KEG - Key Energy Services Inc - Page 2

Making a good run today....

Key Energy Services Generated First Quarter 2012 Earnings from Continuing Operations of $0.23 per Diluted Share
2 days 12 hours 50 minutes ago - PR Newswire via Comtex
Key Energy Services, Inc. (NYSE: KEG) generated first quarter 2012 income from continuing operations of $34.1 million, or $0.23 per share, compared to fourth quarter 2011 income from continuing operations of $44.5 million, or $0.30 per share, excluding after tax costs of $2.7 million, or $0.02 per share, related to the Company's previously disclosed general and administrative restructuring initiative.

During the first quarter of 2012, Key announced its intention to sell its Argentine operations. As a result, this business has been classified as discontinued operations for the first quarter of 2012, and prior comparable periods have been recast to reflect this change. The carrying value of the Argentine business included $41.5 million of net assets and $52.4 million of accumulated foreign currency translation losses, which are included within Key's consolidated stockholder's equity. For the first quarter 2012, our Argentine business had a net loss from discontinued operations of $30.9 million, or $0.21 per share, on revenue of $25.6 million. Included in the loss for the quarter is a non-cash impairment charge of $26.9 million after tax, or $0.18 per share, to adjust the carrying value of this business to its current estimated fair value.

For the fourth quarter 2011, our Argentine business had revenue from discontinued operations of $27.5 million and a net after-tax loss of $2.5 million, or $0.02 per share. Fourth quarter results reported herein reflect the specific allocation of income tax attributes between income from continuing operations and losses generated in Argentina during 2011, which are reflected in discontinued operations. In our fourth quarter 2011 earnings announcement on February 16, 2012, Key disclosed an after-tax loss from Argentina operations of $5.4 million, or a loss of $0.04 per share, based on Key's consolidated 2011 tax rate.

First quarter 2012 consolidated net income was $3.2 million, or $0.02 per share, which includes the aforementioned losses from discontinued operations, compared to fourth quarter 2011 consolidated net income of $39.3 million, or $0.26 per share.

Revenue for the first quarter 2012 was $486.8 million, up 1.1% compared to fourth quarter 2011 revenue of $481.7 million.

The following table sets forth summary data from continuing operations for the first quarter 2012 and prior comparable quarterly periods.

Three Months Ended (unaudited)
March 31, December 31, March 31,
2012 2011 2011
(in millions, except per share amounts)
Revenues $ 486.8 $ 481.7 $ 364.4
Income (loss) attributable to Key $ 34.1 $ 41.8 $ (16.2)
Diluted earnings (loss) per share attributable to Key $ 0.23 $ 0.28 $ (0.12)
Adjusted EBITDA $ 115.4 $ 130.5 $ 69.6
U.S. Segment

First quarter 2012 U.S. revenue was $425.0 million, up 1.0% compared to $420.9 million in the fourth quarter 2011. Operating income was $91.5 million, or 21.5% of revenue, in the first quarter compared to $106.6 million, or 25.3% of revenue, in the prior quarter.

In addition to the anticipated impact of relocating equipment and personnel into high demand oil markets from declining gas markets, first quarter results were impacted by crew turnover and labor shortages which reduced asset utilization in our Coiled Tubing Services business, formerly Intervention Services, resulting in a sequential 13% revenue decline for that business. Each of Key's other business lines experienced increases in revenue from the prior quarter, notably Rig Services revenue which increased approximately 5% sequentially.

Although first quarter operating income margins were negatively affected by planned asset relocations, the majority of the sequential margin decline is attributed to low coiled tubing asset utilization.

S&P MAINTAINS HOLD OPINION ON SHARES OF KEY ENERGY SERVICES
1 days 18 hours 21 minutes ago - Standard & Poor's
Q1 EPS of $0.23 before a 1X charge of $0.21, vs. a $0.13 loss, is $0.05 below our previously published Capital IQ consensus estimate. Results were led by improved U.S. Rig Services as well as improved International operations. In our view, the oil services industry at large faced headwinds in Q1 from the U.S. transition to liquids-rich plays from dry gas plays. However, in that context, we view KEG's reduced utilization in coiled tubing as somewhat surprising since we had expected coiled tubing demand to hold up relatively well despite this transition.

down 30% in a couple months at supp area now

S&P KEEPS HOLD OPINION ON SHARES OF KEY ENERGY SERVICES
4 days 4 hours 44 minutes ago - Standard & Poor's
We note that the Capital IQ consensus estimate for 2012 has risen $0.03 to $0.91 from our previously published estimate, although the corresponding estimate for 2013 fell $0.17 to $1.06. We keep our target price at $11, based on relative metrics. On consensus estimates, KEG is expected to generate operating cash flows about in line with capital spending this year, but to generate positive free cash flows in 2013. We see excess cash flows going towards debt reduction. We think oil-directed activity remains strong in the U.S., but natural gas-directed activity is weak..

Key Energy Services Issues Revised Financial Guidance for the Third Quarter 2012 and Completes the Sale of its Argentina Operations
22 hours 52 minutes ago - PR Newswire via Comtex
Key Energy Services, Inc. (NYSE: KEG) expects third quarter 2012 consolidated results from continuing operations to be below prior expectations. Compared to the previous quarter, consolidated revenue is expected to decline 4% to 5%, and operating income margins are expected to decline 250 to 350 basis points.

Key's Chairman, President and Chief Executive Officer, Dick Alario, commented, "The change in outlook relative to our earlier expectations is primarily attributed to market declines in U.S. drilling and completion related activity. Our fluids management, coiled tubing, and Edge businesses all experienced utilization declines and continued pricing pressure in their core markets during the quarter. While our U.S. Rig Services business has experienced a slight activity decline during the quarter, its income contribution to third quarter results is expected to be in line with the prior quarter. Meanwhile, third quarter results from our international operations are anticipated to be in line with earlier expectations."

Mr. Alario continued, "Our prior expectations were for activity in our core oil markets to be relatively flat in the second half of 2012. Instead, since the beginning of the third quarter, drilling rig counts in these markets are down approximately 8%, and indications are that customer demand may decline further through the fourth quarter in addition to typical seasonal declines. We will provide more insights regarding our outlook on our third quarter earnings conference call."

Key sold its Argentina operations effective September 14, 2012 and expects to record a non-cash, pre-tax charge against discontinued operations of approximately $45 million in the third quarter.

Key intends to report its third quarter 2012 financial results after market close on Thursday, October 25, 2012 and host a conference call to discuss those results on Friday, October 26, 2012. Additional conference call details will be provided at a later date.

lower guidance gaps it down...quick fill or retest 6.50 -7.00 area