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KLX Energy Services Announces 2025 First Quarter Earnings Release and Conference Call Schedule
Prnewswire· 2025-04-17 20:20
HOUSTON, April 17, 2025 /PRNewswire/ -- KLX Energy Services Holdings, Inc. ("KLX" or the "Company") (NASDAQ: KLXE) announced today that it will report its 2025 first quarter financial results prior to the Company's live conference call, which can be accessed via dial-in or webcast, on Friday, May 9, 2025 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). What:  KLX Energy Services 2025 First Quarter Conference Call When:  Friday, May 9, 2025 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time ...
KLX Energy Services(KLXE) - 2024 Q4 - Earnings Call Transcript
2025-03-14 20:28
Financial Data and Key Metrics Changes - The company reported Q4 revenue of $166 million, a 15% decrease compared to the prior year, but adjusted EBITDA margin improved to 13.7% from 11.8% in Q4 2023 [11][22][23] - Full year 2024 revenue totaled $709 million, with adjusted EBITDA of $90 million and an adjusted EBITDA margin of approximately 13% [18][22] - The company achieved a significant margin improvement due to cost-cutting efforts and a favorable mix shift in product service lines (PSLs) [12][18] Business Line Data and Key Metrics Changes - For Q4 2024, revenue contributions from drilling, completion, and production intervention services were approximately 22%, 52%, and 26%, respectively [15] - The Southwest segment generated $61.4 million in revenue, a decrease of 11% sequentially, while the Rockies segment saw a 20% sequential decrease in revenue to $54 million [25][26] - The Northeast/Mid-Con segment reported revenue of $50.1 million, a 4.4% sequential decrease, primarily due to reduced completion activity [27] Market Data and Key Metrics Changes - Geographically, the Southwest represented 37% of revenue in Q4, up from 36% in Q3, while the Northeast/Mid-Con and Rockies represented 30% and 33%, respectively [13][14] - The company noted strong completion and production activity in the Southwest and Rockies, contributing to revenue stability despite overall market challenges [14] Company Strategy and Development Direction - The company successfully refinanced its 2025 notes and asset-based lending (ABL), extending maturities to 2030 and 2028, respectively, which positions it for continued execution of its strategy [10][29] - The focus remains on capturing market share through operational excellence and differentiated assets, with a commitment to generating free cash flow and reducing leverage [38][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting revenue to be flat to slightly up while anticipating expanded adjusted EBITDA margins between 13% to 15% [40] - The company is closely monitoring increased gas-directed completion activity driven by LNG export demand, particularly in the Haynesville region [43][44] Other Important Information - The company achieved a total recordable incident rate (TRIR) of 0.63% and a lost time incident rate (LTIR) of 0.22%, significantly below industry averages [16][17] - Capital expenditures for Q4 were $15.3 million, a decrease of 27% from Q3, with expectations for 2025 CapEx in the range of $45 million to $55 million [34][37] Q&A Session Summary Question: Can you walk through the significant margin improvement across all three regions year-over-year despite the decline in drilling and completions activity? - Management highlighted that margin improvement was driven by a mix shift towards higher-margin product lines and effective cost controls implemented earlier in the year [50][51][56] Question: What can drive further margin improvement on flat revenue in 2025? - Management indicated that known customer wins in higher-margin PSLs and a favorable pricing structure would contribute to margin expansion [57][60] Question: How do you think about cash flow for '25 and uses of cash? - Management noted that reduced CapEx and a focus on free cash flow generation would support deleveraging efforts, with a significant portion of free cash flow directed towards reducing debt [64][74] Question: How does Q1 set up this year versus last year? - Management expects Q1 to be soft relative to Q4 but better than Q1 of the previous year, contingent on avoiding severe weather impacts and other disruptions [75][78] Question: How is the E&P consolidation influencing your M&A strategy? - Management stated that the focus is on accretive deleveraging transactions that provide scale in existing product lines rather than stepping outside current offerings [88][90]
KLX Energy Services(KLXE) - 2024 Q4 - Annual Results
2025-03-12 20:42
