KLX Energy Services Holdings Inc (KLXE) 2023 Q4 法說會逐字稿

Greetings. Welcome to KLX Energy Services full-year 2023 and fourth-quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

問候。歡迎參加 KLX Energy Services 2023 年全年及第四季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Ken Dennard. Thank you. You may begin.

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 fourth quarter and full-year 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 年第四季和全年業績。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 full year and fourth quarter and discuss the outlook for 2024 before opening the call for your questions. There will be a replay of today's call and will be available by webcast by going to the company's website at klx.com. There'll also be a telephonic recorded replay available until March 21, 2024. More information on how to access these replay features was included in yesterday's earnings release.

在我發表演講之後，管理層將對全年和第四季度的財務細節進行高級評論，並在開始提問之前討論 2024 年的前景。今天的電話會議將進行重播，並可透過造訪該公司網站 klx.com 進行網路廣播。截至 2024 年 3 月 21 日，也將提供電話錄音重播。有關如何存取這些重播功能的更多資訊已包含在昨天的財報中。

Please note that information reported on this call speaks only as of today, March 7, 2024, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listing or transcript reading.

請注意，本次電話會議報告的資訊僅截至今天（2024 年 3 月 7 日），因此，我們建議您，在任何重播清單或文字記錄閱讀時，時間敏感的資訊可能不再準確。

Also, comments on this call will contain forward-looking statements within the meaning of the United States federal securities laws. 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. 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.

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。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。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。

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 be found on the KLX Energy website.

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，您可以在 KLX Energy 網站上找到新聞稿。

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

現在，我想將這通電話轉給 KLX 能源服務公司總裁兼執行長 Chris Baker 先生。克里斯？

Thank you, Ken, and good morning, everyone. I'll go through the highlights of our full-year 2023 and fourth quarter before turning the call over to Keefer to discuss our financials in more detail and will then rejoin the call for concluding remarks.

謝謝你，肯，大家早安。我將回顧 2023 年全年和第四季度的亮點，然後將電話轉交給基弗，更詳細地討論我們的財務狀況，然後重新加入總結發言的電話會議。

2023 was a tremendous year for KLX on numerous fronts marked by outstanding operational performance, financial successes, post-COVID record HSE performance and statistics, continued market share gains with investment-grade and blue-chip customers, and significant strategic advancements, including the commercialization of multiple proprietary offerings and the accretive acquisitions of Greene's Energy Group.

2023 年對KLX 來說在許多方面都是重要的一年，包括出色的營運表現、財務成功、新冠疫情後創紀錄的HSE 業績和統計數據、投資級和藍籌客戶的市場份額持續增長，以及重大策略進步，包括商業化多項專有產品和格林能源集團的加值收購。

We generated record revenue and adjusted EBITDA of $888 million and $138 million respectively, representing year-over-year increases of 14% and 42% respectively, despite facing a 20% decrease in rig count over the same time period. We generated $111 million of unlevered free cash flow which was an annual record for KLX. We ended the year with $113 million in cash and $154 million of liquidity, a 96% and 52% increase year-over-year respectively.

儘管同期鑽機數量減少了 20%，但我們創造了創紀錄的收入和調整後 EBITDA 分別為 8.88 億美元和 1.38 億美元，比去年同期分別增長 14% 和 42%。我們產生了 1.11 億美元的無槓桿自由現金流，這是 KLX 的年度記錄。截至年底，我們的現金為 1.13 億美元，流動資金為 1.54 億美元，年比分別成長 96% 和 52%。

KLX exited 2023 with an LTM net leverage ratio of only 1.2 times which is our lowest LTM net leverage ratio since the notes were put in place in 2018 and well ahead of our internal goals set at the outset of the merger with QES. We achieved this financial success despite a 20% decline in rig count and all while improving our TRIR, LTIR, and vehicle incident rates by 37%, 48%, and 32%, respectively, yielding post-COVID record safety performance.

KLX 於 2023 年退出時的 LTM 淨槓桿率僅為 1.2 倍，這是自 2018 年票據到位以來我們最低的 LTM 淨槓桿率，遠遠超出了我們在與 QES 合併之初設定的內部目標。儘管鑽機數量減少了20%，我們還是取得了財務上的成功，同時我們的TRIR、LTIR 和車輛事故率分別提高了37%、48% 和32%，創造了新冠疫情后創紀錄的安全績效。

We have seen rapid customer adoption of our latest technologies, including our PhantM Dissolvable Plug and our OraclE Smart Reach ERT. We sold 56% of our total 2023 dissolvable plug sales in Q4 and experienced an 85% sequential increase in dissolvable plugs sold from Q3 to Q4.

我們看到客戶迅速採用我們的最新技術，包括我們的 PhantM 可溶解插頭和我們的 OraclE Smart Reach ERT。我們在第四季度售出了 2023 年可溶解塞總銷量的 56%，並且從第三季度到第四季度，可溶解塞的銷量環比增長了 85%。

We now have surpassed 1.1 million running feet and drilled out almost 3,000 plugs with our new proprietary Smart Oracle ERT. Customers are excited about Oracle's performance and inherent cleanout benefits, and we believe KLX is now uniquely positioned in the market as we are able to offer a leading fleet of large diameter coiled tubing and cutting-edge proprietary ERT and BHA.

現在，我們使用全新專有的 Smart Oracle ERT 已超過 110 萬英尺的運行距離並鑽出了近 3,000 個插頭。客戶對 Oracle 的性能和固有的清理優勢感到興奮，我們相信 KLX 現在在市場上處於獨特的地位，因為我們能夠提供領先的大直徑連續油管和尖端專有 ERT 和 BHA。

And lastly, we have made a concerted effort over the last 24 months to high grade our customer base. We worked for approximately 680 customers in 2023, which is down materially from greater than 1,200 customers in 2019. The company today is focused on providing products and services to the largest, most active, and best capitalized E&P operators across our geographic areas of operations. Our 2023 top 10 customers accounted for approximately 41% of our revenue and includes seven investment-grade operators and nine of the top 20 operators by rig count.

最後，我們在過去 24 個月中做出了一致努力，以提高我們的客戶群的評級。2023 年，我們為約 680 名客戶提供服務，較 2019 年的 1,200 多名客戶大幅減少。如今，該公司專注於為我們營運地理區域內規模最大、最活躍、資本最雄厚的勘探與生產營運商提供產品和服務。我們的 2023 年十大客戶約占我們收入的 41%，其中包括 7 家投資級營運商和按鑽機數量排名前 20 名營運商中的 9 家。

E&P customers continued their record pace of consolidation with over $100 billion of total mergers and acquisitions announced in 2023 in the Permian Basin alone. An added benefit of our customer high-grading strategy is that KLX has thus far had outsized relationships with the acquirers in the most recent wave of E&P consolidation. So we believe the consolidation trend will be a net positive for KLX as it creates an opportunity to capture additional market share with these leading customers.

