Key Energy Services, Inc. Provides Consolidated Earnings Guidance for the Fourth Quarter and Year Ended December 31, 2018 and Provides Revenue Guidance for the First Quarter of 2019
February 11, 2019 at 05:01 pm IST
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Key Energy Services, Inc. provided consolidated earnings guidance for the fourth quarter and year ended December 31, 2018. For the quarter, the company expects revenues to range between $115 million and $120 million as compared to third quarter 2018 revenues of $134.7 million. Approximately 60% of the quarter on quarter decline is expected to be due to lower completion activity, primarily coiled tubing activity and rig completion activity in the Permian Basin, with the remainder of the quarterly decline due to seasonal effects. Fourth quarter 2018 consolidated operating loss is expected to range between $14.5 million and $15.5 million.
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%. Full year 2018 consolidated operating loss is expected to range between $58 million and $60 million compared to a full year 2017 consolidated operating loss of approximately $96 million.
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.
Key Energy Services, Inc. is an onshore, rig-based well servicing contractor. The Company provides a range of well services to oil companies and independent oil and natural gas production companies. The Company's segments include Rig Services, Fishing and Rental Services, and Coiled Tubing Services. The Rig Services segment includes the completion of newly drilled wells, workover and recompletion of existing oil and natural gas wells, well maintenance, and the plugging and abandonment of wells. The Fishing and Rental Services segment offers a line of fishing services and rental equipment designed for use in providing both onshore drilling and workover services. The Coiled Tubing Services segment involves the use of metal pipe spooled onto a large reel which is then deployed into oil and natural gas wells to perform various applications.
Key Energy Services, Inc. Provides Consolidated Earnings Guidance for the Fourth Quarter and Year Ended December 31, 2018 and Provides Revenue Guidance for the First Quarter of 2019