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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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improvement costs to existing equipment and machinery.  Capital expenditures are
expected to decrease  from fiscal 1995 levels due to less  capital  improvements
for the WellTech West Texas operations acquired during fiscal 1995. Financing of
capital  expenditures  is expected to come from the operating cash flows of Yale
E. Key.  Working capital  requirements  for WellTech West Texas were met through
the additional cash flows generated from the additional equipment,  the acquired
WellTech West Texas accounts receivable and the additional  borrowings.  Capital
expenditures were approximately $4.4 million in fiscal 1994.

         Odessa Exploration is forecasting approximately $3.0 million in oil and
gas property acquisitions for fiscal 1996 compared to $2.8 million during fiscal
1995, and $6.0 million in development  costs for fiscal 1996 as compared to $3.7
million during fiscal 1995. Oil and gas acquisitions  aggregated  $2,150,000 for
the six months ended December 31, 1995. Financing of oil and gas acquisitions is
expected to come from borrowings and/or private investors.


         Clint Hurt has forecast approximately $500,000 for oil and gas drilling
capital  expenditures  for fiscal 1996  primarily for  improvements  to existing
equipment and machinery. Such outlays are treated as capital costs. Financing is
expected to come from existing cash flow.

         In January  1995,  Key received $2.5 million in term note proceeds from
its  principal  lender.  The  term  note  is  collateralized  by the  additional
equipment Key received from the WellTech West Texas acquisition and was used for
working capital purposes.  The term note, requires monthly principal payments of
approximately  $42,000 plus  interest,  with the unpaid  balance of the note due
December 31, 1996. The interest rate is 2 1/2% above the stated prime rate, 9.0%
at June 30,  1995. A portion of the note has been  classified  as current in the
accompanying balance sheet.

         During   March   1995,   Odessa   Exploration   refinanced   its   debt
(approximately $2.8 million at March 31, 1995) with Norwest Bank Texas, Midland,
N.A.  ("Norwest").  The  refinanced  debt  consists of a $7.5  million  reducing
revolver  with a current  borrowing  base of $5.3  million.  As of September 30,
1995,  $5.5  million  principal  amount  of  debt  was  outstanding  under  this
arrangement.  The  revolver  requires  the  borrowing  base  to  be  reduced  by
approximately  $60,000 per month.  The revolver has an interest  rate of Norwest
prime rate (9.0% at June 30, 1995),  plus 1/2 of one percent,  payable  monthly.
The note matures on October 15, 1997.  The revolver is secured by  substantially
all of the oil and gas  properties  of Odessa  Exploration  and is guaranteed by
Key.   In   addition,   the   revolver   has   cross-default    provisions   and
cross-collateralization provisions with Clint Hurt.

         As a result of the purchase of the Clint Hurt drilling equipment, Clint
Hurt  borrowed $1.0 million from Norwest.  The loan requires  monthly  principal
payments of  approximately  $28,000 until maturity in April 1998. The loan bears
interest  at the  Norwest  prime rate (9.0% at June 30,  1995),  plus 3/4 of one
percent,  is secured by all of the  equipment of Clint Hurt and is guaranteed by
Key. In  addition,  Clint Hurt  obtained a working  capital  line of credit with
Norwest in the amount of $200,000. The line of credit requires monthly principal
and interest payments of $20,000, bears interest at the Norwest prime rate (9.0%
at June 30, 1995),  plus 3/4 of one percent,  is secured by all of the equipment
of Clint Hurt and is guaranteed by Key.


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