Johnson Rice Energy Conference October 2, 2013 Marshall Dodson Senior Vice President and Chief Financial Officer
Key Energy Services Investment Highlights We have a strong reputation as a high value service provider throughout the well life cycle We are the global leader in onshore, rig-based well services We are well-positioned to benefit…
KEG: A Leader in Energy Production Services 1 billion Revenue by Line of Business1 Market capitalization Fluid Management 2 billion 17% U.S. Rigs Enterprise value International 42% 12% Fishing & 2 billion Rental 16%…
High Value Service Throughout the Well Life Cycle 5
Keys Suite of Services Throughout the Life of a Well Key Energy Services brings together the equipment and expertise necessary to optimize production safely and efficiently Multiple touch points and continuity of service throughout the…
Rig Services Business Overview Regional Presence Rig Services deploys well service rigs that have been built to increase safety and reliability while reducing the chance of unplanned downtime Services include: Completion of…
Rig Services Trends & Dynamics1 Historical Revenue (mm) Well servicing has a greater percentage of small, 789 independent service companies than any other 725 oilfield service segment 562 510 Top 5 companies have 57% of the…
The KeyView System The KeyView system is a proprietary technology that provides equipment-verified data to achieve enhanced operational IQ 60 Patented system with job activity monitoring, recording capabilities and automated…
Coiled Tubing Services Business Overview Regional Presence Keys Coiled Tubing Services delivers value and time savings by minimizing downtime and reducing time to completion Services include: Completion of newly drilled horizontal…
Coiled Tubing Services Trends & Dynamics Historical Revenue (mm)1 Industry demand for large diameter coiled tubing is 255 growing rapidly to service longer lateral horizontal wells 216 Growth is highly correlated to well count,…
Fishing and Rental Services Business Overview Regional Presence Rental equipment used in the drilling and completion of wellbores including drill pipe, blowout preventers, frac stacks and well-testing equipment and services Rental…
Fishing and Rental Services Trends & Dynamics1 Historical Revenue (mm) Strong demand driven by growth of complex wellbores and increased need for specialty 287 downhole services such as fishing and hole preparation for directional…
Fluid Management Services Business Overview Regional Presence Transportation of fluids, including sourcing of brine and fresh water, used in the drilling and completion process Transportation of frac flowback and produced water from…
Fluid Management Services Trends & Dynamics Historical Revenue (mm) Performance correlated to unconventional activity 388 Relatively low barriers to entry due to the nature of 354 the asset base creates fragmented market…
Financial Performance 16
Keys Performance Through Market Cycles Key demonstrated relative stability Consolidated Operating Income Margin1 30 % In cyclical upturn, Key through the steep cyclical downturn of demonstrated superior 2009 performance 20 %…
Balance Sheet & Liquidity Overview As of ( in millions) June 30, 2013 Cash & cash equivalents 24.7 Total debt, including current portion 6.750% Senior Notes due 2021 (1) 679.3 8.375% Senior Notes due 2014 3.6 Senior Secured…
Keys Capital Discipline Keys capital discipline has provided flexibility and the ability to target modest leverage levels through market cycles 10.0 x 9.4 x 500 5.0 x 4.9 x 450 447 400 4.0 x 3.6 x 367 370 359 350 3.0 x 3.3…
Operating Leverage Yields Upside Opportunity Revenue upside without meaningful expenditure via potential for increased asset utilization U.S. Rig Hours & Rig Services Revenues U.S. Trucking Hours & Fluid Management Revenues 500 250…
Balanced Approach to Capital Allocation & Rigorous Expense Management Commentary Expanded presence in Southern Mexico and opened operation in Ecuador as part of redeployment of rigs idled in the Northern region Rationalize or…
Key Energys Differentiated Platform and Opportunities 22
Key Energys Differentiated Platform Technology Development Center Well Servicing Well Servicing Workover & Completion Workover Reservoir Engineering Drilling & Completion Drilling Services Fluid Management Coiled Tubing Fishing…
International Markets Offer Significant Growth Opportunity Strong, international brand Historical International Revenue Growth* recognition and highly capable 400 local teams 350 333 55% CAGR Capabilities unique to local 300 2008 -…
U.S. Market Trends: A Changing Landscape Horizontal drilling technology 2,250 Total U.S. Onshore 5.20 matures, the impacts of which are 2,000 now being felt across the industry 5.10 1,750 5.00 1,500 Operators have…
Positioned to Benefit from Long-Term Secular Trends U.S. onshore shale development is 60,000 Total U.S. Onshore 2,500 entering the manufacturing phase of the cycle 50,000 2,000 Sophisticated pad drilling programs aimed at speed…
Key Energy: The Path Forward Key will continue to carry out the actions necessary to thrive in todays service market: Leverage an asset base that has sufficient capacity to achieve meaningful growth Execute business development…
Key Energy Services Investment Highlights We have a strong reputation as a high value service provider throughout the well life cycle We are the global leader in onshore, rig-based well services We are well-positioned to benefit…
Appendix 29
Appendix U. S. Market Trends US Commodity Price Dynamics Oil and Gas Rig Count 1,500 8.00 2,250 Total U.S. Onshore 7.00 1,250 6.00 2,000 1,000 5.00 750 4.00 1,750 3.00 500 2.00 1,500 250 1.00 0 0.00 1,250 1,000…
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