HOUSTON, July 9, 2025 /PRNewswire/ -- KLX Energy Services Holdings, Inc. ("KLX" or the "Company") (NASDAQ: KLXE) announced today that it will report its 2025 second quarter financial results prior to the Company's live conference call, which can be accessed via dial-in or webcast, on Thursday, August 7, 2025 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).      What: KLX Energy Services 2025 Second Quarter Conference Call      When: Thursday, August 7, 2025 at 10:00 a.m. Eastern Time / 9:00 a ...

Revenue Performance - For the three months ended March 31, 2025, total revenue was $154.0 million, a decrease of $20.7 million or 11.8% compared to the same period in 2024[103]. - Revenue from the Rocky Mountains segment increased by $2.2 million or 4.8%, driven entirely by an increase in weighted average volume[103]. - The Southwest segment revenue decreased by $4.2 million or 6.1%, attributed solely to a decrease in weighted average volume[103]. - The Northeast/Mid-Con segment revenue decreased by $18.7 million or 31.3%, with lower weighted average price contributing approximately 13% and lower weighted average volume contributing approximately 87% to the decline[103]. Pricing and Market Conditions - The average daily price of West Texas Intermediate (WTI) increased by approximately 1.4% to $71.78 per barrel during the three months ended March 31, 2025, compared to $70.81 per barrel in the previous quarter[94]. - The company anticipates that customers will continue to cautiously allocate capital and operating expenses due to volatile commodity prices[96]. Financial Performance - For the quarter ended March 31, 2025, cost of sales was $123.8 million, representing 80.4% of sales, a decrease from 82.4% in the prior year period[104]. - Selling, general and administrative expenses (SG&A) were $21.6 million, or 14.0% of revenues, up from 12.4% in the prior year, due to lower revenues[105]. - The total operating loss for the quarter was $17.7 million, compared to a loss of $13.1 million in the prior year, reflecting reduced activity and pricing[107]. - The net loss for the quarter was $27.9 million, an increase from a net loss of $22.2 million in the prior year, primarily due to lower revenues[110]. Liquidity and Capital Structure - As of March 31, 2025, the company had $14.6 million in cash and cash equivalents, with total liquidity of $58.1 million[111]. - The company completed a refinancing on March 12, 2025, issuing approximately $232.2 million in 2030 Senior Notes and exchanging $143.6 million of 2025 Senior Notes[115][126]. - The New ABL Facility has a commitment of $125.0 million and includes a first-in-last-out asset-based credit facility with a $10.0 million commitment[119]. - The effective interest rate under the New ABL Facility was approximately 9.06% as of March 31, 2025[122]. - The company is required to redeem 2.00% per annum of all 2030 Senior Notes outstanding starting March 31, 2025[128]. - The 2030 Senior Notes Indenture includes a maximum total net leverage ratio of not greater than 4.50 to 1.0 for specified test periods[129]. - As of March 31, 2025, the principal amount outstanding under the 2030 Senior Notes was $231.0 million, with total debt related to these notes at $206.0 million after adjustments[132]. - The effective interest rate for the 2030 Senior Notes was approximately 12.83% as of March 31, 2025[132]. Capital Expenditures and Cash Flow - Capital expenditures for the three months ended March 31, 2025, were $15.0 million, an increase from $13.5 million in the same period of 2024, with expectations of total capital expenditures between $40.0 million and $50.0 million for the year ending December 31, 2025[137]. - Cash flows used in operating activities for the three months ended March 31, 2025, were approximately $37.6 million, compared to $10.8 million for the same period in 2024[143]. - The company had $14.6 million in cash and cash equivalents and $8.1 million in restricted cash as of March 31, 2025, reflecting a decrease of $68.9 million in cash on hand[144]. - Net cash used in financing activities was $21.1 million for the three months ended March 31, 2025, compared to $6.6 million for the same period in 2024, influenced by refinancing activities[148]. - The company sold 142,769 shares of common stock during the three months ended March 31, 2025, generating gross proceeds of approximately $0.5 million[141]. - The company expects to incur additional pari passu indebtedness of up to $150.0 million within twelve months of refinancing, subject to certain conditions[131]. - Total letters of credit outstanding under the New ABL Facility were $6.4 million as of March 31, 2025[133]. Strategic Initiatives - The company expects to continue pursuing strategic, accretive acquisitions to strengthen competitive positioning and drive efficiencies[85]. - The company has developed tools covered by 37 patents and 7 pending patent applications, enhancing its competitive edge in the market[90]. - The company is focused on maintaining a solid balance sheet and sufficient operating liquidity while managing capital expenditures prudently[101].

