Klx Energy Services Holdings, Inc. · NASDAQ:KLXE
Klx Energy Services — Investor Presentation (December 2022)
25 slides from Klx Energy Services's investor presentation, Dec 7, 2022
Slide 1: Investor Presentation December 2022
1 Investor Presentation December 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 involv
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 Executive VP, General Counsel and
Slide 5: KLX Energy Services (KLXE) Overview
5 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 services focused on the entire well life-cycle for the most technically demanding wells across the major
Slide 6: KLXE / QES Merger Integration Success
6 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 7: A Transformed KLXE
7 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 8: Diversified and Complementary Product Service Offering
8 Diversified and Complementary Product Service Offering PSL1 Q3 2022 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% ✓ ✓ Living accommoda
Slide 9: Significant Operating Leverage Tied To Market Recovery
9 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 10: Top Operators Choose KLXE
10 Top Operators Choose KLXE ▪ Served over 760 unique customers YTD 2022 with no one customer accounting for more than 5% of YTD 2022 revenue ▪ Diverse customer base – Top 10 YTD 2022 customers accounted for 30% of YTD 2022 Revenue ▪ Significant leverage to the most active operators in the United St
Slide 11: Profitability Returned to 2019 Levels
11 • Rapidly improving financial results with annualized Q3 Revenue and Adj EBITDA of $886MM and $148MM, respectively • Generated $11MM of Q3 Net Income and $0.96 in EPS Profitability Returned to 2019 Levels Source: Company disclosure Note: Results in Q2 2021 and prior are reported using a January 3
Slide 12: Balance Sheet & Capitalization
12 • Ended Q3 with cash and total debt balance of $41MM and $295MM, respectively • Previously announced approximately $4MM of debt-equity exchange transactions post closing Q3 • Amended ABL in Q3 2022 under improved terms and extended maturity to Q3 2024 • Q3 liquidity improved sequentially by $30MM
Slide 13: Go-Forward Strategy
13 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 14: Appendix
14 Appendix
Slide 15: Reconciliation of Consolidated Net Loss to Adjusted EBITDA (Loss)
15 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 16: Reconciliation of Consolidated Net Income (Loss) to Adjusted EBITDA (Loss)
16 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 thi
Slide 17: Consolidated Net Income (Loss) Margin Reconciliation
17 Consolidated Net Income (Loss) Margin Reconciliation Source: Company disclosure Consolidated Net Income (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 18: Consolidated Adjusted EBITDA (Loss) Margin Reconciliation
18 Consolidated Adjusted EBITDA (Loss) Margin Reconciliation Source: Company disclosure Consolidated Adjusted EBITDA (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 19: Rocky Mountains Segment Adj EBITDA Reconciliation
19 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 20: Southwest Segment Adj EBITDA Reconciliation
20 Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA (Loss) Source: Company disclosure (dollar amounts in millions) Southwest Segment Adj EBITDA (Loss) Reconciliation
Slide 21: Northeast/Mid-Con Segment Adj EBITDA Reconciliation
21 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 22: Segment Operating Income (Loss) Margin Reconciliation
22 Segment Operating Income (Loss) Margin Reconciliation Source: Company disclosure Segment Operating Income (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 23: Segment Adjusted EBITDA (Loss) Margin Reconciliation
23 Segment Adjusted EBITDA (Loss) Margin Reconciliation Source: Company disclosure Segment Adj EBITDA (Loss) Margin Reconciliation (dollar amounts in millions)
Slide 24: SG&A Margin Reconciliation
24 SG&A Margin Reconciliation Source: Company disclosure SG&A Margin Reconciliation (dollar amounts in millions)
Slide 25: Annualized Adjusted EBITDA (Loss) Reconciliation
25 Annualized Adjusted EBITDA (Loss) Reconciliation Source: Company disclosure Annualized Quarterly Adj EBITDA (Loss) Reconciliation (dollar amounts in millions)
KLX Energy Services Holdings — Investor Presentation (December 2022) on 6ix