The following excerpt is from the company's SEC filing.
1301 McKinney Street
Houston, TX 77010
December 30, 2019
FOR IMMEDIATE RELEASE
Key Energy Announces Departure of CEO
HOUSTON, December 30, 2019 - Key Energy Services, Inc. (Key or the Company) (OTC: KEGX) announced today that President and Chief Executive Officer Rob Saltiel has resigned from the Company including his position on the Key Board of Directors effective December 30, 2019 to pursue other opportunities.
Chairman of the Board Phil Norment commented, We extend our gratitude to Rob for his leadership of the Company during these challenging times. Rob played a key role in the Companys recent cost reduction initiatives, exiting certain operations and areas in order to focus on key markets, as well as reducing overhead costs. These initiatives will assist the Company in the restructuring of its balance sheet and help position it for future success. We wish Rob all the best in his future endeavors.
The Company also announced today that the Board has appointed J. Marshall Dodson as interim Chief Executive Officer while the Nominating and Governance Committee conducts a search process to select a new Chief Executive Officer. Mr. Norment remarked, The Board believes Key is in good hands with Marshall as we continue our discussions with our lenders regarding Keys capital structure. Mr. Dodson joined Key in 2005 and currently serves as its Chief Financial Officer.
This 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 Keys current expectations, estimates and projections and its managements 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 Keys 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 Keys 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 Keys expectations, estimates or projections include, but are not limited to, the following: Keys ability to identify a replacement chief executive officer; disruptions to Keys business and operations that may result from the management change; 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; Keys ability to reduce its debt levels or to come to
an agreement with its lenders on acceptable terms, if at all; Keys 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; Keys 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 Keys services and resulting operating losses and negative cash flows; Keys 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; Keys historically high employee turnover rate and its ability to replace or add workers, including executive officers and skilled workers; Keys ability to incur debt or long-term lease obligations; Keys ability to implement technological developments and enhancements; severe weather impacts on Keys business, including hurricane activity; Keys ability to successfully identify, make and integrate acquisitions and its ability to finance future growth of its operations or future acquisitions; Keys ability to achieve the benefits expected from disposition transactions; the loss of one or more of Keys larger customers; Keys ability to generate sufficient cash flow to meet debt service obligations; the amount of Keys 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 Keys debt service obligations due to variable rate indebtedness; Keys 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); Keys ability to respond to changing or declining market conditions, including Keys ability to reduce the costs of labor, fuel, equipment and supplies employed and used in its businesses; Keys ability to maintain sufficient liquidity; the adverse impact of litigation; and other factors affecting Keys 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 Services
Key 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.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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