HOUSTON, Dec. 14, 2010 /PRNewswire-FirstCall/ -- Key Energy Services, Inc. provides November 2010 activity data.
Key Energy Services, Inc. Monthly Activity Report for November 2010 Activity levels for the month of November 2010 and comparable periods are as follows: For the Month Ended ------------------- % Change % Change vs vs 11/30/10 10/31/10 11/30/09 10/31/10 11/30/09 ------- ------- -------- ------ ------ U.S. Rig Hours 132,785 138,116 104,568 -3.9% 27.0% U.S. Rig Hours Per Working Day 6,639 6,577 5,504 0.9% 20.6% International Rig Hours 28,118 29,914 33,862 -6.0% -17.0% International Rig Hours Per Calendar Day 937 965 1,129 -2.9% -17.0% Total Rig Hours 160,903 168,030 138,430 -4.2% 16.2% Total Trucking Hours 231,728 235,423 138,598 -1.6% 67.2% Total Trucking Hours Per Calendar Day 7,724 7,594 4,620 1.7% 67.2% U.S. Working Days* 20 21 19 -4.8% - Calendar Days 30 31 30 -3.2% - *Key calculates U.S. working days as total weekdays for the month less any holidays that occur in the month. For the month of December 2010, there will be 20 working days. The following reflects utilization data relative to Key's U.S. rig services fleet: For the Month Ended ------------------- % Change % Change vs vs 11/30/10 10/31/10 11/30/09 10/31/10 11/30/09 -------- -------- -------- -------- -------- Total Available U.S. Rigs 787 774 743 1.7% 5.9% Average Rigs Worked* 489 477 428 2.5% 14.3% Utilization 62% 62% 58% *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 http://www.keyenergy.com/ under "Investor Relations."
Chairman, President, and CEO, Dick Alario, commented, "November's typical activity decline was somewhat offset by our acquisition of Five Jab, a small, private well servicing company, on November 15th, which contributed approximately 1,000 hours during the month. In addition to its fleet of 13 newer, higher-capability workover rigs, Five Jab has a strong customer base, and its experienced personnel have a reputation of quality consistent with Key's operating standards. Within our fluids management business, trucking hours per day improved during November as activity continues to increase, particularly in the Bakken Shale market."
Alario continued, "November's international results were negatively impacted by reduced activity in Mexico, which has since reversed. December's activity should also benefit from two rigs that have gone to work in Bahrain and from the addition of two rigs to our existing contract in Colombia. We expect to finish the year with five rigs working in Colombia, and we believe that market will yield additional opportunities for Key. Overall, 2011 looks promising in each of our international markets."
About Key Energy Services
Key Energy Services is the largest provider of onshore well service rigs in the world based on current industry data. Key provides a complete range of well intervention services. Key has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Latin America, Russia, and the Middle East.
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.
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 the recently completed transactions including Five J.A.B. oilfield services companies, and risks that Key may be unable to achieve the benefits contemplated under these transactions, and risks related to integration of the acquired operations; risks affecting Key's foreign operations, including risks related to activity levels in Mexico, 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; risks that Key may be unable to maintain or improve prices for services under market pricing pressures; risks that Key may be unable to differentiate its services through investments in oilfield services technologies; and other risks affecting Key's ability to maintain or improve operations, including weather risks.
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
Key Energy Services, Inc.
CONTACT: Gary Russell of Key Energy Services, Inc., +1-713-651-4434
Web Site: http://www.keyenergy.com/
