UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 27, 2019
KEY ENERGY SERVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-08038 | 04-2648081 | ||
(State or other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1301 McKinney Street, Suite 1800
Houston, Texas 77010
(Address of principal executive offices and Zip Code)
713-651-4300
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $0.01 par value | KEG | New York Stock Exchange | ||
(Title of each class) | (Trading symbol(s)) |
(Name of each exchange on which registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On November 27, 2019, Key Energy Services, Inc. (Key or the Company) was notified by the New York Stock Exchange (the NYSE) that the NYSE had determined to commence proceedings to delist the Companys common stock (the Common Stock) from the NYSE as a result of the Companys failure to maintain an average global market capitalization over a consecutive 30 trading-day period of at least $15 million pursuant to Rule 802.01B of the NYSE Listed Company Manual. The NYSE also suspended trading in the Common Stock effective immediately.
The NYSE stated that it will apply to the Securities and Exchange Commission (the SEC) to delist the Common Stock upon completion of all applicable procedures, including any appeal by the Company of the NYSEs delisting determination. The Company does not intend to appeal the delisting determination.
The Company anticipates that the Common Stock will begin trading on the OTC Pink marketplace under the symbol KEGX. The Company can provide no assurance that the Common Stock will commence or continue to trade on this market, whether broker-dealers will continue to provide public quotes of the Common Stock on this market, whether the trading volume of the Common Stock will be sufficient to provide for an efficient trading market or whether quotes for the Common Stock will continue on this market in the future.
The transition to over-the-counter markets will not affect the Companys business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of Keys material debt or other agreements.
A copy of the Companys press release, dated November 27, 2019, regarding the receipt of the letter from the NYSE is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KEY ENERGY SERVICES, INC. | ||||||
Date: November 27, 2019 | By: | /s/ Katherine I. Hargis | ||||
Katherine I. Hargis | ||||||
Senior Vice President, General Counsel & Corporate Secretary |
Exhibit 99.1
Key Energy Services, Inc. 1301 McKinney Street Suite 1800 Houston, TX 77010 |
November 27, 2019
Contact: Marshall Dodson 713-651-4403 |
FOR IMMEDIATE RELEASE
Key Energy Receives Delisting Notice From NYSE
HOUSTON, TX, November 27, 2019 On November 27, 2019, Key Energy Services, Inc. (Key or the Company) (NYSE: KEG) was notified by the New York Stock Exchange (the NYSE) that the NYSE had determined to commence proceedings to delist the Companys common stock (the Common Stock) from the NYSE as a result of the Companys failure to maintain an average global market capitalization over a consecutive 30 trading-day period of at least $15 million pursuant to Rule 802.01B of the NYSE Listed Company Manual. The NYSE also suspended trading of the Common Stock effective immediately.
The NYSE stated that it will apply to the Securities and Exchange Commission (the SEC) to delist the Common Stock upon completion of all applicable procedure, including any appeal by the Company of the NYSEs delisting determination. The Company does not intend to appeal the delisting determination.
The Company anticipates that the Common Stock will begin trading on the OTC Pink marketplace under the symbol KEGX. The transition to over-the-counter markets will not affect the Companys business operations or its SEC reporting and does not conflict with or cause an event of default under any of Keys material debt or other agreements.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature or that relate to future events and conditions are, or may be deemed to be, forward-looking statements. These forward-looking statements are based on Keys current expectations, estimates and projections and its managements beliefs and assumptions concerning future events and financial trends affecting its financial condition and results of operations. In some cases, you can identify these statements by terminology such as may, will, should, predicts, expects, believes, anticipates, projects, potential or continue or the negative of such terms and other comparable terminology. These statements are only predictions and are subject to substantial risks and uncertainties and are not guarantees of performance. Future actions, events and conditions and future results of operations may differ materially from those expressed in these statements. In evaluating those statements, you should carefully consider the information above as well as the risks outlined in Item 1A. Risk Factors, in Keys Annual Report on Form 10-K for the year ended December 31, 2018 and in other reports Key files with the Securities and Exchange Commission.
Key undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release except as required by law. All of Keys written and oral forward-looking statements are expressly qualified by these cautionary statements and any other cautionary statements that may accompany such forward-looking statements.
Key Energy Services, Inc. 1301 McKinney Street Suite 1800 Houston, TX 77010 |
|
Important factors that may affect Keys expectations, estimates or projections include, but are not limited to, the following: the structure and timing of any financial, transactional, or other strategic alternative and whether any such financial, transactional, or other strategic alternative will be completed; Keys ability to reduce its debt levels or to come to an agreement with its lenders on acceptable terms, if at all; Keys ability to achieve the benefits of its plan to optimize its geographic footprint, including exiting certain locations and reducing its regional and corporate overhead costs; conditions in the oil and natural gas industry, especially oil and natural gas prices and capital expenditures by oil and natural gas companies; volatility in oil and natural gas prices; Keys ability to implement price increases or maintain pricing on its core services; risks that Key may not be able to reduce, and could even experience increases in, the costs of labor, fuel, equipment and supplies employed in its businesses; industry capacity; asset impairments or other charges; the periodic low demand for Keys services and resulting operating losses and negative cash flows; Keys highly competitive industry as well as operating risks, which are primarily self-insured, and the possibility that its insurance may not be adequate to cover all of its losses or liabilities; significant costs and potential liabilities resulting from compliance with applicable laws, including those resulting from environmental, health and safety laws and regulations, specifically those relating to hydraulic fracturing, as well as climate change legislation or initiatives; Keys historically high employee turnover rate and its ability to replace or add workers, including executive officers and skilled workers; Keys ability to incur debt or long-term lease obligations; Keys ability to implement technological developments and enhancements; severe weather impacts on Keys business, including hurricane activity; Keys ability to successfully identify, make and integrate acquisitions and its ability to finance future growth of its operations or future acquisitions; Keys ability to achieve the benefits expected from disposition transactions; the loss of one or more of Keys larger customers; Keys ability to generate sufficient cash flow to meet debt service obligations; the amount of Keys debt and the limitations imposed by the covenants in the agreements governing its debt, including its ability to comply with covenants under its current debt agreements; an increase in Keys debt service obligations due to variable rate indebtedness; Keys inability to achieve its financial, capital expenditure and operational projections, including quarterly and annual projections of revenue and/or operating income and its inaccurate assessment of future activity levels, customer demand, and pricing stability which may not materialize (whether for Key as a whole or for geographic regions and/or business segments individually); Keys ability to respond to changing or declining market conditions, including Keys ability to reduce the costs of labor, fuel, equipment and supplies employed and used in its businesses; Keys ability to maintain sufficient liquidity; the adverse impact of litigation; and other factors affecting Keys business described in Item 1A. Risk Factors in its Annual Report on Form 10-K for the year ended December 31, 2018, and other reports Key files 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.
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