrative costs by approximately 30% over the first quarter of 2020, and we continue to evaluate other cost savings.  These steps should position the Company to benefit from any upturn in activity levels.”“Today, there remains a great deal of uncertainty regarding future activity and commodity prices.” Dodson stated.  “However, we have seen an improving market for our services, particularly on the production and well maintenance side, with a July average well service rig count of 63 and additional rig deployments to date in August. Provided commodity prices remain stable, we expect this positive trend to continue as our customers bring shut-in wells back to production and work down deferred well maintenance backlogs.” Financial OverviewThe following tables sets forth summary data for the second quarter of 2020 and prior comparable periods (in millions except per share amounts, unaudited): Three Months Ended  June 30, 2020 March 31, 2020 June 30, 2019 Revenues$34.8  $75.3  $112.9  Net income (loss)(19.1) 109.0  (18.3) Basic and diluted income (loss) per share(1.39) 26.66  (44.86) Adjusted EBITDA (1)(6.2) (2.6) 1.6  (1) Adjusted EBITDA is a non-GAAP measure. Please see “Non-GAAP Financial Measure” below for a definition of Adjusted EBITDA and a reconciliation to the GAAP measure net loss.    Second quarter 2020 Rig Services revenues were $20.8 million as compared to first quarter 2020 revenues of $47.9 million, with second quarter 2020 rig hours of approximately 44,000 hours, down approximately 57% from the first quarter of 2020. Completion hours fell 57% to comprise 14% of our second quarter rig activity as compared to 14% in the first quarter. The segment generated a loss before income taxes of $2.4 million ((11.4) % of revenues) and Adjusted EBITDA of $2.6 million (12.4% of revenue) in the second quarter of 2020 as compared to income before income taxes of $3.3 million (6.9% of revenue) and Adjusted EBITDA of $7.2 million (15.1% of revenue) in the first quarter of 2020. Lower customer activity and reduced pricing negatively impacted revenue, margins and Adjusted EBITDA during the second quarter.Second quarter 2020 Fluid Management Services revenues were $8.1 million as compared to first quarter 2020 revenues of $13.0 million. Truck hours fell 34,000 hours from the first quarter of 2020 to 71,000 hours.  The segment generated income before income taxes of $0.1 million (1.3% of revenue) and Adjusted EBITDA of $0.5 million (6.3% of revenue) in the second quarter of 2020 as compared to a loss before income taxes of $23.9 million ((184.1)% of revenue) and Adjusted EBITDA of $1.3 million (9.8% of revenue) in the first quarter of 2020. The quarter on quarter decline was due to lower activity attributable to reduced demand for our services due to low oil and gas prices. Loss before income taxes in the first quarter of 2020 also included a charge of $23.7 million to adjust the carrying values of our assets to fair value.Second quarter 2020 Fishing & Rental Services revenues were $4.0 million as compared to first quarter 2020 revenues of $9.6 million. The segment generated loss before income taxes of $1.7 million ((43.3)% of revenue) and Adjusted EBITDA of nil in the second quarter of 2020 as compared to loss before  income taxes of $19.8 million ((205.9)% of revenue) and Adjusted EBITDA of $0.6 million (6.6% of revenue) in the first quarter of 2020. Loss before income taxes in the first quarter of 2020 included $17.6 million impairment charges to adjust the carrying value of assets to their fair market value.  Second quarter 2020 Adjusted EBITDA declined due to the lower customer activity as a result of the decline in oil and gas prices.Second quarter 2020 Coiled Tubing Services revenues were $1.9 million as compared to first quarter 2020 revenues of $4.8 million. Utilization of large diameter coiled tubing units averaged 0.4 units during the second quarter of 2020 as compared to 1.4 during the first quarter of 2020.  