KLX Energy Services Holdings Inc (KLXE) 2023 Q3 法說會逐字稿

(inaudible) and welcome to the KLX Energy Services third-quarter earnings conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ken Dennard. Thank you. You may begin.

（聽不清楚）歡迎參加 KLX 能源服務公司第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹你們的主持人肯·丹納德。謝謝。你可以開始了。

Thank you, operator, and good morning, everyone. We appreciate you joining us for the KLX Energy Services conference call and webcast to review third-quarter 2023 results. With me today are Chris Baker, KLX Energy's President and Chief Executive Officer; and Keefer Lehner, Executive Vice President and Chief Financial Officer.

謝謝接線員，大家早安。我們感謝您參加 KLX 能源服務電話會議和網路廣播，回顧 2023 年第三季業績。今天與我在一起的有 KLX Energy 總裁兼執行長 Chris Baker；執行副總裁兼財務長 Keefer Lehner。

Following my remarks, management will provide a high-level commentary on the financial details of the third quarter and talk about its outlook before opening the call for your questions. There will be a replay of today's call, and that will be available by webcast on the company's website at klx.com. There'll also be a telephonic recorded replay available until November 21, 2023. More information on our access. These replay features was included in yesterday's earnings release.

在我發言之後，管理層將在開始提問之前對第三季度的財務細節進行高級評論並討論其前景。今天的電話會議將進行重播，並可透過公司網站 klx.com 上的網路廣播重播。截至 2023 年 11 月 21 日，還將提供電話錄音重播。有關我們訪問的更多資訊。這些重播功能已包含在昨天的財報中。

Please note that information reported on this call speaks only as of today, November 7, 2023. And therefore, you're advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Also, comments on this call will contain forward-looking statements within the meaning of the United States federal securities laws.

請注意，本次電話會議報告的資訊僅截至今天（2023 年 11 月 7 日）。因此，我們建議您，在任何重播收聽或文字記錄閱讀時，時間敏感的資訊可能不再準確。此外，本次電話會議的評論將包含美國聯邦證券法含義內的前瞻性陳述。

These forward-looking statements reflect the current views of KLX management. However, various risks and uncertainties and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in the statements made by management.

這些前瞻性陳述反映了 KLX 管理階層目前的觀點。然而，各種風險、不確定性和意外事件可能導致實際結果、業績或成就與管理層聲明中表達的內容有重大差異。

The listener or reader is encouraged to read the annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K to understand certain of those risks, uncertainties, and contingencies. The comments today will also include certain non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures are included in the quarterly press release, which can also be found on the KLX Energy website.

我們鼓勵聽眾或讀者閱讀表格 10-K 中的年度報告、表格 10-Q 中的季度報告以及表格 8-K 中的當前報告，以了解其中的某些風險、不確定性和意外情況。今天的評論還將包括某些非公認會計準則財務指標。季度新聞稿中包含了與最直接可比較的 GAAP 財務指標的更多詳細資訊和調整表，也可以在 KLX Energy 網站上找到新聞稿。

And now with that, behind me, I'd like to turn the call over to KLX Energy Services' President and CEO, Mr. Chris Baker. Chris?

現在，在我身後，我想將電話轉給 KLX Energy Services 總裁兼執行長 Chris Baker 先生。克里斯？

Thank you, Ken, and good morning to everyone. Last night, we released our Q3 earnings, and we are extremely pleased with our third-quarter performance. KLX maintained margins and generated incremental free cash flow despite a sequential 10% decline in rig count, a 7% decline in frac spread count, and continued prolonged weakness in natural gas basins. As we report Q3, it appears the rig count is trying to bottom, and natural gas prices have rebounded considerably, which bodes well for future activity levels, including incremental gas directed activity into 2024.

謝謝你，肯，祝大家早安。昨晚，我們發布了第三季財報，我們對第三季的業績非常滿意。儘管鑽機數量環比下降 10%、壓裂價差數量下降 7%、天然氣盆地持續長期疲軟，但 KLX 仍保持了利潤率並產生了增量自由現金流。正如我們報告的第三季度，鑽機數量似乎正試圖觸底，天然氣價格大幅反彈，這對未來的活動水平來說是個好兆頭，包括到 2024 年增量天然氣引導活動。

I'll go through the highlights of our third quarter before turning the call over to Keefer to discuss our financials in detail. KLX continues to focus on driving utilization and defending price to maximize margins and free cash flow. Our operations team has done a fantastic job all year, adjusting their cost structures and maintaining pricing discipline.

在將電話轉給基弗詳細討論我們的財務狀況之前，我將回顧第三季的亮點。 KLX 繼續專注於提高利用率和捍衛價格，以最大限度地提高利潤和自由現金流。我們的營運團隊一整年都做得非常出色，調整了成本結構並維持了定價紀律。

Overall, KLX continues to leverage its geographic and product service line diversification to drive results. Our more than 2,000 team members are well positioned across all major US onshore basins to deliver our comprehensive portfolio of differentiated services and proprietary products. We believe the quality of our team and services allows us to capture a larger share of customer spending with outsized exposure to the largest, most active, and best capitalized operators in the US onshore market.

總體而言，KLX 繼續利用其地理和產品服務線的多元化來推動業績。我們的 2,000 多名團隊成員遍佈美國所有主要陸上盆地，能夠提供全面的差異化服務和專有產品組合。我們相信，我們的團隊和服務的品質使我們能夠透過與美國陸上市場上最大、最活躍和資本最雄厚的營運商的大量接觸來獲得更大的客戶支出份額。

For the third quarter, we had a revenue mix that was balanced both on a geographic and product mix basis. Geographically, the business was extremely balanced in Q3 with the Rockies generating 35% of revenue up from 28% in Q2. The Southwest represented 35% of revenue, down slightly from 37% in Q2. And Northeast/Mid-Con represented 30% of Q3 revenue, down from 35% in Q2.

第三季度，我們的收入組合在地理和產品組合的基礎上實現了平衡。從地理上看，第三季的業務極其平衡，落磯的收入佔收入的 35%，而第二季為 28%。西南地區佔收入的 35%，略低於第二季的 37%。東北/中部地區佔第三季營收的 30%，低於第二季的 35%。

We saw outsized contribution from the Rockies in Q3, driven by our market-leading position and our ability to rotate additional assets and crews to the basin, given the softness in our other markets. Q3 is typically the most active quarter in the Rockies given the lack of seasonality. We were able to drive utilization and pricing within the basin. And the sequential increase in both revenue and adjusted EBITDA was driven by an improvement across the vast majority of our in-basin product service offerings, though it was led by rentals, coiled tubing, and directional drilling.