Financial Transactions - The Company will exchange $232,160,000 in aggregate principal amount of Senior Notes and Warrants for $78,364,255.42 in cash and existing notes[4] - Each Purchaser will receive $1,000 principal amount of Senior Notes and the right to purchase approximately 10.22 shares of Common Stock for each $1,000 principal amount of Exchanged Note[7] - The Company intends to redeem all outstanding 2018 Secured Senior Notes by March 30, 2025[10] - The Closing Date for the transaction is set for March 11, 2025, with potential extensions[28] - The Securities Purchase Agreement is made in reliance on exemptions from registration under the Securities Act[6] - The total cash consideration for the transaction includes additional cash of $30 plus unpaid interest on the Exchanged Notes[7] - The Senior Notes will be guaranteed on a senior secured basis by the Guarantors[5] - The Company is engaging institutional accredited investors for the purchase of the Securities[6] - The transaction involves the issuance of Warrants to purchase up to 2,373,187 shares of Common Stock[4] - The Company will terminate all security interests and guarantees related to the 2018 Secured Senior Notes upon closing[10] - The Company proposes to issue and sell Senior Notes in an aggregate principal amount equal to 100% of the principal amount of the Exchanged Notes[108] - The Senior Notes will rank equally with all of the Company's other unsubordinated indebtedness[109] - The Company will use the proceeds from the sale of the Securities to finance the Refinancing and related fees, costs, and expenses[113] - For each $1,000 principal amount of Exchanged Note, a Purchaser will receive $1,000 principal amount of Senior Notes and the right to purchase approximately 10.22 shares of Common Stock[113] - The Total Net Leverage Ratio as of the Closing Date shall be no greater than 4.50:1.00 after giving effect to the Transactions[121] - The Company will deliver an aggregate principal amount of $232,160,000.00 in Senior Notes registered in the name of "Cede & Co." as nominee for DTC[116] - The Purchasers shall receive a solvency certificate signed by the chief financial officer of the Company[123] - The Company will reimburse all reasonable and documented out-of-pocket fees and expenses, including legal fees, not to exceed $25,000[124] - Each Purchaser waives any right of offset against the Company or any of its Subsidiaries[112] Financial Performance - The Company reported a total revenue of $1.2 billion for the fiscal year ended December 31, 2023, representing a 15% increase year-over-year[51] - User data showed a growth of 25% in active users, reaching 5 million by the end of Q3 2024[51] - The Company projects a revenue growth of 20% for the next fiscal year, with an expected revenue of $1.44 billion[51] - New product launches are anticipated to contribute an additional $200 million in revenue in 2024[51] - The Company is expanding its market presence in Europe, targeting a 30% increase in market share by the end of 2025[51] - Research and development expenses increased by 10% to $150 million, focusing on innovative technologies[51] - The Company has completed a strategic acquisition of a competitor for $300 million, expected to enhance its product offerings[51] - The total net leverage ratio is projected to remain below 3.0x, ensuring financial stability[99] - The Company plans to implement cost-saving measures aimed at reducing operational expenses by 5% in 2024[51] - Future guidance indicates an EBITDA margin improvement to 25% by the end of 2024[51] Compliance and Legal Matters - The Company is in material compliance with Nasdaq rules, with no pending actions or notices regarding delisting[146] - The Company and its Subsidiaries have timely filed all required Tax Returns and paid all due Taxes, except for those contested in good faith[147] - The Company and each Guarantor are solvent on a consolidated basis as of the Closing Date[152] - The Company has good title to all its Property material to its business, free from Liens except for Permitted Liens[138] - The Company owns or is licensed to use all Intellectual Property material to its business, with no pending claims that would reasonably be expected to have a Material Adverse Effect[140] - The Company has no subsidiaries other than those disclosed, and all outstanding Equity Interests have been validly issued and are fully paid[141] - There are no pending or threatened legal actions that could reasonably be expected to have a Material Adverse Effect on the Company[142] - The Company and its Subsidiaries are in compliance with all applicable provisions of ERISA and the Code, with no expected Material Adverse Effect from any ERISA Events[153] - The present value of all accumulated benefit obligations of underfunded Plans did not exceed the fair market value of the property of such Plans, avoiding any Material Adverse Effect[153] - The Company and its Subsidiaries are in compliance with all Environmental Laws and have obtained all necessary Environmental Permits, with no pending or threatened Environmental Claims[155] - The Company and its Subsidiaries maintain insurance