Key Energy Services (KEG) Lowers Q2 Outlook

Key Energy Services, Inc. (NYSE: KEG) expects results for its second quarter 2012 to be below prior expectations with consolidated revenue from continuing operations now forecasted to increase 5% to 7% compared to the first quarter 2012. Key also expects second quarter 2012 earnings from continuing operations to be $0.18 to $0.20 per diluted share. Key's prior second quarter guidance anticipated sequential consolidated revenue growth of 10% to 15% and earnings from continuing operations of $0.31 to $0.33 per diluted share.

The Street is looking for EPS of $0.31.

Second quarter revenue in Key's U.S. operations is expected to increase 2% to 4% sequentially, with approximately 45% of the growth coming from our rig service business. Outside of the U.S., Key's second quarter revenue is expected to increase approximately 35% sequentially, largely on growth in Mexico and consistent with prior expectations.

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