HOUSTON, Jan. 19, 2011 /PRNewswire/ -- Key Energy Services, Inc. provides December 2010 activity data.
Key Energy Services, Inc. Monthly Activity Report for December 2010 Activity levels for the month of December 2010 and comparable periods are as follows: For the Month Ended % Change % Change ------------------- vs vs 12/31/10 11/30/10 12/31/09 11/30/10 12/31/09 -------- -------- -------- --------- --------- U.S. Rig Hours 131,286 132,785 111,803 -1.1% 17.4% U.S. Rig Hours Per Working Day 6,564 6,639 5,590 -1.1% 17.4% International Rig Hours 33,726 28,118 36,547 19.9% -7.7% International Rig Hours Per Calendar Day 1,088 937 1,179 16.1% -7.7% Total Rig Hours 165,012 160,903 148,350 2.6% 11.2% Total Trucking Hours 240,465 231,728 141,371 3.8% 70.1% Total Trucking Hours Per Calendar Day 7,757 7,724 4,560 0.4% 70.1% U.S. Working Days* 20 20 20 0.0% 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 company holidays that occur in the month. For the month of January 2011, there will be 21 working days. The following reflects utilization data relative to Key's U.S. rig services fleet: For the Month Ended % Change % Change ------------------- vs vs 12/31/10 11/30/10 12/31/09 11/30/10 12/31/09 ------- -------- -------- -------- -------- Total Available U.S. Rigs 787 787 743 0.0% 5.9% Average Rigs Worked* 473 489 428 -3.3% 10.5% Utilization 60% 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, "Severe weather in California negatively impacted our domestic rig activity by over 4,000 hours. Adjusting for the weather impact and the previously announced Five-J.A.B. acquisition in mid-November, Key's legacy domestic rig activity would have increased just over 1% month-over-month, despite reduced daylight hours."
Alario continued, "Our international hours improved significantly month-over-month driven entirely and almost equally by activity increases in Argentina and Mexico. In Mexico, our existing contract was extended for another year as PEMEX has begun to operate from its 2011 budget. Additionally, we mobilized another two rigs from Mexico to Colombia, which we expect to be operating by the end of the first quarter 2011, bringing our total active rig count in Colombia to seven. December activity also benefitted slightly from the initial start-up of our 2-rig operation in Bahrain, where we expect a third rig to begin operating in late January."
Fourth Quarter and Year-end 2010 Conference Call
Key Energy Services will release fourth quarter and year-end 2010 financial results after market close on Thursday, February 17, 2011. Key management will host a conference call to discuss its fourth quarter and year-end 2010 financial results on Friday, February 18, 2011 at 10 a.m. CST. To access the call in the U.S. and Canada 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 30606031. The conference call will also be available live via the internet. To access the webcast, go to http://www.keyenergy.com/ and select "Investor Relations." A replay of the conference call will be available on Friday, February 18, 2011, beginning two hours after the completion of the conference call and will remain available for one week. To access the replay, call 800-642-1687. The access code for the replay is 30606031.
About Key Energy Services
Key Energy Services is the largest provider of onshore well service rigs in the world. 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 and internationally in Mexico, Argentina, Colombia, 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, other risks affecting Key's operations in Argentina, 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/