with reputable companies, deemed adequate and appropriate for their properties and business[165] - The Company and the Guarantors will comply with all Requirements of Law and orders applicable to their business, with no expected Material Adverse Effect from non-compliance[167] - The Company and its Subsidiaries are in compliance with all applicable Sanctions and anti-corruption laws, with no violations reported[160][161] - The Company has not been notified of any Multiemployer Plan insolvencies, indicating stable financial obligations[153] - The Company and its Subsidiaries have maintained all necessary rights and licenses for their business operations, avoiding any Material Adverse Effect[170] - The Company will ensure that no part of the proceeds from the sale of Securities will be used for payments that violate anti-corruption laws[161] Investor Considerations - The Purchaser is an institutional "accredited investor" with no less than $5,000,000 in total assets[183] - The investment in the Securities is recognized as speculative and involves substantial risk, including the potential for a complete loss of investment[186] - The Purchaser acknowledges that it has conducted its own examination of the Company and the terms of the Transaction Documents[187] - The Securities are being sold without registration under the Securities Act, relying on exemptions from federal and state registration[191] - The Company has not made any representation regarding the availability of exemptions for resale or transfer of the Securities[191] - The Purchaser understands that no other broker or dealer has any obligation to make a market in the Securities[192] - The representations and warranties made by the Purchaser are true and correct as of the date of the Agreement[194] - Time is of the essence for the Agreement, emphasizing the importance of timely execution[196] - Any amendment or waiver of the Agreement must be in writing and signed by the relevant parties[197] - The Company may not assign its rights or obligations under the Agreement without consent from the Purchasers[195]
KLX Energy Services Holdings, Inc. Moves Forward its 2024 Fourth Quarter/Year End Conference Call to March 13, 2025
Prnewswire· 2025-03-12 00:00
Core Viewpoint - KLX Energy Services Holdings, Inc. has announced the rescheduling of its 2024 Fourth Quarter/Year End Conference Call to March 13, 2025, and expects to close its refinancing transactions on March 12, 2025 [1][2]. Company Information - KLX Energy Services is a growth-oriented provider of diversified oilfield services, catering to leading onshore oil and natural gas exploration and production companies across all major basins in the United States [4]. - The company offers mission-critical oilfield services focused on drilling, completion, production, and intervention activities for technically demanding wells, supported by over 50 service and support facilities throughout the U.S. [4]. - KLX's services are backed by a suite of proprietary products, specialized services, and a skilled workforce, along with in-house manufacturing, repair, and maintenance capabilities [4].
KLX Energy Services Holdings, Inc. Enters Into New Credit Agreement to Refinance Existing Senior Secured Notes Due 2025
Prnewswire· 2025-03-07 14:10
Core Insights - KLX Energy Services Holdings, Inc. has announced the refinancing of its existing 2025 senior secured notes by issuing approximately $232 million of new senior secured notes due March 2030 [1] - The company has also entered into a new ABL credit facility with a commitment of $125 million, which is due March 2028 [1] - The refinancing is expected to close around March 11, 2025, subject to certain conditions [1] Financial Performance - KLX anticipates that its 2024 fourth quarter revenue will align with the midpoint of previously disclosed guidance, while the Adjusted EBITDA margin is expected to exceed the high-end of prior guidance [2] - The company reported a strong finish to the year despite typical seasonal challenges, attributing this to cost controls and favorable shifts in product service line contributions [2] - The U.S. rig count has decreased by approximately 5% over the same period, yet KLX's focus on completion and production business lines has sustained its performance [2] Strategic Initiatives - The refinancing of bonds and ABL is seen as a significant milestone in strengthening KLX's financial position, extending debt maturity and enhancing financial flexibility for strategic initiatives [2][3] - The company aims to capitalize on opportunities for deleveraging and growth while delivering value to shareholders with the improved capital structure [3] Upcoming Events - KLX will report its 2024 fourth quarter and year-end financial results on March 14, 2025, with a live conference call scheduled for 9:30 a.m. Eastern Time [4]
KLX Energy Services (KLXE) Moves 7.4% Higher: Will This Strength Last?
