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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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3.  Income Taxes

Key  accounts  for income  taxes  pursuant to the  provisions  of  Statement  of
Financial   Accounting   Standards  No.  109,   "Accounting  for  Income  Taxes"
("Statement  109").  Deferred income taxes have been provided on all significant
difference  between the book and tax basis of the assets and  liabilities of the
Acquisitions.  In  accordance  with  Statement  109, Key  prepares  separate tax
calculations for each tax jurisdiction in which Key is subject to income taxes.

Income taxes are not reflected in the historical financial  information of Clint
Hurt Drilling as it was not a taxable entity.

4.   Income (loss) from Operations per Share

Income  (loss) from  operations  per share is  calculated  based on the weighted
average  number  of  shares  and share  equivalents,  if more than 3%  dilutive,
outstanding during the period. Fully diluted income (loss) per common and common
equivalent  share is not presented since the effect would be  antidilutive.  Pro
forma  income  (loss) per share has been  calculated  taking  into  account  the
issuance of shares of Key's Common Stock in the  Acquisitions  as if such shares
were issued on July 1, 1994.


                                      F-71