Key Energy Services Announces Definitive Agreement to Acquire Edge Oilfield Services and Summit Oilfield Services

Key Energy Services, Inc. KEG today announced that it has reached a definitive agreement to acquire Edge Oilfield Services, L.L.C. and Summit Oilfield Services for consideration of approximately $300 million, consisting of approximately 7.5 million shares of Key common stock and approximately $164 million in cash, which is subject to working capital and other adjustments at closing. Key anticipates funding the cash portion of the consideration from available cash and borrowings under its credit facility. In addition to the $300 million of consideration, Key has also agreed to reimburse or fund up to $40 million of Edge's pre-closing capital expenditures related to Edge's expansion into the Eagle Ford shale, which began generating revenue this quarter. The closing of this transaction, which is expected to occur this quarter, is subject to customary conditions including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.