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SEC Filings

S-4/A
KEY ENERGY SERVICES INC filed this Form S-4/A on 03/08/1996
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Estimated  annual  savings of  $2,500,000  to  operating  costs for the combined
companies  fall into the following  general  categories  for savings  related to
WellTech and Clint Hurt:

                                                  WellTech         Clint Hurt

     Insurance                                      $775,000         150,000
     Purchasing savings                              500,000          75,000
     Fuel savings                                     75,000              --
     Salaries and wages                              250,000          25,000
     Capitalization policy differences               500,000          50,000
     Other                                            75,000          25,000
                                                  ----------          ------

              Totals                              $2,175,000        $325,000
                                                  ----------        --------

Savings in insurance  costs relate to contract rates for coverage and contracted
administrative  fees to be in  effect  for the  combined  companies.  Purchasing
savings have been  calculated  by applying  product  prices  available to Key to
purchases  made by WellTech  during the prior  fiscal year and for Clint Hurt by
calculating the savings achieved since the acquisition.  Salary and wage savings
will result from  elimination of certain field support  positions.  As result of
implementing the interim operating agreement with WellTech, many of the expected
cost savings are being currently realized.

The  above  savings  in  general  and  administrative  and  operating  costs are
reasonably  assured  and such  savings  are not  expected  to be  offset by cost
increases in the expense categories described above.

Not included is any additional  compensation under the 1995 Stock Option Plan or
the Outside  Directors'  Stock  Option  Plan,  if any.  The  Company  would have
recorded deferred  compensation of approximately  $1,200,000 to be recognized as
expense  over a four-year  period  under the 1995 Stock Option Plan and $187,500
under the Outside  Directors' Stock Option Plan to be recognized over a two-year
period had such plans gone into effect on December 31, 1995. (See "Management of
Key - Executive  Compensation;  - 1995 Stock Option  Plan; - Outside  Directors'
Stock Plan".)
    


         (g)  To adjust income tax expense for each tax jurisdiction.


                                      F-70