Key Energy reported Tuesday that despite the impacts of the winter storm Uri, its first quarter 2021 consolidated revenue increased nearly 11% over the fourth quarter of 2020.
The Houston company, with operations throughout Oklahoma said its first quarter revenue increased $5.2 million and reached $52.4 million compared to the $47.2 million in revenue reported in the previous quarter.
As oilfield activity increased this year, so did Key’s rig services segment revenue and rig hours. Revenue increased 12% and totaled $35.3 million for the quarter and rig services grew 18%, reaching 89,600 over the fourth quarter figures.
The company’s liquidity totaled $13.7 million as of June 11, 2021 including $6.2 million unrestricted cash and $7.5 million borrowing capacity under the firm’s ABL Credit Facility.
As of June 11, 2021, Key’s total borrowing base under the ABL Credit Facility was $44.6 million, with collateral consisting of $33.9 million of eligible accounts receivable and $16.1 million of cash posted as additional collateral to support outstanding letters of credit.
“Pricing increased in nearly all of our markets in the second quarter of 2021, with pricing in many markets recovering to pre-pandemic levels,” stated Marshall Dodson, Key’s President and Chief Executive Officer.
He said the company is challenged now with inflationary pressures, “most significantly wages due to increased competition for employees and former and potential employees moving to other industries or choosing to net yet reenter the workforce.”
But Dodson said continued strength in commodity prices should lead to further increases in activity in the second half of the year.
Dodson continued, “Despite first quarter 2021 weather reducing our rig average by 8, we averaged 104 well service rigs in the first quarter of 2021, up from an average 92 well service rigs in the fourth quarter of 2020.”
In March, the company averaged 118 rigs while April’s average was 124 well service rigs.
Click here for Key press release.