鑑於我們其他市場的疲軟，我們在第三季度看到了落基山脈的巨大貢獻，這得益於我們的市場領先地位以及我們將更多資產和船員輪換到盆地的能力。由於缺乏季節性，第三季通常是落基山脈最活躍的季度。我們能夠推動流域內的利用率和定價。收入和調整後 EBITDA 的環比增長是由我們絕大多數盆地內產品服務的改善所推動的，儘管它是由租賃、連續油管和定向鑽井帶動的。

From a product line perspective, completions focused activity was responsible for 51% of Q3 revenue. Production and intervention was 25% and drilling was 24%. Consistent with reductions in rig count and frac spread count, we saw sequential activity declines across most of our PSLs. But by and large, the decline was less volatile than the underlying change in those industry metrics. We view these results as a testament to the quality of KLX's products and services.

從產品線的角度來看，以完工為重點的活動佔第三季營收的 51%。生產和乾預佔 25%，鑽井佔 24%。與鑽機數量和壓裂價差數量的減少一致，我們看到大多數 PSL 的活動連續下降。但整體而言，下降幅度小於這些產業指標的根本變化。我們認為這些結果證明了 KLX 產品和服務的品質。

From a pricing perspective, it was a bit of a mixed bag as we experienced modest low- to mid-single digit percentage pricing declines in some of the more competitive completion-oriented service lines. But this was largely offset by other service lines where we were able to maintain, or in some cases, increased pricing.

從定價的角度來看，情況有點複雜，因為我們在一些更具競爭力的以完成為導向的服務系列中經歷了中低個位數百分比的定價下降。但這在很大程度上被其他服務線所抵消，在這些服務線中，我們能夠維持價格，或在某些情況下提高價格。

The combination of our efforts to maximize utilization, protect price, and control costs, coupled with a 6% sequential reduction in head count led to a very strong quarter despite the reduction in market activity. We reported solid Q3 numbers all within or slightly above previously provided guidance.

儘管市場活動有所減少，但我們在最大限度提高利用率、保護價格和控製成本方面所做的努力，再加上員工數量連續減少 6%，使得本季表現非常強勁。我們報告了可靠的第三季數據，全部在或略高於先前提供的指導值。

Revenue came in within our guidance range at $221 million. And we reported 17% adjusted EBITDA margin, which is consistent with Q2 and above the top of our prior guidance range, which led to an adjusted EBITDA coming in at the very top of our implied prior guidance range at $36.7 million.

收入為 2.21 億美元，處於我們的指導範圍內。我們報告的調整後 EBITDA 利潤率為 17%，與第二季度一致，高於我們先前指導範圍的上限，這導致調整後 EBITDA 達到我們隱含的先前指導範圍的最高點，即 3670 萬美元。

Further, our year-to-date nine month and LTM performance are both all-time company record. Our strategy of diversification has driven strong and relatively consistent performance despite the underlying market volatility. We generated $12.6 million of free cash flow during the quarter, enabling us to meaningfully increase our reported cash position to $90.4 million, which is up $49 million year over year.

此外，我們今年迄今的九個月和 LTM 業績均創公司歷史記錄。儘管市場波動較大，但我們的多元化策略仍推動了強勁且相對穩定的業績。本季我們產生了 1,260 萬美元的自由現金流，使我們能夠將報告的現金頭寸大幅增加至 9,040 萬美元，同比增加 4,900 萬美元。

We reduced net debt 4% sequentially to $194 million, yielding a 1.3 times net leverage ratio for both Q3 annualized and LTM as of Q3 2023 after generating an all-time high trailing 12-month adjusted EBITDA of $152 million. Q3's performance highlighted the strength of KLX's diversification strategy and demonstrated KLX's ability to generate strong free cash flow in a challenging market.

我們將淨債務連續減少 4% 至 1.94 億美元，截至 2023 年第三季度，年化和長期管理的淨槓桿率均為 1.3 倍，此前 12 個月調整後 EBITDA 創歷史新高，達到 1.52 億美元。第三季的業績凸顯了 KLX 多元化策略的優勢，並證明了 KLX 在充滿挑戰的市場中產生強勁自由現金流的能力。

The recent frenzy of consolidation on the upstream side of the market segments our view that US oil and gas production has strong, long-term fundamentals. We also view consolidation of the larger operators as an opportunity for KLX to provide our differentiated, integrated offerings through a smaller number of larger customers.

最近上游市場的整合狂潮讓我們認為美國石油和天然氣生產具有強勁的長期基本面。我們還認為，大型營運商的整合是 KLX 透過較少數量的大型客戶提供差異化整合產品的機會。

We continue to push the envelope on our R&D efforts and have recently launched and commercialized additional proprietary products. In Q3, we launched our new line of KLX vision completion tools. This includes the new KLX PhantM Dissolvable Frac Plug where we experienced a 500%-plus sequential increase, and its units sold and sold more clouds in Q3 than we did in the prior four quarters combined.

我們繼續推動研發工作的極限，最近推出了其他專有產品並將其商業化。在第三季度，我們推出了新的 KLX 視覺完成工具系列。其中包括新的 KLX PhantM 可溶解壓裂塞，我們經歷了 500% 以上的環比增長，其單位在第三季度的銷量和雲銷量比我們前四個季度的總和還要多。

Our latest-generation plug has seen rapid market adoption across multiple basins with leading operators. Additionally, we also commercialized a patent-pending proprietary extended reach tool, the KLX Oracle SRT. Oracle SRT, short for Smart Reach technology, is a true game changer in smart downhole drilling tools and is clearly synergistic with our coiled tubing and thru tubing offerings. The tool delivers cutting-edge performance while also enabling safer operations.

我們最新一代的插頭已在多個流域的領先營運商中得到快速市場採用。此外，我們也將正在申請專利的專有延伸範圍工具 KLX Oracle SRT 商業化。 Oracle SRT 是 Smart Reach 技術的縮寫，是智慧井下鑽井工具領域真正的遊戲規則改變者，並且與我們的連續油管和通油管產品具有明顯的協同作用。該工具提供尖端性能，同時還可以實現更安全的操作。

By the end of this week, we will have logged over 1 million downhole running feet with the Oracle SRT. These advancements will drive efficiencies and differentiated performance for our customers, which will in turn drive utilization and margins for KLX.

到本週末，我們將使用 Oracle SRT 記錄超過 100 萬英尺的井下運行英尺。這些進步將為我們的客戶提高效率和差異化性能，進而提高 KLX 的利用率和利潤。

With that, I'll now turn the call over to Keefer, who will review our financial results. And I'll return later in the call to discuss our outlook in greater detail. Keefer?

現在，我將把電話轉給基弗，他將審查我們的財務表現。我稍後會在電話會議中回來更詳細地討論我們的前景。基弗？

Thanks, Chris. Good morning, everyone. As Chris mentioned, we reported quarterly revenue of $221 million, representing a 6% sequential decrease, which is lower than the 10% sequential decline in rig count. For comparison purposes, we reported third-quarter 2022 revenue of $222 million, which was down only 50 basis points, which compared to the 20% year-over-year decline in rig count is a testament to the strength of our diversification strategy.

