Klx Energy Services Holdings, Inc. · NASDAQ:KLXE
Klx Energy Services — Investor Presentation (June 2022)
26 slides from Klx Energy Services's investor presentation, Jun 21, 2022
Slide 1: Investor Presentation June 2022
1 Investor Presentation June 2022
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. Such forward-looking statements involve
Slide 3: Company Overview
3 Company Overview
Slide 4: Cycle-tested Executive Team with Deep Industry Experience
4 Cycle-tested Executive Team with Deep Industry Experience Management team successfully led merger integration Chris Baker President & Chief Executive Officer Keefer Lehner EVP, Chief Financial Officer Max Bouthillette EVP, General Counsel and CCO ▪ Previously QES’s Executive VP, General Counsel an
Slide 5: A Transformed KLXE
5 A Transformed KLXE Post-merger, KLXE transformed into industry leader People Performance Asset Integrity Safety Customer Focus Profitability ✓ Veteran operators throughout the organization ✓ Significant investment among executives and key managers ✓ Return on capital orientation ✓ Transparent alig
Slide 6: KLX Energy Services (KLXE) Overview
6 Drilling 28% Completions 50% Production & Intervention 22% KLX Energy Services (KLXE) Overview Company Overview Areas of Operation Diversified Product Offering1 Diversified Business Model • Leading U.S. onshore provider of value-added, mission critical oilfield services • Focused on drilling, comp
Slide 7: KLXE / QES Merger Integration Success
7 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 Effici
Slide 8: Diversified and Complementary Product Service Offering
8 Diversified and Complementary Product Service Offering PSL1 Q1 2022 Rev. Contribution Key Geography Select Products & Services Directional Drilling 22% Rockies, Southwest, Northeast / Mid-Con MWD, K-Series mud motor, directional electronics and other modules Accommodations 6% Southwest, Northeast
Slide 9: KLXE Serves Top U.S. Operators in All Key Basins
9 KLXE Serves Top U.S. Operators in All Key Basins ▪ Served over 740 unique customers in 2021 with no customer accounting for more than 10% of 2021 revenue ▪ Diverse customer base – Top 10 customers accounted for only 29% of 2021 Revenue (down from 33% in 2020) ▪ Significant leverage to the most act
Slide 10: Platform for Ongoing Consolidation
10 Platform for Ongoing Consolidation ▪ The management team has extensive experience successfully integrating acquisitions and quickly extracting cost synergies ▪ History of retaining key employees through a merger and subsequent integration process ▪ Focus on well-capitalized businesses with strong
Slide 11: Go-Forward KLXE Strategy
11 Go-Forward KLXE Strategy Cost Control ▪ 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 worki
Slide 12: Industry Outlook
12 Industry Outlook
Slide 13: Supply / Demand Dynamics Favor U.S. OFS Market
13 Supply / Demand Dynamics Favor U.S. OFS Market Geopolitics Upstream Investment Pricing and Margins ▪ Oilfield service companies expected to gain leverage in a more favorable commodity price environment ▪ Historical margin inequality between upstream and OFS companies; gap expected to narrow in fa
Slide 14: U.S. E&P Cash Cycle Since 2010
14 $102 $125 $117 $141 $169 $103 $101 $126 $174 $154 $93 $244 $96 $121 $164 $171 $201 $137 $86 $119 $152 $140 $78 $84 $6 $4 ($46) ($30) ($32) ($35) $15 $6 $21 $13 $14 $159 ($100) ($50) $0 $50 $100 $150 $200 $250 $300 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ i n b ill io n s U.S.
Slide 15: Improving Macro Backdrop
15 Improving Macro Backdrop Rig counts historically tracked commodity prices, but the correlation has decoupled since April 2020 Source: Baker Hughes, FactSet, Wall Street Research Note: Market data as of 6/10/2022 Henry Hub is not to scale and is in $ / MMcf 1,761 1,862 978 509 876 1,032 943 433 47
Slide 16: Financial Performance
16 Financial Performance
Slide 17: Summary Income Statement
17 Summary Income Statement Source: Company disclosure Note: Results in Q2 2021 and prior are reported using a January 31st fiscal year end; results in Q3 and Q4 2021 are reported using a December 31st fiscal year end Summary Segment Income Statement (dollar amounts in millions) Fiscal Quarter Pro F
Slide 18: Balance Sheet Summary
18 Balance Sheet Source: Company disclosure Summary Balance Sheet as of March 31, 2022 (dollar amounts in millions) Assets Liabilities & Shareholders' Equity Cash $19.4 Accounts Payable $71.9 Accounts Receivable, net 107.0 Accrued Liabilities 37.2 Inventories 24.3 Current Portion of Finance Lease 6.
Slide 19: Appendix
19 Appendix
Slide 20: Reconciliation of Consolidated Net Loss to Adjusted EBITDA
20 Reconciliation of Consolidated Net Loss to Adjusted EBITDA (loss) (dollar amounts in millions) Source: Company disclosure Adj EBITDA Reconciliation
Slide 21: Reconciliation of Segment Operating Income to Adjusted EBITDA: Rocky Mountains
21 Reconciliation of Segment Operating Income (loss) to Adjusted EBITDA (loss) (dollar amounts in millions) Rocky Mountains Segment Adj EBITDA Reconciliation Source: Company disclosure
Slide 22: Reconciliation of Segment Operating Income to Adjusted EBITDA: Southwest
22 Reconciliation of Segment Operating Income (loss) to Adjusted EBITDA (loss) Source: Company disclosure (dollar amounts in millions) Southwest Segment Adj EBITDA Reconciliation
Slide 23: Reconciliation of Segment Operating Income to Adjusted EBITDA: Northeast / Mid-Con
23 Reconciliation of Segment Operating Income (loss) to Adjusted EBITDA (loss) Source: Company disclosure (dollar amounts in millions) Northeast / Mid-Con Segment Adj EBITDA Reconciliation
Slide 24: Segment Adjusted EBITDA Margin Reconciliation
24 Segment Adjusted EBITDA Margin Reconciliation Source: Company disclosure Segment Adj EBITDA 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) PF Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Adjusted EBITDA (loss) ..... $ (19.3) $ (5.4) $ (2.6) $ (9.4) $ 0.6 $ 4.1 $ 6.7 $ 4.9 M
KLX Energy Services Holdings — Investor Presentation (June 2022) on 6ix