Klx Energy Services Holdings, Inc. · NASDAQ:KLXE
Klx Energy Services — Louisiana Energy Conference May 2023
24 slides from Klx Energy Services's conference presentation, May 30, 2023
Slide 1: Louisiana Energy Conference May 2023
1 Louisiana Energy Conference May 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 (KLXE) Overview
4 KLX Energy Services (KLXE) Overview Company Overview Areas of Operation Diversified Product Offering Diversified Business Model • Leading U.S. onshore provider of value-added, mission critical services focused on the entire well life-cycle for the most technically demanding wells across the major
Slide 5: KLXE / QES Merger Integration Success
5 KLXE / 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 6: A Transformed KLXE
6 A Transformed KLXE 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 orientation Performance culture Detail
Slide 7: Diversified and Complementary Product Service Offering
7 Diversified and Complementary Product Service Offering PSL1 Approximate Q1 2023 Rev. Contribution Rockies Southwest Northeast/ Mid Con Select Products & Services Directional Drilling 20% MWD, proprietary K-Series mud motor, directional electronics and other modules Accommodations 5% Livi
Slide 8: Significant Operating Leverage Tied To Market Recovery
8 Significant Operating Leverage Tied To Market Recovery US Land Rig Count and KLXE 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
Slide 9: Greene's Acquisition Case Study
9 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 o
Slide 10: Top Operators Choose KLXE
10 Top Operators Choose KLXE 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 – MSAs w
Slide 11: Profitability and Net Leverage Continue to Improve
11 • Rapidly improving financial results as KLXE has grown back into the capital structure • Q1 2023 Revenue and Adj EBITDA of $240MM and $38MM, respectively • Pro Forma for a full quarter contribution from Greene’s, Q1 Revenue and Adj EBITDA would have been $252MM and $41MM, respectively • Q1 2023
Slide 12: Go-Forward Strategy
12 Go-Forward Strategy Cost Controls Continue to manage through supply chain constraints and pass costs onto customers Retain personnel and maintain equipment quality while continuing to proactively manage the cost structure to drive incremental margins Continue to proactively manage working c
Slide 13: Appendix
13 Appendix
Slide 14: Reconciliation of Consolidated Net Loss to Adjusted EBITDA (Loss)
14 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 15: Reconciliation of Consolidated Net Loss to Adjusted EBITDA (Continued)
15 Reconciliation of Consolidated Net 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 benefits during the first qua
Slide 16: Consolidated Net Income (Loss) Margin Reconciliation
16 Consolidated Net Income (Loss) Margin Reconciliation Source: Company Disclosure Consolidated Net Income (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 17: Consolidated Adjusted EBITDA (Loss) Margin Reconciliation
17 Consolidated Adjusted EBITDA (Loss) Margin Reconciliation Source: Company Disclosure Consolidated Adjusted EBITDA (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 18: Rocky Mountains Segment Adj EBITDA (Loss) Reconciliation
18 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 19: Southwest Segment Adj EBITDA (Loss) Reconciliation
19 Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA (Loss) Source: Company Disclosure (dollar amounts in millions) Southwest Segment Adj EBITDA (Loss) Reconciliation
Slide 20: Northeast/Mid-Con Segment Adj EBITDA (Loss) Reconciliation
20 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 21: Segment Operating Income (Loss) Margin Reconciliation
21 Segment Operating Income (Loss) Margin Reconciliation Source: Company Disclosure Segment Operating Income (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 22: Segment Adjusted EBITDA (Loss) Margin Reconciliation
22 Segment Adjusted EBITDA (Loss) Margin Reconciliation Source: Company Disclosure Segment Adj EBITDA (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 23: SG&A Margin Reconciliation
23 SG&A Margin Reconciliation Source: Company Disclosure SG&A Margin Reconciliation (dollar amounts in millions)
Slide 24: Annualized Adjusted EBITDA (Loss) Reconciliation
24 Annualized Adjusted EBITDA (Loss) Reconciliation Source: Company Disclosure Annualized Quarterly Adj EBITDA (Loss) Reconciliation (dollar amounts in millions)
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