Key Energy Services Inc · OTC:KEGX
Key Energy Services — Investor Presentation (October 2018)
17 slides from Key Energy Services's investor presentation, Oct 2, 2018
Slide 1: Investor Presentation October 2018
Investor Presentation October 2018 J. Marshall Dodson Senior Vice President and Chief Financial Officer 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: Third Quarter 2018 Update
Third Quarter 2018 Update While demand for completion driven services continues to be stable from the second quarter of 2018 to the third quarter of 2018, customer scheduling changes and staffing challenges are resulting in lower activity and revenue in the Company’s Coiled Tubing Services and Fluid
Slide 4: Company Overview
Company Overview
Slide 5: 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 6: Service Line and Geographic Exposure
Service Line and Geographic Exposure Production-driven services revenue comprises ~70% of first half 2018 revenue Growth in Coiled Tubing driving expansion of completion-driven revenue Meaningful exposure to every major U.S. oil & gas producing region Significant Permian exposure, comprising over on
Slide 7: 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 8: Conventional and Unconventional Capabilities
Conventional and Unconventional Capabilities (1) Represents “Active” or “Warm Stacked’ Rigs. 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 Fleet by AESC Class
Slide 9: Commodity Price Uplift and Demand Normalization Impact
Commodity Price Uplift and Demand Normalization Impact Demand driver via “demand normalization”, i.e. a return to historical average activity level Implied Rig Demand increases from ~1,500 rigs at $45 oil to ~1,800 rigs at $55 oil and to ~2,200 rigs at $75 oil Implied Rig Demand increases ~700 rigs,
Slide 10: Aging Horizontal Oil Well Backlog Provides New, Secular Tailwind
Aging Horizontal Oil Well Backlog Provides New, Secular Tailwind Source: DrillingInfo. Note: Utilizes the same job frequency and utilization assumptions described on slide 20 in the appendix to the presentation and are applied to the Future Cumulative HZ Wells >4 Years Old shown in the chart above.
Slide 11: 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 oil & gas producing regions Fishing services utilize a wide range
Slide 12: 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 13: 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 14: 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 Six Months 2018 Top C
Slide 15: 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 16: 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 $73.9 million and $35.6 million
Slide 17: 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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