謝謝，克里斯。大家，早安。正如 Chris 所提到的，我們報告的季度收入為 2.21 億美元，環比下降 6%，低於鑽機數量 10% 的環比下降。出於比較目的，我們公佈的 2022 年第三季營收為 2.22 億美元，僅下降了 50 個基點，與鑽機數量同比下降 20% 相比，這證明了我們多元化策略的實力。

The Rockies and Southwest segments each contributed 35% of Q3 revenue, led in the Rockies by our rentals, coiled tubing, and tech services product service lines and in the Southwest by directional drilling, rentals, and coiled tubing. The Northeast/Mid-Con contributed 30%, led by pressure pumping, directional drilling, and accommodations.

落基山脈和西南地區各貢獻了第三季收入的 35%，落基山脈地區以我們的租賃、連續油管和技術服務產品服務線領先，西南地區則以定向鑽井、租賃和連續油管領先。東北部/中部地區貢獻了 30%，其中以壓力泵送、定向鑽井和住宿為主。

Consolidated adjusted EBITDA was $36.7 million, demonstrating our ability to successfully maximize utilization, defend price, and manage costs despite the much-discussed rig count decline. Adjusted operating income for the third quarter was $17 million. Total SG&A expense for Q3 was $18.6 million. When you back out the non-recurring cost, adjusted SG&A expense for Q3 would have been only $17.5 million or just 7.9% of quarterly revenue.

合併調整後 EBITDA 為 3,670 萬美元，這表明，儘管鑽機數量下降，但我們仍然有能力成功地提高利用率、捍衛價格和管理成本。第三季調整後營業收入為 1,700 萬美元。第三季的 SG&A 支出總額為 1,860 萬美元。如果扣除非經常性成本，第三季調整後的 SG&A 費用僅為 1,750 萬美元，僅佔季度營收的 7.9%。

We continue to run with one of the leanest, overhead structures in the sector for diversified business. And believe we can scale further while continuing to drive down G&A expense as a percentage of revenue. Q3 net income and diluted earnings per share were $7.6 million and $0.47, respectively. Adjusted net income and adjusted diluted EPS were $8.2 million and $0.51, respectively.

我們繼續採用業界最精簡的管理結構之一來開展多元化業務。並相信我們可以進一步擴大規模，同時繼續降低一般管理費用佔收入的百分比。第三季淨利和稀釋每股盈餘分別為 760 萬美元和 0.47 美元。調整後淨利和調整後攤薄每股收益分別為 820 萬美元和 0.51 美元。

Turning now to a review of our segment results, I'll begin with the Rockies. The Rocky Mountain segment third-quarter revenue was $77 million, representing a 16% sequential increase and a 16% increase over the prior year quarter. Sequential increase in revenue was attributable to increased revenue across most product service lines, but led by coiled tubing, rentals, and directional drilling, where we experienced favorable Q3 seasonality and improved utilization as well as maintained or increased pricing. The Rockies experienced a strong increase in profitability.

現在回顧我們的部門結果，我將從落基山脈開始。落磯山部門第三季營收為 7,700 萬美元，較上一季成長 16%，比去年同期成長 16%。收入的連續增長歸因於大多數產品服務線的收入增加，但以連續油管、租賃和定向鑽井為主導，我們在第三季度經歷了有利的季節性和利用率的提高以及定價的維持或提高。落基山脈的獲利能力大幅成長。

Adjusted operating income for the third quarter was $17.7 million. Adjusted EBITDA was $23.3 million compared to second-quarter adjusted EBITDA of $17 million and 35% higher than $17.3 million in the prior year quarter.

第三季調整後營業收入為 1,770 萬美元。調整後 EBITDA 為 2,330 萬美元，而第二季調整後 EBITDA 為 1,700 萬美元，比去年同期的 1,730 萬美元高出 35%。

The sequential increase in profitability was driven by reduced white space and an increasing contribution from our higher margin services throughout the DJ, Wyoming, and Bakken, led by coil tubing, rentals, and pressure pumping.

獲利能力的連續成長是由於空白空間的減少以及我們在 DJ、懷俄明州和巴肯地區的較高利潤服務的貢獻不斷增加所推動的，其中以盤管、租賃和壓力泵為主導。

Moving now to our Southwest segment. The Southwest experienced a 14% year-over-year increase in revenue, generating revenue of $77.8 million in Q3. The year-over-year revenue increase was driven by the Q1 2023 acquisition of Greene, which has been a major success for KLX. The sequential decline in revenue was driven by lower pricing and utilization across our drilling and completion product lines.

現在轉向我們的西南部部分。西南航空第三季營收年增 14%，達到 7,780 萬美元。營收年增率成長得益於 2023 年第一季收購 Greene，這對 KLX 來說是一項重大成功。收入連續下降是由於我們的鑽井和完井產品線的定價和利用率下降所致。

Q3 adjusted operating income for the Southwest segment was approximately $5 million, and adjusted EBITDA was $11.8 million. As a reminder, the Greene's business is now fully integrated within our Southwest segment with Q3 being the second quarter of full revenue and margin contribution. We have also successfully action $3 million of annualized cost synergies.

第三季西南航空部門調整後營業收入約 500 萬美元，調整後 EBITDA 為 1,180 萬美元。提醒一下，格林的業務現在已完全整合到我們的西南部門，第三季是全部營收和利潤貢獻的第二季。我們也成功實現了 300 萬美元的年度成本綜效。

Northeast/Mid-Con Q3 revenue was $65.8 million, a 24% decrease relative to Q2, driven largely by reduced activity and modestly reduced pricing in our frac business where we continue to run two spreads, pumping 17% fewer stages in Q3 compared to Q2. And lower pricing and utilization across our broader drilling and completion service lines driven by the market disruption and the gassier areas within the segment.

東北/中部地區第三季營收為6,580 萬美元，較第二季下降24%，這主要是由於我們的壓裂業務活動減少和定價小幅降低所致，我們繼續進行兩次價差，與第二季度相比，第三季泵送量減少了17% 。由於市場混亂和該領域內含氣量較高的地區，我們更廣泛的鑽井和完井服務線的定價和利用率較低。

Adjusted operating income for the third quarter was just over $5 million, and adjusted EBITDA was $11.4 million for the quarter. At corporate, our adjusted operating income and adjusted EBITDA losses for Q3 were $10.9 million and $9.8 million, respectively. The corporate adjusted EBITDA loss improved by 3% sequentially and 17% compared to Q3 2022, demonstrating our ability to layer in acquisitions and realize significant economies of scale. It's the core tenet of our M&A thesis, and we have seen the dramatic benefits play out over the last few deals.

第三季調整後營業收入略高於 500 萬美元，調整後 EBITDA 為 1,140 萬美元。在公司方面，第三季調整後營業收入和調整後 EBITDA 虧損分別為 1,090 萬美元和 980 萬美元。公司調整後的 EBITDA 損失比上一季減少了 3%，與 2022 年第三季相比減少了 17%，這表明我們有能力進行分層收購並實現顯著的規模經濟。這是我們併購論文的核心原則，我們已經看到在過去的幾筆交易中所帶來的巨大效益。

I'll now turn to our net working capital, cash flow, and capitalization. Our third-quarter 2023 cash balance was $90.4 million, up 10% from $82.1 million in Q2. The sequential increase in cash was largely driven by our ability to efficiently convert adjusted EBITDA to free cash flow. Net working capital was approximately $85 million as of Q3.