Pricing for Coiled Tubing Services declined approximately 10% in the second quarter of 2020 as compared to the first quarter of 2020. Both pricing and utilization during the second quarter of 2020 were negatively impacted by reduced customer demand attributable to lower demand for completion activity as a result of low oil prices. The segment loss before income taxes was $1.8 million ((98.1)% of revenue) and Adjusted EBITDA was $(0.6) million ((30.5)% of revenue) in the second quarter of 2020 as compared to a loss before income taxes of $1.0 million ((20.0)% of revenue) and Adjusted EBITDA of $0.3 million (5.7% of revenue) in the first quarter of 2020. The increased Loss before income taxes and lower Adjusted EBITDA in the second quarter of 2020 are attributable to the factors discussed above regarding utilization and pricing.General and Administrative Expenses        General and Administrative (G&A) expenses were $13.6 million for the second quarter of 2020 compared to $15.3 million in the first quarter. Second quarter 2020 G&A expenses include $0.9 million of severance costs associated with the Company’s ongoing cost reduction program, and $0.7 million in costs related to the Company’s first quarter restructuring. First quarter 2020 G&A expenses included $2.3 million of costs associated with the Company’s restructuring, a credit of $4.3 million related to a restructuring related concession in accrued professional fees and $0.7 million of costs related to severance. Excluding these items, G&A expense was $12.0 million in the second quarter of 2020 as compared to $16.6 million in the first quarter of 2020.  G&A expenses were lower in the second quarter of 2020 largely due to G&A staff reductions, lower wages and benefits costs. The Company also suspended matching of 401(k) contributions in the second quarter of 2020.LiquidityAs of June 30, 2020, Key had total liquidity of $14.7 million, consisting of $6.9 million in unrestricted cash and $7.8 million of borrowing capacity under the ABL Credit Facility. As of June 30, 2020, Key’s total borrowing base under the ABL Credit Facility was $44.1 million, with collateral consisting of $15.5 million of eligible accounts receivable and $28.6 million of cash, including $21.2 million posted during the second quarter of 2020 as additional collateral to support outstanding letters of credit. Key expects increased activity levels in the third quarter of 2020 over the May lows to generate additional eligible accounts receivable and therefore borrowing base under the ABL Credit Facility that is expected to provide for a return of a portion of the cash posted to support outstanding letters of credit.  Capital expenditures and asset sales proceeds for the second quarter of 2020 were $0.3 million and $1.6 million, respectively, and for the six months ended June 30, 2020, totaled $1.0 million and $3.4 million, respectively.Conference Call InformationAs previously announced, Key management will host a conference call to discuss its second quarter 2020 financial results on Friday, August 14, 2020 at 10:00 a.m. CDT. Callers from the U.S. and Canada should dial 888-794-4637 to access the call. International callers should dial 352-204-8973. All callers should ask for the “Key Energy Services Conference Call” or provide the access code 3515829. 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 telephonic replay of the conference call will be available on Friday, August 14, 2020, beginning approximately two hours after the completion of the conference call and will remain available for two weeks. To access the replay, call 855-859-2056 or 404-537-3406. The access code for the replay is 3515829. The replay will also be accessible at www.keyenergy.com under “Investor Relations” for a period of at least 90 days.Consolidated Statements of Operations (in thousands, except per share amounts, unaudited):  Three Months Ended Six Months Ended   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 REVENUES $34,750  $75,308  $112,943  $110,058  $222,216  COSTS AND EXPENSES:           Direct operating expenses 29,904  61,661  90,564  91,565  178,758  Depreciation and amortization expense 8,054  10,226  14,262  18,280  28,558  General and administrative expenses 13,637  15,253  22,544  28,890  44,639  Impairment expense —  41,242  —  41,242  —  Operating loss (16,845) (53,074) (14,427) (69,919) (29,739) Gain on debt restructuring —  (170,648) —  (170,648) —  Interest expense, net of amounts capitalized 2,066  8,221  8,520  10,287  17,753  Other income, net (15) (385) (239) (400) (1,381) Income (loss) before tax income taxes (18,896) 109,738  (22,708) 90,842  (46,111) Income tax (expense) benefit (229) (744) 4,405  (973) 4,367  NET INCOME (LOSS) $(19,125) $108,994  $(18,303) $89,869  $(41,744) Income (loss) per share:           Basic $(1.39) $26.66  $(44.86) $10.06  $(102.31) Diluted $(1.39) $26.66  $(44.86) $10.00  $(102.31) Weighted average shares outstanding:           Basic 13,781  4,089  408  8,935  408  Diluted 13,781  4,089  408  8,991  408                   Segment Revenue and Operating Income (in thousands, except for percentages, unaudited):  Three Months Ended Six Months Ended   June 30, 2020 March 31, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenues           Rig Services $20,825  $47,909  $67,884  $68,734  $132,910  Fishing & Rental Services 3,971  9,592  14,812  13,563  29,399  Coiled Tubing Services 1,867  4,837  11,747  6,704  22,420  Fluid Management Services 8,087  12,970  18,500  21,057  37,487  Consolidated Total $34,750  $75,308  $112,943  $110,058  $222,216              Income (Loss) Before Income Taxes           Rig Services $(2,364) $3,305  $5,867  $941  $10,335  Fishing & Rental Services (1,718) (19,750) (1,823) (21,468) (2,948) Coiled Tubing Services (1,831) (969) (1,461) (2,800) (3,614) Fluid Management Services 104  (23,873) 185  (23,769) 291  Functional Support (13,087) 151,025  (25,476) 137,938  (50,175) Consolidated Total $(18,896) $109,738  $(22,708) $90,842  $(46,111)             Income (Loss) Before Income Taxes % of Revenues           Rig Services (11.4)% 6.9% 8.6% 1.4% 7.8% Fishing & Rental Services (43.3)% (205.9)% (12.3)% (158.3)% (10.0)% Coiled Tubing Services (98.1)% (20.0)% (12.4)% (41.8)% (16.1)% Fluid Management Services 1.3% (184.1)% 1.0% (112.9)% 0.8% Consolidated Total (54.4)% 145.7% (20.1)% 82.5% (20.8)%                  Non-GAAP Financial Measures  Following is a reconciliation of net income (loss) as presented in accordance with United States generally accepted accounting principles (GAAP) to EBITDA and Adjusted EBITDA as required under Regulation G of the Securities Exchange Act of 1934.Reconciliations of EBITDA and Adjusted EBITDA to net loss (in thousands, except for percentages, unaudited):  Three Months Ended   June 30, 2020 March 31, 2020 June 30, 2019 Income (loss) before income taxes (18,896) 109,738  $(22,708) % of revenues (54.4)% 145.7% (20.1)% Interest expense, net of amounts capitalized 2,066  8,221  8,520  Interest income (25) (57) (195) Depreciation and amortization 8,054  10,226  14,262  EBITDA $(8,801) $128,128  $(121) % of revenues (25.3)% 170.1% (0.1)%         Stock-based compensation 325  (63) 1,351  (Reversal of) debt restructuring expenses  700  (7,334) —  Impairment expense —  41,242  —  Gain on sales of assets (602) (165) (1,821) One-time fee associated with a one-time tax refund —  —  2,221  Gain on debt restructuring —  (170,648) —  Severance costs 2,177  805  —  Directors and officers insurance run-off —  5,391  —  Adjusted EBITDA $(6,201) $(2,644) $1,630  % of revenues (17.8)% (3.5)% 1.4%         Revenues $34,750  $75,308  $112,943                Reconciliations of segment EBITDA and Adjusted EBITDA to segment income (loss) before income taxes (in thousands, except for percentages, unaudited): Three Months Ended June 30, 2020  Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Total Income (loss) before income taxes$(2,364) $(1,718) $(1,831) $104  $(13,087) $(18,896) % of revenues(11.4)% (43.3)% (98.1)% 1.3% —% (54.4)% Interest expense, net of amounts capitalized68  6  14  11  1,967  2,066  Interest income—  —  —  —  (25) (25) Depreciation and amortization4,138  1,349  1,164  717  686  8,054  EBITDA$1,842  $(363) $(653) $832  $(10,459) $(8,801) % of revenues8.8% (9.1)% (35.0)% 10.3% —% (25.3)%              Stock-based compensation25  —  1  3  296  325  Debt restructuring expenses —  —  —  —  700  700  Gain on sales of assets(371) 184  11  (405) (21) (602) Severance costs1,077  142  72  83  803  2,177  Adjusted EBITDA$2,573  $(37) $(569) $513  $(8,681) $(6,201) % of revenues12.4% (0.9)% (30.5)% 6.3% —% (17.8)%              Revenues$20,825  $3,971  $1,867  $8,087  $—  $34,750                            Three Months Ended March 31, 2020  Rig Services Fishing and Rental Services Coiled Tubing Services Fluid Management Services Functional Support Total Income (loss) before income taxes$3,305  $(19,750) $(969) $(23,873) $151,025  $109,738  % of revenues6.9% (205.9)% (20.0)% (184.1)% —% 145.7% Interest expense, net of amounts capitalized32  6  13  12  8,158  8,221  Interest income—  —  —  —  (57) (57) Depreciation and amortization4,029  2,833  1,174  1,511  679  10,226  EBITDA$7,366  $(16,911) $218  $(22,350) $159,805  $128,128  % of revenues15.4% (176.3)% 4.5% (172.3)% —% 170.1%              Stock-based compensation21  —  6  6  (96) (63) Reversal of restructuring expense —  —  —  —  (7,334) (7,334) Impairment expense—  17,551  —  23,691  —  41,242  (Gain) loss on sales of assets(139) (6) 50  (70) —  (165) Gain on debt restructuring—  —  —  —  (170,648) (170,648) Severance costs—  —  —  —  805  805  Directors and officers insurance run-off—  —  —  —  5,391  5,391  Adjusted EBITDA$7,248  $634  $274  $1,277  $(12,077) $(2,644) % of revenues15.1% 6.6% 5.7% 9.8% —% (3.5)%              Revenues$47,909  $9,592  $4,837  $12,970  $—  $75,308                           “EBITDA” is defined as income or loss attributable to Key before interest, taxes, depreciation, and amortization.