Core Viewpoint - KLX Energy Services Holdings, Inc. is set to report its third quarter financial results for 2024 on November 1, 2024, prior to a live conference call [1]. Group 1: Earnings Conference Call Details - The earnings conference call will take place on November 1, 2024, at 11:00 a.m. Eastern Time [2]. - Participants can join the call via phone by dialing 1-201-389-0867 or through a live webcast [2]. - A replay of the call will be available until November 15, 2024, and can be accessed by dialing 1-201-612-7415 with the passcode 13749567 [2]. Group 2: Company Overview - KLX is a growth-oriented provider of diversified oilfield services to major onshore oil and natural gas exploration and production companies across the United States [4]. - The company operates over 50 service and support facilities, focusing on drilling, completion, production, and intervention activities for technically demanding wells [4]. - KLX's services are supported by skilled personnel and a broad portfolio of innovative in-house manufacturing, repair, and maintenance capabilities [4].

Financial Performance - KLX Energy Services reported LTM revenue of $770 million as of June 30, 2024[6]. - Q2 2024 revenue reached $180 million, a 3% sequential increase despite a 3% decline in average rig count[28]. - Adjusted EBITDA increased 125% sequentially to $27 million, with an adjusted EBITDA margin of 15%, more than doubling from 7% in Q1 2024[28]. - Revenue for Q1 2023 reached $239.6 million, compared to $152.3 million in Q1 2022, reflecting a year-over-year growth of 57.4%[35]. - The consolidated net loss for Q1 2023 was $(9.2) million, with a net loss margin of (3.8)%[40]. - Revenue for Q2 2023 was $234.0 million, slightly down from $239.6 million in Q1 2023[39]. - Adjusted EBITDA for KLX Energy Services was $152.3 million in Q1 2023, compared to $149.2 million in Q4 2022[57]. - KLX Energy Services generated free cash flow of $60.0 million in Q2 2023, a significant increase from $11.8 million in Q1 2023[54]. Profitability and Margins - The company achieved an Adjusted EBITDA margin of 21% for the period ending June 30, 2024[9]. - Adjusted EBITDA margin for Q1 2023 was 16.6%, up from 3.2% in Q1 2022[36]. - Adjusted SG&A Margin for KLX Energy Services was 8.4% in Q1 2023, compared to 8.7% in Q4 2022[52]. - The Southwest segment reported an adjusted EBITDA of $10.2 million in Q1 2023, indicating strong operational performance[47]. - Adjusted EBITDA Margin for Rocky Mountains segment reached 17.1% in Q1 2023, up from 13.9% in Q4 2022[50]. Debt and Financial Flexibility - KLX Energy Services has a net debt to LTM Adjusted EBITDA ratio of 2.0x, indicating a conservative leverage position[9]. - The company is actively pursuing refinancing of its 2025 debt maturities in 2024 to improve its financial flexibility[10]. - The net debt as of Q2 2024 was $198 million, reduced by 1% sequentially, with a net leverage ratio of 1.8x[28]. - Net Debt decreased to $171.8 million in Q3 2023, down from $198.0 million in Q2 2023[57]. - Net Leverage Ratio improved to 1.3 in Q2 2023, down from 1.9 in Q1 2023[57]. Cost Management and Synergies - The merger with QES is expected to generate over $50 million in annual recurring cost synergies, reducing SG&A as a percentage of revenue from 21% to 11%[11]. - The company enacted approximately $16 million in annualized cost reductions in Q2 2024, primarily from operational streamlining initiatives[28]. - One-time costs in Q2 2024 related to professional services and impairment were noted, impacting overall financial performance[41]. Market Presence and Customer Base - The company has a strong presence in key U.S. oil and gas basins, with 39% of revenue from the Southwest, 34% from the Rockies, and 27% from Northeast/Mid-Con[9]. - Unique customers serviced in 2023 totaled approximately 680, with no single customer accounting for more than 10% of 2023 revenue[18]. - 90% of 2023's top 10 customers were among the top 20 operators by rig count as of December 2023[19]. Product and Technology Development - KLX Energy Services has 38 patents supporting its proprietary products and services, enhancing its competitive edge[9]. - The company aims to expand its integrated suite of proprietary technology and products, focusing on margin-enhancing utilization and pricing strategies[10]. - KLX's proprietary technologies, such as the SHRIMPTM and Oracle SRT Extended Reach Tool, support operational efficiency and innovation[16]. - The company is focusing on market expansion and new product development to drive future growth[41]. Mergers and Acquisitions - The company has pursued two major M&A transactions in the last four years, focusing on strategic fit and financial returns[26]. - The recent acquisition of Greene's is expected to enhance KLX's frac rental and flowback offerings, broadening its market presence[12].

