KEG’s Stock Price Has Crashed; Recovery May Not Be Soon
Key Energy Services (KEG) is an onshore, rig-based well servicing contractor. I expect KEG’s stock price to remain weak in the short-run. However, if the crude oil price stabilizes and completions activity resumes, the valuation can improve in the medium-to-long run. Until then, investors might want to stay out of investing in the stock.
The pricing pressure can continue to affect KEG’s margin in most of its segments in Q2. Over the medium-to-long term, workover rigs can dominate the drilling activities in the