Key Energy Services Announces Strategic Review of Capital Structure
October 31, 2019 at 05:05 pm EDT
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Key Energy Services, Inc. (NYSE:KEG) announced that it has engaged Moelis & Company LLC as its financial advisor and Sullivan & Cromwell LLP as its legal advisor to assist the Company in analyzing various strategic alternatives to address its capital structure and to position the Company for future success. As part of its strategic review, the Company has determined to focus its operations on the Company’s core areas of operations and exit certain low margin markets. The Company believes that this will allow reductions in its cost structure and improvements in its operating cash flow, in addition to generating future capital expenditure savings. The Company otherwise intends to continue to operate in the ordinary course of business in respect of its core markets while discussions with its Lenders take place, providing the same high level of quality service and responsiveness that its customers, vendors and business partners have come to expect. The Company expects that the conclusion of its negotiations with the Lenders will not result in an impairment of amounts owed to its trade vendors or a change of its ordinary course operations in its core markets, including with its employees in those markets.
Key Energy Services, Inc. is an onshore, rig-based well servicing contractor. The Company provides a range of well services to oil companies and independent oil and natural gas production companies. The Company's segments include Rig Services, Fishing and Rental Services, and Coiled Tubing Services. The Rig Services segment includes the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells. The Fishing and Rental Services segment offers a line of fishing services and rental equipment designed for use in providing both onshore drilling and workover services. The Coiled Tubing Services segment involves the use of metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications.