Offering rig services, fluid management devices, fishing and coiled tubing services, Key Energy Services (ticker: KEG) offers the full range of services from the initial drilling and completion of a well through servicing and eventual abandonment. Key is positioned to create recurring business throughout the life of a well.
The company has the majority of its operations in the United States, with some operations internationally. In line with industry activity, the highest proportion of the company’s revenue is gained from Permian activity—which accounts for 37% of the company’s total United States revenue.
Increase in availability for well maintenance and repair – positive indicators of future demand
Key noted that it expects increasing activity industry-wide will lead to increased demand for energy services in the coming quarter. The company’s president and CEO, Robert Drummond, said that the company was “seeing an increase in inquiries regarding equipment and crew availability for well maintenance and repair activity,” which the company viewed as “as positive indicators of future demand.”
Services
In its Rig Services segment, Key offers services in drilling and completions, production, and abandonment operations. The Fishing and Rental Services segment similarly covers the entire well-life, with assistance in pipe and tool recovery, and rental of drill pipe and blowout preventers and other well service functions.
The Fluid Management segment primarily covers operations during drilling and completions and production—largely in the delivery, storage, management, and disposal of various oilfield related fluids.
Key’s Coiled Tubing Services Segment is also focused during the drilling and completions and production portions of a well’s life, offering various preparation treatments, repair and maintenance procedures, and cleanouts.
The company’s Rig Services sector accounts for the greatest proportion of annual revenue, with 55% of the total $417.2 million in revenue from 2016 attributed to Rigs. Following that are the Fluid Management and Fishing Rental segments, at 19% and 14%, respectively.
Key Energy Services, LLC. is presenting at EnerCom’s The Oil & Gas Conference® 22
Key will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