KLX Energy Services (KLXE) Q1 2025 Earnings Call May 09, 2025 10:00 AM ET Company Participants Ken Dennard - Investor RelationsChristopher Baker - President & CEOKeefer Lehner - EVP & CFOJohn Daniel - Founder & CEO Conference Call Participants Steve Ferazani - Senior Equity Analyst - Diversified Industrials & Energy Operator Greetings, and welcome to the KLX Energy Services twenty twenty five first quarter earnings conference call. At this time, all participants are in a listen only mode. A question and ans ...

KLX Energy Services (KLXE) Q1 2025 Earnings Call May 09, 2025 10:00 AM ET Speaker0 Greetings, and welcome to the KLX Energy Services twenty twenty five first quarter earnings conference call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ken Dennard of Investor Relations. Thank you. Ken, you may begin. Speaker1 Thank you, operator, and ...

Core Viewpoint - KLX Energy Services reported a quarterly loss of $1.27 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.86, indicating a significant earnings surprise of -47.67% [1] Financial Performance - The company posted revenues of $154 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.23%, and down from $174.7 million in the same quarter last year [2] - Over the last four quarters, KLX Energy Services has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - KLX Energy Services shares have declined approximately 60.4% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.46 on revenues of $177.1 million, and for the current fiscal year, it is -$2.31 on revenues of $696.9 million [7] Industry Outlook - The Oil and Gas - Field Services industry, to which KLX Energy Services belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting a challenging environment for the company [8]

