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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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Cash Flow


         Net cash  provided by  operations  increased  $2,925,000  from $121,000
during the six months  ended  December  31, 1994 to  $3,046,000  for the current
period.  The  increase  was  attributable  primarily  to a smaller  increase  in
accounts  payable and accrued  expenses  and higher net income and  depreciation
expense compared to the same period last year.

         Net cash used in investing activities increased from $3,117,000 for the
six months ended  December 31, 1994 to $4,244,000  for the current  period.  The
increase  was  primarily  the result of increased  expenditures  for oil and gas
properties . In addition,  net cash used in investing activities for the current
period included $360,000 used in the oil and gas well drilling operations.

         Net cash provided by financing activities decreased to $878,000 for the
six months ended  December 31, 1995 as compared to $2,790,000 for the comparable
period in 1994.  The decrease was  primarily  the result of increased  principal
payments  made during the current  period  compared to the prior  period,  and a
decrease in proceeds  from  long-term  debt  during the  current  period.  Such
proceeds  were  primarily  used for the oil and  natural  gas  drilling  program
conducted by Odessa Exploration.


Fiscal Year Ended June 30, 1995 Compared to Fiscal Year Ended June 30, 1994

Results of Operations

         Results of operations for the fiscal years ended June 30, 1994 and 1995
include Key's oil field well service operations,  its oil and gas operations and
its oil and gas drilling operations.  Comparative results during the period were
effected to a significant extent by the several  acquisitions made by during the
period as follows:

o        In March 1995, Key acquired from Clint Hurt & Associates ("CHA") all of
         CHA's assets in West Texas, which consisted principally of four oil and
         gas  drilling  rigs  and  related  equipment.   As  a  result  of  this
         acquisition,  Key entered into the business of drilling oil and natural
         gas wells for independent and major oil companies primarily in the West
         Texas region.

o        In August 1994, Key consummated the acquisition of substantially all of
         WellTech's assets used in its oil and gas well servicing business in 
         West Texas.  Prior to consummation of the acquisition, in December
         1993, Key entered into an interim operating agreement under which it
         operated the West Texas division of WellTech.

o        In August 1993, Key acquired Odessa Exploration and, as a consequence,
         commenced operation of oil and natural gas wells and exploration for
         oil and natural gas in the Permian Basin area of West Texas.

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