勘探與生產客戶持續保持創紀錄的整合速度，2023 年僅在二疊紀盆地宣布的併購總額就超過 1,000 億美元。我們的客戶高評級策略的另一個好處是，KLX 迄今為止在最近一波勘探與生產整合中與收購方建立了廣泛的關係。因此，我們相信整合趨勢將對 KLX 產生淨正面影響，因為它創造了從這些領先客戶手中奪取額外市場份額的機會。

With that, I'll now jump into Q4 results. Despite continued softness in underlying US activity with frac spread count down 6% sequentially and a rig count that is down 25% from 2023 peak, we are pleased with our quarterly results, particularly our ability to continue to generate free cash flow and improved our cash, liquidity, and leverage positions.

現在，我將進入第四季的結果。儘管美國基礎活動持續疲軟，壓裂價差計數環比下降 6%，鑽機數量較 2023 年高峰下降 25%，但我們對季度業績感到滿意，特別是我們繼續產生自由現金流和改善現金的能力、流動性和槓桿頭寸。

Consistent with our guide, our fourth-quarter performance was negatively affected by reduced seasonal activity during the holiday season and decreased spending due to budget exhaustion and capital discipline. We observed a significant increase in the number of customers taking nearly a full week off for the Christmas holiday, surpassing previous year's trends. Q4 revenue was $194 million, and we reported a 12% adjusted EBITDA margin with a net loss and adjusted EBITDA coming in at negative $9 million and $23 million respectively.

與我們的指南一致，我們第四季的業績受到假期季節季節性活動減少以及預算耗盡和資本紀律導致支出減少的負面影響。我們觀察到聖誕節假期休假近一周的顧客數量顯著增加，超過了去年的趨勢。第四季營收為 1.94 億美元，調整後 EBITDA 利潤率為 12%，淨虧損和調整後 EBITDA 分別為負 900 萬美元和 2,300 萬美元。

In the fourth quarter, our revenue mix was well balanced both in terms of geographical distribution and product assortment. Geographically, the Southwest represented 35% of revenue on par with Q3. The Northeast Mid-Con represented 34% of Q4 revenue, up from 30% in Q3, and the Rockies generated 31% of revenue, down sequentially from 35% in Q3. KLX has broad exposure to both oil and gas-producing regions. However, approximately 84% of 2023 revenue was driven by oil-directed activity.

第四季度，我們的收入結構在地理分佈和產品種類方面都非常平衡。從地理上看，西南地區佔營收的 35%，與第三季持平。Northeast Mid-Con 佔第四季營收的 34%，高於第三季的 30%，落磯佔營收的 31%，較第三季的 35% 則下降。KLX 在石油和天然氣生產地區擁有廣泛的業務。然而，2023 年收入的約 84% 是由石油主導的活動所驅動的。

Our gas-driven activity represented approximately 16% of 2023 revenue, including the Haynesville which accounted for approximately 9%, and the Northeast which accounted for approximately 7%. I would note that we offer a more targeted product service offering in these areas whereby we have large market-leading positions. We actually experienced a sequential increase in the Haynesville revenue from Q3 to Q4 and Q4 represented the strongest Haynesville quarterly revenue since Q1 2023.

我們的天然氣驅動活動約佔 2023 年收入的 16%，其中海恩斯維爾約佔 9%，東北部約佔 7%。我要指出的是，我們在這些領域提供更有針對性的產品服務，因此我們擁有巨大的市場領先地位。實際上，我們經歷了從第三季到第四季海恩斯維爾收入的連續成長，第四季代表了自 2023 年第一季以來最強勁的海恩斯維爾季度收入。

From a product line perspective, completion-focused activity drove 51% of Q4 revenue. Drilling was 25%, and production and intervention was 24%. We saw sequential activity declines primarily driven by seasonal slowdowns, budget exhaustion, capital discipline, and weather across all of our PSLs other than pressure pumping and downhole production services, which were up sequentially on the previously disclosed frac contract and continued market adoption of our newly commercialized PhantM Dissolvable Plug.

從產品線的角度來看，以完成為中心的活動推動了第四季度收入的 51%。鑽井佔25%，生產和乾預佔24%。我們發現，除壓力泵和井下生產服務外，我們所有PSL 的活動連續下降主要是由季節性放緩、預算耗盡、資本紀律和天氣造成的，這些服務比之前披露的壓裂合約連續增加，而市場持續採用我們的新服務。

KLX remains committed to optimizing utilization rates and safeguarding pricing strategies to maximize margin and generate free cash flow. KLX's 2023 performance showcases the resiliency of our diversification strategy by illustrating our capacity to generate substantial free cash flow even in a demanding market backdrop.

KLX 仍然致力於優化利用率並維護定價策略，以最大限度地提高利潤並產生自由現金流。KLX 2023 年的業績展現了我們多元化策略的彈性，即使在嚴峻的市場背景下，我們也有能力產生大量自由現金流。

Throughout 2023, our operations team demonstrated exceptional performance by effectively adapting our cost structures and upholding disciplined pricing strategies. By leveraging the advantages of geographic and PSL diversification, we have successfully driven strong results.

2023 年全年，我們的營運團隊透過有效調整成本結構和堅持嚴格的定價策略，展現了卓越的績效。透過利用地理和 PSL 多元化的優勢，我們成功取得了強勁的業績。

Our dedicated team members are strategically positioned across all major US onshore basins, enabling us to efficiently deliver our extensive range of differentiated services and proprietary products. The exceptional caliber of our team and service offerings positions us to capture a greater portion of customer spending, particularly with a strong emphasis on the largest, most active, and well-capitalized operators in the US onshore market.

我們的專業團隊成員策略性地分佈在美國所有主要陸上盆地，使我們能夠有效地提供廣泛的差異化服務和專有產品。我們的團隊和服務產品的卓越能力使我們能夠獲得更大比例的客戶支出，特別是重點關注美國陸上市場上最大、最活躍和資本雄厚的營運商。

With that, I'll now turn the call over to Keefer who will review our financial results in more detail, 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，他將更詳細地審查我們的財務業績，我將在稍後的電話會議中返回，更詳細地討論我們的前景。基弗？

Thanks, Chris. Good morning, everyone.

