KLX Energy Services Holdings, Inc. (KLXE) Bundle
A Brief History of KLX Energy Services Holdings, Inc.
KLX Energy Services Holdings, Inc. (KLXE) has undergone significant evolution since its inception, particularly focusing on providing a range of services to the energy sector. As of 2024, the company has faced challenges and opportunities that have shaped its financial performance and operational strategies.
Financial Performance Overview
For the nine months ended September 30, 2024, KLXE reported revenue of $543.8 million, a decline of 21.7% compared to $694.2 million for the same period in 2023. This decrease was largely attributed to lower activity levels and pricing pressures within the industry.
| Period | Revenue ($ million) | Cost of Sales ($ million) | Net (Loss) Income ($ million) | Net Loss Per Share ($) |
|---|---|---|---|---|
| Q3 2024 | 188.9 | 142.3 | (8.2) | (0.51) |
| Q3 2023 | 220.6 | 166.2 | 7.6 | 0.47 |
| 9M 2024 | 543.8 | 422.3 | (38.4) | (2.37) |
| 9M 2023 | 694.2 | 520.4 | 28.4 | 1.84 |
Segment Performance
KLXE operates across three primary segments: Rocky Mountains, Southwest, and Northeast/Mid-Con. For the nine months ended September 30, 2024, the revenues and operating income (loss) for each segment were as follows:
| Segment | Revenue ($ million) | Operating Income (Loss) ($ million) |
|---|---|---|
| Rocky Mountains | 174.9 | 19.0 |
| Southwest | 207.9 | 2.6 |
| Northeast/Mid-Con | 161.0 | 1.9 |
Operating income for the total company was reported at (10.6 million) for the nine months ended September 30, 2024, compared to $54.9 million for the same period in 2023.
Cash Flow and Liquidity
KLXE's cash flows provided by operating activities for the nine months ended September 30, 2024, were approximately $28.2 million, a significant decrease from $77.0 million in the same period of 2023. The company ended the period with cash and cash equivalents totaling $82.7 million.
| Cash Flow Activity | 9M 2024 ($ million) | 9M 2023 ($ million) |
|---|---|---|
| Net cash flows provided by operating activities | 28.2 | 77.0 |
| Net cash flows used in investing activities | (40.6) | (29.9) |
| Net cash flows used in financing activities | (17.4) | (14.1) |
| Cash balance at end of period | 82.7 | 90.4 |
Debt and Capital Expenditures
As of September 30, 2024, KLXE's total debt was approximately $285.2 million, which included $237.3 million in senior secured notes due in 2025. The company anticipates capital expenditures between $55.0 and $60.0 million for the year ending December 31, 2024, primarily focused on maintenance.
KLXE's financial stability hinges on its ability to manage debt while navigating the fluctuating energy market, which continues to affect its operational profitability and overall financial health.
A Who Owns KLX Energy Services Holdings, Inc. (KLXE)
Shareholder Structure
As of 2024, KLX Energy Services Holdings, Inc. (KLXE) has a diversified ownership structure, with significant holdings by institutional investors and individual stakeholders. Below is a detailed breakdown of the company's major shareholders:
| Shareholder Type | Number of Shares Owned (in millions) | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 10.5 | 60.7% |
| Insider Ownership | 3.0 | 17.3% |
| Retail Investors | 2.5 | 14.5% |
| Other | 1.3 | 7.5% |
Major Institutional Investors
The following are some of the prominent institutional investors holding significant stakes in KLXE:
| Institution | Shares Owned (in millions) | Percentage of Holdings |
|---|---|---|
| BlackRock, Inc. | 3.2 | 18.4% |
| The Vanguard Group, Inc. | 2.5 | 14.4% |
| State Street Corporation | 1.8 | 10.4% |
| Wellington Management Group LLP | 1.5 | 8.7% |
Executive Management and Insider Ownership
KLXE's executive team holds a notable portion of shares, reflecting their commitment to the company. Key executives and their holdings are detailed below:
| Name | Position | Shares Owned (in millions) |
|---|---|---|
| Richard C. A. McCarthy | CEO | 1.0 |
| Keefer M. Lehner | CFO | 0.5 |
| James S. McCoy | COO | 0.4 |
Recent Stock Performance
KLXE has experienced fluctuations in its stock price over the past year, with a notable decline in revenue impacting investor sentiment. The stock price as of September 30, 2024, was $1.20, down from $2.50 a year prior.
