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SEC Filings

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

Predecessor company as of and for the nine 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
 
$
169,627

 
$
61,230

 
$
24,294

 
$
43,773

 
$
9,582

 
$

 
$
308,506

Operating expenses
 
198,671

 
88,282

 
40,872

 
63,512

 
63,932

 
95,498

 
550,767

Operating loss
 
(29,044
)
 
(27,052
)
 
(16,578
)
 
(19,739
)
 
(54,350
)
 
(95,498
)
 
(242,261
)
U.S. Rig Services
Revenues for our U.S. Rig Services segment increased $14.4 million, or 8.5%, to $184.0 million for the nine months ended September 30, 2017, compared to $169.6 million for the nine 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 $186.8 million for the nine months ended September 30, 2017, which represented a decrease of $11.9 million, or 6.0%, compared to $198.7 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 took steps to reduce our cost structure.
Fluid Management Services
Revenues for our Fluid Management Services segment decreased $3.8 million, or 6.1%, to $57.5 million for the nine months ended September 30, 2017, compared to $61.2 million for the nine months ended September 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 $74.9 million for the nine months ended September 30, 2017, which represented a decrease of $13.4 million, or 15.2%, compared to $88.3 million for the same period in 2016. These expenses decreased primarily due to a decrease in equipment expense and employee compensation costs as we took steps to reduce our cost structure and as a result of lower activity levels.
Coiled Tubing Services
Revenues for our Coiled Tubing Services segment increased $2.7 million, or 11.2%, to $27.0 million for the nine months ended September 30, 2017, compared to $24.3 million for the nine months ended September 30, 2016. The increase for this segment is primarily due 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 $27.1 million for the nine months ended September 30, 2017, which represented a decrease of $13.8 million, or 33.7%, compared to $40.9 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 took steps 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 $2.0 million, or 4.6%, to $45.8 million for the nine months ended September 30, 2017, compared to $43.8 million for the nine 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 Fishing and Rental Services segment were $34.6 million for the nine months ended September 30, 2017, which represented a decrease of $29.0 million, or 45.6%, compared to $63.5 million for the same period in 2016. These expenses decreased primarily due to a $21.0 million gain on the sale of certain assets, 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.
International
Revenues for our International segment decreased $4.0 million, or 41.9%, to $5.6 million for the nine months ended September 30, 2017, compared to $9.6 million for the nine months ended September 30, 2016. The decrease was primarily attributable the exit of operations in Mexico and a decrease in activity in Russia and the sale during the third quarter of 2017 of our Russian operations.
Operating expenses for our International segment decreased $53.6 million, or 83.8%, to $10.4 million for the nine months ended September 30, 2017, compared to $63.9 million for the nine months ended September 30, 2016. These expenses decreased primarily as a result of a decrease in employee compensation costs and equipment expense, related to our exit from operations in

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