At the closing of the transaction, Key Energy will sell its pressure pumping assets (including approximately 184,400 fracturing hydraulic horsepower (HHP) and 30,000 HHP used in primary cementing, acidizing, and nitrogen stimulation), 26 electric wireline units, and certain facilities used by these businesses.
Key Energy will retain the other businesses in its production services reporting segment, including its coiled tubing operations. The closing of the transaction is expected in the third quarter of 2010 and is subject to customary closing conditions, including the termination of the waiting period under the Hart-Scott-Rodino Act.
Dick Alario, chairman, president and CEO of Key, said: “In evaluating the growth and consolidation opportunities in our core well intervention services business and international expansion efforts, we determined that the capital in our pressure pumping and electric wireline businesses could be more effectively deployed in many of the other areas of potential opportunity before us today.
“We are not selling our coiled tubing business, as it is a primary focus area of our well intervention growth strategy.”
