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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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         Fiscal 1994 costs and expenses increased  $9,161,000 or 40% over fiscal
1993  costs  and  expenses  of  $23,165,000  due to the  acquisition  of  Odessa
Exploration and the West Texas  operations of WellTech as well as start-up costs
for the several new services offered by Yale E. Key.

         Income  before  reorganization  items,  income taxes and  extraordinary
items was $2,295,000 for the year ended June 30, 1994,  which was an increase of
51% from $1,524,000 in fiscal 1993. The increase in income before reorganization
items,  income  taxes and  extraordinary  items was due to the increase in gross
revenues  for 1994  fiscal and the  acquisition  of Odessa  Exploration  and the
operations of WellTech West Texas.

         Net  income  for  fiscal  1994  was  $1,345,000,  a 21%  increase  from
$1,111,000  for fiscal 1993,  before an adjustment of $4,586,000  related to the
1992  reorganization  plan,  pursuant to which Key emerged from  bankruptcy (the
"1992 Reorganization Plan").

Interest Expense

         Interest  expense  increased  12% from  $740,000  during fiscal 1993 to
$830,000 during fiscal 1994,  primarily as a result of the acquisition of Odessa
Exploration. The increase in interest expense was partially offset by a decrease
in interest  expense for the seven months ended June 30, 1993 as a result of the
successful consummation of the 1992 Reorganization Plan.

General and Administrative Expenses

         General  and  administrative  expenses  increased  $836,000  or  31% to
$3,540,000 during fiscal 1994 from $2,704,000 during fiscal 1993,  primarily due
to the  acquisition  of Odessa  Exploration  and the West  Texas  operations  of
WellTech. However, as a percent of revenues, general and administrative expenses
decreased  from 11% of revenues  during  fiscal  1993 to 10% of revenues  during
fiscal 1994.

Depreciation and Depletion Expense

         Depreciation  and depletion  expense  increased to $1,371,000 in fiscal
1994 from  $911,000  in fiscal  1993 due  mainly  to the  acquisition  of Odessa
Exploration which contributed $386,000 in depletion expense for fiscal 1994. The
increase  was  partially  offset by a decrease in  depreciation  expense for the
seven months ended June 30, 1993 as the result of Key's adoption of "fresh start
reporting" upon emergence from  bankruptcy.  See Note 3 of Notes to Consolidated
Financial Statements of Key.

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