現在我將談談我們的淨營運資本、現金流量和資本化。我們 2023 年第三季的現金餘額為 9,040 萬美元，比第二季的 8,210 萬美元成長 10%。現金的環比成長主要是由於我們有效地將調整後的 EBITDA 轉換為自由現金流的能力。截至第三季度，淨營運資本約為 8,500 萬美元。

We reduced net debt 4% sequentially, ending the quarter with a net debt balance of $193.7 million. Based on annualized Q3 and LTM results, we have a net leverage ratio of just 1.3 times. We ended the third quarter with roughly $155 million in liquidity, consisting of $90.4 million of cash and availability of $64.4 million under our September 2023 ABL borrowing base certificates.

我們連續減少淨債務 4%，本季結束時淨債務餘額為 1.937 億美元。根據第三季和 LTM 年化結果，我們的淨槓桿率僅為 1.3 倍。截至第三季末，我們的流動性約為 1.55 億美元，其中包括 9,040 萬美元的現金以及 2023 年 9 月 ABL 借款基礎證書下可用的 6,440 萬美元。

We did not issue shares under our ATM in Q3 and have not issued any shares to date in 2023. Also, of note, Archer Limited announced last week that they exited their roughly 900,000 share position in KLX as part of their refinancing, thereby, materially reducing any overhang in KLX shares. Our share count remains at 16.4 million shares.

我們在第三季沒有透過ATM 發行股票，並且在2023 年迄今也沒有發行任何股票。此外，值得注意的是，Archer Limited 上週宣布，作為再融資的一部分，他們退出了大約900,000 股KLX 股票頭寸，從而實質地退出了KLX 股票。減少 KLX 股票的任何過剩。我們的股票數量仍為 1640 萬股。

Now turning to CapEx. Capital expenditures for the third quarter were approximately $17.8 million and were primarily focused on maintenance spending across our various segment. Going forward, we maintain total CapEx guidance for 2023 to be in the range of $45 million to $55 million, but currently expect to come in at the top end of that range.

現在轉向資本支出。第三季的資本支出約為 1,780 萬美元，主要集中在我們各部門的維護支出。展望未來，我們將 2023 年總資本支出指引維持在 4,500 萬美元至 5,500 萬美元之間，但目前預計將達到該範圍的上限。

This spend will be primarily focused on maintenance spending with approximately 80% supporting, ongoing operations. And the remaining CapEx earmarked for reactivation and growth, focused on quick payback projects across our rentals, frac rentals, directional drilling, and wireline business amongst others. As always, we continuously review CapEx levels and drivers to identify current trends or determine inefficiencies based on prevailing market conditions.

這筆支出將主要用於維護支出，其中約 80% 用於支援持續營運。剩餘的資本支出指定用於重新激活和成長，重點關注我們的租賃、壓裂租賃、定向鑽井和有線業務等的快速回報項目。一如既往，我們不斷審查資本支出水準和驅動因素，以確定當前趨勢或根據當前市場狀況確定效率低下的情況。

During Q3, we sold approximately $5 million in assets. At the end of the third quarter, we saw $2.3 million of assets held for sale reflected on our balance sheet. As we look to the remainder of 2023 and begin to think about 2024, our focus remains on maximizing free cash flow and further reducing net debt, all while being prudent stewards of capital as we pursue additional value-creating M&A.

第三季度，我們出售了大約 500 萬美元的資產。第三季末，我們的資產負債表上反映了 230 萬美元的待售資產。當我們展望 2023 年剩餘時間並開始思考 2024 年時，我們的重點仍然是最大化自由現金流和進一步減少淨債務，同時在追求額外創造價值的併購時保持謹慎的資本管理。

I'll now turn the call back to Chris who will provide some additional color on the current market as well as our current outlook.

現在我將把電話轉回克里斯，他將提供有關當前市場以及我們當前前景的一些額外資訊。

Thanks, Keefer. Before we wrap up, I'd like to share some additional detail on our outlook and strategy. We expect a bit of slowdown in Q4 due to seasonality and budget exhaustion, but we believe the market activity is trying to find the bottom.

謝謝，基弗。在結束之前，我想分享一些有關我們的前景和策略的更多細節。由於季節性和預算耗盡，我們預計第四季度會出現一些放緩，但我們相信市場活動正在試圖觸底。

As we look to 2024, we are confident that KLX platform is as well positioned as ever to ultimately benefit from increased customer activity and consolidation. Whether due to our lean cost structure, additional asset capacity, or deployment of cutting-edge technology, the KLX platform has material intrinsic upside even in a moderately increasing market.

展望 2024 年，我們相信 KLX 平台一如既往地處於有利位置，最終受益於客戶活動的增加和整合。無論是由於我們精益的成本結構、額外的資產容量或尖端技術的部署，即使在適度增長的市場中，KLX 平台也具有實質的內在優勢。

As we enter the fourth quarter, we've seen consolidated rig count decrease an incremental 9% compared to a Q3 average of 649 rigs. [WCI] price is currently in the low 80s, which is flat with the Q3 average and approximately 10% below quarter end, while natural gas price hovers around a very constructive $3.30.

進入第四季度，我們發現綜合鑽機數量比第三季度平均 649 台鑽機數量減少了 9%。 [WCI] 價格目前處於 80 多美元的低位，與第三季度平均水平持平，比季度末低約 10%，而天然氣價格徘徊在非常有建設性的 3.30 美元左右。

Our public customers have been incredibly disciplined regarding growing production and have leveraged the tremendous operating efficiencies afforded to them by their service providers to their benefit. But ultimately, the strength of underlying commodity prices should drive strong returns for our customers, and in return, additional service activity relative to Q3 2023 levels.

我們的公共客戶在不斷增長的產量方面一直非常自律，並利用服務提供者為他們提供的巨大營運效率來獲取利益。但最終，基礎商品價格的走強應該會為我們的客戶帶來強勁的回報，並相應地帶來相對於 2023 年第三季水準的額外服務活動。

Consistent with prior guidance, we expect full year 2023 adjusted EBITDA to be in the range of $140 million to $150 million, and expect that the business will continue to perform well due to our focus on crude utilization and pricing in order to drive margin and free cash flow. Given our revenue and margin expectations combined with our CapEx guidance, we expect strong free cash flow generation in 2023 and continued strong free cash flow generation in 2024.

與先前的指引一致，我們預計2023 年全年調整後EBITDA 將在1.4 億至1.5 億美元之間，並預計由於我們專注於原油利用和定價以提高利潤率和免費成本，該業務將繼續表現良好。現金週轉。鑑於我們的收入和利潤率預期以及我們的資本支出指導，我們預計 2023 年將產生強勁的自由現金流，並在 2024 年繼續產生強勁的自由現金流。

As we look to 2024, there are several bright spots in addition to what we expect will be a rebound in underlying activity from these current lows.