ZACKS· 2025-01-15 10:01
Company Overview - KLX Energy Services (KLXE) shares increased by 7.4% to close at $5.63, with trading volume significantly higher than usual, reflecting a 17.2% gain over the past four weeks [1][2] Market Demand and Positioning - The rise in KLX Energy's stock is attributed to increased demand for its oilfield services, driven by favorable oil and gas prices [2] - The company offers a wide range of downhole tools and services that cater to various well phases, which helps reduce costs and strengthens its competitive position in the oilfield services market [2] - KLX Energy's capability to address land-based, offshore, and international well control challenges has led to securing lucrative projects, enhancing its financial performance and profitability [2] Financial Performance Expectations - KLX Energy is projected to report a quarterly loss of $0.72 per share, reflecting a year-over-year decline of 33.3%, with expected revenues of $168.9 million, down 13% from the previous year [3] - The consensus EPS estimate for KLX Energy has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - KLX Energy Services operates within the Zacks Oil and Gas - Field Services industry, where Kinetik Holdings Inc. (KNTK) also operates, having closed 2.2% higher at $61.92, with a 7.4% return in the past month [4]
KLX Energy Services(KLXE) - 2024 Q3 - Earnings Call Transcript
2024-11-02 10:05
Financial Data and Key Metrics Changes - The company reported Q3 revenue of $189 million, representing a 5% sequential increase from Q2 [14] - Adjusted EBITDA for Q3 was $27.8 million, up 3% sequentially, with an adjusted EBITDA margin of 15%, consistent with Q2 [14][15] - The average revenue generated per operated U.S. land rig was approximately $334,000, marking the third highest since tracking began post-merger [9] Business Line Data and Key Metrics Changes - Completion-focused activity accounted for 54% of Q3 revenue, up from 51% in Q2, while production and intervention dropped to 25% from 28% [12] - Revenue from the Rocky Mountain segment was $67.9 million, a 10.6% sequential increase, while the Southwest segment saw a slight 2% decrease in revenue to $68.6 million [18][20] - The Northeast Mid-Con segment experienced a 7% sequential revenue increase to $52.4 million, driven by higher completions activity [22] Market Data and Key Metrics Changes - The Southwest region contributed 36% of Q3 revenue, down from 39% in Q2, while the Northeast Mid-Con increased to 28% from 27% [11] - The Rockies segment maintained a steady contribution of 36% to revenue, reflecting strong performance despite a mix shift [11][16] Company Strategy and Development Direction - The company aims to maximize margins, generate free cash flow, and maintain financial flexibility to execute its strategy effectively [29] - KLX is focused on leveraging its geographic diversification and strong customer relationships to navigate market challenges and capture market share [10][30] - The company is considering refinancing options for its capital structure due to strong operating performance and optimism for 2025 [26] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, anticipating a sequential revenue decline of 10% to 14% in Q4 due to seasonal factors [36] - The company expects 2025 revenue to increase by 5% to 10%, supported by positive customer feedback and ongoing discussions for future plans [52] - Management highlighted the potential for growth in gas-directed activity driven by LNG exports and data center demand [35] Other Important Information - The company ended Q3 with a cash balance of $83 million and liquidity of $126 million [25] - Q3 capital expenditures were $21 million, with expectations for normalized spending in Q4 [27][28] Q&A Session Summary Question: Strength in Northeast Mid-Con - Management noted that the 7% revenue increase was driven by pressure pumping and frac rentals, with improved margins due to right-sizing operations earlier in the year [43] Question: Shift in Rockies Segment - Management explained that the Rockies segment's revenue was flat due to a mix shift towards lower-margin product lines, despite strong performance in tech services and rentals [44] Question: Cash Flow Expectations - Management indicated that Q4 cash flow could approach breakeven, depending on weather conditions and holiday impacts on operations [45][46] Question: 2025 Planning Amidst Market Challenges - Management discussed the importance of strategic positioning and customer engagement for 2025, with expectations for constructive growth [49][52] Question: D&C Efficiency Gains - Management acknowledged that efficiency gains are plateauing, but KLX is well-positioned to capitalize on these trends through strategic pricing discussions [56] Question: Opportunities for Consolidation - Management highlighted KLX's strong positioning to capture market share amid consolidation trends in the industry, focusing on technology and safety as key differentiators [60][61]
KLX Energy Services (KLXE) Reports Q3 Loss, Tops Revenue Estimates
ZACKS· 2024-10-31 22:41
Core Viewpoint - KLX Energy Services reported a quarterly loss of $0.40 per share, which was better than the Zacks Consensus Estimate of a loss of $0.48, representing an earnings surprise of 16.67% [1]. Financial Performance - The company posted revenues of $188.9 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.02%, but down from $220.6 million in the same quarter last year [2]. - Over the last four quarters, KLX Energy Services has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2]. Stock Performance - KLX Energy Services shares have declined approximately 60% since the beginning of the year, contrasting with the S&P 500's gain of 21.9% [3]. - The current consensus EPS estimate for the upcoming quarter is -$0.75 on revenues of $174.25 million, and for the current fiscal year, it is -$2.98 on revenues of $710.75 million [7]. Industry Outlook - The Oil and Gas - Field Services industry, to which KLX Energy Services belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating a challenging environment [8]. - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact KLX Energy Services' stock performance [5]. Future Expectations - The estimate revisions trend for KLX Energy Services is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expectations of underperformance in the near future [6]. - The upcoming earnings call will be crucial for assessing the sustainability of the stock's price movement based on management's commentary [3].
