Key Energy Provides Selected Financial Data and Announces Closure of SEC Investigation
June 20 2007 - 9:00PM
PR Newswire (US)
HOUSTON, June 20 /PRNewswire-FirstCall/ -- Key Energy Services,
Inc. (Pink Sheets: KEGS) announced today its rig and trucking hours
and its selected financial data for the month of May 2007. In
addition, the Company announced the completion of the investigation
by the Securities and Exchange Commission. SEC Investigation
Completed The Company has been informed by the staff of the
Enforcement Division of the Securities and Exchange Commission that
its investigation as to the Company has been completed and that it
does not intend to recommend any enforcement action against the
Company by the Commission. As previously disclosed, in March 2004
the Company contacted the SEC in connection with its issuance of a
press release announcing the delay of the filing of the Company's
2003 annual report, the expected restatement of its financial
statements and its internal investigations. The Fort Worth office
of the SEC commenced an inquiry relating to such matters shortly
thereafter, and the SEC opened a formal investigation in July 2004.
Activity Update The Company's results for the month of May were
negatively impacted by heavy rains throughout most of its Texas
operations as well as from maintenance related downtime on several
of the Company's Argentina drilling rigs. Despite the weather
impact, operating conditions remain good throughout most of the
Company's operating regions. Non-holiday weekly rig hours are
presently in the high 47,000 per week range. For the month ending
May 31, 2007 April 30, 2007 May 31, 2006 Working Days 22 20 22 Rig
Hours 207,650 200,216 234,752 Trucking Hours 198,936 189,841
213,786 The Company calculates working days as total weekdays for
the month less any company holidays that occur that month. For the
month of June 2007, there are 21 working days. Selected Financial
Data The following selected financial information for the Company
is for the month ended May 31, 2007. This unaudited information has
been prepared by management in accordance with generally accepted
accounting principles. The selected financial data are subject,
however, to adjustments due to the need to roll-forward the changes
and policy modifications that came out of the restatement process
and adjustments resulting from the finalization and audit of the
2004 through 2007 financial statements. Further, the selected
financial data has not been reviewed or audited by the Company's
independent accountants. The table does not contain all the
financial statement line captions and notes that would be presented
in the Company's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2007 or for the Annual Report on Form 10-K for the
year ended December 31, 2007. Month Ended May 31, 2007 (In
thousands - Select Statement of Financial Data: Unaudited) Revenue:
Well servicing $104,616 Pressure pumping 26,056 Fishing and rental
services 7,736 TOTAL REVENUE $138,408 May 31, 2007 (In thousands -
Select Balance Sheet Data: Unaudited) Current Assets: Cash and cash
equivalents $76,586 Short term investments 114,912 The information
herein represents the results for only one month and the
information herein is not necessarily indicative of the results
that may be reported for the quarter ended June 30, 2007 or for the
fiscal year ended December 31, 2007. The information herein is
select financial data and does not represent a complete set of
financial statements, which would include additional financial data
and notes to financial statements. Although the restatement of the
Company's prior year financial statements has been completed, the
unaudited information herein may be subject to adjustments due to
the restatement, as certain corrections of prior period historical
information will affect amounts recorded in subsequent periods. It
is possible that the process of completing and auditing the
Company's financial statements for the fiscal years ending 2004,
2005, 2006 and 2007 could require other changes to the Company's
financial statements. Any of the foregoing changes could,
individually or in the aggregate, be material to the Company's
financial position, results of operations or liquidity. Key Energy
Services, Inc. is the world's largest rig-based well service
company. The Company provides oilfield services including well
servicing, pressure pumping, fishing and rental tools, electric
wireline and other oilfield services. The Company has operations in
all major onshore oil and gas producing regions of the continental
United States and internationally in Argentina. Certain statements
contained in this news release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current expectations, estimates and projections about the Company,
the Company's industry, management's beliefs and certain
assumptions made by management. Whenever possible, the Company has
identified these "forward-looking statements" by words such as
"expects," "believes," "anticipates" and similar phrases. Readers
are cautioned that any 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: uncertainties affecting whether the
Company will be able to complete and file financial statements for
2004, 2005 and 2006, and the timing thereof; the risk of possible
changes in the scope and nature of, and the time required to
complete, the audit of the Company's 2004, 2005 and 2006 financial
statements; possible legal consequences of failure to file
compliant SEC filings for 2003, 2004 and 2005; risks that the
Company will be unable to satisfy the requirements for re-listing
on a national stock exchange or the timing thereof; potential
impact on operations of the Company's ongoing process to complete
2004, 2005 and 2006 financial statements; the effect of on-going
financial reporting and restatement-related expenses; possible
additional tax liabilities as a result of the restatement of
financial results; risks that the Company's efforts to remediate
internal control and accounting deficiencies will not be effective;
potential financial or other effects of on-going class action and
derivative litigation and litigation with former officers; risks
affecting the ability of the Company to maintain or improve
operations, including the ability to maintain price increases,
possible over supply of new rigs coming into the market and weather
risks; risks associated with technology investments and the
receptiveness of customers to the new technology investments; and
risks that the Company will be unable to achieve budgeted financial
targets and risks affecting activity levels for rig hours including
the risk that commodity prices decline or the risk that capital
budgets from the Company's customers decrease. Readers should also
refer to the section entitled "Risk Factors" in the 2003 Financial
and Informational Report filed with a Form 8-K/A on October 26,
2006 for discussion of risks arising from the restatement process
and other risks to which the Company is subject. Because such
statements involve risks and uncertainties, the actual results and
performance of the Company may differ materially from the results
expressed or implied by such forward-looking statements. Given
these uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. Unless otherwise
required by law, the Company 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 or documents the Company files periodically with the
Securities and Exchange Commission. Contact: John Daniel (713)
651-4300 DATASOURCE: Key Energy Services, Inc. CONTACT: John Daniel
of Key Energy Services, Inc., +1-713-651-4300 Web site:
http://www.keyenergy.com/
Copyright