展望 2024 年，除了我們預計基礎活動將從當前低點反彈之外，還有幾個亮點。

First, we entered into a 12-month frac contract with a leading operator, which will baseload 2024 activity for our frac as well and could pave the way to underpinning the development of our third Mid-Con frac spreads. Second, we have launched an integrated P&A offering in the Rockies and are looking to scale that business in response to customer demands and legislative pressure. Third, we are taking delivery of two new fully electrified wireline units, augmenting our [whisper series] of electric completions equipment in Q4 for which we have strong customer demand. And fourth, the previously mentioned technological advancements could prove to be a material differentiator in 2024 and beyond.

首先，我們與一家領先的營運商簽訂了一份為期12 個月的壓裂合同，該合約也將為我們的壓裂活動提供2024 年的基本負荷，並可能為支持我們第三個中期壓裂價差的開發鋪路。其次，我們在落基山脈推出了綜合 P&A 產品，並希望擴大該業務以滿足客戶需求和立法壓力。第三，我們將在第四季接收兩台新的全電氣化有線裝置，以增強我們的[Whisper系列]電動完井設備，我們對此有強烈的客戶需求。第四，前面提到的技術進步可能在 2024 年及以後成為一個重大的差異化因素。

We are executing what an exciting go-to-market strategy and expect market adoption to increase materially as we progress into 2024. We're just now working through our Q's, and our customers likely will not set budgets until January or February. But based on latest customer conversations, we're excited about 2024.

我們正在執行一項令人興奮的進入市場策略，並預計隨著2024 年的進展，市場採用率將大幅增加。我們剛完成Q 工作，我們的客戶可能要到1 月或2 月才會制定預算。但根據最新的客戶對話，我們對 2024 年感到興奮。

Finally, our M&A strategy will continue to focus on accretive deleveraging opportunities. The market is becoming more active on the sell side. However, OFS consolidation is still being outpaced by our E&P customers. We believe this is due to depressed market multiples in the sector. But we continue to believe that KLX offers counterparties an attractive opportunity to execute on a value-creating transaction and ultimately timed their exit via well capitalized liquid public stock.

最後，我們的併購策略將持續專注於增值去槓桿機會。市場賣方變得更加活躍。然而，OFS 整合的速度仍然落後於我們的 E&P 客戶。我們認為這是由於該行業市場倍數低迷所致。但我們仍然相信，KLX 為交易對手提供了一個有吸引力的機會來執行創造價值的交易，並最終透過資本充足的流動性公開股票來確定退出時機。

We have a strong track record of integration and synergy identification and realization, and believe we have the right foundation and capitalization to continue to execute on our strategy, actively pursuing accretive and synergistic M&A opportunities to grow and scale our existing platform.

我們在整合和協同效應識別和實現方面擁有良好的記錄，並相信我們擁有適當的基礎和資本來繼續執行我們的策略，積極尋求增值和協同的併購機會來發展和擴大我們現有的平台。

In summary, I'd like to thank each and every KLX team member for their continued commitment to safety and execution across all aspects of our strategic initiatives. Their hard work has once again translated into strong financial performance. Looking ahead, we will continue to proactively manage our portfolio of assets to maximize our results, with a focus on generating meaningful free cash flow, which we believe will set KLX up for an exciting 2024 and beyond.

總之，我要感謝每位 KLX 團隊成員對我們策略計畫各個面向的安全和執行的持續承諾。他們的辛勤工作再次轉化為強勁的財務表現。展望未來，我們將繼續積極管理我們的資產組合，以最大限度地提高我們的業績，重點是產生有意義的自由現金流，我們相信這將使 KLX 為令人興奮的 2024 年及以後做好準備。

With that, we'll now take your questions. Operator?

現在，我們將回答您的問題。操作員？

(Operator Instructions) John Daniel, Daniel Energy.

（操作員說明）John Daniel，Daniel Energy。

Hey, guys. Thank you for having me. I guess the first one is on the frac side. If I heard you correctly, you said you've got the two and potentially a third [drilling] in the Mid-Con? Is that right?

大家好。謝謝你有我。我猜第一個是在壓裂一側。如果我沒聽錯的話，你說你已經在中場進行了兩次鑽探，並且可能還有第三次[鑽探]？是對的嗎？

Yeah. Good morning, John. You broke up a little bit. But I think, I guess -- yeah, you're asking if we said two spreads operating in the Mid-Con?

是的。早安，約翰。你們分手了一點點。但我想，我想 - 是的，你是在問我們是否說過在中部地區有兩種價差？

Yeah. And then the third, I think you -- I thought you said you had a third that might be go in that. I'm curious just really your views on the Mid-Con. It tends to be more privates and independent, if I'm not mistaken. And just what you're seeing from those operators right now?

是的。然後是第三個，我想你 - 我想你說過你可能有第三個。我很好奇你對 Mid-Con 的看法。如果我沒記錯的話，它往往更私密和獨立。您現在從這些運營商那裡看到了什麼？

Yeah. Great question. So we do still have the two spreads, and we had two spreads operating in the Mid-Con for all of 3Q.

是的。很好的問題。因此，我們仍然有兩個利差，並且在整個第三季度我們都有兩個利差在中期運行。

As you might imagine, we did a fair amount of white space, honestly, primarily due to drilling delays. And we had a few clients that finished their programs early, really driven by completion efficiencies. So we elected to maintain staffing given incremental work in late Q3 and Q4, so we mainly staffing those two spreads.

正如您可能想像的那樣，老實說，我們做了相當多的空白，主要是由於鑽探延遲。我們有一些客戶提前完成了他們的項目，這實際上是由完成效率驅動的。因此，鑑於第三季末和第四季的增量工作，我們選擇維持人員配備，因此我們主要為這兩個範圍配備人員。

Look, we're very accustomed. As you well know, the legacy roots of our business there on the pressure pumping side is really the Mid-Con and the Rockies. So we're accustomed to that customer base. We like that customer base.

你看，我們已經很習慣了。如您所知，我們在壓力泵方面的業務的傳統根源實際上是中部地區和落基山脈。所以我們已經習慣這個客戶群了。我們喜歡這樣的客戶群。

Spot pricing was down somewhat. But we really think that the contract we entered into allows us to base load activity, drive efficiency gains, and hopefully, margins with limiting white space as we get into 2024.

現貨價格略有下降。但我們確實認為，我們簽訂的合約使我們能夠確定負載活動、提高效率，並希望在 2024 年時能夠在限制空白的情況下獲得利潤。

And to your last question on the third. So we do have still have the small spread in the Rockies where we're operating our Siemens business.

關於第三個問題的最後一個問題。因此，我們在落基山脈仍然有很小的分佈，我們在那裡經營西門子業務。

Right.

正確的。

That was very active in the third quarter. And I think what we made reference to in our prepared remarks was the baseload and lack of white space. Depending on how the market plays out in 2024, we think sets us up well. If we elect to stand up the third spread, we'd be ready to do so, but we have not done that yet.

