Key Energy Services, Inc.NYSE
Should This KEG Be Tapped?
Stephen Simpson, CFA
Stephen Simpson, CFA
Sell Key Energy Services And Buy High Arctic Energy Services
Value Digger • 32 Comments
Value Digger • 32 Comments
Today, 1:20 PM
- Key Energy Services (KEG, OTCPK:KEGXQ) yesterday won court approval of its restructuring plan, slightly more than a month after filing for Chapter 11 bankruptcy.
- Key says it hopes to emerge from bankruptcy later this month following approval of the plan, which is designed to reduce its debt load to $250M from $1B.
- Under the plan, bondholders are in line to receive most of the company’s new shares in exchange for forgiveness of $675M in debt; Key shareholders will get 5% of the company’s new shares or can choose cash instead, if cash is available.
Mon, Nov. 14, 4:53 PM
Mon, Oct. 24, 11:12 AM
- Key Energy (KEG, OTCPK:KEGX) files for Chapter 11 bankruptcy protection after securing its creditors’ support for a debt restructuring deal.
- Key says its plan, which is subject to court approval, will cut its $1B in liabilities to ~$250M so it can emerge from Chapter 11 with a “manageable debt load.”
- Court papers show that Key filed a prepackaged restructuring, which all its term loan lenders and nearly all its senior bondholders have agreed to support.
Thu, Aug. 25, 8:46 AM
- Key Energy Services (NYSE:KEG) unveils a plan support agreement to be implemented ahead of prepackaged Chapter 11 reorganization in which it would remain a publicly traded company.
- Under the plan, senior noteholders would own ~95% of the reorganized company’s common stock; current shareholders would have a ~5% stake; P-E firm Platinum Equity would become Key's largest shareholder upon completion of the restructuring.
- KEG expects its reorganization will reduce its debt to $250M from nearly $1B.
Mon, Aug. 15, 6:26 PM
Fri, Aug. 12, 12:24 PM
- Key Energy Services (KEG -23.8%) agrees to pay $5M as part of a settlement with the SEC over violations of the U.S. Foreign Corrupt Practices Act.
- KEG’s Mexican subsidiary allegedly made payments to a Pemex contract employee to induce him to provide advice, assistance and inside information for use during negotiations.
- KEG had an anti-bribery compliance program on paper, but it failed to implement controls on the Mexican unit to prevent the improper payments, the SEC says.
Wed, Jul. 27, 12:18 PM| Wed, Jul. 27, 12:18 PM | 2 Comments
Tue, Jul. 12, 6:24 PM
- U.S. oil drillers failed to pay $28.8B owed to junk-bond investors this year, bringing the sector's debt default rate to a record level, according to a new report from Fitch Ratings.
- H1 defaults among all high-yield issuers hit $50.2B, topping the $48.3B total defaults for all of 2015, and are on track to reach as high as $90B by year-end, Fitch says; the H1 default rate was a six-year high 4.9%, with an energy default rate of 15% and an E&P sector default rate of 29%.
- The default rate among energy explorers could climb to 35% this year, says Eric Rosenthal, Fitch's senior director of leveraged finance, as more drillers such as Halcón Resources (NYSE:HK), which has $2.5B in outstanding bonds, are expected to file for Chapter 11 bankruptcy protection.
- Fitch’s watch list for companies that potentially could fail to repay their debts includes Venezuela’s state-owned PDVSA, W&T Offshore (NYSE:WTI) and Key Energy Services (NYSE:KEG).
Mon, May 9, 11:13 PM
- Key Energy Services (NYSE:KEG): Q1 EPS of -$0.41 misses by $0.14.
- Revenue of $111.1M (-58.5% Y/Y) misses by $11.94M.
Sun, May 8, 5:35 PM
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Mon, Apr. 18, 1:03 PM
- Deutsche Bank upgrades Ensco (NYSE:ESV) to Hold from Sell.
- Price target goes to $9 from $5. Implied downside 11%.
- Late last week, ESV announced an equity offering expected to raise $525M.
- "Although we did not necessarily expect an offering from ESV given its already strong balance sheet, we did (and continue to) believe this is exactly the kind of action needed to restore the offshore drilling industry to health.
- "The company is now positioned to lead much needed consolidation. However, the current mixed outlook leaves us with a HOLD rating.
- "Should the industry follow suit, it could lead to a harder line on pricing which, in turn, could bring about price discovery on assets/ M&A and help put a floor under the stocks."
- ESV’s actions are consistent with our view that in order for the industry to survive, industry leaders needed to shore up their balance sheets and aggressively retire older assets which would put a floor under dayrates/asset values and help facilitate consolidation. We thought the floater companies would be the first movers given the more distressed balance sheets and the segment would be easier to consolidate.
- Deutsche Bank's top picks in the oil-services industry:
- HAL - price target $40. "HAL's ability to deliver value by driving customer unit costs lower through technology and efficiencies will become increasingly important during the downturn."
- BAS - price target $3. "Basic's high exposure to completion/production will allow the company to benefit from the growing backlog of drilled but uncompleted wells."
- KEG - price target $1. "KEG's production leveraged businesses should hold up better than overall drilling activity and also recover sooner when oil fundamentals return to balance."
- SPN - price target $15. "SPN is a uniquely positioned mid cap diversified service provider. Its product mix drives high, through-cycle margins relative to peers, which will allow it to lower pricing to protect market share during the downturn."
Thu, Feb. 18, 11:32 AM
- Key Energy Services (KEG -5%) says it will appoint President and COO Robert Drummond as its new CEO effective March 1, replacing Dick Alario.
- Drummond joined KEG just last June after serving as Schlumberger's president of North American operations.
- The announcement was part of KEG's Q4 earnings release, which Simmons analysts characterized as a “messy quarter” but also a sign that the company is beginning to show positive impacts from aggressive cost cuts.
Thu, Feb. 18, 3:01 AM
- Key Energy Services (NYSE:KEG): Q4 EPS of -$0.27 beats by $0.04.
- Revenue of $150.2M (-57.7% Y/Y) misses by $2.92M.
Tue, Feb. 16, 5:35 PM| Tue, Feb. 16, 5:35 PM
Dec. 17, 2015, 1:11 PM
- Key Energy (KEG -5.5%) says it will request shareholder approval for 1-for-10 stock split to regain compliance with the NYSE's continued listing requirements.
- KEG says it was notified on Sept. 2 that it was not in compliance with the NYSE's continued listing standards because the average closing price of its common was less than $1 over a consecutive 30-day trading period.
- KEG says it expects to avoid de-listing as long as it obtains stockholder approval of the reverse split at its 2016 annual meeting and promptly implements the move.
Nov. 4, 2015, 8:47 AM
- Key Energy Services (NYSE:KEG): Q3 EPS of -$0.25 beats by $0.03.
- Revenue of $176.9M (-51.6% Y/Y) misses by $7.48M.