Key Energy Services Inc · OTC:KEGX
Key Energy Services — Investor Presentation (February 2019)
18 slides from Key Energy Services's investor presentation, Feb 11, 2019
Slide 1: February 2019 Investor Presentation
February 2019 Investor Presentation Exhibit 99.1
Slide 2: Safe-Harbor Language
Safe-Harbor Language This presentation 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.
Slide 3: Safe-Harbor Language continued
Safe-Harbor Language continued Note Regarding Use of Non-GAAP Financial Metrics Adjusted EBITDA” is EBITDA as further adjusted for certain items discussed in this presentation. Adjusted EBITDA is a non-GAAP measure that is used as a supplemental financial measure by the Company’s management and dire
Slide 4: Fourth Quarter and Full Year 2018 Update
Fourth Quarter and Full Year 2018 Update The Company expects total liquidity of approximately $74 million at December 31, 2018 with approximately $50 million in cash. This compares to total liquidity of $73 million and cash of $43 million at September 30, 2018. The Company expects fourth quarter 201
Slide 5: Fourth Quarter and Full Year 2018 Update
Fourth Quarter and Full Year 2018 Update The Company expects full year 2018 revenues to range between $516 million and $526 million as compared to full year 2017 revenues of $436 million, an expected increase of between 18% and 20%. The Company anticipates full year 2018 U.S. Rig hours of approximat
Slide 6: 2019 Operations Update
2019 Operations Update The Company anticipates first quarter 2019 consolidated revenues to increase in a range from 1% to 5% from the fourth quarter of 2018 due to resumption of activity in the second half of January and typical season factors, including weather. Well service rig completion activity
Slide 7: Company Overview
Company Overview
Slide 8: Key Service Offering Overview
Key Service Offering Overview Rig Services Fishing & Rental Tools Rig Services Coiled Tubing Fishing & Rental Tools Fluid Management Services Rig Services Coiled Tubing Fishing & Rental Tools Fluid Management Services Rig Services Coiled Tubing Fishing & Rental Tools Fluid Management Services Rig Se
Slide 9: Service Line and Geographic Exposure
Service Line and Geographic Exposure Production-driven services revenue comprises majority of revenue through September 30, 2018 Growth in coiled tubing and 24hr well service rig completion activity driving expansion of completion-driven revenue Meaningful exposure to every major U.S. oil & gas prod
Slide 10: Rig Services Overview
Rig Services Overview Largest well service rig fleet in the U.S. Completion of newly-drilled horizontal and vertical wellbores Recompletion of existing wellbores Maintenance of producing wellbores Workover of existing wellbores to enhance production Plugging and abandonment of wellbores at the end o
Slide 11: Conventional and Unconventional Capabilities
Conventional and Unconventional Capabilities (1) Represents “Active” or “Warm Stacked’ Rigs as of 12/31/17. 358 Rigs 521 Rigs 250 Available Rigs(1) 281 Available Rigs(1) Specification 1-3 4+ Derrick Height >102ft. O P Hook load Capacity >200k lbs O P Horsepower >450HP O P Total Well Service Rig Flee
Slide 12: Fishing & Rental Service Overview
Fishing & Rental Service Overview Extensive array of rental equipment and services including: Tubular handling systems Drill pipe Work string and tubulars Pumps Sand-X system Blowout preventers and accumulators Locations in all major U.S. oil & gas producing regions Fishing services utilize a wide r
Slide 13: Fluid Management Services Overview
Fluid Management Services Overview Transportation of fluids used in the drilling and completion process Transportation of frac flowback and produced water from completed or producing wellbores Disposal of flowback and produced water in saltwater disposal wells ~60 SWD’s, brine and freshwater station
Slide 14: Water Demand Overview
Water Demand Overview Significant growth in water volume per completed well driving total fresh water and flowback water demand Continued growth in water volumes employed on a per-well basis to drive water transfer demand Frac Water Demand(1) Per Wells Fargo Securities. Water per Completion Demand(1
Slide 15: Coiled Tubing Services Overview
Coiled Tubing Services Overview Completion of newly drilled horizontal wellbores pre and post hydraulic fracturing Maintenance of producing wellbores Plugging and abandonment of depleted wellbores at the end of their productive lives Thirteen large diameter units deployed First Nine Months 2018 Top
Slide 16: Coiled Tubing Market Overview
Coiled Tubing Market Overview DUC Inventory by Market(1) Total Frac Stages(2) DUC inventory yields visibility for coiled tubing frac plug mill-out opportunities Significant growth in total frac stages along with increasing well counts yields secular tailwind for coiled tubing demand Per EIA Drilling
Slide 17: Balance Sheet & Liquidity
Balance Sheet & Liquidity Significant liquidity position with no near-term debt maturities provides financial flexibility Covenant coverage well in excess of thresholds Strong balance sheet allows for earnings growth in market recovery (1) Reflects a borrowing base of $65.1 million and $35.6 million
Slide 18: Final Thoughts
Final Thoughts Well positioned for future growth through exposure to secular growth and cyclical recovery Completions driving demand for Coiled Tubing, Fluid Management and Rig Services Growing population of aging horizontal wells to provide new, incremental demand for production services Recovery i
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