Klx Energy Services Holdings, Inc. · NASDAQ:KLXE
Klx Energy Services — Investor Presentation (September 2023)
29 slides from Klx Energy Services's investor presentation, Sep 6, 2023
Slide 1: Investor Presentation September 2023
1 Investor Presentation September 2023
Slide 2: Disclaimer & Forward-looking Statements
2 Disclaimer & Forward-looking Statements Cautionary Statement on Forward-looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. This presentation includes forward-look
Slide 3: Company Overview
3 Company Overview
Slide 4: KLX Energy Services (KLX) Overview
4 Rockies 28% Southwest 37% Midcon/Northeast 35% KLX Energy Services (KLX) Overview Company Overview Areas of Operation Diversified Product Offering Diversified Business Model • Leading U.S. onshore provider of technologically-differentiated, mission critical services for the full life-cycle of tech
Slide 5: Diversified and Complementary Product Service Offering
5 Diversified and Complementary Product Service Offering PSL1 Q2 2023 Revenue Market Leader Rockies Southwest Northeast/ Mid Con Select Products & Services Directional Drilling 19% MWD, proprietary K-Series mud motor, directional electronics and other modules Accommodations 5% Living accommodations,
Slide 6: Technologically Differentiated Products
6 Technologically Differentiated Completions Composite and dissolvable frac plugs Retrievable packers and bridge plugs Proprietary Extended Reach Tool (“ERT”) (Two patents pending) Proprietary and patented PDC bearing mud-motor Production Production Packers Packer tubing accessories Co
Slide 7: KLX / QES Merger Integration Success
7 KLX / QES Merger Integration Success Strategic Fit Premier provider of drilling, completion, production and intervention solutions with a returns driven strategy Minimal customer overlap with significant cross-sell potential Positioned to participate in further industry consolidation People
Slide 8: A Transformed KLX
8 A Transformed KLX People Performance Asset Integrity Safety Customer Focus Profitability Veteran operators throughout the organization Deep technical expertise Transparent alignment of incentives Significant operating leverage Return on capital focus Performance culture Detailed KPI
Slide 9: Significant Operating Leverage Tied To Market Recovery
9 Significant Operating Leverage Tied To Market Recovery US Land Rig Count and KLX Quarterly Adj EBITDA (Including Pre-merger Combined) Source: Company & Baker Hughes Rig Count. The Company’s results for the periods Q1’19 through Q1’20 are presented on a pre-merger combined basis, which is the sum o
Slide 10: Greene's Acquisition Case Study
10 Greene’s Acquisition Case Study Cost Synergies Identified $2.0MM to $3.0MM recurring cost synergies Expect to realize savings within 12 months of transaction closing Accretive Expect the transaction to be accretive across all key metrics Deleveraging Greene’s had zero leverage and $1.7MM
Slide 11: Top Operators Choose KLX
11 Top Operators Choose KLX Served over 760 unique customers in 2022 with no one customer accounting for more than 5% of 2022 revenue Diverse customer base – Top 10 2022 customers accounted for 30% of 2022 Revenue Significant leverage to the most active operators in the United States As of Q2
Slide 12: Strong Profitability and Free Cash Flow
12 • Rapidly improving financial results as KLX has grown back into the capital structure • Q2 2023 Revenue and Adj EBITDA of $234MM and $40MM, respectively • Q2 2023 Net Income and Free Cash Flow of $11.4MM and $47.3MM, respectively Strong Profitability and Free Cash Flow As of Q2 2023. Company dis
Slide 13: Enhanced Capitalization & Leverage Profile
13 Enhanced Capitalization & Leverage Profile As of Q2 2023. Company disclosure Net Leverage Ratio reflects Last Quarter Annualized Adj EBITDA. See reconciliation on Slide 29 Net Debt & LQA Net Leverage Ratio (dollar amounts in millions) Current Capitalization Highlights $254 $226 $244 $202 1.7x 1.5
