318996--2/29/2008--KEY_ENERGY_SERVICES

related topics

{debt, indebtedness, cash}

{product, market, service}

{gas, price, oil}

{control, financial, internal}

{cost, operation, labor}

{customer, product, revenue}

{loss, insurance, financial}

{operation, international, foreign}

{acquisition, growth, future}

{cost, regulation, environmental}

{regulation, change, law}

{condition, economic, financial}

{provision, law, control}

{stock, price, share}

Our business is dependent on conditions in the oil and natural gas industry, especially oil and natural gas prices and capital expenditures by oil and natural gas companies. We may be unable to maintain pricing on our core services. Increases in industry capacity may adversely affect our business. An economic downturn may adversely affect our business. Our business involves certain operating risks, which are primarily self-insured, and our insurance may not be adequate to cover all losses or liabilities we might incur in our operations. We are subject to the economic, political and social instability risks of doing business in certain foreign countries. We historically have experienced a high employee turnover rate. Any difficulty we experience replacing or adding workers could adversely affect our business. We may not be successful in implementing technology development and technology enhancements. We may incur significant costs and liabilities as a result of environmental, health and safety laws and regulations that govern our operations. We rely on a limited number of suppliers for certain materials used in providing our pressure pumping services. We may not be successful in identifying, making and integrating our acquisitions. We may not be able to generate sufficient cash flow to meet our debt service obligations. Our debt level and the covenants in the agreements governing our debt could negatively impact our financial condition, results of operations and business prospects and prevent us from fulfilling our obligations under our debt agreements. Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly. Delayed Financial Reporting-Related Risk Factors We are not eligible to use short-form or shelf registration. Taxing authorities may determine that we owe additional taxes from previous years. We have identified material weaknesses in our internal control over financial reporting. These material weaknesses, if not corrected, could affect the reliability of our financial statements and have other adverse consequences. Our bylaws contain provisions that may prevent or delay a change in control.

Full 10-K form ▸

318996--2/29/2008--KEY_ENERGY_SERVICES_INC