謝謝，克里斯。大家，早安。

As Chris mentioned, we reported quarterly revenue of $194 million, representing a 12% sequential decrease which is lower than the 21% sequential decline in crude price and a 25% decrease in rig count from 2023 highs.

正如克里斯所提到的，我們報告的季度收入為 1.94 億美元，環比下降 12%，低於原油價格環比下降 21% 和鑽機數量較 2023 年高點下降 25% 的水平。

The Southwest and Mid-Con/Northeast segments contributed 35% and 34% of Q4 revenue respectively, led in the Southwest by directional drilling, rentals, and coiled tubing product service lines, and in the Mid-Con by our pressure pumping, directional drilling, and accommodation offerings. The Rockies contributed 31%, led by rentals, coiled tubing, and tech services.

西南地區和中部地區/東北部地區分別貢獻了第四季度收入的 35% 和 34%，西南地區以定向鑽井、租賃和連續油管產品服務線領先，中部地區則以壓力泵、定向鑽井為主。和住宿服務。落基山脈貢獻了 31%，其中以租賃、連續油管和技術服務為主。

Fourth-quarter consolidated adjusted EBITDA was $23 million, and adjusted operating income was approximately $3 million. Full-year consolidated adjusted EBITDA was $138 million, and adjusted operating income was $62 million. Total SG&A expense for Q4 was $20 million and was $87 million for the full year. When you back out the nonrecurring cost, adjusted SG&A expense for Q4 would have been only $19 million or just 9.8% of quarterly revenue and full year would have been $77 million or just 8.7% of annual revenues.

第四季合併調整後 EBITDA 為 2,300 萬美元，調整後營業收入約 300 萬美元。全年合併調整後 EBITDA 為 1.38 億美元，調整後營業收入為 6,200 萬美元。第四季的 SG&A 支出總額為 2,000 萬美元，全年為 8,700 萬美元。如果扣除非經常性成本，第四季調整後的 SG&A 費用僅為 1,900 萬美元，僅佔季度收入的 9.8%，全年則為 7,700 萬美元，僅佔年收入的 8.7%。

We take pride in maintaining one of the most streamlined overhead structures in the sector for a diversified business. Our ongoing focus is on further scaling operations while concurrently reducing G&A expense as a percentage of revenue. We generated a net loss of $9 million in Q4. On a full-year basis, we generated $19 million in net income and $1.22 per diluted share. Full-year adjusted net income and adjusted diluted EPS were $24 million and $1.54, respectively.

我們為維持多元化業務領域最精簡的管理結構之一而感到自豪。我們目前的重點是進一步擴大營運規模，同時降低一般管理費用佔收入的百分比。第四季我們淨虧損 900 萬美元。全年淨利潤為 1,900 萬美元，稀釋後每股收益為 1.22 美元。全年調整後淨利和調整後攤薄每股收益分別為 2,400 萬美元和 1.54 美元。

Turning now to a review of our segment results, I'll begin with the Southwest segment. The Southwest segment experienced a 13% sequential revenue decrease and a 10% year-over-year decrease in revenue to $67 million in the fourth quarter of 2023. Sequential decline in revenue was largely driven by lower utilization and pricing across most completion, production, and intervention product lines, including rentals, fishing, wireline, and flowback. Q4 adjusted operating income for the Southwest segment was approximately $2 million, and adjusted EBITDA was $9 million.

現在回顧我們的部門結果，我將從西南部門開始。2023 年第四季度，西南航空部門的營收季減 13%，年減 10%，至 6,700 萬美元。收入的連續下降主要是由於大多數完井、生產和乾預產品線（包括租賃、捕魚、電纜和回流）的利用率和定價下降所致。第四季西南航空部門調整後營業收入約 200 萬美元，調整後 EBITDA 為 900 萬美元。

The Rocky Mountains segment fourth-quarter revenue was $60 million, representing a 22% sequential decrease and a 9% decrease over the prior-year quarter. The sequential decrease in fourth-quarter revenue was largely driven by reduced regional completions and production activity into year end. We experienced sequential revenue declines across all product service lines. Adjusted operating income for the fourth quarter was $7 million and adjusted EBITDA was $13 million.

落磯山部門第四季營收為 6,000 萬美元，較上一季下降 22%，比去年同期下降 9%。第四季營收的環比下降主要是由於截至年底的地區完工量和生產活動減少所致。我們所有產品服務線的收入都持續下降。第四季調整後營業收入為 700 萬美元，調整後 EBITDA 為 1,300 萬美元。

Northeast and Mid-Con Q4 revenue was $67 million, a 2% increase relative to Q3, driven largely by higher activity in our frac business, where we continue to run two spreads, one of which is now operating under a contract with a top-tier operator. We pumped twice as many stages in Q4 as compared to Q3 and experienced slightly improved pricing and utilization across a few of our broader completion and production intervention service lines.

東北和中部地區第四季營收為6,700 萬美元，相對第三季成長2%，這主要是由於我們的壓裂業務活動增加所致，我們繼續經營兩種價差，其中之一目前根據與頂級公司簽訂的合約進行運營一級運營商。與第三季相比，我們第四季的抽油階段數量是第三季的兩倍，我們的一些更廣泛的完井和生產介入服務線的定價和利用率略有提高。

Segment adjusted operating income for the fourth quarter was just over $4 million, and adjusted EBITDA was $11 million for the quarter. Overall, the sequential decrease in profitability was driven by increased white space and a shift in mix with reduced contribution from some of our higher-margin product service lines including rentals and fishing.

第四季部門調整後營業收入略高於 400 萬美元，調整後 EBITDA 為 1,100 萬美元。總體而言，獲利能力的連續下降是由於空白空間的增加和組合的轉變以及我們一些利潤率較高的產品服務線（包括租賃和漁業）的貢獻減少所致。

At corporate, our adjusted operating loss and adjusted EBITDA loss for Q4 were $10.4 million and $9.2 million respectively. Corporate adjusted EBITDA loss improved by 6% sequentially and 28% compared to Q4 2022. On a full-year basis, our corporate adjusted operating loss and adjusted EBITDA loss were $45 million and $40 million respectively, both of which improved approximately 1% compared to 2022. These results highlight our capability to successfully integrate acquisitions and leverage economies of scale.

