Key Energy says liquidity strong enough to pursue acquisitions

By Jennifer Lanning Drey

Portland, Ore., Oct. 14 - Key Energy Services Inc. has the necessary liquidity to pursue acquisition targets and has several possibilities in its pipeline, Bryan Norwood, vice president and treasurer of Key Energy, said during a Tuesday presentation at the Natixis Bleichroeder Hidden Gems Conference in New York.

"We're not stretched by any means," Norwood said.

"We're still in a position that should we decide to go look, or if the opportunity for an acquisition presents itself, we'd certainly look at it."

At June 30, Key Energy had cash and cash equivalents of $45.5 million and net debt of $524.9 million.

One of Key Energy's primary focus points is international expansion, Norwood said.

The company recently made an initial equity investment in a horizontal drilling company in Russia and has the option of growing its participation in the business to 100%.

"Although it's a risky market, we feel pretty good that we've got the right partners, and we're dipping our toe in. We're not putting all our chips in the middle of the table at once," Norwood said.

The company also has a long-standing equity investment in a Canadian company and is now looking for additional opportunities in the Middle East and Latin America.

Key Energy Services is a rig-based well services provider based in Houston.

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