FRAC - Key Energy Services Is Still Under Pressure But Recovery Signs Are In Sight
KEG's woes are not over yet
Key Energy Services (KEG) is an onshore, rig-based contractor of the energy-producing wells. I do not expect KEG's stock price to strengthen in the short-run. Key Energy Services is not out of the woods in the short run, but so far in 2019, the indicators have shown positive momentum. I expect improvement in KEG's valuation in the medium-to-long term, as the industry headwinds recede and the crude oil price stabilizes.
While the pricing pressure will continue to affect its margin in most of its segments in Q1,