在公司方面，第四季度調整後的營運虧損和調整後的 EBITDA 虧損分別為 1,040 萬美元和 920 萬美元。企業調整後 EBITDA 損失季增 6%，與 2022 年第四季相比改善 28%。全年來看，我們公司調整後的營運虧損和調整後的 EBITDA 虧損分別為 4,500 萬美元和 4,000 萬美元，均較 2022 年改善約 1%。這些結果凸顯了我們成功整合收購和利用規模經濟的能力。

I'll now turn to net working capital, cash flow, and capitalization. Net working capital was approximately $47 million as of Q4. We reduced net debt 11% sequentially, ending the quarter with a net debt balance of $172 million. And based on last 12 months results, we have a net leverage ratio of just 1.2 times.

現在我將討論淨營運資本、現金流量和資本化。截至第四季度，淨營運資本約為 4,700 萬美元。我們連續減少淨債務 11%，本季結束時淨債務餘額為 1.72 億美元。根據過去 12 個月的結果，我們的淨槓桿比率僅為 1.2 倍。

Our year-end cash balance was $113 million. That was up 25% from $90 million in Q3 and up 96% from 2022. The sequential and year-over-year increases in cash were largely driven by our ability to efficiently convert adjusted EBITDA to free cash flow and proactive efficient management of net working capital.

我們的年末現金餘額為 1.13 億美元。這比第三季的 9,000 萬美元成長了 25%，比 2022 年成長了 96%。現金的環比和同比增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以及對淨營運資本的主動有效管理的能力。

We ended the fourth quarter with roughly $154 million in liquidity, consisting of $113 million in cash and availability of $42 million under our December 2023 ABL borrowing base certificate. We did not issue shares under our ATM in 2023. Our ABL and senior secured notes both mature in the fall of 2025. And given our performance in 2023, we believe the business is well positioned and conservatively capitalized. We'll continue to monitor market conditions and opportunities to refinance our senior secured notes and ABL as we progress through 2024.

截至第四季末，我們的流動資金約為 1.54 億美元，其中包括 1.13 億美元現金以及 2023 年 12 月 ABL 借款基礎證書下可用的 4,200 萬美元。2023 年，我們沒有透過 ATM 發行股票。我們的 ABL 和優先擔保票據均將於 2025 年秋季到期。鑑於我們 2023 年的業績，我們相信該業務定位良好且資本保守。隨著 2024 年的進展，我們將繼續監控市場狀況以及為我們的優先擔保票據和 ABL 再融資的機會。

Now turning to CapEx. Fourth-quarter capital expenditures were $13 million, which were primarily focused on maintenance spending across our various segments. Q4 net CapEx, CapEx less asset sales, was approximately $9 million. Going forward, we expect total CapEx for 2024 to be in the range of $50 million to $60 million. The majority of the budgeted CapEx will be allocated to maintenance expenses with around 75% dedicated to supporting ongoing operations. The remaining funds will be allocated to quick payback reactivation and growth initiatives across various areas such as rentals, frac rentals, and coiled tubing.

現在轉向資本支出。第四季資本支出為 1,300 萬美元，主要集中在我們各部門的維護支出。第四季淨資本支出（資本支出減去資產銷售）約 900 萬美元。展望未來，我們預計 2024 年的總資本支出將在 5,000 萬美元至 6,000 萬美元之間。大部分預算資本支出將分配給維護費用，其中約 75% 專門用於支援持續營運。剩餘資金將分配給租賃、壓裂租賃和連續油管等各領域的快速投資回收和成長計畫。

We continually assess capital expenditure levels and drivers to identify current trends and potential inefficiencies to ensure they are in line with prevailing market conditions. During Q4, we sold approximately $3 million in assets. And at the end of the fourth quarter, we still had $2.3 million of assets held for sale reflected on the balance sheet. Moving forward, our focus remains on optimizing free cash flow, maintaining a strong balance sheet, and prudently managing capital as we actively pursue value-enhancing growth and M&A opportunities.

我們不斷評估資本支出水準和驅動因素，以確定當前趨勢和潛在的低效率，以確保它們符合當前的市場條件。第四季度，我們出售了大約 300 萬美元的資產。截至第四季末，我們的資產負債表上仍有 230 萬美元的待售資產。展望未來，我們的重點仍是優化自由現金流、維持強勁的資產負債表以及審慎管理資本，同時積極尋求增值成長和併購機會。

I'll now turn the call back to Chris who will provide some additional color on the current market and our outlook for Q1 and the remainder of 2024.

現在我將把電話轉回給 Chris，他將提供有關當前市場以及我們對第一季和 2024 年剩餘時間的展望的一些額外資訊。

Thanks, Keefer.

謝謝，基弗。

Before we wrap up, I'd like to share some additional details on our outlook. As we enter 2024, we are confident that our platform is exceptionally well positioned to capitalize on the growing customer consolidation trend. Customers continue to search for performance-driven technologically differentiated services providers with exemplary safety records and job execution, and we checked all of those boxes.

在結束之前，我想分享一些有關我們前景的其他細節。進入 2024 年，我們相信我們的平台處於非常有利的位置，能夠利用不斷增長的客戶整合趨勢。客戶不斷尋找具有示範性安全記錄和工作執行力的績效驅動型技術差異化服務供應商，我們勾選了所有這些選項。

Our confidence stems from various factors, including our efficient cost structure, expanded asset capacity, and utilization of cutting-edge technology. These elements contribute to the KLX platform's strong market position.

我們的信心源自於多種因素，包括高效率的成本結構、擴大的資產產能以及尖端技術的利用。這些要素奠定了 KLX 平台強大的市場地位。

Currently, we anticipate that our business will be focused on prioritizing crude utilization and pricing strategies to drive margins and free cash flow. We believe KLX and the broader US onshore oilfield services industry in general is positioned exceptionally well as we move into the second half of 2024.

目前，我們預計我們的業務將專注於優先考慮原油利用和定價策略，以提高利潤率和自由現金流。我們相信，隨著 2024 年下半年的到來，KLX 和更廣泛的美國陸上油田服務產業整體定位非常好。

More specifically, the forward natural gas strip is highly constructive into 2025 and 2026 due to the much-anticipated incremental LNG offtake demand. Global LNG demand is expected to double over the next two years, and we believe this increase will drive incremental natural gas-directed activity that will ultimately lift and support service pricing and utilization across all basins.

更具體地說，由於備受期待的增量液化天然氣承運需求，未來天然氣帶在 2025 年和 2026 年具有高度建設性。預計未來兩年全球液化天然氣需求將翻一番，我們相信這一增長將推動以天然氣為主導的活動增量，最終將提升並支持所有流域的服務定價和利用率。

Based on what we know today, we expect our first quarter to be down sequentially, driven by normal seasonality, January's polar vortex weather system, which impacted the majority of our operations, particularly in the Rockies, Mid-Con, and Texas. We estimate approximately four to six revenue days were lost in the first quarter due to this event.