Financial Data and Key Metrics Changes - The company reported Q2 2024 revenue of $180 million, a 3% sequential increase, with adjusted EBITDA of $27 million and an adjusted EBITDA margin of 15% [4][11] - The company returned to positive levered free cash flow of $10 million for the quarter, marking a recovery from previous challenges [4][11] - Over the last eight quarters, the company generated aggregate revenue of $1.7 billion, adjusted EBITDA of $251 million, and levered free cash flow of $83 million [5] Business Line Data and Key Metrics Changes - The Rockies segment revenue increased by 35% sequentially to $61.4 million, driven by a rebound in rentals and tech services [13] - The Southwest segment revenue was $69.9 million, a 1% sequential increase, with adjusted EBITDA increasing by 55% due to cost structure optimization [14] - The Northeast Mid-Con segment experienced an 18% sequential decrease in revenue to $48.9 million, with an adjusted EBITDA of $6.4 million [15] Market Data and Key Metrics Changes - The Southwest represented 39% of Q2 revenue, the Northeast/Mid-Con 27%, and the Rockies 34%, indicating a normalization in the contribution from the Rockies [9] - Revenue per rig increased approximately 10% sequentially and 27% compared to Q2 2022, reflecting market share gains [7] Company Strategy and Development Direction - The company aims to maximize margin and free cash flow generation while ensuring robust financial strength and flexibility [17] - The focus remains on maintaining and improving the asset base to deliver high performance on demanding wells, positioning the company well for the next market upcycle [18] - The company is strategically evaluating M&A opportunities while focusing on refinancing existing notes and ABL [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strength in the Rockies and Southwest for Q3, with expectations for flat to slightly increased revenue compared to Q2 [18] - The company anticipates an increase in activity in 2025 driven by customer integration initiatives and rising gas-directed activity due to LNG export demand [19] - Management highlighted the importance of customer alignment and the ability to adapt to market conditions as key factors for future success [26] Other Important Information - The company implemented approximately $16 million in annualized cost savings, benefiting both cost of sales and G&A [8] - The company ended Q2 with a net debt balance of $198 million and a cash balance of $87 million, indicating a strong liquidity position [16] Q&A Session Summary Question: Visibility on Q4 activity and potential seasonal slowdown - Management noted that while Q3 shows fewer breaks in customer activity, it is premature to provide guidance for Q4 due to fluctuating natural gas prices [21][22] Question: Improvement in margins despite pricing pressure - Management attributed margin improvements to a mix shift towards higher-margin product service lines and effective cost management [25][27] Question: Balance sheet management in a challenging environment - The company has focused on maximizing margins and generating free cash flow, resulting in a stable net debt position [30][31] Question: M&A opportunities and leverage position - Management is currently focused on refinancing existing debt but remains open to evaluating strategic M&A opportunities [32][33] Question: Facility rationalization and industry response - The company has already undergone significant facility rationalization and is well-positioned for future market recovery [36][38] Question: Spot activity in the frac and coil market - Management indicated that while the spot market remains challenging, they have strategies in place to redeploy stacked assets effectively [40][41] Question: Total nonrecurring costs for the quarter - Total nonrecurring costs were confirmed to be $1.4 million for the quarter [43] Question: Sustainability of gross margin levels - Management expressed confidence in maintaining and potentially expanding gross margins due to reduced white space and ongoing cost management efforts [44][46] Question: Refinancing opportunities in the current market - The company is monitoring market conditions and evaluating opportunities for refinancing during 2024 [48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38609 KLX Energy Services Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 36-4904146 (State of Incorpora ...

Company Performance - KLX Energy Services reported a quarterly loss of $0.40 per share, which was better than the Zacks Consensus Estimate of a loss of $0.72, representing an earnings surprise of 44.44% [1] - The company posted revenues of $180.2 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.22%, but down from $234 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 48.9% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.65 on revenues of $182.25 million, and for the current fiscal year, it is -$2.60 on revenues of $711.5 million [7] Industry Outlook - The Oil and Gas - Field Services industry, to which KLX Energy Services belongs, is currently ranked in the bottom 14% of over 250 Zacks industries, indicating a challenging environment [8] - The performance of KLX Energy Services may be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5][8]

HOUSTON, Aug. 7, 2024 /PRNewswire/ -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") today reported financial results for the second quarter ended June 30, 2024. Second Quarter 2024 Financial Highlights Revenue of $180 million Enacted approximately $16 million of annualized cost reductions in the second quarter of 2024 primarily related to operational streamlining initiatives, insurance and professional fees Net loss of $(8) million and diluted loss per share o ...

HOUSTON, Aug. 1, 2024 /PRNewswire/ -- KLX Energy Services Holdings, Inc. ("KLX" or the "Company") (NASDAQ: KLXE) announced today that it will report its 2024 second quarter financial results prior to the Company's live conference call, which can be accessed via dial-in or webcast, on Thursday, August 8, 2024 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). What: KLX Energy Services 2024 Second Quarter Earnings Conference Call When: Thursday, August 8, 2024 at 10:00 a.m. Eastern Time / 9:00 a.m. Central ...

HOUSTON, July 16, 2024 /PRNewswire/ -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") today announced preliminary financial results for the three months ended June 30, 2024. Estimated Revenue range of $178 million to $182 million, increased sequentially approximately 3% despite a 7% decline in rig count over the same period Enacted approximately $16 million of annualized cost reductions in the second quarter of 2024 primarily related to operational streamlining ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-38609 KLX Energy Services Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 36-4904146 (State of Incorpor ...

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) Q1 2024 Earnings Conference Call May 8, 2024 10:00 AM ET Company Participants Zach Vaughan - IR Christopher Baker - President & CEO Keefer Lehner - EVP & CFO Conference Call Participants Steve Ferazani - Sidoti John Daniel - Daniel Energy Partners David Marsh - Singular Research Operator Good day, ladies and gentlemen, and welcome to the KLX Energy Services First Quarter Earnings Conference Call. [Operator Instructions]. At this time, it is my pleasure to tu ...