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]

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]

HOUSTON, March 11, 2025 /PRNewswire/ -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX" or the "Company") announced today that it has moved forward its 2024 Fourth Quarter/Year End Conference Call to March 13, 2025.The Company also announced that it expects the closing of its previously announced refinancing transactions to take place on March 12, 2025, subject to completion of closing processes.Updated 2024 Fourth Quarter/Year End Earnings Release and Conference Call ScheduleKLX will report 2024 f ...

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]

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 Holdings, Inc. (NASDAQ:KLXE) Q3 2024 Earnings Conference Call November 1, 2024 11:00 AM ET Company Participants Ken Dennard - Investor Relations Chris Baker - President & Chief Executive Officer Keefer Lehner - EVP & Chief Financial Officer Conference Call Participants Steve Ferazani - Sidoti & Company Blake McLean - Daniel Energy Partners Operator Greetings, and welcome to the KLX Energy Services 2024 Third Quarter Earnings Conference Call. This time all participants are in listen-only ...

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].

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].

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]

HOUSTON, Oct. 30, 2024 /PRNewswire/ -- KLX Energy Services Holdings, Inc. ("KLX" or the "Company") (NASDAQ: KLXE) announced today that it will report its 2024 third quarter financial results prior to the Company's live conference call, which can be accessed via dial-in or webcast, on Friday, November 1, 2024 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). What: KLX Energy Services 2024 Third Quarter Earnings Conference Call When: Friday, November 1, 2024 at 11:00 a.m. Eastern Time / 10:00 a.m. Central ...