根據我們今天所了解的情況，我們預計第一季的業績將環比下降，原因是正常的季節性因素、一月份的極地渦旋天氣系統，這影響了我們的大部分業務，特別是在落基山脈、中部地區和德克薩斯州。我們估計，由於這起事件，第一季大約損失了四到六個收入天。

Additionally, Q1 activity in the Rockies has been negatively impacted by non-KLX generated safety stand-downs for two separate customers. While the revenue loss is expected to be made up over the course of 2024 as customers maintain their budgets, it will not be recovered during Q1.

此外，落基山脈第一季的活動也受到非 KLX 對兩個不同客戶造成的安全停工的負面影響。雖然隨著客戶維持預算，收入損失預計將在 2024 年得到彌補，但在第一季無法彌補。

With that said, based on our current schedules, we expect to exit the first quarter on a strong monthly run rate and to approach 2023 levels of revenue and adjusted EBITDA in the second quarter and beyond. For the full year of 2024, we expect full-year revenue to be in line with or slightly above second half 2023 annualized levels with material shape to the year as the current calendar calls for a slower start in Q1 and increasingly stronger performance through Q2 and Q3 with only modest seasonality in Q4, which we expect will be less pronounced in 2023 as gas-directed activity should begin to improve late in the year.

話雖如此，根據我們目前的計劃，我們預計第一季將以強勁的月度運行率結束，並在第二季度及以後的收入和調整後 EBITDA 接近 2023 年的水平。對於2024 年全年，我們預計全年收入將與2023 年下半年的年化水平持平或略高於2023 年下半年的年化水平，因為當前的日曆要求第一季度的開局較慢，第二季度和第二季度的業績日益強勁。晚些時候開始改善。

Finally, our M&A strategy remains focused on identifying and pursuing accretive opportunities that add depth or complementary technology to our overall product service offerings and enhance our customer value proposition. If Exxon and Pioneer needs to scale, then everyone needs to scale.

最後，我們的併購策略仍然專注於識別和尋求增值機會，為我們的整體產品服務增加深度或補充技術，並增強我們的客戶價值主張。如果埃克森美孚和先鋒公司需要擴大規模，那麼每個人都需要擴大規模。

The sell-side is showing signs of life, but the bid-ask spread remains wide. The discrepancy in the rate of consolidation between our customers and the service providers may partly be attributed to the service sectors depressed market multiples and highly fragmented competitive landscape.

賣方出現復甦跡象，但買賣價差仍然很大。我們的客戶和服務提供者之間的整合率差異可能部分歸因於服務業低迷的市場倍數和高度分散的競爭格局。

However, we firmly believe that we offer M&A counterparties an appealing opportunity to engage in value-creating, equity-linked transactions whereby they can ultimately realize an exit via a well-capitalized, liquid, publicly traded stock. We have a proven track record in successfully identifying and realizing synergies and quickly integrating acquired entities. With a strong foundation and capitalization, KLX's proactive strategy involves actively pursuing accretive and synergistic M&A opportunities to further expand and scale our existing platform.

然而，我們堅信，我們為併購交易對手提供了一個有吸引力的機會，讓他們能夠參與創造價值的股權掛鉤交易，從而最終透過資本充足、流動性強的公開交易股票實現退出。我們在成功識別和實現協同效應以及快速整合所收購的實體方面擁有良好的記錄。憑藉雄厚的基礎和資本，KLX 的積極主動策略涉及積極尋求增值和協同併購機會，以進一步擴展和擴大我們現有的平台。

In summary, I would like to express my gratitude to every member of the KLX team for their unwavering dedication to safety, customer service, and the successful execution of our strategic initiatives. The hard work and commitment of our team members has been instrumental in driving our success, and I extend my sincere appreciation for their contributions.

總而言之，我要向 KLX 團隊的每一位成員表示感謝，感謝他們對安全、客戶服務和我們策略性舉措的成功執行的堅定奉獻。我們團隊成員的辛勤工作和奉獻精神對於推動我們的成功發揮了重要作用，我對他們的貢獻表示衷心感謝。

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

話雖如此，我們現在將回答您的問題。操作員？

(Operator Instructions) Luke Lemoine, Piper Sandler.

（操作說明）Luke Lemoine、Piper Sandler。

Chris, you talked about getting back to '23 quarterly rev and EBITDA levels in 2Q and beyond. But could you talk about the factors you see driving this? Is it uptake in various products, market share gains, customer mix, basin mix, or just any commentary you can provide would be helpful.

克里斯，您談到了在第二季度及以後恢復到 23 年季度收益和 EBITDA 水平。但您能談談您認為推動這一趨勢的因素嗎？是各種產品的吸收、市場份額的成長、客戶組合、盆地組合，還是您可以提供的任何評論都會有幫助。

That's a pretty broad question. I think it ties into our overall guidance and how we're thinking about the macro as a whole. I think to your initial question around guidance, et cetera, look, I think, first, it feels like general consensus is the first half of the year is going to be slower with more growth in the second half of the year and optimism going into '25 and '26. Looking at our calendars as we sit here today, we see a pretty material leg up in Q2, just solely based off customer feedback in our current calendars and schedule.

這是一個相當廣泛的問題。我認為這與我們的整體指導以及我們如何看待整個宏觀經濟有關。我認為，對於你關於指導等的最初問題，我認為，首先，普遍的共識是，今年上半年將會放緩，下半年將出現更多增長，並且樂觀情緒將進入'25 和 '26。今天我們坐在這裡查看我們的日曆，我們看到第二季度取得了相當大的進步，這只是基於我們當前日曆和時間表中的客戶回饋。

And I think general market expectations are incremental expansion into Q3. Some of that for us, as you well know, is driven by our weather-sensitive regions in the Rockies, et cetera, in the production and intervention side of our business, is typically much stronger in Q2 and Q3. And so look, Q4, as everybody knows, is a bit of a wildcard. I think everybody is looking ahead at the wave of gas demand, the forward strip is clearly highly constructive if it holds.

