Seeking Alpha: Another "Wait 'Til Next Year" Year For Key Energy Services

Between weak rig counts and rampant competition in some parts of the well servicing business, 2013 has been a big disappointment. Things have been turning up recently, though, as E&P spending budgets for 2014 are looking promising and investors are counting on pent-up demand leading to better results. Given the demands of horizontal wells, Key Energy Services (KEG) has reason to expect better days.

I was bullish on Basic Energy Services (BAS) back in October, and the stock is up more than 20% since then. At this point, I feel like BAS versus KEG is more of a "pick 'em". I think Key Energy is a better company, but it seems that the Street thinks so too and the valuation is a little higher on these shares. Although Key Energy shares appear to be priced to generate a decent return on moderate expectations for 2014, investors have to be willing to accept the risk that 2014 is another disappointing year in the oilfields of the U.S. and Mexico.

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Another "Wait 'Til Next Year" Year For Key Energy Services