這在第三季非常活躍。我認為我們在準備好的發言中提到的是基本負荷和缺乏空白。我們認為，根據 2024 年市場的表現，我們會做好準備。如果我們選擇進行第三次傳播，我們會準備這樣做，但我們還沒有這樣做。

Got it. And then the last one for me because I got a bad connection. If you guys wanted to accelerate and bring on more of the electric wireline units, what are the lead times on those?

知道了。然後是我的最後一個，因為我的網路連線不好。如果你們想加速並引進更多的電線設備，那麼這些設備的交貨時間是多少？

The lead times are volatile. It's what the lead times are. So it depends on the component. These two new -- we're calling up two new units.

交貨時間不穩定。這就是交貨時間。所以這取決於組件。這兩個新的——我們正在召集兩個新的單位。

They were completely refurbed from the ground up; those were about six months. The latest Intel would be three to four months, but that's a moving number.

他們從頭開始徹底翻新；那大約是六個月。最新的英特爾將是三到四個月，但這是一個動態數字。

Fair enough. Thank you for including me.

很公平。謝謝你把我包括在內。

Absolutely. Appreciate the questions.

絕對地。感謝您提出的問題。

Steve Ferazani, Sidoti & Company.

史蒂夫·費拉扎尼 (Steve Ferazani)，Sidoti & Company。

Good morning, Chris, Keefer, and thanks for taking my questions this morning. I wanted to ask about the strength of margins in the Rockies, and I know it's seasonally stronger. Trying to get your sense outside of seasonality, how sustainable those margins are?

早安，克里斯、基弗，感謝你們今天早上回答我的問題。我想詢問落基山脈的利潤率，我知道它的季節性較強。試圖了解季節性以外的情況，這些利潤的可持續性如何？

And I know the rig count didn't decline as much in certain areas as opposed to the gassier plays. But the difference is how you are able to price in the rock region within Rockies versus Southwest and Marcellus?

我知道某些地區的鑽孔機數量並沒有像天然氣開採區那樣下降那麼多。但不同之處在於，與西南航空和馬塞勒斯相比，落基山脈的搖滾地區如何定價？

Yeah. Good morning, Steve, and great question. Look, as you well know, operating leverage is like gravity. It still always works, right? And that's what we saw in the Rockies this quarter.

是的。早安，史蒂夫，這是個好問題。眾所周知，操作槓桿就像重力一樣。它仍然有效，對吧？這就是我們本季在落基山脈看到的情況。

Candidly, we sell some of that last year. We've got a great team and a great presence in the Rockies when --and that really spans all the way through the Bakken, right?

坦白說，我們去年賣掉了其中一些。我們在落基山脈擁有一支出色的團隊，並且在整個巴肯地區都有出色的表現，對嗎？

And so the reality is at this rig count and this activity base across most areas, operating leverage or negative operating leverage can really impact a given month or a given basin. And that's what we saw in the third quarter. We had more white space in the Mid-Con and the Southwest segments.

因此，現實情況是，根據大多數地區的鑽機數量和活動基礎，營運槓桿或負營運槓桿確實會影響特定月份或特定盆地。這就是我們在第三季看到的情況。我們在中部地區和西南地區有更多的空白。

Especially around the Haynesville and the Eagle Ford that maybe we anticipated negative operating leverage and put a damper on those margins, whereas in the Rockies, we saw a lot of activity. And we were able to redeploy some assets and mobilized some assets to cover off on additional work and some margin expansion with that operating leverage.

尤其是在海恩斯維爾和伊格爾福特周圍，我們可能會預期營運槓桿會出現負數，從而抑制了這些利潤，而在落基山脈，我們看到了很多活動。我們能夠重新部署一些資產並調動一些資產來彌補額外的工作和利用營運槓桿來擴大利潤率。

The Rockies is also, to your point, more impacted by seasonality and weather. Last year in 2022, the Rockies performance in Q4 was stellar. It was as strong as I think we've ever seen it. And that was really due to pent up demand for our technical services and rentals business in particular, especially on the production-oriented side of fishing, et cetera.

就您而言，落基山脈也更容易受到季節性和天氣的影響。去年2022年，落磯山脈第四季的表現非常出色。我想我們從未見過如此強大的力量。這實際上是由於對我們的技術服務和租賃業務的需求被壓抑，特別是在以生產為導向的漁業等領域。

So look, we'll see how the fourth quarter plays out. But we're very confident 2024 plays out exceptionally well in that business.

所以，讓我們看看第四季的表現如何。但我們非常有信心 2024 年這項業務將表現出色。

Great. And if I follow-up on the Northeast Mid-Con. I know it's only early November, so it's early to be having these conversations. But the recovery in natural gas prices, the interest in the additional LNG export capacity that's coming, trying to get your sense in your conversations with customers so far, and I know it's early. With the new contract year, when are you expecting to see some pickup in those plays? And are you I'm confident right now in a pickup in activity in those plays?

偉大的。如果我跟進東北中部地區。我知道現在才 11 月初，所以現在進行這些對話還為時過早。但天然氣價格的回升，對即將到來的額外液化天然氣出口能力的興趣，試圖在迄今為止與客戶的對話中了解你的感受，我知道現在還為時過早。在新的合約年裡，你預計什麼時候會看到這些比賽有所回升？我現在對這些戲劇的活動有增加有信心嗎？

Yeah, great question. What I would say is there are two distinctly different markets still tied to the LNG story, the natural gas story, clearly. The Mid-Con and the Haynesville specifically, we've seen a lot of rig count roll there. So operators have dumped more wells as we've gone through 2023.

是的，很好的問題。我想說的是，顯然，有兩個截然不同的市場仍然與液化天然氣故事、天然氣故事息息相關。特別是 Mid-Con 和 Haynesville，我們已經看到那裡有很多鑽孔機。因此，隨著 2023 年的到來，營運商已經廢棄了更多油井。

And we're definitely seeing a slight -- I'll categorize it as a slight pickup in completions activity in Q4. And we're having discussions in the Haynesville around rig in 2024.

我們肯定會看到輕微的增長——我將其歸類為第四季度完工活動的輕微回升。我們正在海恩斯維爾圍繞 2024 年的鑽孔機進行討論。

I don't think we see the same pickup in the Northeast in Q4 that we do in the Haynesville, partially just due to weather, seasonality, et cetera. So look, we're bullish when it comes to the natural gas outlook. We talked about this at your conference previously.

我認為我們在第四季度東北部不會看到與海恩斯維爾相同的回升，部分原因是天氣、季節性等。所以看，我們對天然氣前景持樂觀態度。我們之前在你們的會議上討論過這個問題。

2024, if you look at the forward strip, it's highly constructive on the gas side. And we're hearing more and more positive feedback and outlook from commodities traders and others that 2025 is actually looking very strong at this point. So I think we've got some wind at our sale when it comes to the gas side of the business.

2024年，如果你看看前方地帶，它在天然氣方面具有高度建設性。我們從大宗商品交易商和其他人那裡聽到了越來越多的積極反饋和展望，認為 2025 年實際上在這一點上看起來非常強勁。因此，我認為在天然氣業務方面，我們的銷售已經取得了一些進展。

Thanks, Chris.

