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SEC Filings

10-Q
KEY ENERGY SERVICES INC filed this Form 10-Q on 11/09/2017
Entire Document
 

Segment Operating Results — Three Months Ended September 30, 2017 and 2016
The following table shows operating results for each of our segments for the three months ended September 30, 2017 and 2016 (in thousands):
Successor company as of and for the three months ended September 30, 2017
 
 
U.S. Rig Services
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional
Support
 
Total
Revenues from external customers
 
$
61,933

 
$
20,713

 
$
12,499

 
$
14,177

 
$
1,331

 
$

 
$
110,653

Operating expenses
 
62,435

 
27,975

 
10,645

 
16,543

 
2,459

 
25,340

 
145,397

Operating loss
 
(502
)
 
(7,262
)
 
1,854

 
(2,366
)
 
(1,128
)
 
(25,340
)
 
(34,744
)
Predecessor company as of and for the three months ended September 30, 2016
 
 
U.S. Rig Services
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional
Support
 
Total
Revenues from external customers
 
$
59,137

 
$
18,969

 
$
7,146

 
$
14,078

 
$
3,076

 
$

 
$
102,406

Operating expenses
 
68,141

 
32,194

 
11,518

 
21,029

 
47,465

 
31,647

 
211,994

Operating loss
 
(9,004
)
 
(13,225
)
 
(4,372
)
 
(6,951
)
 
(44,389
)
 
(31,647
)
 
(109,588
)
U.S. Rig Services
Revenues for our U.S. Rig Services segment increased $2.8 million, or 4.7%, to $61.9 million for the three months ended September 30, 2017, compared to $59.1 million for the three months ended September 30, 2016. The increase for this segment is primarily due to an increase in completion and production spending from our customers as they react to improving commodity prices.
Operating expenses for our U.S. Rig Services segment were $62.4 million during the three months ended September 30, 2017, which represented a decrease of $5.7 million, or 8.4%, compared to $68.1 million for the same period in 2016. These expenses decreased primarily as a result of reduced depreciation expense and a decrease in employee compensation on a per hour basis as we took steps to reduce our cost structure.
Fluid Management Services
Revenues for our Fluid Management Services segment increased $1.7 million, or 9.2%, to $20.7 million for the three months ended September 30, 2017, compared to $19.0 million for the three months ended September 30, 2016. The increase for this segment is primarily due to an increase in spending from our customers as they react to improving commodity prices.
Operating expenses for our Fluid Management Services segment were $28.0 million during the three months ended September 30, 2017, which represented a decrease of $4.2 million, or 13.1%, compared to $32.2 million for the same period in 2016. These expenses decreased primarily as a result of a decrease in employee compensation costs and equipment expense as we took steps to reduce our cost structure.
Coiled Tubing Services
Revenues for our Coiled Tubing Services segment increased $5.4 million, or 74.9%, to $12.5 million for the three months ended September 30, 2017, compared to $7.1 million for the three months ended September 30, 2016. The increase for this segment is primarily due to an increase in drilling and completion spending from our customers as they react to improving commodity prices.
Operating expenses for our Coiled Tubing Services segment were $10.6 million during the three months ended September 30, 2017, which represented a decrease of $0.9 million, or 7.6%, compared to $11.5 million for the same period in 2016. These expenses decreased primarily as a result of reduced depreciation expense and a decrease in employee compensation costs and equipment expense as we took steps to reduce our cost structure.
Fishing and Rental Services
Revenues for our Fishing and Rental Services segment increased $0.1 million, or 0.7%, to $14.2 million for the three months ended September 30, 2017, compared to $14.1 million for the three months ended September 30, 2016. The increase for this segment is primarily due to an increase in completion and production spending from our customers as they react to improving commodity prices.

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