Key Energy Services, Inc. (NYSE:KEG) offers operation update


Dallas, Texas 01/15/2014 (FINANCIALSTRENDS) – US based  oil and gas drilling and exploration major Key Energy Services, Inc. (NYSE:KEG) operates in the onshore rig-based servicing sector as well. It’s main clientele include not domestic, oil enterprises but overseas national oil companies as well. It also serves large number of independent oil and natural gas companies which are involved in production activities as well.

Key Energy Services, Inc. (NYSE:KEG) has a market cap of 1.15billion and volume of 1,948,187. The EPS is 0.03 and PE is 252.30. It has a52 week high of $9.55 and low of $5.61 and currently trades at about $7.57. The company has seen a substantial increase in the prices at 1.47% of the total stock value.

Key Energy Services, Inc. (NYSE:KEG), in the first week of January has also announced an operations update. The company expects a 32 average rigs to be operational by the end of the fourth quarter of 2013, on it international scenario. This is expected to be much lesser than just 35 average operational rigs in the previous third quarter.

Key Energy Services, Inc. (NYSE:KEG) says the fall in operational rigs will be due to slide in the activity in the Northern Mexico region as well as the other recent uncertain condition in the region. The company also suffers from additional problems such as the wrong timing of its workover activity. KEG has since taken the steps to move into fourth quarter with lesser workforce. The severance cost along is expected to be in the region of $2milion.

The company has also sought the help of Pemex, which will conduct the aggregation of bills for the oil and gas exploration major. The billing costs are estimated to be in the region of $327 million. Therefore, the likely change that KEG expects is in the region of $2 million to $3 million in the fourth quarter.

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