[Financial and Operational Overview](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) [Q1 2025 Key Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Operational%20Highlights) In Q1 2025, KLX Energy Services reported revenue of $154 million and a net loss of $(28) million, while increasing Adjusted EBITDA by 15% to $14 million and improving its Adjusted EBITDA margin by 208 basis points due to effective cost controls, with total liquidity at $58 million Q1 2025 Key Financial Highlights | Financial Metric | Q1 2025 | Change vs Q1 2024 | | :--- | :--- | :--- | | Revenue | $154 million | -12% (YoY) | | Net Loss | $(28) million | - | | Diluted Loss per Share | $(1.62) | - | | Adjusted EBITDA | $14 million | +15% (YoY) | | Adjusted EBITDA Margin | 9% | +30% (YoY) | | Total Liquidity | $58 million | - | - The company successfully increased its **Adjusted EBITDA margin by 208 basis points** compared to Q1 2024, primarily due to a company-wide focus on cost controls, which offset the impact of lower revenue and rig count[4](index=4&type=chunk) [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management highlighted the successful completion of refinancing in March, enhancing financial flexibility and reactivating a share repurchase program with approximately $49 million remaining, while cautiously targeting a modest low to mid-single-digit sequential revenue increase and margin expansion for the remainder of 2025, prudently evaluating share and debt buybacks - The company is targeting a modest sequential revenue increase in the **low to mid-single digits** on a percentage basis, accompanied by margin expansion, based on current schedules[5](index=5&type=chunk) - Following a March refinancing, the company has access to its 2019 share repurchase program, which has approximately **$49 million** of availability remaining, with both share and debt buybacks being considered as capital deployment opportunities[7](index=7&type=chunk) - Management believes the company's strategic positioning, operational excellence, and improved financial flexibility position it to manage market volatility effectively[8](index=8&type=chunk) [Detailed Financial Results](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) [Consolidated Financial Performance](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) Q1 2025 revenue was $154.0 million, a 6.9% decrease from Q4 2024, primarily due to a seasonal market slowdown and reduced activity in Mid-Con completions and directional drilling, resulting in a net loss of $(27.9) million and an Adjusted EBITDA of $13.8 million, with completion services contributing 51% of revenue Consolidated Financial Performance Metrics | Metric | Q1 2025 | Q4 2024 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Revenue | $154.0 M | $165.5 M | -6.9% | | Net Loss | $(27.9) M | $(14.7) M | Increased Loss | | Adjusted Net Loss | $(21.9) M | $(13.1) M | Increased Loss | | Adjusted EBITDA | $13.8 M | $22.7 M | -39.2% | | Adjusted EBITDA Margin | 9.0% | 13.7% | -470 bps | - Revenue contribution by product line for Q1 2025 was approximately: **drilling (20%)**, **completion (51%)**, **production (18%)**, and **intervention (11%)**[9](index=9&type=chunk) [Segment Performance Analysis](index=2&type=section&id=First%20Quarter%202025%20Segment%20Results) The Southwest segment showed sequential growth in revenue (6.2%) and Adjusted EBITDA (21.9%), achieving a record-high margin, while the Rocky Mountains segment experienced a seasonal sequential decline but improved year-over-year, and the Northeast/Mid-Con segment saw a significant drop in both revenue (-18.2%) and Adjusted EBITDA (-72.4%) due to reduced activity and a non-recurring operational issue Q1 2025 Segment Performance Summary | Segment | Revenue (Q1 2025) | Adjusted EBITDA (Q1 2025) | | :--- | :--- | :--- | | Rocky Mountains | $47.8 M | $6.7 M | | Southwest | $65.2 M | $11.7 M | | Northeast/Mid-Con | $41.0 M | $2.7 M | | **Segment Total** | **$154.0 M** | **$21.1 M** | [Rocky Mountains](index=2&type=section&id=Rocky%20Mountains) The Rocky Mountains segment reported Q1 revenue of $47.8 million, a seasonal 11.5% decrease sequentially but a 5% increase year-over-year, with Adjusted EBITDA at $6.7 million, down 43.2% sequentially but up 24% from Q1 2024, driven by increased activity in directional drilling and wireline services Rocky Mountains Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $47.8 M | $54.0 M | $45.6 M | | Operating Loss | $(0.2) M | $4.7 M | $(1.2) M | | Adjusted EBITDA | $6.7 M | $11.8 M | $5.4 M | - Year-over-year revenue improved by **5%** due to increased activity in directional drilling and wireline product offerings[11](index=11&type=chunk) [Southwest](index=2&type=section&id=Southwest) The Southwest segment delivered strong results with revenue of $65.2 million, a 6.2% sequential increase driven by market share gains in the Permian, and Adjusted EBITDA grew 21.9% sequentially to $11.7 million, with its margin reaching the highest level since the 2020 merger, expected to be the "new normal" for the segment Southwest Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $65.2 M | $61.4 M | $69.4 M | | Operating Income | $3.0 M | $1.1 M | $(0.7) M | | Adjusted EBITDA | $11.7 M | $9.6 M | $6.7 M | - The Q1 2025 Adjusted EBITDA margin was the **highest** in the company's recent history (post-2020 merger), driven by a shifting revenue mix[12](index=12&type=chunk) [Northeast/Mid-Con](index=3&type=section&id=Northeast%2FMid-Con) The Northeast/Mid-Con segment's performance declined significantly, with revenue falling 18.2% sequentially to $41.0 million and Adjusted EBITDA plummeting 72.4% to $2.7 million, primarily caused by reduced gas-focused activity and a non-recurring operational challenge within its completions business Northeast/Mid-Con Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $41.0 M | $50.1 M | $59.7 M | | Operating Loss | $(8.1) M | $0.3 M | $2.4 M | | Adjusted EBITDA | $2.7 M | $9.8 M | $10.2 M | - The sharp decline was attributed to reduced regional gas-focused activity and a non-recurring operational issue that created excessive white space during the quarter[15](index=15&type=chunk) [Corporate and Other](index=3&type=section&id=Corporate%20and%20other) The Corporate and other segment reported an operating loss of $(12.4) million and an Adjusted EBITDA loss of $(7.3) million for Q1 2025, with the Adjusted EBITDA loss showing sequential improvement from $(8.5) million in Q4 2024 Corporate and Other Segment Financials | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Operating Loss | $(12.4) M | $(11.1) M | $(13.6) M | | Adjusted EBITDA Loss | $(7.3) M | $(8.5) M | $(10.3) M | [Balance Sheet and Liquidity](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, KLX had total liquidity of $58.1 million, comprising $14.6 million in cash and $43.5 million in available credit facilities, while Net Working Capital increased substantially by 131% to $59.4 million from the prior quarter, and the company raised approximately $0.5 million in gross proceeds from its at-the-market stock offering program - Total liquidity as of March 31, 2025 was **$58.1 million**, composed of **$14.6 million** in cash, **$38.6 million** available on the ABL Facility, and **$4.9 million** on an undrawn FILO facility[16](index=16&type=chunk) - Net Working Capital increased by **131%** to **$59.4 million** from December 31, 2024, driven by changes in days sales outstanding, days payable outstanding, and accrued liabilities[17](index=17&type=chunk) - In Q1 2025, the company sold **142,769 shares** of common stock for gross proceeds of approximately **$0.5 million** under its at-the-market offering program[18](index=18&type=chunk) [Capital Expenditures and Other Financials](index=4&type=section&id=Other%20Financial%20Information) Capital expenditures for Q1 2025 were $15.0 million, a slight decrease from the previous quarter, primarily directed towards maintenance, with net capital expenditures after asset sales totaling $10.2 million, and the company held $2.3 million in assets for sale at quarter-end - Capital expenditures were **$15.0 million** in Q1 2025, down **2%** from Q4 2024, with net capital expenditures after asset sales at **$10.2 million**[19](index=19&type=chunk) - As of March 31, 2025, the company had **$2.3 million** of assets held for sale, related to a facility and equipment in the Rocky Mountains and Southwest segments[20](index=20&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported revenues of $154.0 million for Q1 2025, down from $174.7 million in Q1 2024, resulting in an operating loss of $(17.7) million and a net loss of $(27.9) million, or $(1.62) per diluted share, compared to a net loss of $(22.2) million, or $(1.38) per diluted share, in the same period last year Condensed Consolidated Statements of Operations | (In millions, except per share data) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenues | $154.0 | $165.5 | $174.7 | | Operating loss | $(17.7) | $(5.0) | $(13.1) | | Net loss | $(27.9) | $(14.7) | $(22.2) | | Diluted loss per share | $(1.62) | $(0.90) | $(1.38) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, the company's balance sheet showed total assets of $379.1 million, a decrease from $456.3 million at year-end 2024, with cash and cash equivalents decreasing to $14.6 million from $91.6 million, total liabilities at $405.7 million, and a total stockholders' deficit of $(26.6) million Condensed Consolidated Balance Sheets | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $14.6 | $91.6 | | Total current assets | $167.9 | $233.0 | | Total assets | $379.1 | $456.3 | | **Liabilities & Equity** | | | | Total current liabilities | $111.3 | $140.1 | | Long-term debt | $256.7 | $285.1 | | Total stockholders' deficit | $(26.6) | $(10.5) | [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for key non-GAAP metrics used by management, showing Q1 2025 Adjusted EBITDA reconciled to $13.8 million from a consolidated net loss of $(27.9) million, Levered Free Cash Flow as a usage of $(47.8) million, and Net Debt increasing to $238.3 million from $193.5 million at the end of 2024 Reconciliation of Net Loss to Adjusted EBITDA (Q1 2025) | (In millions) | Amount | | :--- | :--- | | Consolidated net loss | $(27.9) | | Interest expense, net | $10.0 | | Income tax expense | $0.2 | | Depreciation and amortization | $24.7 | | One-time net costs | $6.0 | | Non-cash compensation | $0.8 | | **Adjusted EBITDA** | **$13.8** | Free Cash Flow Reconciliation (Q1 2025) | (In millions) | Amount | | :--- | :--- | | Net cash flow used in operating activities | $(37.6) | | Capital expenditures | $(15.0) | | Proceeds from sale of property | $4.8 | | **Levered Free Cash Flow** | **$(47.8)** | Net Debt Reconciliation | (In millions) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Debt | $261.0 | $285.1 | | Less: Cash & restricted cash | $22.7 | $91.6 | | **Net Debt** | **$238.3** | **$193.5** |

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 ...

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 Data and Key Metrics Changes - The company reported Q4 revenue of $166 million, a 15% decrease compared to the prior year, but the 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 shift in revenue mix towards higher-margin services [12][18][23] 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, consistent with the full year 2024 breakdown [15] - The Southwest segment generated $61.4 million in revenue, a decrease of 11% sequentially, but adjusted EBITDA increased by 10% due to a favorable revenue mix [25][26] - The Rockies segment experienced a 20% sequential decrease in revenue, largely due to seasonal factors, while the Northeast/Mid-Con segment saw a 4.4% decrease in revenue [24][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][26] Company Strategy and Development Direction - The company successfully refinanced its 2025 notes and asset-based lending (ABL), extending maturities and reducing outstanding notes, which positions it for continued strategic execution [10][29] - The focus remains on capturing market share through operational excellence and differentiated assets, with plans for capital expenditures in the range of $45 million to $55 million for 2025 [36][37] - The company is actively pursuing accretive deleveraging M&A opportunities to enhance market position and shareholder value [45][46] 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][41] - The company is closely monitoring the potential for increased gas-directed completion activity driven by LNG export demand, which is expected to significantly impact market dynamics [43][44] - Management highlighted the importance of maintaining a strong safety culture and operational excellence as key components of their strategy [16][17] Other Important Information - The company ended Q4 with a liquidity position of $112 million, including a cash balance of approximately $92 million [28] - Capital expenditures for Q4 were $15.3 million, a decrease of 27% from Q3, with a focus on maintenance capital across segments [34][35] 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 noted 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 and a shift in revenue mix towards higher-margin services would contribute to margin improvement [57][60] Question: How are you thinking about cash flow for '25 and uses of cash? - Management highlighted a focus on free cash flow generation and deleveraging, with expectations of slightly elevated interest expenses due to refinancing [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 last 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 executing accretive deleveraging transactions that provide scale in existing product lines rather than stepping outside current offerings [88][90]

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].