Tuesday, June 21, 2011

Key Energy Services - 3.6%

Key Energy Services (KEG) is another of those holdings that I stumbled onto almost 10 years ago while looking for cheap energy stocks.  Priced between $3.00 and $5.00, I would buy this one intermittently when I had smaller amounts of money in my account.  This was a pure play on oil stocks, looking for cheapies with good upside and solid reviews.  KEG fit the bill and has steadily increased over the last decade, so slowly that I was stunned to see it had more than tripled from when I bought it.  Still appearing to be on an uptick, we're keeping KEG as part of our broader energy portfolio.

Much like Walter Energy, Key Energy Services was a smaller part of a more diversified holding company called the Yankee Corporation, which held banking and environmental services in addition to energy services.  Unlike Walter, this was before we owned it.  In 1988, it split off into the Yale E. Company specializing in oil well services.  Since that time, this Houston, Texas based company has been acquiring smaller oil and oil services company year by year, little my little, consolidating into Key Energy Services, one of the largest, if not the largest, onshore energy services company.  Specifically, they specialize in oil drilling equipment and onshore drilling technologies and, according to them, the most cutting edge and largest technological oil service company in the country.  I still like this one as a long term hold.

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