“Adjusted EBITDA” is EBITDA as further adjusted for certain non-recurring or extraordinary items such as impairment expense, severance expense, loss on debt extinguishment, gains or losses on asset sales, asset retirements and impairments, stock-based compensation and certain non-recurring transaction or other costs (such as the gain on debt restructuring).EBITDA and Adjusted EBITDA are non-GAAP measures that are used as supplemental financial measures by the Company’s management and directors and by external users of the Company’s financial statements, such as investors, to assess: * The financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis; * The ability of the Company’s assets to generate cash sufficient to pay interest on its indebtedness; * The Company’s operating performance and return on invested capital as compared to those of other companies in the well services industry, without regard to financing methods and capital structure; and * The Company’s operating trends underlying the items that tend to be of a non-recurring nature.EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered an alternative to net income (loss) and segment income (loss) before income taxes or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA exclude some, but not all, items that affect net income and segment income (loss) before income taxes and these measures may vary among other companies. Limitations to using EBITDA and Adjusted EBITDA as an analytical tool include: * EBITDA and Adjusted EBITDA do not reflect Key’s current or future requirements for capital expenditures or capital commitments; * EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements necessary to service interest or principal payments on Key’s debt; * EBITDA and Adjusted EBITDA do not reflect income taxes; * Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; * Other companies in Key’s industry may calculate EBITDA and Adjusted EBITDA differently than Key does, limiting their usefulness as a comparative measure; and * EBITDA and Adjusted EBITDA are a different calculation from earnings before interest, taxes, depreciation and amortization as defined for purposes of the financial covenants in the Company’s credit facilities, and therefore should not be relied upon for assessing compliance with covenants. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature or that relate to future events and conditions are, or may be deemed to be, forward-looking statements. These forward-looking statements are based on Key’s current expectations, estimates and projections and its management’s beliefs and assumptions concerning future events and financial trends affecting its financial condition and results of operations. In some cases, you can identify these statements by terminology such as “may,” “will,” “should,” “predicts,” “expects,” “believes,” “anticipates,” “projects,” “potential” or “continue” or the negative of such terms and other comparable terminology. These statements are only predictions or estimates and are subject to substantial risks and uncertainties and are not guarantees of performance. Future actions, events and conditions and future results of operations may differ materially from those expressed in these statements and the assumptions on which they are based could prove incorrect. In evaluating forward-looking statements, you should carefully consider the information in this disclaimer as well as the risks and information provided in “Part I, Item 1A. Risk Factors” and elsewhere in Key’s Annual Report on Form 10-K for the year ended December 31, 2019 and in other reports Key files with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020.Key undertakes no obligation to update or withdraw any forward-looking statement to reflect events or circumstances after the date of this press release, except as required by law. All of Key’s written and oral forward-looking statements are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements.Important factors that may affect Key’s expectations, estimates or projections include, but are not limited to, the following: Key’s ability to continue as a going concern; public health crises, such as the COVID-19 pandemic, including its impact on economic and other conditions globally and any related actions taken by businesses and governments, among others; adverse conditions in the services and oil and natural gas industries, especially