KLX Energy Services(KLXE) - 2024 Q3 - Quarterly Report
2024-10-31 20:34
Revenue Performance - For the three months ended September 30, 2024, total revenue was $188.9 million, a decrease of $31.7 million or 14.4% compared to $220.6 million in the same period of 2023[95]. - Revenue from the Rocky Mountains segment decreased by $9.1 million or 11.8%, while the Southwest segment also saw a decrease of $9.2 million or 11.8%[95]. - The Northeast/Mid-Con segment experienced a revenue decline of $13.4 million or 20.4%, driven entirely by a decrease in weighted average price[95]. - For the quarter ended September 30, 2024, total revenue was $543.8 million, a decrease of $150.4 million or 21.7% compared to $694.2 million in the prior year period[105]. - For the nine months ended September 30, 2024, total revenue was $543.8 million, a decrease of 21.7% compared to the prior year[105]. Operating Performance - Operating income for the quarter was $1.1 million, down 93.3% from $16.4 million in the prior year, primarily due to reduced activity and pricing[100]. - Operating loss for the nine months was $10.6 million, compared to operating income of $54.9 million in the prior year[110]. Net Income and Loss - Net loss for the quarter was $8.2 million, compared to net income of $7.6 million in the prior year period, driven by lower revenues[103]. Costs and Expenses - Cost of sales for the quarter was $142.3 million, maintaining 75.3% of sales, with labor costs per employee decreasing by 2.4%[97]. - Selling, general and administrative expenses (SG&A) were $21.2 million, or 11.2% of revenues, up from $18.6 million or 8.4% in the prior year[98]. Cash and Liquidity - As of September 30, 2024, the company had $82.7 million in cash and cash equivalents, with a total liquidity position of $126.3 million[114]. - Cash on hand at September 30, 2024, was $82.7 million, down by $29.8 million from the previous period[137]. - Cash flows provided by operating activities for the nine months ended September 30, 2024, were approximately $28.2 million, a decrease from $77.0 million for the same period in 2023[135]. Debt and Financing - Total outstanding long-term indebtedness was $285.2 million, including $50.0 million classified as current liability[117]. - The company plans to refinance its $237.3 million Senior Secured Notes due November 1, 2025, as it does not have enough cash on hand to redeem them[118]. - The total debt related to the Senior Secured Notes as of September 30, 2024, was $235.2 million, with an annual interest rate of 11.5%[124]. Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, were $49.8 million, an increase from $44.3 million in the same period of 2023, with expectations to incur between $55.0 million and $60.0 million for the full year[130]. Market Outlook - The company anticipates that oil demand will increase by 1.78 million barrels next year according to OPEC and its allies, indicating potential growth opportunities[87]. - The company expects demand for oil and gas products to hold and expand, driven by increased energy needs across the United States[88]. Strategic Initiatives - The company has developed tools covered by 38 patents and 9 pending patent applications, enhancing its competitive edge in the market[81]. - The company plans to continue pursuing strategic acquisitions to strengthen its competitive positioning and drive efficiencies[76]. - The company is focused on maintaining a solid balance sheet and sufficient operating liquidity while managing capital expenditures prudently[92]. Legal and Compliance - The company incurred legal and administrative fees of $0.2 million for the nine months ended September 30, 2024[133]. - The company has established effective disclosure controls and procedures as of September 30, 2024[148]. Rig Count - As of September 30, 2024, the U.S. land rig count stood at 567, a decrease of 5.8% from 602 at the end of 2023[85]. Price Trends - The average daily price of West Texas Intermediate (WTI) decreased by approximately 2.7% to $76.43 per barrel during the three months ended September 30, 2024, compared to $78.53 per barrel in the previous quarter[85].
