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Key Energy Services (KEGX)

Key Energy Services, Inc. engages in the provision of onshore energy production services. It operates through the following segments: Rig Services; Fishing and Rental Services; Coiled Tubing Services; Fluid Management Services. The The Rig Services segment includes the completion of newly drilled wells, work over, and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells. The Fishing and Rental Services segment provides drilling and workover services. The Coiled Tubing Services segment offers use of a continuous metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells. The Fluid Management Services segment covers the provision of transportation and well-site storage services for fluids utilized in connection with drilling, completions, work over, and maintenance activities. The company was founded in April 1977 and is headquartered in Houston, TX.

Company profile

Ticker
KEGX, KYSRW
Exchange
CEO
John Marshall Dodson
Employees
Incorporated
Location
Fiscal year end
Former names
KEY ENERGY GROUP INC, NATIONAL ENVIRONMENTAL GROUP INC
SEC CIK
Subsidiaries
Key Energy ...
IRS number
42648081

KEGX stock data

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

16 Nov 20
2 Jul 22
31 Dec 22
Quarter (USD) Sep 20 Jun 20 Mar 20 Sep 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 19 Dec 18 Dec 17 Dec 16
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 4.79M 4.79M 4.79M 4.79M 4.79M 4.79M
Cash burn (monthly) 774K 2.04M 3.34M 8.11M 1.15M 3.92M
Cash used (since last report) 16.33M 43.06M 70.48M 171.14M 24.3M 82.79M
Cash remaining -11.54M -38.27M -65.69M -166.35M -19.51M -78M
Runway (months of cash) -14.9 -18.8 -19.7 -20.5 -16.9 -19.9

Beta Read what these cash burn values mean

0.0% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 2 4 -50.0%
Opened positions 0 1 EXIT
Closed positions 2 0 NEW
Increased positions 0 0
Reduced positions 0 0
13F shares Current Prev Q Change
Total value 0 0
Total shares 3K 3.06K -1.8%
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Citadel Securities GP 2.99K $0 0.0%
Bartlett & Co. 8 $0 0.0%
Largest transactions Shares Bought/sold Change
Captrust Financial Advisors 0 -51 EXIT
Steward Partners Investment Advisory 0 -5 EXIT
Bartlett & Co. 8 0 0.0%
Citadel Securities GP 2.99K 0 0.0%

Financial report summary

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Risks
  • Our business is cyclical and depends on conditions in the oil and natural gas industry, especially oil and natural gas prices and capital and operating expenditures by oil and natural gas companies. A continuation of the depressed state of our industry, tight credit markets and disruptions in the U.S. and global economies and financial systems may adversely impact our business.
  • We may not be able to generate sufficient cash flow to meet our debt service and other obligations.
  • The amount of our debt and the covenants in the agreements governing our debt could negatively impact our financial condition, results of operations and business prospects.
  • We may incur more debt and long-term lease obligations in the future.
  • Variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.
  • We may be unable to implement price increases or maintain existing prices on our core services.
  • We participate in a capital-intensive industry. We may not be able to finance future growth of our operations or future acquisitions.
  • Increased labor costs or the unavailability of skilled workers could hurt our operations.
  • Our future financial results could be adversely impacted by asset impairments or other charges.
  • Our business involves certain operating risks, which are primarily self-insured, and our insurance may not be adequate to cover all insured losses or liabilities we might incur in our operations.
  • We operate in a highly competitive industry, with intense price competition, which may intensify as our competitors expand their operations.
  • Historically, we have experienced a high employee turnover rate. Any difficulty we experience replacing or adding workers could adversely affect our business.
  • We may not be successful in implementing and maintaining technology development and enhancements. New technology may cause us to become less competitive.
  • The loss of or a substantial reduction in activity by one or more of our largest customers could materially and adversely affect our business, financial condition and results of operations.
  • Potential adoption of future state or federal laws or regulations surrounding the hydraulic fracturing process could make it more difficult to complete oil or natural gas wells and could materially and adversely affect our business, financial condition and results of operations.
  • Permit conditions, legislation or regulatory initiatives could restrict our ability to dispose of fluids produced subsequent to well completion, which could have a material adverse effect on our business.
  • We may incur significant costs and liabilities as a result of environmental, health and safety laws and regulations that govern our operations.
  • Severe weather could have a material adverse effect on our business.
  • Acquisitions and divestitures - we may not be successful in identifying, making and integrating acquisitions or limiting ongoing costs associated with the operations we divest.
  • Compliance with climate change legislation or initiatives could negatively impact our business.
  • Conservation measures and technological advances could reduce demand for oil and natural gas.
  • Our operations may be subject to cyber-attacks that could have an adverse effect on our business operations.
  • Our stockholder base is highly concentrated; the resale of shares of our common stock by existing stockholders, as well as shares issuable upon exercise of our warrants, may adversely affect the market price of our common stock.
  • We cannot assure you that an active trading market for our common stock will develop or be maintained, and the market price of our common stock may be volatile, which could cause the value of your investment to decline.
  • The Company does not expect to pay dividends on its common stock in the foreseeable future.
  • Certain provisions of our corporate documents and Delaware law, as well as change of control provisions in our debt agreements, could delay or prevent a change of control, even if that change would be beneficial to stockholders, or could have a material negative impact on our business.
Management Discussion
  • Revenues for our Rig Services segment decreased $46.4 million, or 15.6%, to $250.5 million for the year ended December 31, 2019, compared to $297.0 million for the year ended December 31, 2018. The decrease for this segment is primarily due to lower spending from our customers as a result of lower oil prices. These market conditions resulted in reduced customer activity.
  • Operating expenses for our Rig Services segment were $234.7 million during the year ended December 31, 2019, which represented a decrease of $42.7 million, or 15.4%, compared to $277.4 million for the year ended December 31, 2018. This decrease is primarily a result of a decrease in employee compensation costs, fuel expense and repair and maintenance expense due to a decrease in activity levels and a decrease in depreciation expense.
  • Revenues for our Fishing and Rental Services segment decreased $10.2 million, or 15.7%, to $54.5 million for the year ended December 31, 2019, compared to $64.7 million for the year ended December 31, 2018. The decrease for this segment is primarily due to lower spending from our customers on oil and gas well drilling and completion, as a result of lower oil prices. These market conditions resulted in reduced customer activity.

Content analysis

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New words: acquired, breach, customary, division, duty, East, fact, family, indemnification, infection, leaseback, Louisiana, negotiated, payout, promissory, ratably, real, reinstatement, role, seller, settlement, sgment, susceptibility, sustained, target, type, viewed, waste, water, world
Removed: Bloomberg, doubt, flowback, MINE, stack