HOUSTON, April 28, 2016 /PRNewswire/ -- As previously
disclosed, Key Energy Services, Inc. (NYSE:KEG) has been
cooperating with investigations by the Department of Justice and
the Securities and Exchange Commission into possible violations by
Key of the Foreign Corrupt Practices Act ("FCPA").
Key has been informed by the Department of Justice that the
Department has closed its investigation and that it has decided to
decline prosecution of the Company.
In addition, Key has been engaged in negotiations with the staff
of the Division of Enforcement of the SEC in an effort to reach a
resolution of the staff's investigation related to these same
matters. Key has reached an agreement in principle with the
staff on the terms of a proposed offer of settlement, which must be
presented to the Commission for approval. While there is no
assurance that the offer of settlement will be accepted by the
Commission, Key is optimistic that the proposed resolution will
become final in the second quarter of 2016. In connection with the
offer of settlement, Key has accrued a liability in the amount of
$5 million.
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 future oil and natural
gas prices, anticipated cost savings from our cost saving
initiatives, available liquidity and steps to enhance our
liquidity, estimated capital expenditures, future operational and
activity expectations, and anticipated financial performance. 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
and may not be successful in achieving steps to enhance its
liquidity profile; risks relating to Key's ability to comply with
covenants under its current credit facilities rendering the
liquidity provided by those facilities unavailable and resulting in
an event of default; 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 and Russia.
Contact:
West Gotcher, Investor Relations
713-757-5539
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SOURCE Key Energy Services, Inc.