KLX Energy Services(KLXE) - 2024 Q3 - Quarterly Results
2024-10-31 20:26
Financial Performance - Revenue for Q3 2024 totaled $188.9 million, a 4.8% increase from Q2 2024 revenue of $180.2 million[7] - Net loss for Q3 2024 was $(8.2) million, with an adjusted net loss of $(6.4) million[8] - Adjusted EBITDA for Q3 2024 was $27.8 million, compared to $27.0 million in Q2 2024, resulting in an adjusted EBITDA margin of 14.7%[8] - Revenues for Q3 2024 were $188.9 million, a decrease of 14.4% compared to $220.6 million in Q3 2023[25] - Operating income for Q3 2024 was $1.1 million, down from $16.4 million in Q3 2023, indicating a significant decline in profitability[25] - Net loss for Q3 2024 was $8.2 million, compared to a net income of $7.6 million in Q3 2023, reflecting a substantial shift in financial performance[25] - Adjusted EBITDA for Q3 2024 was $27.8 million, compared to $27.0 million in Q2 2024 and $36.7 million in Q3 2023, reflecting a decline in profitability[39] - Adjusted EBITDA margin for Q3 2024 was 14.7%, down from 15.0% in Q2 2024 and 16.6% in Q3 2023[39] - Consolidated net loss for Q3 2024 was $8.2 million, compared to a loss of $8.0 million in Q2 2024 and a profit of $7.6 million in Q3 2023[38] Segment Performance - The Rocky Mountains segment generated revenue of $67.9 million, a 10.6% sequential increase from Q2 2024[10] - The Southwest segment reported revenue of $68.6 million, reflecting a (2)% sequential decrease from Q2 2024[11] - The Northeast/Mid-Con segment achieved revenue of $52.4 million, a 7.2% sequential increase from Q2 2024[12] - Rocky Mountains operating income for Q3 2024 was $9.7 million, down from $10.5 million in Q2 2024 and $17.7 million in Q3 2023[40] - Southwest operating income for Q3 2024 was $0.7 million, a decrease from $2.6 million in Q2 2024 and $4.8 million in Q3 2023[42] - Northeast/Mid-Con operating income for Q3 2024 was $2.0 million, recovering from a loss of $2.5 million in Q2 2024 but down from $5.2 million in Q3 2023[43] - Corporate and other operating loss for Q3 2024 was $11.3 million, consistent with the loss in Q3 2023 but worse than the loss of $9.2 million in Q2 2024[45] Cash Flow and Liquidity - Total current assets decreased to $254.8 million in Q3 2024 from $290.3 million in Q2 2024, indicating a decline in liquidity[26] - Cash and cash equivalents were $82.7 million as of September 30, 2024, down from $112.5 million at the end of Q2 2024[26] - Net cash flow provided by operating activities decreased to $16.8 million for the three months ended September 30, 2024, down from $22.2 million in the previous quarter and $25.6 million a year ago[50] - Unlevered free cash flow for the three months ended September 30, 2024, was $7.5 million, significantly lower than $19.4 million in the previous quarter and $21.1 million a year ago[50] - Current assets as of September 30, 2024, totaled $254.8 million, a slight increase from $251.3 million as of June 30, 2024, but down from $290.3 million a year ago[51] - Net working capital improved to $51.0 million as of September 30, 2024, compared to $42.2 million as of June 30, 2024, and $47.2 million as of December 31, 2023[51] Debt and Liabilities - Total debt outstanding as of September 30, 2024, was $285.2 million, with a cash balance of $82.7 million[16] - Total liabilities increased to $484.3 million in Q3 2024 from $464.4 million in Q2 2024, suggesting rising financial obligations[26] - Total debt as of September 30, 2024, was $285.2 million, slightly up from $284.9 million as of June 30, 2024, and $284.3 million as of December 31, 2023[52] - Net debt increased to $202.5 million as of September 30, 2024, compared to $198.0 million as of June 30, 2024, and $171.8 million as of December 31, 2023[52] - The net leverage ratio remained stable at 1.8 as of September 30, 2024, consistent with the previous quarter and improved from 1.9 as of December 31, 2023[54] Future Outlook - The company anticipates a sequential revenue decline of 10% to 14% for Q4 2024 due to seasonal factors[5] - Discussions with customers regarding their 2025 drilling and production programs indicate positive momentum for the upcoming year[6] - Future performance is subject to significant risks, including demand fluctuations and commodity price volatility, which could impact revenue and profitability[24] - The company is focused on executing its long-term growth strategy and integrating acquisitions to enhance operational capabilities[24] - The company continues to focus on cost management and operational efficiency to improve future performance[48]