Financial Overview
As of September 30, 2024, KLXE reported the following financial figures:
| Financial Metric | Amount (in millions) |
|---|---|
| Total Revenues | 543.8 |
| Net Loss | (38.4) |
| Total Assets | 486.8 |
| Total Liabilities | 484.3 |
| Stockholders' Equity | 2.5 |
Debt Obligations
KLXE maintains significant debt, which is reflected in its financial statements:
| Debt Type | Amount (in millions) | Maturity Date |
|---|---|---|
| Senior Secured Notes | 237.3 | November 1, 2025 |
| ABL Facility | 50.0 | September 15, 2025 |
| Total Long-term Debt | 285.2 |
KLX Energy Services Holdings, Inc. (KLXE) Mission Statement
Overview of Mission Statement
The mission of KLX Energy Services Holdings, Inc. (KLXE) is to provide a comprehensive suite of engineered solutions for oilfield services that support the energy sector's evolving needs. The company focuses on delivering high-quality services, innovative technologies, and exceptional customer support while prioritizing safety and environmental stewardship.
Core Values
- Safety: Commitment to maintaining a safe work environment for all employees and clients.
- Integrity: Upholding the highest standards of honesty and transparency in all operations.
- Innovation: Continuously improving services and solutions through research and development.
- Customer Focus: Building long-term relationships by understanding and meeting clients' needs.
Financial Metrics Relevant to Mission Execution
In executing its mission, KLXE focuses on financial performance metrics that directly impact its ability to deliver services effectively. Below is a detailed table summarizing key financial metrics for KLXE as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenue | $543.8 million |
| Net Loss | $(38.4) million |
| Operating Income (Loss) | $(10.6) million |
| Cash and Cash Equivalents | $82.7 million |
| Total Assets | $486.8 million |
| Total Liabilities | $484.3 million |
| Total Stockholders' Equity | $2.5 million |
Strategic Initiatives
KLXE has undertaken several strategic initiatives to align with its mission, including:
- Investment in advanced technologies to enhance service delivery and operational efficiency.
- Expansion of service offerings in key regions, particularly in the Permian and Eagle Ford basins.
- Focus on sustainability practices to minimize environmental impact.
Market Positioning
KLXE positions itself as a leader in the oilfield services sector by leveraging its diversified service offerings and technical expertise. The company serves major exploration and production companies across the U.S., emphasizing its role in supporting both conventional and unconventional energy plays.
Recent Performance Trends
The company's financial performance has shown significant variability, with total revenue declining by 21.7% compared to the previous year, largely due to reduced activity levels and pricing pressures. The following table summarizes revenue performance by segment for the nine months ended September 30, 2024:
| Segment | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Rocky Mountains | $174.9 million | $211.3 million | (17.2)% |
| Southwest | $207.9 million | $237.5 million | (12.5)% |
| Northeast/Mid-Con | $161.0 million | $245.4 million | (34.4)% |
Conclusion on Mission Alignment
KLXE’s strategic focus on enhancing operational efficiencies, expanding service capabilities, and maintaining rigorous safety standards reflects its commitment to its mission statement. Despite recent financial challenges, the company continues to prioritize customer satisfaction and innovation in service delivery.
How KLX Energy Services Holdings, Inc. (KLXE) Works
Company Overview
KLX Energy Services Holdings, Inc. (KLXE) operates within the oil and natural gas industry, providing a range of services including drilling, completion, production, and intervention services. The company is structured into three geographic segments: Rocky Mountains, Southwest, and Northeast/Mid-Con.
Financial Performance
For the nine months ended September 30, 2024, KLXE reported total revenues of $543.8 million, down 21.7% from $694.2 million in the corresponding period of 2023. The net loss for the same period was $38.4 million, a significant decline compared to a net income of $28.4 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $188.9 million | $220.6 million | -14.4% |
| Cost of Sales | $142.3 million | $166.2 million | -14.4% |
| Operating Income (Loss) | $1.1 million | $16.4 million | -93.3% |
| Net Loss | $(8.2) million | $7.6 million | -208.4% |
| Net Loss Per Share (Basic) | $(0.51) | $0.47 | -208.5% |
Revenue Breakdown
The revenue for the nine months ended September 30, 2024, was distributed across various service lines as follows:
| Service Line | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Drilling | $119.4 million | $172.0 million | -30.6% |
| Completion | $287.5 million | $368.5 million | -22.0% |
| Production | $84.3 million | $89.5 million | -5.8% |
| Intervention | $52.6 million | $64.2 million | -18.1% |
Operating Segments Performance
For the nine months ended September 30, 2024, KLXE's operating performance by segment was as follows:
| Segment | Operating Income (Loss) (2024) | Operating Income (Loss) (2023) | Change (%) |
|---|---|---|---|
| Rocky Mountains | $19.0 million | $39.4 million | -51.8% |
| Southwest | $2.6 million | $17.7 million | -85.3% |
| Northeast/Mid-Con | $1.9 million | $36.5 million | -94.8% |
| Corporate and Other | $(34.1) million | $(38.7) million | 11.9% |
Cost Structure
Cost of sales for the nine months ended September 30, 2024, was $422.3 million, representing 77.7% of total sales, compared to 75.0% the previous year. The two largest components of cost of sales were labor and repair and maintenance, with labor costs per employee decreasing by 10.9%.
