I haven't seen this posted, sorry if it's a reprint:
Key Energy Discusses Improvement in Market Conditions and Expected Results for June 1999 Quarter
EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--Aug. 5, 1999--Key Energy Services, Inc. (NYSE: KEG) today reported that it expects to report significantly improved operating results for the fourth fiscal quarter ended June 30, 1999 compared to the third fiscal quarter ended March 31, 1999.
Total rig hours, including well service and drilling rig hours, have increased approximately 18% during the June 1999 quarter over the March 1999 quarter. Well service rig hours increased approximately 16% and drilling rig hours increased approximately 48% during the June 1999 quarter over the March 1999 quarter.
The company has experienced consecutive monthly utilization increases in each of its business lines, comprised of well servicing, drilling and trucking, since the depressed levels of February 1999. The positive trend for utilization has continued through July as an increasing number of customers have begun to respond to improved commodity prices by committing funds for drilling and well servicing.
Based on preliminary and unaudited results, the company expects to report total revenues for the three months ended June 30, 1999 of approximately $124 million, up 18% from the $104.9 million of revenues reported for the March 1999 quarter. The company's operating cash flow, as measured by earnings before interest expense, taxes, depreciation, depletion and amortization (EBITDA), is expected to range between $16 million and $18 million, an increase of between 45% and 64% from the $11.0 million of EBITDA reported during the March 1999 quarter, which excluded $7.0 million of non-recurring business expenses. The net loss per share is expected to range between $0.23 and $0.25 for the June 1999 quarter, an improvement of between 76% and 78% from the loss of $1.03 per share reported during the March 1999 quarter, which excluded approximately $0.72 per share of non-recurring charges. Adjusting for non-cash charges for depreciation and debt amortization costs, the company's cash flow per share is expected to range between a positive $0.10 and $0.13 for the June 1999 quarter.
Since the quarter ended June 30, 1999 is the company's fiscal fourth quarter, it is expected that complete and audited financial results will not be reported until approximately September 15, 1999.
Francis D. John, Chairman, President and Chief Executive Officer, stated, "The recent strength of oil and gas prices are encouraging. If commodity prices remain stable, we expect to see a continued increase in demand for our full range of services. We hope that the strong service markets of late 1997 and early 1998 will reappear by late calendar year 2000 or in 2001."
Key Energy is the world's largest rig-based well servicing firm, owning approximately 1,400 well service rigs, 1,100 oilfield trucks and 75 drilling rigs. The company provides diversified energy operations including well servicing, contract drilling and other oilfield services and oil and natural gas production. The company has oilfield service operations in all major onshore oil and gas producing regions of the continental United States and in Argentina and Canada.
The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Whenever possible, the company has identified these forward-looking statements by words such as "expects", "believes", "anticipates" and similar phrases. The forward-looking statements are based upon management's expectations and beliefs and, although these statements are based upon reasonable assumptions, there can be no assurances that the financial results or components will be as estimated. The company assumes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Key Energy from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Key Energy's actual results may differ materially from those indicated or implied by such forward-looking statements.
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CONTACT:
Key Energy Services, East Brunswick
Jim Dean, 732/247-4822 |
