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 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 ...

KLX Energy Services (KLXE) came out with a quarterly loss of $1.27 per share versus the Zacks Consensus Estimate of a loss of $0.86. This compares to loss of $1.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -47.67%. A quarter ago, it was expected that this service provider to oil and natural gas producers would post a loss of $0.72 per share when it actually produced a loss of $0.80, delivering a surprise of -11.11%.Over ...

NEWS RELEASE Contacts: KLX Energy Services Holdings, Inc. Keefer M. Lehner, EVP & CFO 832-930-8066 IR@klx.com Dennard Lascar Investor Relations Ken Dennard / Natalie Hairston 713-529-6600 KLXE@dennardlascar.com KLX ENERGY SERVICES HOLDINGS, INC. REPORTS FIRST QUARTER 2025 RESULTS HOUSTON, TX - May 8, 2025 - KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") today reported financial results for the first quarter ended March 31, 2025. First Quarter 2025 Financial and ...

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 Holdings, Inc. (NASDAQ:KLXE) Q4 2024 Earnings Conference Call March 14, 2025 9:30 AM ET Company Participants Ken Dennard - Investor Relations Christopher Baker - President and Chief Executive Officer Keefer Lehner - Executive Vice President and Chief Financial Officer Conference Call Participants Steve Ferazani - Sidoti & Company John Daniel - Daniel Energy Partners Operator Greetings and welcome to the KLX Energy Services 2024 Fourth Quarter and Year-End Earnings Conference Call. At thi ...

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]

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].

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]