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
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
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.
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.
Apr. 15, 2015, 12:45 PM
Mar. 27, 2015, 3:58 PM
- While Deutsche Bank analysts see oil poised for a modest recovery, they nevertheless downgrade Pioneer Energy (PES -8.1%) and Precision Drilling (PDS -3.7%) to Hold from Buy, believing that some of the traditional early cycle winners - specifically land drillers - will trade up in the near-term but the strong earnings recovery required to justify such a move will disappoint.
- But the firm does not think investors should avoid all oil services stocks, saying well service companies such as Basic Energy Services (BAS -2.8%) and Key Energy Services (KEG flat) could be the biggest beneficiaries, actually helped by a more cautious environment in which operators can generate high returns and quick paybacks by enhancing production from existing wells.
Feb. 10, 2015, 5:39 PM
Jan. 28, 2015, 3:59 PM
- Energy stocks are broadly lower as Nymex crude oil futures fell another $1.68/bbl (-3.6%) to $44.53 after today's inventory report showed the largest weekly supply buildup since 1982, but drilling contractor are whacked with especially large losses.
- Examples: NBR -11.7%, PTEN -8.6%, PES -10.9%, PDS -12.3%, KEG -6.5%; Helmerich & Payne (NYSE:HP), which reportedly has launched a round of steep layoffs, -6.3%.
- Among independent producers: DNR -9.7%, NFX -4.6%, SM -8.6%, SGY -10%, SD -9.7%, EOG -5.3%, PXD -6.8%, QEP -6%, APC -4.2%, XEC -3%.
- ETFs: XLE, ERX, VDE, OIH, XOP, ERY, FCG, DIG, GASL, DUG, IYE, XES, IEO, IEZ, PXE, PXI, FENY, PXJ, RYE, FXN, DDG
Jan. 22, 2015, 12:45 PM
Jan. 15, 2015, 9:16 AM
Dec. 31, 2014, 1:05 PM
Dec. 26, 2014, 1:03 PM
Dec. 18, 2014, 12:47 PM
Dec. 18, 2014, 11:43 AM
- RBC upgrades Baker Hughes (BHI -1.2%) to Outperform from Sector Perform with a $72 price target, but the praise isn't earning the gains enjoyed by Key Energy (KEG +38.1%) and Superior Energy (SPN +4.5%) after the firm's similar upgrades.
- RBC likes BHI in its belief that sentiment will start to shift on North American land names as the oil price improves throughout 2015; BHI and Halliburton both generate ~50% of their operating income in North America, the firm notes.
- BHI continues to trade at a discount to the deal price of its merger with HAL, and should trade closer to the deal price throughout the year assuming U.S. government hurdles are met.
Dec. 18, 2014, 9:59 AM
- RBC recommends increasing weightings and exposure to oil service stocks (OIH +2.5%) heading into 2015, as it says oil prices will start to improve in H2 of next year and that oil service stocks typically discount this move by 6-9 months.
- Down cycles such as 2000-02 and 2008-09 suggest North American land drillers and service companies provide the best returns off business cycle lows, RBC says as it expects a similar dynamic this time.
- RBC upgrades Key Energy (KEG +24.6%) and Superior Energy (SPN +7.5%) to Outperform, and downgrades FMC Tech (FTI +1.8%), Franks (FI +4.9%), Oceaneering (OII +0.2%) and Oil States (OIS +2.3%) to Sector Perform; the firm also says since 1985 three of the top five performing stocks off lows have been Patterson-UTI (PTEN +6.6%), Precision Drilling (PDS +4%) and Nabors (NBR +7.2%).
Dec. 18, 2014, 9:14 AM| Dec. 18, 2014, 9:14 AM | 9 Comments
Key Energy Services, Inc. offers onshore energy production services. It provides services to major oil companies, foreign national oil companies and independent oil and natural gas production companies. Its services include rig-based and coiled tubing-based maintenance and workover services,... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States