謝謝，克里斯。

Appreciate it, Steve. Thank you.

很感激，史蒂夫。謝謝。

(Operator Instructions) David Marsh, Singular Research.

（操作員說明）David Marsh，Singular Research。

Thanks for taking the questions. So just touching on the guidance. Previously, you, guys, had provided both revenue and EBITDA margin guidance. The last revenue guidance you provided was a range of $900 million to $950 million for the year. Is that still a range that is achievable at this point?

感謝您提出問題。所以只是談談指導。此前，你們提供了收入和 EBITDA 利潤率指導。您上次提供的年度收入指引範圍為 9 億美元至 9.5 億美元。目前這仍然是可以實現的範圍嗎？

So I think, David, I'll jump in, and Keefer can jump in as well. This is Chris. Good morning and thanks for the question.

所以我想，大衛，我會加入進來，基弗也可以加入。這是克里斯。早安，謝謝你的提問。

What we updated in our prepared remarks was full year guidance. And so the full year adjusted EBITDA guidance and EBITDA and cash flow is what matters, right? So it's $140 million to $150 million.

我們在準備好的演講中更新的是全年指導。因此，全年調整後的 EBITDA 指引以及 EBITDA 和現金流才是最重要的，對嗎？所以是1.4億到1.5億美元。

So when you think about on a year-to-date basis, we're approximately $114. That guidance didn't really change on a full year basis over the last quarter, right? And so the midpoint of the full year is essentially equal to our prior guidance and consensus. So nothing's really changed there. We just didn't update the revenue number.

因此，當您考慮年初至今時，我們的成本約為 114 美元。該指導方針在上個季度的全年基礎上並沒有真正改變，對嗎？因此，全年的中點基本上等於我們先前的指導和共識。所以那裡什麼都沒有真正改變。我們只是沒有更新收入數字。

Got it. Got it. And then I guess as my follow-up, could you just give us a refresh on the credit facility where were termed out to you right now. And any activity around that that you guys might possibly pursue in terms of the extension?

知道了。知道了。然後我想，作為我的後續行動，您能否向我們介紹目前向您提供的信貸安排。你們可能會在延期方面進行任何相關活動嗎？

And with regard to the cash, I mean, are you guys look for opportunities to perhaps pay down that ABL a little bit to reduce interest expense in the interim? Or is there something particularly positive about holding cash? Did you, guys, able to earn more interest income from holding the cash than you're paying an interest expense?

關於現金，我的意思是，你們是否正在尋找機會支付一點 ABL 以減少過渡期間的利息支出？或者持有現金有什麼特別正面的好處嗎？夥計們，你們持有現金所賺取的利息收入是否比支付的利息支出還要多？

Yeah, good question and happy to jump in here. I'll address your second question first, go a little bit out of order. As it relates to cash and uses of free cash flow, clearly, we think through optionality there. We're continuing to focus on reduction of net debt and building free cash.

是的，好問題，很高興加入這裡。我先回答你的第二個問題，有點亂。由於它與現金和自由現金流的使用有關，顯然，我們會考慮那裡的選擇性。我們將繼續專注於減少淨債務和建立自由現金。

We're going to continue to evaluate opportunities to use cash in both organic and inorganic initiatives. We think about growing the business. And we'll continue to evaluate opportunities to pay down the ABL.

我們將繼續評估在有機和無機計劃中使用現金的機會。我們考慮發展業務。我們將繼續評估償還 ABL 的機會。

At this point in time, we've elected to build cash. You can see from the income statement, we are generating pretty substantial interest income today on our cash balance. So we're more than offsetting the ABL cash interest cost based on the cash balance that we have today. But that is something that we do continue to evaluate.

此時，我們選擇累積現金。您可以從損益表中看到，我們今天的現金餘額產生了相當可觀的利息收入。因此，我們不僅僅是根據今天的現金餘額來抵銷 ABL 現金利息成本。但這是我們繼續評估的事情。

As it relates to the broader capital structure, we've got two pieces of debt paper out there. The ABL and the notes both mature and the fall of 2025. The ABL has a spring or inside of the notes, but they mature roughly two years from today. So I think we're in a really good spot based on Q3 annualized results, LTM results.

由於它涉及更廣泛的資本結構，我們有兩張債務票據。 ABL 和票據均於 2025 年秋季到期。ABL 票據有彈簧或內部，但它們的到期時間大約是從今天起兩年。因此，我認為根據第三季的年化業績和 LTM 業績，我們處於非常好的位置。

The business is performing exceptionally well. We've more than grown back in the capital structure. Our net leverage ratio today is 1.3 times. Moody's came out last week and upgraded our outlook to positive. So everything in that regard continues to head in the right direction.

該公司的業務表現異常出色。我們的資本結構已經恢復了很多。今天我們的淨槓桿率為1.3倍。穆迪上週發布報告，將我們的前景升級為正面。因此，這方面的一切都繼續朝著正確的方向發展。

But we still have two years of [tenure] left. Our call premium just dropped down to [10278] as of November 1. So I would expect over the next year or so, we're going to start to look harder around opportunities to refinance the capital structure of the business. But we're just going to be patient and make sure that we execute a refinancing opportunity that makes the most sense for KLX and best positions us to continue to execute on our growth strategy going forward.

但我們的[任期]還剩兩年。截至 11 月 1 日，我們的看漲期權溢價剛剛降至 [10278]。因此，我預計在未來一年左右的時間裡，我們將開始更加努力地尋找為業務資本結構再融資的機會。但我們將保持耐心，確保我們執行對 KLX 最有意義的再融資機會，並使我們能夠繼續執行我們未來的成長策略。

Thanks, Keefer. Thanks, David. So we've gotten a couple of questions since the call started via e-mail from some folks.

謝謝，基弗。謝謝，大衛。自從一些人透過電子郵件開始通話以來，我們收到了一些問題。

First, you mentioned numerous benefits from Oracle SRT. So can you elaborate more on that? (inaudible)

首先，您提到了 Oracle SRT 的眾多優勢。能詳細說明一下嗎？ （聽不清楚）

Sure, Ken. Appreciate the question. Our vision from the outset was to develop a next-generation smart tool that not only had performance benefit, but also inherent safety benefits as well as the potential to reduce string fatigue in coil tubing as well as wear and tear on other asset components.

當然，肯。感謝這個問題。我們從一開始的願景就是開發下一代智慧工具，該工具不僅具有性能優勢，而且具有固有的安全優勢，並且有可能減少連續油管的管柱疲勞以及其他資產部件的磨損。

The economic benefit of drilling and completion efficiency gains has largely accrued to the benefit of the operator while the increased cost of equipment wear and tear is candidly accrued to the detriment of the service company due to equipment cycle times, et cetera. And so the reality is it's paramount that OFS companies find ways to share in the efficiency gains, to benefit margin across every service line that we operate in.

