HOUSTON, Aug. 24, 2015 /PRNewswire/ -- Key Energy
Services, Inc. (NYSE: KEG) today announced that its Board of
Directors has approved a CEO succession plan and certain corporate
governance changes. Under the succession plan, it is
anticipated that Robert Drummond,
Key's President and Chief Operating Officer will assume the role of
Chief Executive Officer no later than December 31, 2016, succeeding Dick Alario, who has informed the Board of his
intention to retire next year.
As part of this transition, the Board has split the positions of
Chairman of the Board and CEO. The Board of Directors has
elected director Mark Rosenberg to
the position of non-executive Chairman effective immediately. Mr.
Alario will continue as Chief Executive Officer and a member of the
Board of Directors.
"The Board is pleased to establish a clear succession plan
providing strong leadership for our Company now and into the
future," said Mr. Rosenberg. "The Board is fully committed to the
Company's renewed focus on its core U.S. production services
business. The Board will continue to work closely with Dick Alario, Robert
Drummond and all members of Key's management team to execute
on the Company's strategy and deliver value to our
shareholders."
Mr. Alario said, "The Board and I agree that having an
independent director serve as the non-executive Chairman is in the
best interests of our shareholders. Separating the positions of
Chairman and CEO allows me to focus on executing the Company's
strategic plan and managing the Company. This is particularly
critical in this very challenging environment. Our Board has been
an important resource for Key's management team and I look forward
to continuing to work with Mark and the other members of the
Board."
Key also announced that the Board of Directors has established a
Finance Committee. The Committee will assist the Board of
Directors, and provide a resource for management, in connection
with the Board's oversight of the Company's short and long term
financial activities.
Forward-Looking Statements
This press release
contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Any statements as
to matters that are not of historic fact are forward-looking
statements. These forward-looking statements are based on Key's
current expectations, estimates and projections about Key, its
industry, its management's beliefs and certain assumptions made by
management, and include statements regarding estimated capital
expenditures, future operational and activity expectations,
international growth, and anticipated financial performance for
2015. No assurance can be given that such expectations, estimates
or projections will prove to have been correct. Whenever possible,
these "forward-looking statements" are identified by words such as
"expects," "believes," "anticipates" and similar phrases.
Readers are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict, including, but not limited to: risks that Key
will be unable to achieve its financial, capital expenditure and
operational projections, including quarterly and annual projections
of revenue and/or operating income and risks that Key's
expectations regarding future activity levels, customer demand, and
pricing stability may not materialize (whether for Key as a whole
or for geographic regions and/or business segments individually);
risks that fundamentals in the U.S. oil and gas markets may not
yield anticipated future growth in Key's businesses, or could
further deteriorate or worsen from the recent market
declines, and/or that Key could experience further unexpected
declines in activity and demand for its rig service, fluid
management service, coiled tubing service, and fishing and rental
service businesses; risks relating to Key's ability to implement
technological developments and enhancements; risks relating to
compliance with environmental, health and safety laws and
regulations, as well as actions by governmental and regulatory
authorities; risks relating to compliance with the FCPA and
anti-corruption laws, including risks related to increased costs in
connection with FCPA investigations; risks regarding the timing or
conclusion of the FCPA investigations, including the risk of fines
or penalties imposed by government agencies for violations of the
FCPA; risks affecting Key's international operations, including
risks affecting Key's ability to execute its plans to withdraw from
its international markets outside North
America; risks that Key may be unable to achieve the
benefits expected from acquisition and disposition transactions,
and risks associated with integration of the acquired operations
into Key's operations; risks, in responding to changing or
declining market conditions, that Key may not be able to reduce,
and could even experience increases in, the costs of labor, fuel,
equipment and supplies employed and used in Key's businesses; risks
relating to changes in the demand for or the price of oil and
natural gas; risks that Key may not be able to execute its capital
expenditure program and/or that any such capital expenditure
investments, if made, will not generate adequate returns; risks
that Key may not be able to refinance its credit facility as
expected; risks that Key may not have sufficient liquidity; and
other risks affecting Key's ability to maintain or improve
operations, including its ability to maintain prices for services
under market pricing pressures, weather risks, and the impact of
potential increases in general and administrative expenses.
Because such statements involve risks and uncertainties, many
of which are outside of Key's control, Key's actual results and
performance may differ materially from the results expressed or
implied by such forward-looking statements. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Other important risk factors that
may affect Key's business, results of operations and financial
position are discussed in its most recently filed Annual Report on
Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current
Reports on Form 8-K and in other Securities and Exchange Commission
filings. Unless otherwise required by law, Key also disclaims any
obligation to update its view of any such risks or uncertainties or
to announce publicly the result of any revisions to the
forward-looking statements made here. However, readers should
review carefully reports and documents that Key files periodically
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 and internationally in
Mexico, Colombia, the Middle
East and Russia.
Contact:
West Gotcher, Investor Relations
713-757-5539
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SOURCE Key Energy Services, Inc.