Key Energy Receives Delisting Notice From NYSE
November 27 2019 - 5:00PM
On November 27, 2019, Key Energy Services, Inc. (“Key” or the
“Company”) (NYSE: KEG) was notified by the New York Stock Exchange
(the “NYSE”) that the NYSE had determined to commence proceedings
to delist the Company’s common stock (the “Common Stock”) from the
NYSE as a result of the Company’s failure to maintain an average
global market capitalization over a consecutive 30 trading-day
period of at least $15 million pursuant to Rule 802.01B of the NYSE
Listed Company Manual. The NYSE also suspended trading of the
Common Stock effective immediately.
The NYSE stated that it will apply to the
Securities and Exchange Commission (the “SEC”) to delist the Common
Stock upon completion of all applicable procedure, including any
appeal by the Company of the NYSE’s delisting determination.
The Company does not intend to appeal the delisting
determination.
The Company anticipates that the Common Stock
will begin trading on the OTC Pink marketplace under the symbol
"KEGX". The transition to over-the-counter markets will not affect
the Company’s business operations or its SEC reporting and does not
conflict with or cause an event of default under any of Key’s
material debt or other agreements.
Forward-Looking StatementsThis
press release 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. These forward-looking statements are
based on Key’s current expectations, estimates and projections and
its management’s beliefs and assumptions concerning future events
and financial trends affecting its financial condition and results
of operations. In some cases, you can identify these statements by
terminology such as “may,” “will,” “should,” “predicts,” “expects,”
“believes,” “anticipates,” “projects,” “potential” or “continue” or
the negative of such terms and other comparable terminology. These
statements are only predictions and are subject to substantial
risks and uncertainties and are not guarantees of performance.
Future actions, events and conditions and future results of
operations may differ materially from those expressed in these
statements. In evaluating those statements, you should carefully
consider the information above as well as the risks outlined in
“Item 1A. Risk Factors,” in Key’s Annual Report on Form 10-K for
the year ended December 31, 2018 and in other reports Key files
with the Securities and Exchange Commission.
Key undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this press release except as required by law. All of
Key’s written and oral forward-looking statements are expressly
qualified by these cautionary statements and any other cautionary
statements that may accompany such forward-looking statements.
Important factors that may affect Key’s
expectations, estimates or projections include, but are not limited
to, the following: the structure and timing of any financial,
transactional, or other strategic alternative and whether any such
financial, transactional, or other strategic alternative will be
completed; Key’s ability to reduce its debt levels or to come to an
agreement with its lenders on acceptable terms, if at all; Key’s
ability to achieve the benefits of its plan to optimize its
geographic footprint, including exiting certain locations and
reducing its regional and corporate overhead costs; conditions in
the oil and natural gas industry, especially oil and natural gas
prices and capital expenditures by oil and natural gas companies;
volatility in oil and natural gas prices; Key’s ability to
implement price increases or maintain pricing on its core services;
risks that Key may not be able to reduce, and could even experience
increases in, the costs of labor, fuel, equipment and supplies
employed in its businesses; industry capacity; asset impairments or
other charges; the periodic low demand for Key’s services and
resulting operating losses and negative cash flows; Key’s highly
competitive industry as well as operating risks, which are
primarily self-insured, and the possibility that its insurance may
not be adequate to cover all of its losses or liabilities;
significant costs and potential liabilities resulting from
compliance with applicable laws, including those resulting from
environmental, health and safety laws and regulations, specifically
those relating to hydraulic fracturing, as well as climate change
legislation or initiatives; Key’s historically high employee
turnover rate and its ability to replace or add workers, including
executive officers and skilled workers; Key’s ability to incur debt
or long-term lease obligations; Key’s ability to implement
technological developments and enhancements; severe weather impacts
on Key’s business, including hurricane activity; Key’s ability to
successfully identify, make and integrate acquisitions and its
ability to finance future growth of its operations or future
acquisitions; Key’s ability to achieve the benefits expected from
disposition transactions; the loss of one or more of Key’s larger
customers; Key’s ability to generate sufficient cash flow to meet
debt service obligations; the amount of Key’s debt and the
limitations imposed by the covenants in the agreements governing
its debt, including its ability to comply with covenants under its
current debt agreements; an increase in Key’s debt service
obligations due to variable rate indebtedness; Key’s inability to
achieve its financial, capital expenditure and operational
projections, including quarterly and annual projections of revenue
and/or operating income and its inaccurate assessment of future
activity levels, customer demand, and pricing stability which may
not materialize (whether for Key as a whole or for geographic
regions and/or business segments individually); Key’s ability to
respond to changing or declining market conditions, including Key’s
ability to reduce the costs of labor, fuel, equipment and supplies
employed and used in its businesses; Key’s ability to maintain
sufficient liquidity; the adverse impact of litigation; and other
factors affecting Key’s business described in “Item 1A. Risk
Factors” in its Annual Report on Form 10-K for the year ended
December 31, 2018, and other reports Key files with the Securities
and Exchange Commission.
About Key Energy ServicesKey
Energy Services is the largest onshore, rig-based well servicing
contractor based on the number of rigs owned. Key provides a
complete range of well intervention services and has operations in
all major onshore oil and gas producing regions of the continental
United States.
Contact:Marshall Dodson713-651-4403
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