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SEC Filings

10-K
KEY ENERGY SERVICES INC filed this Form 10-K on 02/28/2018
Entire Document
 

Years Ended December 31, 2016 and 2015
The following table shows operating results for each of our reportable segments for the years ended December 31, 2016 and 2015 (in thousands):
For the Successor period from December 16, 2016 through December 31, 2016
 
U.S. Rig Service
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional
Support
 
Total
Revenues from external customers
$
8,549

 
$
3,208

 
$
1,392

 
$
3,389

 
$
1,292

 
$

 
$
17,830

Operating expenses
10,481

 
4,346

 
1,648

 
3,654

 
1,225

 
5,324

 
26,678

Operating loss
(1,932
)
 
(1,138
)
 
(256
)
 
(265
)
 
67

 
(5,324
)
 
(8,848
)
For the Predecessor period from January 1, 2016 through December 15, 2016
 
U.S. Rig Service
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional
Support
 
Total
Revenues from external customers
$
222,877

 
$
76,008

 
$
30,569

 
$
55,790

 
$
14,179

 
$

 
$
399,423

Operating expenses
262,335

 
113,944

 
49,891

 
82,198

 
73,405

 
120,251

 
702,024

Operating income (loss)
(39,458
)
 
(37,936
)
 
(19,322
)
 
(26,408
)
 
(59,226
)
 
(120,251
)
 
(302,601
)
For the year ended December 31, 2015
 
U.S. Rig Service
 
Fluid Management Services
 
Coiled Tubing Services
 
Fishing and Rental Services
 
International
 
Functional
Support
 
Total
Revenues from external customers
$
377,131

 
$
153,153

 
$
89,823

 
$
121,883

 
$
50,336

 
$

 
$
792,326

Operating expenses
685,070

 
196,637

 
244,991

 
319,295

 
232,872

 
140,770

 
1,819,635

Operating income (loss)
(307,939
)
 
(43,484
)
 
(155,168
)
 
(197,412
)
 
(182,536
)
 
(140,770
)
 
(1,027,309
)
U.S. Rig Services
Revenues for our U.S. Rig Services segment decreased $145.7 million, or 38.6%, to $231.4 million for the combined year ended December 31, 2016, compared to $377.1 million for the year ended December 31, 2015. The decrease for this segment is primarily due to lower spending from our customers as a result of lower oil prices. These market conditions resulted in reduced customer activity and a reduction in the price received for our services.
Operating expenses for our U.S. Rig Services segment were $272.8 million during the combined year ended December 31, 2016, which represented a decrease of $412.3 million, or 60.2%, compared to $685.1 million for the year ended December 31, 2015. These expenses decreased primarily due to no impairment expense in 2016 compared to $297.7 million impairment expense in 2015 and as a result of a decrease in employee compensation costs and equipment expense as we sought to reduce our cost structure and as a result of lower activity levels.
Fluid Management Services
Revenues for our Fluid Management Services segment decreased $73.9 million, or 48.3%, to $79.2 million for the combined year ended December 31, 2016, compared to $153.2 million for the year ended December 31, 2015. The decrease for this segment is primarily due to lower spending from our customers as a result of lower oil prices. These market conditions resulted in reduced customer activity and a reduction in the price received for our services.
Operating expenses for our Fluid Management Services segment were $118.3 million during the combined year ended December 31, 2016, which represented a decrease of $78.3 million, or 39.8%, compared to $196.6 million for the year ended December 31, 2015. These expenses decreased primarily due to no impairment expense in 2016 compared to $24.5 million impairment expense in 2015 and as a result of a decrease in employee compensation costs and equipment expense as we sought to reduce our cost structure and as a result of lower activity levels.

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