我認為市場的普遍預期是第三季的增量擴張。如您所知，對我們來說，其中一些是由落基山脈等天氣敏感地區推動的，在我們業務的生產和乾預方面，通常在第二季度和第三季度要強勁得多。眾所周知，Q4 有點像是通配符。我認為每個人都在展望天然氣需求的浪潮，如果它成立的話，前向地帶顯然是非常有建設性的。

I think two key points that a lot of people are overlooking. First, if WTI stays range-bound in the $70 to $80 range and the gas strip holds, the reality is the Eagle Ford and the Mid-Con become much more economic when gas gets above $2.50, let alone $3. And so we're having customer conversations, and I think those basins will see incremental activity in the second half relative to the first.

我認為有兩個關鍵點被很多人忽略了。首先，如果WTI 保持在70 至80 美元的區間內，並且天然氣地帶保持不變，那麼現實是，當天然氣價格高於2.50 美元時，Eagle Ford 和Mid-Con 會變得更加經濟，更不用說3美元了。因此，我們正在進行客戶對話，我認為相對於上半年，這些盆地下半年的活動將會增加。

The other is, if you roll the clock back to October of '23, a number of industry veterans and probably including a couple on this call, were calling for 40-plus rigs in the Haynesville being added in 2024. That hope was clearly thrown out with the bathwater back in December. That being said, look, if we see any semblance of that kind of rig count in Q4, starting in Q4 into 2025, the reality is that's highly accretive to margins across all basins due to the service intensity of the Haynesville.

另一個是，如果你把時間撥回到 23 年 10 月，一些行業資深人士（可能包括這次電話會議中的幾個人）呼籲在 2024 年在 Haynesville 添加 40 多個鑽機。早在去年 12 月，這項希望就被徹底澆熄了。話雖如此，如果我們在第四季度看到任何類似的鑽機數量，從第四季度開始到 2025 年，現實情況是，由於海恩斯維爾的服務強度，所有盆地的利潤都會大幅增加。

We've seen it before, service companies will flock back to the Haynesville chasing outsized returns in a basin that's very onerous on assets. And ultimately, I think the timing of the gas-directed activity rebound will lift every basin. And so I think we have a leg up. The timing is what's in question. And so I think the loaded question is, if the strip holds, do operators stand up rigs in the gas basins in Q4 or do they wait until Q1 of '25?

我們以前已經看到過，服務公司將湧回海恩斯維爾，在一個資產非常繁重的盆地中追逐巨額回報。最終，我認為天然氣主導的活動反彈的時機將提振每個盆地。所以我認為我們有優勢。時間是有問題的。因此，我認為重要的問題是，如果該地帶能夠維持下去，營運商是否會在第四季度在天然氣盆地建立鑽井平台，還是等到 25 年第一季？

The other last point I would make is, look, we're going to benefit from a full year of the Greene's acquisition as well as the recently commercialized downhole tools that we've been talking about on the dissolvable plug and ERT side. So I think we have a full year benefit of all three of those. And so as we're sitting here today, we think Q1 is - will be a bit transitory and the back half of the year will finish materially stronger.

我要說的最後一點是，看，我們將受益於 Greene 的一整年收購以及最近商業化的井下工具，我們一直在談論可溶解的塞子和 ERT 方面。所以我認為我們全年都能從這三個方面受益。因此，當我們今天坐在這裡時，我們認為第一季將有點短暫，今年下半年的表現將會明顯增強。

Okay. And then just on 1Q, I mean you've talked about a lot of the issues at play and definitely understandable. But any kind of specificity you can kind of provide surrounding 1Q?

好的。然後就在第一季度，我的意思是您已經討論了很多正在發生的問題並且絕對可以理解。但是您可以提供有關 1Q 的任何具體資訊嗎？

No, I think, look, we covered it. We said it's going to be down sequentially quarter-over-quarter. We talked about some of the puts and takes, as you well know, when we're running $2-plus million of revenue a day, a couple of days lost due to polar vortexes. Otherwise, you all can probably do the math, but we haven't provided any quantitative guidance on 1Q yet beyond what we said in the prepared remarks.

不，我想，看，我們涵蓋了它。我們表示，這一數字將逐季季減。如您所知，當我們每天的收入超過 200 萬美元時，由於極地渦旋而損失了幾天，我們討論了一些看跌和看跌的情況。否則，你們都可以計算一下，但除了我們在準備好的評論中所說的內容之外，我們還沒有提供任何關於第一季的定量指導。

Okay. And then maybe take just one more in real quick, Keefer, on working capital. You all did an excellent job in '23 on that and had a nice tailwind. Any thoughts on '24 working capital based on your revenue and EBITDA outlook for the year?

好的。然後，基弗，也許再快速地再講一個關於營運資金的問題。23 年你們在這方面都做得非常出色，並且順風順水。根據您今年的收入和 EBITDA 前景，對 '24 營運資金有何想法？

Based on, I think, the revenue guide for the year, shape of working capital probably looks pretty similar for '24 versus 2023. Typically, Q1 is a working capital-intensive quarter for us, particularly on the payroll and AP side. I think you saw that in 2023 as well. But look, we're constantly monitoring working capital. We very proactively manage. We work really hard on customer collections and work hard with our vendors. So I think we'll be able to continue to efficiently manage working capital on a go-forward basis.

我認為，根據今年的收入指南，24 年與 2023 年的營運資金形狀可能看起來非常相似。通常，第一季對我們來說是營運資本密集型季度，特別是在薪資和應付帳款方面。我想你在 2023 年也看到了這一點。但看，我們一直在監控營運資金。我們非常積極主動地進行管理。我們非常努力地收集客戶並與我們的供應商合作。因此，我認為我們將能夠繼續有效地管理未來的營運資金。

Steve Ferazani, Sidoti & Company.

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

Appreciate all the detail on the call. I appreciate all the detail on the call. I just want to walk back to your outlook for '24, guiding sequentially down in Q1. I'm trying to get a feel for how much of the Q1 sequential decline is polar vortex and weather-related issues versus industry-related issues because I'm trying to figure out how you get to better Q2 versus Q1.

欣賞通話中的所有細節。我很欣賞通話中的所有細節。我只想回顧一下您對 24 年的展望，第一季的指引依序下降。我試圖了解第一季的環比下降有多少是極渦和天氣相關問題與行業相關問題造成的，因為我試圖弄清楚如何讓第二季比第一季更好。

Yes, it's a great question. And I think some of the transitory issues we talked about, so we referenced on the call prepared remarks four to six days across the Rockies, Texas, and Mid-Con area clearly in January from a polar vortex standpoint. There's other puts and takes, and we'll talk about those because we don't even have them fully quantified yet with the safety stand-downs that have gone on in the Bakken and the Rockies specifically. So we can address those in our Q1 remarks next quarter.