鑽井和完井效率提高的經濟效益在很大程度上為營運商帶來了利益，而設備磨損成本的增加則因設備週期時間等而對服務公司造成了損害。因此，現實情況是，OFS 公司找到分享效率收益的方法，以提高我們營運的每條服務線的利潤率，這一點至關重要。

And as we look at Oracle SRT, it really has the potential to extend coil tubing stream live, which is inherently margin enhancing while also simultaneously bring in technology benefits to bear for the customer. And so we'll provide more benefits on the technology down the road, but we're really excited about the opportunity.

當我們觀察 Oracle SRT 時，它確實具有延長連續油管流的潛力，這本質上可以提高利潤，同時也能為客戶帶來技術優勢。因此，我們將在未來的技術上提供更多好處，但我們對這個機會感到非常興奮。

That's good. We got another talking about the -- longer, lateral is kind of a buzzword today. What's your experience and expectation of continued adoption of the 4-mile laterals?

那挺好的。我們又討論了——更長、橫向是今天的一個流行詞。您對繼續採用 4 英里支線有何經驗和期望？

Great question. And it's definitely in the news, and we see people setting records. We continue to see operator's experiment with a whole host of lateral links and configurations.

很好的問題。這肯定會出現在新聞中，我們看到人們創造了記錄。我們繼續看到營運商對大量橫向連結和配置進行實驗。

And while there's discussions, and we're in discussions, with operators of 4 miler, we believe that most operators are building their business to be really in manufacturing mode to drive efficiencies and find ways to improve ultimate recoveries of oil and gas in their wellbores. And in certain basins, the reality of the situation is 4 miler is great incremental risk for operators where they would prefer other means to drive recovery.

雖然我們正在與 4 miler 的營運商進行討論，但我們相信大多數營運商正在將其業務打造為真正的製造模式，以提高效率並找到提高井眼中石油和天然氣最終採收率的方法。在某些盆地，實際情況是 4 英里對於運營商來說是巨大的增量風險，他們更喜歡其他方式來推動恢復。

So whether that lands on 1, 2, 3, or 4 milers, KLX is prepared to adapt and assist our clients with successful drilling and completion programs or complex wells. We recently were instrumental in the completion of a highly technical Horseshoe well or actually two highly technical Horseshoe wells in the Permian, which led to impressive results for that client.

因此，無論是 1、2、3 還是 4 英里，KLX 都準備好適應並協助我們的客戶成功完成鑽井和完井計畫或複雜的井。最近，我們在二疊紀完成了一口高技術馬蹄形井或實際上是兩口高技術馬蹄形井，這為該客戶帶來了令人印象深刻的結果。

And so while debt records are nice, the reality is we're focused on serving our clients with consistent execution of highly technical wells while maximizing margins for our stakeholders over setting length records. With that being said, look, lastly, KLX diversified suite of products and services really allows us to address all of these distances as well as configurations.

因此，雖然債務記錄很好，但現實是，我們專注於為客戶提供一致的高技術油井執行服務，同時為我們的利害關係人在設定長度記錄方面實現利潤最大化。話雖如此，最後，KLX 多元化的產品和服務套件確實使我們能夠解決所有這些距離和配置問題。

Thanks. We also got one talking about the outlook. Based on early customer guidance, it appears 2024 spending will be flat to slightly up year to year. You want to comment on that?

謝謝。我們還得到了一位談論前景的人。根據早期的客戶指導，2024 年的支出似乎將與去年同期持平或略有上升。您想對此發表評論嗎？

Sure. I think, look, there's been significant shape to 2023 just like there was in 2022. And we would expect some shape to '24, similar to Steve's question earlier in the call, just based off the constructive nature and forward strip on the natural gas side.

當然。我認為，看，到2023 年，就像2022 年一樣，我們預計到24 年會出現一些形狀，類似於史蒂夫在電話會議早些時候提出的問題，只是基於天然氣的建設性性質和前向地帶邊。

So we would expect it. And from what we're hearing thus far is slightly -- it's flat to slightly up spending, which should ultimately lead to improved year-over-year results for KLX. And I think that's due to four specific points.

所以我們會期待它。從我們迄今為止聽到的情況來看，支出略有增長，這最終應該會導致 KLX 的同比業績有所改善。我認為這是由於四個具體點。

We've got intrinsic upside in our incremental asset base. We have already talked about some of the high points of frac contract base loading in that service line, as well as the introduction of additional whisper series electric wireline units that we think we can deploy at attractive rates. And then lastly, further penetration of all the technologies we've talked about thus far, including our gen-three, now rebranded dissolvable plug, the KLX PhantM Dissolvable.

我們的增量資產基礎具有內在的優勢。我們已經討論過該服務線中壓裂合約基本負載的一些高點，以及引入額外的耳語系列電線裝置，我們認為我們可以以有吸引力的價格部署這些裝置。最後，進一步滲透我們迄今為止討論過的所有技術，包括我們的第三代、現已重新命名的可溶解插頭 KLX PhanM Dissolvable。

Anything you want to add Keefer before we -- looks like we're done with the email questions and people online on the call.

您想在我們之前添加 Keefer 的任何內容 - 看起來我們已經完成了電子郵件問題和在線通話的人員。

Yes. And just to follow-up on the plug side, I think, certainly, as you see this trend towards longer laterals, that's clearly going to drive a need for increased consumables per wellbore, which ultimately is going to be a benefit for KLX suite of products and certainly our plug business.

是的。只是為了跟進插頭方面，我認為，當然，正如您所看到的這種向更長支管的趨勢，這顯然會推動每個井眼增加消耗品的需求，這最終將有利於 KLX 套件產品，當然還有我們的插頭業務。

As Chris mentioned, we announced the launch of our latest-gen PhantM Plug. We've seen tremendous remark response so far in the third quarter. So we worked with numerous leading operators across multiple basins where we've seen strong market adoption of our new plug technology.

正如 Chris 所提到的，我們宣布推出最新一代 PhantM 插頭。到目前為止，我們在第三季度已經看到了巨大的評論反應。因此，我們與多個流域的眾多領先營運商合作，我們看到我們的新插頭技術在這些流域的市場上得到了強勁的採用。

Customer feedback has been really strong to date. We did mention in prepared remarks that our dissolvable plug sales were up north of 500% quarter over quarter. And based on October results, those strong plug sales have continued into Q4, and we would expect this trend to continue as we work into 2024 as well.

迄今為止，客戶的回饋非常強烈。我們在準備好的發言中確實提到，我們的可溶解塞子銷售額季度環比增長了 500% 以上。根據 10 月的結果，強勁的插頭銷售已持續到第四季度，我們預計這種趨勢將持續到 2024 年。

Yeah, absolutely.

是的，絕對是。

So that's it. Final comments, Chris.

就是這樣了。最後評論，克里斯。

Thank you once again for joining us on the call today and your interest in KLX Energy Services. We look forward to speaking with you again next quarter.

再次感謝您今天參加我們的電話會議以及您對 KLX Energy Services 的興趣。我們期待下個季度再次與您交談。

Thanks, everyone.

感謝大家。

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

女士們、先生們，感謝您的參與。今天的電話會議到此結束。您可以斷開線路並度過美好的一天。