Klx Energy Services Holdings ( (KLXE) ) has released its Q3 earnings. Here is a breakdown of the information Klx Energy Services Holdings presented to its investors.
KLX Energy Services Holdings, Inc. is a diversified oilfield services provider operating in major U.S. oil and gas basins, offering services that include drilling, completion, production, and intervention for onshore exploration and production companies. In its third quarter 2024 earnings report, KLX Energy Services Holdings reported revenues of $189 million, alongside an adjusted EBITDA of $28 million, despite a net loss of $8 million. The company highlighted its strong performance in revenue and adjusted EBITDA, reaching the top end of its guidance range, attributed to its geographic diversification and product and service line sustainability.
Key financial metrics from KLX’s report include a 4% net loss margin and a 15% adjusted EBITDA margin. The company maintains a cash balance of $83 million and has total debt of $285 million, resulting in a liquidity of $126 million. Segment-wise, the Rocky Mountains saw a revenue increase, while the Southwest experienced a slight decrease, and the Northeast/Mid-Con showed improvement in completions activity, raising its revenue.
KLX’s capital expenditures increased to $21 million in Q3 2024, with expectations to lower it in the upcoming quarter, projecting full-year expenditures between $55 million and $60 million. Looking ahead, the company anticipates a seasonal revenue decline in the fourth quarter, yet remains optimistic about 2025 due to positive discussions with customers regarding future drilling and production programs.
In conclusion, KLX Energy Services Holdings, Inc. remains cautiously optimistic about the upcoming year as it continues to engage with customers on their 2025 plans, expecting incremental positive momentum in its operations.
