Key Energy Services Inc. said Dec. 30 President and CEO Rob Saltiel has resigned after roughly a year with the Houston-based company.

Similar to other oilfield service providers, Key has struggled within the past year due to slowing growth in the maturing U.S. shale industry and spending cuts by operators.

Key, the largest onshore, rig-based well servicing contractor based on the number of rigs owned, recently had its common stock delisted from the New York Stock Exchange due to its failure to maintain an average global market capitalization over a consecutive 30 trading-day period of at least $15 million. The company also entered into an extension of its forbearance agreements with debt lenders in early December.

Additionally, after reporting challenging third-quarter results, the company announced several initiatives to optimize its geographic footprint and have exited a number of noncore and underperforming locations in order to reduce its regional and corporate overhead costs.

According to the company release, Saltiel’s resignation, effective Dec. 30, is to “pursue other opportunities” and includes from his position on the Key board of directors. He had joined Key in August 2018 from Atwood Oceanics. Previously, he had served as CEO of the publicly-traded offshore drilling contractor from 2009 until its sale to Ensco Plc in 2017.

Commenting on Saltiel’s resignation, Phil Norment, chairman of the Key board, said in a statement on Dec. 30: “We extend our gratitude to Rob for his leadership of the company during these challenging times. Rob played a key role in the company’s recent cost reduction initiatives, exiting certain operations and areas in order to focus on key markets, as well as reducing overhead costs. These initiatives will assist the company in the restructuring of its balance sheet and help position it for future success. We wish Rob all the best in his future endeavors.”

In the meantime, Key said the board has appointed J. Marshall Dodson to serve as interim CEO while the nominating and governance committee conducts its search process to select a new CEO.

Norment remarked, “The board believes Key is in good hands with Marshall as we continue our discussions with our lenders regarding Key’s capital structure.”

Dodson joined Key in 2005 and currently serves as its CFO.

Key provides a complete range of well intervention services and has operations in all major onshore oil and gas producing regions of the continental U.S.

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