Klx Energy Services Holdings, Inc. · NASDAQ:KLXE
Klx Energy Services — Investor Presentation (December 2023)
27 slides from Klx Energy Services's investor presentation, Dec 6, 2023
Slide 1: Investor Presentation December 2023
December 2023 1 Investor Presentation
Slide 2: Forward-Looking Statements
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- looking statements
Slide 3: Next Level Readiness
3 NEXT LEVEL READINESS KLX Energy Services is a leading U.S. onshore provider of value-added, technologically-differentiated oilfield services focused on completion, intervention and production activities for the most technically demanding wells. NASDAQ KLXE Headquartered in Houston, TX Headcount ~2
Slide 4: Strategic Focus
4 KLX Energy Services Strategic Focus Provide market leading onsite job execution and safety Drive margin enhancing utilization Focus on pricing and cost structure to drive margins Expand share of wallet with top customers Continue to de-lever through a combination of EBITDA growth, free c
Slide 5: Areas of Operation
Rockies 28% Southwest 35% Northeast/Mid-Con 37% Headquarters Technology Center Southwest Operation Facilities Rockies Operation Facilities Northeast / Mid-Con Operation Facilities AREAS OF OPERATION
Slide 6: Diversified Product Offering
Drilling Completion KLX Energy Services 6 110 measurement-while-drilling kits Over 850 mud motors (~60% are latest gen) 23 modern, large-diameter Coiled Tubing Units 75+ Wireline Units (split with Production) 120+ Frac Trees and 50 Guardian Isolation Tools 490+ accommodation trailers (split with Dri
Slide 7: Diversified & Complementary Product Service Offering
KLX Energy Services 7 Diversified & Complementary Product Service Offering Diversified product service offering positions KLX to capture a larger percentage of customer spending across the lifecycle Refocused product service offering across core geographies to improve scale, utilization and retu
Slide 8: Well construction equipment and proprietary tools by segment
Wide range of well construction equipment spanning a wide range of size and configuration HPHT float equipment Latch-in plugs and wiper plugs Centralizers 2-stage cement tools and annular casing packers Liner hanger systems Proprietary MWD tool design and packaging Proprietary surfac
Slide 9: Continuous Advancement in Research & Development
Top ball and bottom set design with zero presets Tested and qualified up to 10,000psi and 350°F Available in both Saltwater Alloy and Fresh Water Alloy 100% traceability and QA/QC throughout manufacturing 100% USA designed and manufactured R&D facility in Houston supports continuous tech
Slide 10: Strategic Fit, People, Efficiencies and Synergies
Strong management team with proven operational track-record and deep M&A experience Retention of key employees Strong Board and corporate governance Premier provider of drilling, completion, production and intervention solutions with a returns driven strategy Minimal customer overlap with
Slide 11: A Transformed KLX
Performance culture KPI tracking / data-driven decision making Veteran operators Technical expertise Alignment of incentives KLX Energy Services 11 Rigorous maintenance program Minimize downtime Ensure equipment integrity Comprehensive suite of equipment and tool sizes across all PSLs Employees valu
Slide 12: Significant Operating Leverage
Significant Operating Leverage 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 of legacy KLX Energy Servic
Slide 13: Recent Acquisition Case Study
13 Recent Acquisition Case Study KLX and Greene’s formed a strong partnership based on a common culture focused on safety, execution, customer service and returns. The combined company is a leading provider of wellhead protection, flowback and well testing services. The acquisition of Greene’s augme
Slide 14: KLX – The Choice of Top Operators
14 KLX Energy Services KLX – The Choice of Top Operators Revenue driven by top 10 customers in 2022 Significant leverage to the most active operators in the United States 760 30% Unique customers serviced in 2022 with no one customer accounting for more than 5% of 2022 revenue
