HOUSTON, Sept. 4, 2015 /PRNewswire/ -- Key Energy
Services, Inc. ("Key") (NYSE: KEG) today announced that it had
received a letter from The New York Stock Exchange (the "NYSE")
notifying it that, for 30 consecutive trading days, the price for
Key's common shares was below the minimum $1.00 per share requirement for continued listing
on the NYSE under Item 802.01C of the NYSE's Listed Company
Manual. This notice does not have an immediate effect on the
listing of Key's common shares.
Key has 180 days, or until March 2,
2016, to regain compliance with the NYSE's minimum share
price requirement. Key will explore all options to regain
compliance with the NYSE's continued listing standard and, in
accordance with NYSE rules, Key will notify the NYSE within 10
business days of its receipt of the NYSE notice of its intent to
cure this deficiency. Under the NYSE standards, the Company
can avoid delisting if, during the six-month period following
receipt of the NYSE notice, on the last trading-day of any calendar
month, the Company's common stock has a closing price per share and
a 30 trading-day average closing share price of at least
$1.00.
Key intends to maintain the listing of its common shares on the
NYSE and will consider available alternatives, potentially
including a reverse stock split, in order to cure the stock price
deficiency and return to compliance with the NYSE continued listing
requirement. As a Maryland
corporation, a reverse stock split would only require the approval
of the Board of Directors and the posting of appropriate NYSE
notices.
The NYSE notification does not affect Key's business operations
or its Securities and Exchange Commission ("SEC") reporting
requirements and does not conflict with or cause an event of
default under any of the Company's material debt or other
agreements.
Dick Alario, Key's Chief
Executive Officer, said, "The last year's large drop in oil prices
and the current negative commodity price outlook have weighed on
the market sentiment for all oil and gas service companies, but it
has had a particularly harsh impact on small-cap companies like
Key. Our shares have traded below $1.00 per share for a period of time long enough
for the NYSE to issue a non-compliance notice. While it is an
unfortunate situation, this does not affect our business operations
and begins a lengthy process during which Key can regain
compliance. Regaining compliance can be accomplished in a
number of ways, including improvements in market sentiment, the
price of commodities, or other actions, such as a reverse share
split of our equity that would only be subject to Board
approval. The Board and I are closely monitoring the
situation, and we will do what we believe is best for the
shareholders of Key."
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. The forward-looking statements
include a description of our intention to consider alternatives to
cure the NYSE continued listing requirement deficiency. 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
relating to Key's ability to satisfy listing requirements for its
equity securities; risks that Key may not have sufficient
liquidity; risks relating to Key's ability to comply with covenants
under its current credit facilities; 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.