是的，這是一個很好的問題。我認為我們討論了一些暫時性問題，因此我們在電話會議上引用了從極地渦旋的角度來看，一月份在德克薩斯州落基山脈和中部地區的四到六天準備的言論。還有其他的調整和調整，我們會討論這些，因為我們甚至還沒有完全量化它們，特別是在巴肯和落基山脈發生的安全停賽。因此，我們可以在下個季度第一季的評論中解決這些問題。

I think the balance really comes down to just general seasonality. In the Rockies specifically, we've talked about it before, you have regulatory issues with wildlife migrations, et cetera, you just have overall seasonality, especially when it comes to the production and intervention side, where a lot of times those businesses and those segments really kick off once they receive their full-year budget, et cetera, exiting in January and into February.

我認為這種平衡實際上取決於一般的季節性。具體來說，在落基山脈，我們之前已經討論過，野生動物遷徙等方面存在監管問題，只有整體季節性，特別是在生產和乾預方面，很多時候這些企業和那些一旦他們收到全年預算等，各個部分就真正開始，在一月和二月退出。

And so we typically see a leg up in March. That's kind of what our calendars are suggesting today as we're seeing an inflection specifically in those basins as well as candidly some of the production and intervention work in the Northeast in March.

因此，我們通常會在三月看到上漲。這就是我們今天的日曆所暗示的，因為我們看到這些盆地出現了特別的變化，而且坦白說，三月份東北部的一些生產和乾預工作也發生了變化。

And the current calendar, as we see it, all the way out through May continues to see a step up there as well as across our frac rentals business, including our isolation tools, et cetera, in the DJ. So current calendars and outlook definitely suggests an improved Q2. And I would expect, just based off of -- if history repeats itself, Q3 would continue that guide, especially in the northern regions.

正如我們所看到的，目前的日曆，一直到 5 月份，我們的壓裂租賃業務（包括 DJ 中的隔離工具等）都將繼續取得進展。因此，目前的日曆和前景肯定表明第二季度有所改善。我預計，如果歷史重演，第三季將繼續這一趨勢，尤其是在北部地區。

Great. That's helpful. Balance sheet significantly improved this year. We've seen some smaller deals, maybe not a ton. How are you looking at the pipeline? What kind of things would fit? And what are you willing to do with the balance sheet knowing that the refinancing window probably opens later this year?

偉大的。這很有幫助。今年資產負債表顯著改善。我們看到了一些較小的交易，也許不是很多。您如何看待管道？什麼樣的東西適合？知道再融資窗口可能在今年稍後打開，您願意對資產負債表做什麼？

Yeah, it's a great question. I think we referenced in our prepared remarks, we really exceeded our expectations. We've had an internal goal for some period of time of getting down to 1.5 times or lower on a net leverage ratio basis. We exited the year at 1.2 times. I think Keefer stated in his prepared remarks, the balance sheet is as strong as it has been since the notes were put in place in 2018. So we're very proud of those results.

是的，這是一個很好的問題。我認為我們在準備好的發言中提到，我們確實超出了我們的預期。我們的內部目標是在一段時間內將淨槓桿率降至 1.5 倍或更低。我們以 1.2 倍的價格退出了這一年。我認為基弗在他準備好的演講中表示，資產負債表與 2018 年票據出台以來一樣強勁。所以我們對這些結果感到非常自豪。

From a deal perspective, look, the bid-ask spread is still there, especially with some of the private equity and sponsor-backed deals. But it seems like volume is ramping, which I can only assume that means bankers are having very honest discussions with their clients about ability to pay in expected multiples given where the overall sector is trading.

從交易的角度來看，買賣價差仍然存在，特別是在一些私募股權和贊助商支持的交易中。但交易量似乎正在增加，我只能假設這意味著銀行家正在與客戶進行非常誠實的討論，討論考慮到整個行業的交易情況，以預期倍數支付的能力。

We'll see if the bid-ask spread closes or not. And likewise, I have to assume that selling counterparties are rational and realize the best approach to unlocking value is realizing synergies during a bit of market softness and realizing the equity upside and timing their exit as the market ramps in the back half of the year. But I think the jury is out there, and we'll see. But we definitely see ample deal flow today.

我們將看看買賣價差是否關閉。同樣，我必須假設出售交易對手是理性的，並認識到釋放價值的最佳方法是在市場疲軟期間實現協同效應，實現股票上漲，並在下半年市場回升時選擇退出。但我認為陪審團已經存在，我們拭目以待。但今天我們確實看到了大量的交易流。

To your point on balance sheet use. Look, we've said it before, and we're still sticking by it today. I think the majority of deals that we would look to execute on will be majority equity linked. Is - given our cash balance and our overall liquidity situation, is there the ability to use some de minimis amount of cash in a transaction to make it more accretive? Sure. And we'll evaluate that on a deal-by-deal basis.

就您在資產負債表使用上的觀點而言。看，我們以前說過，今天我們仍然堅持這一點。我認為我們希望執行的大多數交易都將與多數股權掛鉤。考慮到我們的現金餘額和整體流動性狀況，是否有能力在交易中使用少量現金以使其更具增值性？當然。我們將逐筆交易進行評估。

Just to add on the note side to follow up your latter half of your question. Chris mentioned that we talked about it in the prepared remarks, but obviously, our 2023 results, in our mind, were really strong. We ended the year in a great financial position, $113 million in cash, $154 million in liquidity, net leverage ratio is down to 1.2 times.

只是在註釋側添加以跟進您問題的後半部分。克里斯提到，我們在準備好的發言中談到了這一點，但顯然，在我們看來，我們 2023 年的表現非常強勁。年底，我們的財務狀況良好，現金 1.13 億美元，流動資金 1.54 億美元，淨槓桿降至 1.2 倍。

So I think given our 2023 performance, we believe we're well positioned and the business is conservatively capitalized. You noted, obviously, our notes mature in the fall of 2025. So we're going to work to continue to monitor capital market conditions and opportunities in order to refinance our notes and ABL as we work through the 2024 year.

因此，我認為，考慮到我們 2023 年的業績，我們相信我們處於有利位置，而且業務資本化較為保守。顯然，您注意到我們的票據將於 2025 年秋季到期。因此，我們將努力繼續監控資本市場狀況和機會，以便在 2024 年期間為我們的票據和 ABL 進行再融資。

John Daniel, Daniel Energy Partners.

約翰‧丹尼爾，丹尼爾能源合夥人。

Hi, good morning. Hopefully, you can hear me.

