September 21, 2017
West Gotcher, Investor Relations
FOR IMMEDIATE RELEASE
Key Energy Services Announces
the Sale of its Well Intervention Business in Russia
HOUSTON, TX, September 21, 2017 Key Energy Services, Inc. (NYSE: KEG) has closed on the sale of its well intervention business in Russia
(Russian Business) to an undisclosed buyer for an undisclosed amount.
Keys President and Chief Executive Officer, Robert Drummond,
stated, The sale of Keys Russian Business marks the culmination of the strategic initiative set forth in early 2015 to fully-exit markets outside of the U.S. This is an important milestone in Keys history and further solidifies our
commitment to our customers as a leading U.S.-focused production services company.
About Key Energy Services
Key Energy Services is the largest onshore, rig-based well servicing contractor based on the number of rigs owned. Key
provides a complete range of well intervention services and has operations in all major onshore oil and gas producing regions of the continental United States.
This press release
contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature or that relate to future events and conditions are, or may be deemed to be, forward-looking
statements. These forward-looking statements are based on Keys current expectations, estimates and projections and its managements beliefs and assumptions concerning future events and financial trends affecting its financial condition
and results of operations. In some cases, you can identify these statements by terminology such as may, will, should, predicts, expects, believes, anticipates,
projects, potential or continue or the negative of such terms and other comparable terminology. These statements are only predictions and are subject to substantial risks and
September 21, 2017
West Gotcher, Investor Relations
uncertainties and are not guarantees of performance. Future actions, events and conditions and future results of operations may differ materially from those expressed in these statements. In
evaluating those statements, you should carefully consider the information above as well as the risks outlined in Item 1A. Risk Factors, in Keys Annual Report on Form 10-K for the year ended
December 31, 2016 and in other reports Key files with the Securities and Exchange Commission.
Key undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date of this press release except as required by law. All of Keys written and oral forward-looking statements are expressly qualified by these cautionary statements and any
other cautionary statements that may accompany such forward-looking statements.
Important factors that may affect Keys expectations,
estimates or projections include, but are not limited to, the following: conditions in the oil and natural gas industry, especially oil and natural gas prices and capital expenditures by oil and natural gas companies; volatility in oil and natural
gas prices; Keys ability to implement price increases or maintain pricing on its core services; risks that Key may not be able to reduce, and could even experience increases in, the costs of labor, fuel, equipment and supplies employed in its
businesses; industry capacity; asset impairments or other charges; the periodic low demand for Keys services and resulting operating losses and negative cash flows; Keys highly competitive industry as well as operating risks, which are
primarily self-insured, and the possibility that its insurance may not be adequate to cover all of its losses or liabilities; significant costs and potential liabilities resulting from compliance with applicable laws, including those resulting from
environmental, health and safety laws and regulations, specifically those relating to hydraulic fracturing, as well as climate change legislation or initiatives; Keys historically high employee turnover rate and its ability to replace or add
workers, including executive officers and skilled workers; Keys ability to incur debt or long-term lease obligations; Keys ability to implement technological developments and enhancements; severe weather impacts on Keys business;
Keys ability to successfully identify, make and integrate acquisitions and its ability to finance future growth of its operations or future acquisitions; Keys ability to achieve the benefits expected from disposition transactions; the
loss of one or more of Keys larger customers; Keys ability to generate sufficient cash flow to meet debt service obligations; the amount of Keys debt and the limitations imposed by the covenants in the agreements governing its
debt, including its ability to comply with covenants under its current debt agreements; an increase in Keys debt service obligations due to variable rate indebtedness; Keys inability to achieve its financial, capital expenditure and
operational projections, including quarterly and annual projections of revenue and/or operating income and its inaccurate assessment of future activity levels, customer demand, and pricing stability which may not materialize (whether for Key as a
whole or for geographic regions and/or business segments individually); risks affecting Keys international operations, including risks affecting Keys ability to execute its plans to withdraw from international markets outside North
America; Keys ability to respond to changing or declining market conditions, including Keys ability to reduce the costs of labor, fuel, equipment and supplies employed and used in its businesses; Keys ability to maintain sufficient
liquidity; the adverse impact of litigation; and other factors affecting Keys business described in Item 1A. Risk Factors in its Annual Report on Form 10-K for the year ended
December 31, 2016, and other reports Key files with the Securities and Exchange Commission.