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8-K - 8-K - KEY ENERGY SERVICES INC | d347160d8k.htm |
Exhibit 99.1
June 30, 2017
Contact: West Gotcher, Investor Relations 713-757-5539
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FOR IMMEDIATE RELEASE
Key Energy Services Announces the Sale of Advanced Measurements, Inc.
HOUSTON, TX, June 30, 2017 Key Energy Services, Inc. (NYSE: KEG) has closed on the sale of Advanced Measurements, Inc. (AMI), its technology development and controls system business based in Alberta, Canada, to AFGlobal Corporation for an undisclosed amount.
Keys President and Chief Executive Officer, Robert Drummond, stated, The sale of AMI represents another step in our effort to fully exit all markets outside of the U.S. This divestiture allows Key to further streamline the Company in order to execute on its strategy as a leading production services provider.
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.
About AFGlobal
AFGlobal is an oil and gas OEM specializing in technology, products, and services. The companys fully-integrated manufacturing capabilities serve clients around the world. AFGlobal aligns well-established precision engineering with industry-leading innovation. The company provides strategic technologies to the upstream market, including advanced drilling systems, pressure pumping technologies, lifecycle services and subsea production systems. Headquartered in Houston, Texas, AFGlobal delivers value through more than 20 facilities worldwide. www.afglobalcorp.com.
June 30, 2017
Contact: West Gotcher, Investor Relations 713-757-5539
|
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 Keys current expectations, estimates and projections and its managements 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 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. In evaluating those statements, you should carefully consider the information above as well as the risks outlined in Item 1A. Risk Factors, in Keys Annual Report on Form 10-K for the year ended December 31, 2016 and in other reports Key files with the Securities and Exchange Commission.
Key undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release except as required by law. All of Keys 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 Keys expectations, estimates or projections include, but are not limited to, the following: conditions in the oil and natural gas industry, especially oil and natural gas prices and capital expenditures by oil and natural gas companies; volatility in oil and natural gas prices; Keys 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; asset impairments or other charges; the periodic low demand for Keys services and resulting operating losses and negative cash flows; Keys highly competitive 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; Keys historically high employee turnover rate and its ability to replace or add workers, including executive officers and skilled workers; Keys ability to incur debt or long-term lease obligations; Keys ability to implement technological developments and enhancements; severe weather impacts on Keys business; Keys ability to successfully identify, make and integrate acquisitions and its ability to finance future growth of its operations or future acquisitions; Keys ability to achieve the benefits expected from disposition transactions; the loss of one or more of Keys larger customers; Keys ability to generate sufficient cash flow to meet debt service obligations; the amount of Keys
June 30, 2017
Contact: West Gotcher, Investor Relations 713-757-5539
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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; an increase in Keys debt service obligations due to variable rate indebtedness; Keys 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); risks affecting Keys international operations, including risks affecting Keys ability to execute its plans to withdraw from international markets outside North America; Keys ability to respond to changing or declining market conditions, including Keys ability to reduce the costs of labor, fuel, equipment and supplies employed and used in its businesses; Keys ability to maintain sufficient liquidity; the adverse impact of litigation; and other factors affecting Keys business described in Item 1A. Risk Factors in its Annual Report on Form 10-K for the year ended December 31, 2016, and other reports Key files with the Securities and Exchange Commission.