oil and natural gas prices and reduced activity and capital expenditures by oil and natural gas companies; a failure of customer activity to return to or reach expected levels; the failure to meet requirements necessary for a release of cash collateral posted by Key under its credit facility; Key’s ability to satisfy its cash and liquidity needs, including its ability to generate sufficient liquidity or cash flow from operations or to obtain adequate financing to fund its operations or otherwise meet its obligations as they come due; Key’s ability to retain and access employees, customers or suppliers as a result of its financial condition generally or as a result of its recent restructuring; Key’s inability to achieve the potential benefits of the restructuring; Key’s ability to achieve the benefits of cost-cutting initiatives, including its plan to optimize its geographic footprint, including exiting certain locations and reducing its regional and corporate overhead costs; Key’s ability to implement price increases or maintain pricing on its core services; risks that Key may not be able to reduce, and could even experience increases in, the costs of labor, fuel, equipment and supplies employed in its businesses; industry capacity; actions by OPEC and non-OPEC oil producing countries; asset impairments or other charges; the low demand for Key’s services and resulting operating losses and negative cash flows; the highly competitive nature of Key’s industry, as well as operating risks, which are primarily self-insured, and the possibility that its insurance may not be adequate to cover all of its losses or liabilities; significant costs and potential liabilities resulting from compliance with applicable laws, including those resulting from environmental, health and safety laws and regulations, specifically those relating to hydraulic fracturing, as well as climate change legislation or initiatives; Key’s historically high employee turnover rate and its ability to replace or add workers, including executive officers and skilled workers; Key’s ability to implement technological developments and enhancements; severe weather impacts on Key’s business, including hurricane activity; Key’s ability to successfully identify, make and integrate acquisitions and its ability to finance future growth of its operations or future acquisitions; Key’s ability to achieve the benefits expected from business combinations,  disposition or acquisition transactions; the loss of one or more of Key’s larger customers; the amount of Key’s debt and the limitations imposed by the covenants in the agreements governing its debt, including its ability to comply with covenants under its current debt agreements; Key’s ability to maintain sufficient liquidity and access to capital; an increase in Key’s debt service obligations due to variable rate indebtedness; Key’s inability to achieve its financial, capital expenditure and operational projections, including quarterly and annual projections of revenue and/or operating income and its inaccurate assessment of future activity levels, customer demand, and pricing stability which may not materialize (whether for Key as a whole or for geographic regions and/or business segments individually); Key’s ability to respond to changing or declining market conditions, including Key’s ability to reduce the costs of labor, fuel, equipment and supplies employed and used in its businesses; the adverse impact of litigation and disputes; and other factors affecting Key’s business described in “Part I, Item 1A. Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2019, in “Part II, Item 1A. Risk Factors” in its Quarterly Report on Forms 10-Q for the quarters ended March 31, 2020 and June 30, 2020, and other reports Key files with the Securities and Exchange Commission. The unprecedented nature of the COVID-19 pandemic and recent market decline may make it more difficult to identify potential risks, give rise to risks that are currently unknown, or amplify the impact of known risks.  As noted in Key’s financial statements for the quarter ended June 30, 2020, pursuant to accounting principles generally accepted in the United States, certain conditions raise substantial doubt about Key's ability to continue as a going concern within the 12 months post issuance of the consolidated financial statements for the second quarter 2020. For more information, please read Key’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, to be filed on August 14, 2020. 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.Contact: Nelson Haight 713-651-4403