Tickers in this Article: KEG, SLB, HAL, PTEN
Key Energy Services (NYSE:KEG) owns a large well servicing fleet, active mostly in the United States, and also offers other services and products used by oil and gas operators. TUTORIAL: The Industry Handbook: The Oil Services Industry

Summary
Key Energy Services previously reported in two business segments - well servicing and production services. The company switched to geographical based segments effective quarter one of 2011 and report results either in the United States or International segment. Key Energy Services offers products and services in four oil service lines in the United States - rig services, fluid management, intervention, fishing and rental. (Oil and gas investments can provide unmatched deduction potential for accredited investors. For more, see Oil: A Big Investment With Big Tax Breaks.)

Rig Services
Rig Services is the largest oil services line for Key Energy Services, with the company reporting $162 million of revenue here in the first quarter of 2011. This was 49% of total U.S. revenues in the quarter.

Key Energy Services has 787 well servicing rigs based in the United States, making the company one of the largest operators. Key Energy Services uses these rigs to conduct workover and recompletion work on existing oil and natural gas wells. The company also provides maintenance of existing wells and plugging and abandonment services. Some of the larger rigs in the fleet are also capable of conventional and horizontal drilling services.

This fleet of rigs is currently underutilized, with the company reporting an average of 490 rigs working in the United States, or a utilization rate of 62% in May 2011.

Fluid Management
Fluid Management is the second largest oil service line for Key Energy Services, with $87 million in revenue in the United States in the first quarter of 2011. Key Energy Services owns a fleet of trucks that are used to transport and dispose of saltwater and other fluids produced at well sites. The company owns or leases approximately 65 salt water wells that are used for fluid disposal. Key Energy Services also provides frac tanks located at wells sites for temporary storage of these fluids and transports heavy equipment between well sites. (Changes in the price of oil aren't arbitrary. For more, see What Determines Oil Prices?)

Intervention
Intervention includes coiled tubing services, which involves the placement of a metal pipe into the well to conduct various applications in support of oil and gas production. Intervention generated revenues of $54 million in the first quarter of 2011.

Fishing and Rental
Fishing and Rental is the smallest oil service line for Key Energy Services and involves the use of various tools to recover equipment that is lost or stuck in the wellbore. The company reported $27 million in Fishing and Rental revenues in the first quarter of 2011.

Discontinued Operations
Key Energy Services used to offer pressure pumping and wireline services but sold these businesses to Patterson-UTI Energy (Nasdaq:PTEN) in October 2010.

Bottom Line
Key Energy Services owns a fleet of well servicing rigs used to conduct workovers and other related services on oil and natural gas wells. The company also offers other oil services tied to drilling activity in the United States. (For related reading, see Oil And Gas Industry Primer.)

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