早安.希望你能聽到我的聲音。

Good morning, John.

早安，約翰。

Chris, I got a question on the safety shutdown, the stand-down, are you seeing any of your customers -- and it might be a tough one to answer, but are they changing their behavior where they're eliminating or scrutinizing the vendors, some of your smaller service peers, with respect to their safety, maintenance programs and insurance?

克里斯，我有一個關於安全關閉、停工的問題，你是否見過你的任何客戶——這可能很難回答，但他們是否改變了他們消除或審查供應商的行為，您的一些規模較小的服務同行，他們的安全、維護計劃和保險方面如何？

Yes. I think, I sure hope they are, candidly. I think that's one of the benefits we've seen from our customer base, customer selection and diversification strategy. The reality is you have to be, as you well know, well positioned from a safety perspective, job execution perspective, ability to bundle technologies and drive performance in the field to work for a lot of the blue-chip customers that we work for today. If you think about our customer list back in 2018, 2019, we would have worked for over 1,200 customers. This year, we worked for just over 650 unique customers.

是的。我想，坦白說，我當然希望他們是這樣。我認為這是我們從客戶群、客戶選擇和多元化策略中看到的好處之一。現實是，如您所知，您必須從安全角度、工作執行角度、捆綁技術和推動現場績效的能力等方面做好準備，才能為我們今天服務的許多藍籌客戶工作。如果您回想一下我們 2018 年、2019 年的客戶名單，我們將為超過 1,200 位客戶提供服務。今年，我們為超過 650 位獨特客戶提供服務。

And so we're definitely seeing that. We're seeing a high grading, if you will, of customer opportunity set across the board. And so as a business, you have to be positioned to work for top 10, top 20 operators by rig count. And so thus far, and this kind of ties back, I'm a little remiss, in part of Luke's question.

所以我們肯定看到了這一點。如果你願意的話，我們看到了全面的客戶機會的高評級。因此，作為一家企業，您必須能夠為鑽機數量排名前 10 名、前 20 名的營運商工作。到目前為止，在盧克的問題中，我有點疏忽了。

The reality of it is, thus far, consolidation amongst our customers, as we all know, has been accelerating, and we think that's a net positive for KLX. By and large, our larger customers have been the consolidators. And so you see some transitory impact where a given customer acquires a smaller customer that's running two rigs and lays down two of the three.

事實上，眾所周知，到目前為止，我們的客戶之間的整合一直在加速，我們認為這對 KLX 來說是一個淨積極的結果。總的來說，我們的大客戶一直是集運商。因此，您會看到一些暫時的影響，即某個客戶收購了一個運行兩台鑽機並鋪設三台鑽機中的兩台的較小客戶。

But the reality is in our mind and what we're seeing through the integrations is that it will open opportunity set for KLX to expand our share of the given customer spend and wallet and pull through some of our technologies. So we actually think there's some upside. And I guess on the last point is, yes, we are very proud of the safety results that our team generated last year. I do think that it comes back - the safety issues come back and the insurance requirements come back to burden some of the smaller mom-and-pop type operators. But of course, that takes some time to work through the system, right?

但現實是我們所認為的，我們透過整合看到的是，它將為 KLX 提供機會，擴大我們在特定客戶支出和錢包中的份額，並利用我們的一些技術。所以我們實際上認為有一些好處。我想最後一點是，是的，我們對我們團隊去年的安全成果感到非常自豪。我確實認為它會捲土重來——安全問題捲土重來，保險要求又捲土重來，給一些規模較小的夫妻店經營者帶來了負擔。但當然，這需要一些時間來完成系統的工作，對吧？

Right. Fair enough. You mentioned the ERT. How does that - is that just proprietary to you guys on your own equipment? Or do you - can you sell it? Is there an opportunity to - what's the strategy there?

正確的。很公平。您提到了 ERT。這是怎麼回事——這只是你們自己設備上專有的嗎？或是你-你能賣掉它嗎？是否有機會 - 那裡的策略是什麼？

Yes. No. Look, we're pretty proud of the results that we've seen tremendous customer adoption, especially now in kind of one basin specifically, and we're seeing that expand to other basins. To date, John, we're holding that in-house, and we've only run that tool on the end of KLX coil. The reality is - I'm sure you'll ask, we were staffed for 13 to 14 units through Q4.

是的。不。看，我們對我們看到大量客戶採用的結果感到非常自豪，特別是現在在一個盆地，我們看到這種情況擴展到其他盆地。約翰，到目前為止，我們一直在內部使用該工具，而且我們只在 KLX 線圈的末端運行該工具。現實情況是 - 我相信您會問，到第四季度我們已經配備了 13 到 14 個單位的人員。

We've now expanded four of our units to ultra-deep capacity, so 30-plus-thousand foot of coil. We have the ability to expand seven to eight for really short dollars. And so we see a ton of market opportunity just on the end of KLX coil. And so for the time being, yes, we're running it as well as just our overall proprietary BHA on our KLX extended reach coil.

現在，我們已將四個單元擴展到超深容量，即 30 多英尺的線圈。我們有能力以非常短缺的美元擴張七到八個。因此，我們在 KLX 線圈末端看到了大量的市場機會。所以目前，是的，我們正在 KLX 長距離線圈上運行它以及我們的整體專有 BHA。

Okay. Great. And then the last one for me, the impressive numbers on the sort of quarter-over-quarter adoption of the dissolvable. Can you say, is that one or two customers just going big? Is it concentrated in a specific basin? Just any additional color would be helpful. That's all I got.

好的。偉大的。最後一個對我來說是令人印象深刻的可溶解產品的季度採用率。你能說，只是一兩個客戶變大了嗎？是否集中在某個特定盆地？只要任何額外的顏色都會有幫助。這就是我得到的。

Yes, I appreciate the question. I guess the short answer is no, it's not one significant customer. Every customer is significant. But it's been pretty widely dispersed across, I would say, three to four basins at this point in time across multiple customers.

是的，我很欣賞這個問題。我想簡短的回答是否定的，它不是一個重要的客戶。每個客戶都很重要。但我想說，目前它已經相當廣泛地分散在三到四個盆地的多個客戶中。

Thank you very much.

非常感謝。

This concludes our question-and-answer portion of today's call. I would now like to hand the call over to Chris Baker for any concluding remarks.

今天電話會議的問答部分到此結束。現在，我想將電話轉交給克里斯貝克 (Chris Baker)，讓其發表結論性意見。

Thank you, operator, and 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.

謝謝您，運營商，並再次感謝您今天加入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。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。