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SEC Filings

10-Q
KEY ENERGY SERVICES INC filed this Form 10-Q on 08/10/2017
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Segment Operating Results — Six Months Ended June 30, 2017 and 2016
The following table shows operating results for each of our segments for the six months ended June 30, 2017 and 2016 (in thousands):
Successor company as of and for the six months ended June 30, 2017
 
 
U.S. Rig Services
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional
Support
 
Total
Revenues from external customers
 
$
122,093

 
$
36,762

 
$
14,506

 
$
31,631

 
$
4,240

 
$

 
$
209,232

Operating expenses
 
124,357

 
46,926

 
16,466

 
18,014

 
7,892

 
40,939

 
254,594

Operating loss
 
(2,264
)
 
(10,164
)
 
(1,960
)
 
13,617

 
(3,652
)
 
(40,939
)
 
(45,362
)
Predecessor company as of and for the six months ended June 30, 2016
 
 
U.S. Rig Services
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional
Support
 
Total
Revenues from external customers
 
$
110,490

 
$
42,261

 
$
17,148

 
$
29,695

 
$
6,506

 
$

 
$
206,100

Operating expenses
 
130,530

 
56,088

 
29,354

 
42,483

 
16,467

 
63,851

 
338,773

Operating loss
 
(20,040
)
 
(13,827
)
 
(12,206
)
 
(12,788
)
 
(9,961
)
 
(63,851
)
 
(132,673
)
U.S. Rig Services
Revenues for our U.S. Rig Services segment increased $11.6 million, or 10.5%, to $122.1 million for the six months ended June 30, 2017, compared to $110.5 million for the six months ended June 30, 2016. The increase for this segment is primarily due to an increase in completion and production spending from our customers as they plan for continuing recovery of commodity prices.
Operating expenses for our U.S. Rig Services segment were $124.4 million for the six months ended June 30, 2017, which represented a decrease of $6.2 million, or 4.7%, compared to $130.5 million for the same period in 2016. These expenses decreased primarily as a result of a decrease in depreciation expense and a decrease in employee compensation costs and equipment expense as we sought to reduce our cost structure.
Fluid Management Services
Revenues for our Fluid Management Services segment decreased $5.5 million, or 13.0%, to $36.8 million for the six months ended June 30, 2017, compared to $42.3 million for the six months ended June 30, 2016. The decrease for this segment is primarily due to our exit from unprofitable locations.
Operating expenses for our Fluid Management Services segment were $46.9 million for the six months ended June 30, 2017, which represented a decrease of $9.2 million, or 16.3%, compared to $56.1 million for the same period in 2016. These expenses decreased primarily due to a decrease in equipment expense and employee compensation costs as we sought to reduce our cost structure and as a result of lower activity levels.
Coiled Tubing Services
Revenues for our Coiled Tubing Services segment decreased $2.6 million, or 15.4%, to $14.5 million for the six months ended June 30, 2017, compared to $17.1 million for the six months ended June 30, 2016. The decrease for this segment is primarily due to our exit from unprofitable locations partially offset by an increase in drilling and completion spending from our customers as they plan for continuing recovery of commodity prices.
Operating expenses for our Coiled Tubing Services segment were $16.5 million for the six months ended June 30, 2017, which represented a decrease of $12.9 million, or 43.9%, compared to $29.4 million for the same period in 2016. These expenses decreased primarily due to reduced depreciation expense and a decrease in employee compensation costs, repair and maintenance expense and fuel costs as we sought to reduce our cost structure and as a result of lower activity levels.
Fishing and Rental Services
Revenues for our Fishing and Rental Services segment increased $1.9 million, or 6.5%, to $31.6 million for the six months ended June 30, 2017, compared to $29.7 million for the six months ended June 30, 2016. The increase for this segment is primarily due to an increase in completion and production spending from our customers as they plan for continuing recovery of commodity prices.

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