Slide 14: Go-Forward Strategy
14 Go-Forward Strategy Augment Balance Sheet Strength Continue to de-lever through a combination of EBITDA growth, free cash flow generation, debt reduction and consolidation Consolidation Believe KLX is the partner of choice for consolidation Greene’s acquisition is a blue-print by which KLX
Slide 15: Appendix
15 Appendix
Slide 16: Reconciliation of Consolidated Net Loss to Adjusted EBITDA (Loss)
16 Reconciliation of Consolidated Net Loss to Adjusted EBITDA (Loss) (dollar amounts in millions) Source: Company Disclosure Adj EBITDA Reconciliation *Previously announced quarterly numbers may not sum to the year-end total due to rounding. (1) Quarterly cost of sales includes $2.1 million of lease
Slide 17: Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA (Loss)
17 Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA (Loss) (dollar amounts in millions) Source: Company Disclosure Adj EBITDA Reconciliation (Continued) *Previously announced quarterly numbers may not sum to the year-end total due to rounding. (1) The one-time costs during the sec
Slide 18: Consolidated Net Income (Loss) Margin Reconciliation
18 Consolidated Net Income (Loss) Margin Reconciliation Source: Company Disclosure Consolidated Net Income (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 19: Consolidated Adjusted EBITDA (Loss) Margin Reconciliation
19 Consolidated Adjusted EBITDA (Loss) Margin Reconciliation Source: Company Disclosure Consolidated Adjusted EBITDA (Loss) Margin Reconciliation (dollar amounts in millions) Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Adjusted EBITDA (loss) $ (9.4) $ 0.6 $ 4.1 $ 6.7 $ 4.9 $ 17.4 $ 3
Slide 20: Rocky Mountains Segment Adj EBITDA Reconciliation
20 Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA (Loss) (dollar amounts in millions) Rocky Mountains Segment Adj EBITDA (Loss) Reconciliation Source: Company Disclosure
Slide 21: Southwest Segment Adj EBITDA Reconciliation
21 Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA (Loss) Source: Company Disclosure (dollar amounts in millions) Southwest Segment Adj EBITDA (Loss) Reconciliation
Slide 22: Northeast/Mid-Con Segment Adj EBITDA Reconciliation
22 Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA (Loss) Source: Company Disclosure (dollar amounts in millions) Northeast/Mid-Con Segment Adj EBITDA (Loss) Reconciliation
Slide 23: Segment Operating Income (Loss) Margin Reconciliation
23 Segment Operating Income (Loss) Margin Reconciliation Source: Company Disclosure Segment Operating Income (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 24: Segment Adjusted EBITDA (Loss) Margin Reconciliation
24 Segment Adjusted EBITDA (Loss) Margin Reconciliation Source: Company Disclosure Segment Adj EBITDA (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 25: SG&A Margin Reconciliation
25 SG&A Margin Reconciliation Source: Company Disclosure SG&A Margin Reconciliation (dollar amounts in millions)
Slide 26: Annualized Adjusted EBITDA (Loss) Reconciliation
26 Annualized Adjusted EBITDA (Loss) Reconciliation Source: Company Disclosure Annualized Quarterly Adj EBITDA (Loss) Reconciliation (dollar amounts in millions)
Slide 27: Free Cash Flow Reconciliation
27 Free Cash Flow Reconciliation Source: Company Disclosure Free Cash Flow Reconciliation (dollar amounts in millions)
Slide 28: Net Debt Reconciliation
28 Net Debt Reconciliation Source: Company Disclosure Net Debt Reconciliation (dollar amounts in millions)
Slide 29: LQA Net Leverage Ratio Reconciliation
29 LQA Net Leverage Ratio Reconciliation Source: Company Disclosure LQA Net Leverage Ratio Reconciliation (dollar amounts in millions)
KLX Energy Services Holdings — Investor Presentation (September 2023) on 6ix