Key’s President and Chief Executive Officer,
Dodson continued, “Our current levels of activity are the highest Key has seen since November of 2019. Although we continue to benefit from improving demand for our services, shortages of qualified employees and the impacts of COVID continue to weigh on our recovery.
“Financially, with higher activity, net pricing improvements and reduced cost structure we continue to generate positive operating cash flow. We are experiencing cost pressures with labor, steel and other products, however, we expect that these higher costs will be offset by further price increases in 2021 and in 2022.
The rationalizing of our rig fleet has continued, with roughly 350 well service rigs scrapped since the end of 2019. We expect to be at our target fleet size of around 400 rigs by the first quarter of 2022.”
“Finally, I want to thank our team for continuing to provide our customers best in class service and equipment and doing so safely. Key would not be in the strong position we are in today without the dedication, effort and professionalism of my fellow employees.”
Cautionary Statement Regarding 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 Key’s current expectations, estimates and projections and its management’s beliefs and assumptions concerning future events and financial trends affecting its financial condition and results of operations. The words and phrases such as “may,” “will,” “should,” “predicts,” “expects,” “believes,” “anticipates,” “projects,” “forecasts,” “views,” “continues,” “potential,” “goal” and similar expressions identify forward‐looking statements and express our expectations about future events. All statements, other than statements of historical facts, included in this communication that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward‐looking statements. These statements are only predictions or estimates 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 and the assumptions on which they are based could prove incorrect.
Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control.
Important factors that may affect Key’s expectations, estimates or projections include, but are not limited to, the following: Key’s ability to realize anticipated benefits from, and manage liabilities associated with, the transaction discussed in this press release; public health crises, such as the COVID-19 pandemic, including its impact on economic and other conditions globally and any related actions taken by businesses and governments, among others; adverse conditions in the services and oil and natural gas industries, especially oil and natural gas prices and reduced activity and capital expenditures by oil and natural gas companies; a failure of customer activity to reach or remain at expected levels; Key’s ability to satisfy its cash and liquidity needs, including its ability to generate sufficient liquidity or cash flow from operations or to obtain adequate financing to fund its operations or otherwise meet its obligations as they come due; Key’s ability to retain and access employees, customers or suppliers as a result of its financial condition generally or as a result of its recent restructuring; Key’s inability to achieve the potential benefits of the restructuring; Key’s ability to achieve the benefits of cost-cutting initiatives, including its plan to optimize its geographic footprint, including exiting certain locations and reducing its regional and corporate overhead costs; Key’s 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; actions by
Any forward‐looking statement speaks only as of the date of this press release, and Key undertakes no obligation to update or withdraw any forward‐looking statement to reflect events or circumstances after the date of this press release, except as required by law. All of Key’s 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.
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