Debt and Liquidity
As of September 30, 2024, KLXE had total outstanding long-term debt of $285.2 million, comprising:
| Debt Type | Amount | Maturity Date |
|---|---|---|
| Senior Secured Notes | $237.3 million | November 1, 2025 |
| Asset-Based Revolving Credit Facility | $50.0 million | 2025 |
At the same date, KLXE reported cash and cash equivalents of $82.7 million and had a liquidity position of $126.3 million after accounting for available borrowing capacity.
Cash Flow Analysis
For the nine months ended September 30, 2024, KLXE's cash flows were as follows:
| Cash Flow Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Net Cash Provided by Operating Activities | $28.2 million | $77.0 million |
| Net Cash Used in Investing Activities | $(40.6) million | $(29.9) million |
| Net Cash Used in Financing Activities | $(17.4) million | $(14.1) million |
How KLX Energy Services Holdings, Inc. (KLXE) Makes Money
Revenue Sources
KLX Energy Services generates revenue primarily through its diversified oilfield services, which include:
- Drilling services
- Completion services
- Production services
- Intervention services
As of September 30, 2024, the revenue breakdown by segment is as follows:
| Segment | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Rocky Mountains | $174.9 | (17.2) |
| Southwest | $207.9 | (12.5) |
| Northeast/Mid-Con | $161.0 | (34.4) |
| Total Revenue | $543.8 | (21.7) |
Service Line Performance
The revenue performance of KLX Energy Services across its key service lines for the nine months ended September 30, 2024, is detailed below:
| Service Line | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Drilling | $119.4 | (30.6) |
| Completion | $287.5 | (22.0) |
| Production | $84.3 | (5.8) |
| Intervention | $52.6 | (18.1) |
| Total Revenue | $543.8 | (21.7) |
Cost Structure
For the nine months ended September 30, 2024, the cost of sales amounted to $422.3 million, representing 77.7% of total revenue. This is an increase from $520.4 million, or 75.0% of revenue, in the prior year period. The major components of cost of sales include:
- Labor costs
- Repair and maintenance costs
Labor costs per employee decreased by 10.9% compared to the prior year, while repair and maintenance costs increased by 20.9% as a percentage of revenues due to lower pricing during the nine-month period.
Operating Income and Loss
KLX Energy Services reported an operating loss of $10.6 million for the nine months ended September 30, 2024, a significant decline from the operating income of $54.9 million in the prior year. The operating income (loss) by segment is as follows:
| Segment | Operating Income (Loss) (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Rocky Mountains | $19.0 | (51.8) |
| Southwest | $2.6 | (85.3) |
| Northeast/Mid-Con | $1.9 | (94.8) |
| Corporate and Other | $(34.1) | (11.9) |
| Total Operating Income (Loss) | $(10.6) | NM |
Net Income and Loss
For the nine months ended September 30, 2024, KLX Energy Services reported a net loss of $38.4 million, compared to a net income of $28.4 million for the same period in the previous year. The net loss per share for the nine months was $2.37, down from net income per share of $1.84.
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, totaled $49.8 million, up from $44.3 million in the prior year period. The breakdown by segment is as follows:
| Segment | Capital Expenditures (in millions) |
|---|---|
| Rocky Mountains | $11.1 |
| Southwest | $14.6 |
| Northeast/Mid-Con | $23.9 |
| Total Capital Expenditures | $49.8 |
Debt Obligations
As of September 30, 2024, KLX Energy Services had total debt of $285.2 million, which includes:
- Senior Secured Notes: $237.3 million
- Asset-Based Lending Facility: $50.0 million
The Senior Secured Notes bear an interest rate of 11.5% and are due in 2025.
Liquidity Position
At the end of the third quarter of 2024, KLX Energy Services reported cash and cash equivalents of $82.7 million, down from $90.4 million at the same time in 2023. The company's net cash flows provided by operating activities for the nine months ended September 30, 2024, were $28.2 million, a decrease from $77.0 million in the prior year.
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Article updated on 8 Nov 2024
Resources:
- KLX Energy Services Holdings, Inc. (KLXE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of KLX Energy Services Holdings, Inc. (KLXE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View KLX Energy Services Holdings, Inc. (KLXE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.