Slide 15: Strong Profitability & Free Cash Flow
KLX Energy Services 15 Strong Profitability & Free Cash Flow Rapidly improving financial results as KLX has grown back into the capital structure Q3 2023 Revenue and Adj EBITDA of $221MM and $37MM, respectively Full year 2023 Revenue and Adj EBITDA of $895MM and $145MM, respectively, which rep
Slide 16: Enhanced Capitalization & Leverage Profile
16 Enhanced Capitalization & Leverage Profile Dollar amounts in millions. As of Q3 2023. Company disclosure. Q1 2023 includes only a partial month contribution from Greene’s. Cash $90M Liquidity $155M Net Debt $194M LQA Net Leverage Ratio 1.3x LTM Net Leverage Ratio 1.3x Maturity 2025
Slide 17: Corporate Headquarters and Investor Relations
17 Corporate Headquarters 3040 POST OAK BLVD 15th Floor Houston, TX 77056 Investor Relations Keefer M. Lehner, EVP & CFO (832) 930-8066 ir@klx.com
Slide 18: Appendix
APPENDIX 18
Slide 19: Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA
KLX Energy Services 19 Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA (Loss) *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 expense associated with five coiled tubing unit leas
Slide 20: Net Income Margin and Adjusted EBITDA Margin Reconciliations
KLX Energy Services 20 Consolidated Net Income (Loss) Margin and Consolidated Adjusted EBITDA Margin Reconciliations Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Net income (loss) $ (19.9) $ (7.5) $ 11.1 $ 13.2 $ 9.4 $ 11.4 $ 7.6 Revenue .............. 152.3 184.4 221.6 223.3 239.6 234.0 220.6 Consolid
Slide 21: Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA
KLX Energy Services 21 Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Rocky Mountains operating income (loss) ........ $ (0.8) $ 4.0 $ 11.7 $ 12.4 $ 9.8 $ 11.9 $ 17.7 One-time costs (1) 0.1 0.1 0.3 — — — — Adjusted operating income (los
Slide 22: Segment Operating Income (Loss) Margin Reconciliation
KLX Energy Services 22 Segment Operating Income (Loss) Margin Reconciliation Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Rocky Mountains Operating income (loss) .... $ (0.8) $ 4.0 $ 11.7 $ 12.4 $ 9.8 $ 11.9 $ 17.7 Revenue ........................... 43.3 53.1 66.5 66.1 67.9 66.4 77.0 Segment operating
Slide 23: Segment Adjusted EBITDA Margin Reconciliation
KLX Energy Services 23 Segment Adjusted EBITDA Margin Reconciliation Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Rocky Mountains Adjusted EBITDA ............. $ 4.7 $ 9.3 $ 17.3 $ 17.9 $ 15.5 $ 17.0 $ 23.3 Revenue ........................... 43.3 53.1 66.5 66.1 67.9 66.4 77.0 Adjusted EBITDA Margin Pe
Slide 24: SG&A Margin Reconciliation
KLX Energy Services 24 SG&A Margin Reconciliation Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Selling, general and administrative expenses ............. $ 15.0 $ 18.0 $ 18.0 $ 19.4 $ 26.2 $ 22.0 $ 18.6 Revenue ............... 152.3 184.4 221.6 223.3 239.6 234.0 220.6 SG&A Margin Percentage ..........
Slide 25: Annualized Adjusted EBITDA Reconciliation
KLX Energy Services 25 Annualized Adjusted EBITDA Reconciliation Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Adjusted EBITDA $ 4.9 $ 17.4 $ 37.1 $ 37.3 $ 38.2 $ 39.7 $ 36.7 Multiplied by four quarters .............. 4 4 4 4 4 4 4 Annualized Quarterly Adjusted EBITDA ................ $ 19.6 $ 69.6 $ 14
Slide 26: Free Cash Flow Reconciliation
KLX Energy Services 26 Free Cash Flow Reconciliation Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Net cash flow provided by (used in) operating activities .............. $ (6.2) $ (8.4) $ 18.5 $ 11.8 $ (8.6) $ 60.0 $ 25.6 Capital expenditures ........ (5.8) (7.8) (12.5) (9.5) (10.3) (16.2) (17.8) Proce
Slide 27: Net Debt and LQA Net Leverage Ratio Reconciliations
KLX Energy Services 27 Net Debt and LQA Net Leverage Ratio Reconciliations Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Total Debt ............ $ 275.1 $ 295.4 $ 295.6 $ 283.4 $ 283.6 $ 283.8 $ 284.1 Cash ..................... 19.4 31.5 41.4 57.4 39.6 82.1 90.4 Net Debt .............. $ 255.7 $ 263.9 $
KLX Energy Services Holdings — Investor Presentation (December 2023) on 6ix