KLX Energy Services Holdings, Inc. Files 2023 Annual Report

TL;DR

<b>KLX Energy Services Holdings, Inc. has filed its 2023 10-K annual report detailing its operations and financial standing.</b>

AI Summary

KLX Energy Services Holdings, Inc. (KLXE) filed a Annual Report (10-K) with the SEC on March 8, 2024. KLX Energy Services Holdings, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company's principal executive offices are located at 3040 Post Oak Boulevard, 15th Floor, Houston, TX 77056. The filing covers the period from January 1, 2023, to December 31, 2023. KLX Energy Services was formerly known as KLX Energy Services Inc., with a name change on April 26, 2018. The SIC code for the company is 1389, related to Oil, Gas Field Services.

Why It Matters

For investors and stakeholders tracking KLX Energy Services Holdings, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of KLX Energy Services' financial performance, operational activities, and risk factors for the fiscal year 2023, which is crucial for investors and stakeholders to assess the company's current health and future prospects. The detailed financial data and disclosures within the report are essential for understanding the company's position within the oil and gas field services industry and its ability to navigate market dynamics.

Risk Assessment

Risk Level: medium — KLX Energy Services Holdings, Inc. shows moderate risk based on this filing. The company operates in the oil and gas field services sector, which is subject to significant cyclicality and commodity price volatility, as indicated by its SIC code 1389 and business description.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand KLX Energy Services' performance and outlook in the volatile energy market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-08 — Filing Date (Date of submission)
• 2023-01-01 — Period Start Date (Fiscal year)
• 2022-12-31 — Prior Fiscal Year End (Comparison period)

Key Players & Entities

• KLX Energy Services Holdings, Inc. (company) — Filer name
• KLX Energy Services Inc. (company) — Former company name
• 3040 Post Oak Boulevard, 15th Floor, Houston, TX 77056 (company) — Business address
• 0001738827 (company) — Central Index Key
• 1389 (company) — Standard Industrial Classification

FAQ

Industry Context

KLX Energy Services operates within the oil and gas field services industry, a sector characterized by its dependence on energy commodity prices and exploration activity.

Regulatory Implications

As a publicly traded company, KLX Energy Services is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the annual filing of Form 10-K.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the company's operational segments and their performance in the fiscal year 2023.
3. Assess the risk factors outlined in the filing to understand potential challenges and opportunities.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-08: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 annual report (10-K), providing year-end financial and operational data, which will be compared against previous filings for trend analysis.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share KLXE The Nasdaq Global Select

Filing Documents

• klxe-20231231.htm (10-K) — 1426KB
• a2023q4ex231dtconsent.htm (EX-23.1) — 2KB
• a2023q4ex311chrisklx.htm (EX-31.1) — 19KB
• a2023q4ex312keeferklx.htm (EX-31.2) — 19KB
• a2023q4ex321chrisklx.htm (EX-32.1) — 8KB
• a2023q4ex322keeferklx.htm (EX-32.2) — 8KB
• a971klxe-clawbackpolicy_vf.htm (EX-97.1) — 23KB
• image_0.jpg (GRAPHIC) — 3KB
• 0001738827-24-000038.txt (&nbsp;) — 7409KB
• klxe-20231231.xsd (EX-101.SCH) — 51KB
• klxe-20231231_cal.xml (EX-101.CAL) — 93KB
• klxe-20231231_def.xml (EX-101.DEF) — 181KB
• klxe-20231231_lab.xml (EX-101.LAB) — 577KB
• klxe-20231231_pre.xml (EX-101.PRE) — 416KB
• klxe-20231231_htm.xml (XML) — 1048KB

Risk Factors

Item 1A. Risk Factors 23

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 47

Cybersecurity

Item 1C. Cybersecurity 47

Properties

Item 2. Properties 50

Legal Proceedings

Item 3. Legal Proceedings 50

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 50 PART II

Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 51

Reserved

Item 6. Reserved 51

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 52

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 64

Financial Statements

Item 8. Financial Statements 65

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 89

Controls and Procedures

Item 9A. Controls and Procedures 89

Other Information

Item 9B. Other Information 92

Disclosure Regarding Foreign Jurisdictions That Prevent Inspection

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspection 92 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 92

Executive Compensation

Item 11. Executive Compensation 96

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 96

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 96

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 96 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 97

Form 10-K Summary

Item 16. Form 10-K Summary 101

Signatures

Signatures 102 3 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forwardlooking statements to encourage companies to provide prospective information to investors. This Annual Report on Form 10K (this "Annual Report") includes forwardlooking statements that reflect our current expectations and projections about our future results, performance and prospects. Forwardlooking statements include all statements that are not historical in nature or are not current facts. When used in this Annual Report, the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could," "will" or the negative of these terms or similar expressions are intended to identify forwardlooking statements, although not all forward-looking statements contain such identifying words. These forwardlooking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause our actual results, performance and prospects to differ materially from those expressed in, or implied by, these forwardlooking statements. Factors that might cause such a difference include those discussed in our filings with the Securities and Exchange Commission (the "SEC"), in particular those discussed under "Item 1A. Risk Factors," as well as "Item 1. Business", "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Annual Report, including the following factors: general economic conditions, such as inflation and government efforts to reduce inflation or a recession; persistent volatility in national and global crude oil demand and crude oil prices; t

BUSINESS

ITEM 1. BUSINESS Company Overview Except as otherwise indicated or unless the context otherwise requires, "KLX Energy Services," "KLXE," "Company," "we," "us" and "our" refer to KLX Energy Services Holdings, Inc. and its consolidated subsidiaries. KLX Energy Services is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas E&P companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. KLXE was initially formed from the combination and integration of seven private oilfield service companies acquired during 2013 and 2014. Each of the acquired businesses was regional in nature and brought one or two specific service capabilities to KLX Energy Services. We were incorporated in Delaware on June 28, 2018, and on September 14, 2018, we completed our spin-off from KLX Inc. and became an independent, publicly traded company. See Item 7. "Management Discussion and Analysis of Financial Condition and Results of Operations" for more details of our acquisitions since becoming a publicly traded company, including our 2020 acquisition of Quintana Energy Services Inc. ("QES," and such acquisition the "QES Merger") and our 2023 acquisition of Greene's Energy Group, LLC ("Greene's," and such acquisition the "Greene's Acquisition"). We deliver mission critical oilfield services to primarily independent major oil and gas companies focused on drilling, completion, production and intervention activities for technically demanding wells from over 50 service facilities located in the United States. Our primary services include directional drilling, coiled tubing, thru tubing, hydraulic frac rentals, fishing, pressure control, wireline, rig-assisted snubbing, fluid pumping, flowback, testing, pressure pumping and well control services. Our primary rentals and products include hydraulic fracturing stacks, blow out preventers, tubulars, downhole tools, dissolvable plugs,

View Full Filing

View this 10-K filing on SEC EDGAR