KLX Energy Services Holdings Inc (KLXE) 2024 Q2 法說會逐字稿

Greetings and welcome to KLX Energy Services second quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Ken Dennard. Thank you, Mr. Dennard, you may begin.

您好，歡迎參加 KLX 能源服務公司 2024 年第二季財報電話會議。（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東道主肯·丹納德先生。謝謝您，丹納德先生，您可以開始了。

Thank you, operator, and good morning, everyone. We appreciate you joining us for the KLX Energy Services conference call and webcast to review second quarter 2024 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，並回顧 2024 年第二季的業績。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 second quarter and outlook before opening the call for your questions. There will be a replay of today's call will be available by webcast on the company's website and at klx.com. And there will be a telephonic recorded replay available until August 22, 2024. For more information on how to 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二季的財務細節和前景進行高級評論。今天的電話會議將透過網路廣播在公司網站和 klx.com 上重播。 2024 年 8 月 22 日前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收益發布中。

Please note that information reported on this call speaks only as of today, August 8, 2024. And therefore, you are 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（2024 年 8 月 8 日）。因此，建議您在重播聆聽或閱讀文字記錄時，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, 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、績效或成就與管理層聲明中表達的結果有重大差異。

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. Comments today will also include certain non-GAAP financial measures.

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、不確定性和意外事件。今天的評論還將包括某些非公認會計準則財務指標。

Additional details and reconciliations to the most directly comparable GAAP financial measures are included in the board quarterly press release, which can be found on the KLX Energy website.

董事會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 now I'd like to turn the call over to Chris Baker. Chris?

現在我想把電話轉給克里斯貝克。克里斯？

Thank you, Ken, and good morning, everyone. I'll start by apologizing for my voice this morning, but I want to ensure you that my voice or perceived lack of oxygen has absolutely zero to do with how proud we are of our second quarter and returning KLX to more normalized levels of profitability and the execution by our team.

謝謝你，肯，大家早安。首先，我要為今天早上的聲音道歉，但我想向你們保證，我的聲音或感知到的缺氧與我們對第二季度的自豪感以及使 KLX 恢復到更正常的盈利水平完全零關係。由我們團隊執行。

Now with that out of the way. I'll run through the second quarter highlights before turning the call over to Keefer to review our financials in more detail and then I'll rejoin the call to add some commentary on our outlook and concluding remarks before opening the call for Q&A.

現在，這個問題已經解決了。我將回顧第二季度的亮點，然後將電話轉交給基弗，以更詳細地審查我們的財務狀況，然後我將重新加入電話會議，在開始問答電話會議之前對我們的前景和結論性意見進行一些評論。

In summary, our consolidated second quarter results included $180 million in revenue, $27 million in adjusted EBITDA and adjusted EBITDA margin of 15%, we returned to positive leveraged free cash flow of $10 million.

總之，我們第二季的合併業績包括 1.8 億美元的營收、2,700 萬美元的調整後 EBITDA 和 15% 的調整後 EBITDA 利潤率，我們恢復了 1,000 萬美元的正槓桿自由現金流。

Our Q2 results return to what we view as a more normalized level for the current market. Q1 was burdened by several nonrecurring items and we are proud to report that our second quarter performance bounced back from both exacerbated seasonality and the previously discussed transitory impacts that afflicted Q1.

我們第二季的業績回到了我們認為當前市場更正常化的水平。第一季受到多項非經常性項目的拖累，我們很自豪地報告，我們第二季度的業績從加劇的季節性因素和之前討論的影響第一季度的暫時性影響中反彈。

Despite a 7% decline in rig count and a reduction of over 40 rigs from year-end 2023, continued drilling and completion volatility in persistent pockets of industry softness KLX achieved strong Q2 results and sees continued strength into Q3.

儘管鑽機數量比2023 年底減少了7%，並且減少了40 多台鑽機，但在行業持續疲軟的情況下，鑽井和完井持續波動，KLX 在第二季度取得了強勁的業績，並預計第三季度將繼續保持強勁勢頭。

We believe that our Q1 2024, results will ultimately be viewed as a small blip in what has been consistent strong performance over the last 8 quarters, where we have generated aggregate revenue, adjusted EBITDA and levered free cash flow of $1.7 billion, $251 million and $83 million respectively.

我們相信，我們2024 年第一季的業績最終將被視為過去8 個季度持續強勁表現的一個小插曲，我們的總收入、調整後EBITDA 和槓桿自由現金流分別為17 億美元、2.51 億美元和分別為8300萬美元。

The 3% sequential improvement in total revenue stems with increased sales in our rocky segment and a higher-margin product and service lines, such as rentals and tech services, which includes fishing. Tech services and rentals Q2 revenue increased sequentially by 20% and 17%, respectively.

總收入環比增長 3% 得益於我們岩石細分市場的銷售額增加以及利潤率較高的產品和服務系列，例如租賃和技術服務（其中包括漁業）。第二季技術服務和租賃收入分別較上季成長 20% 和 17%。

KLX's geographic and product service line diversification drove margin sustainability in the face of market softness. Highlighting the strength of the KLX platform as seasonal impacts on mining and production and innovation activity returned to more normalized levels.

在市場疲軟的情況下，KLX 的地理和產品服務線多元化推動了利潤的可持續性。隨著採礦、生產和創新活動的季節性影響恢復到更正常化的水平，凸顯了 KLX 平台的實力。

KLX's leading presence in extended reach laterals, completion technologies and production and intervention services should continue to yield sustainable results and positive free cash flow even in a flat rig count environment.

即使在鑽機數量平坦的環境下，KLX 在大位移支管、完井技術以及生產和乾預服務方面的領先地位也應繼續產生可持續的成果和積極的自由現金流。

Our revenue is highly correlated to rig out and KLX has steadily driven higher revenue per rig as we captured market share. Revenue per rig as of Q2 2024, was up approximately 10% sequentially and 27% compared to Q2 2022. This gain in revenue per rig reflects the market share we have captured over time due to our targeted strategy of customer alignment and driving multiple PSLs through all sales channels.

我們的收入與鑽機數量高度相關，隨著我們佔領市場份額，KLX 穩步提高了每台鑽機的收入。截至 2024 年第二季度，每台鑽機的營收比上一季成長約 10%，與 2022 年第二季相比成長 27%。每台鑽機收入的成長反映了我們隨著時間的推移所獲得的市場份額，這是由於我們的客戶調整和透過所有銷售管道推動多個 PSL 的目標策略。

The sequential improvement in adjusted EBITDA and adjusted EBITDA margin was driven by non-recurrence of first quarter 2024 transitory issues, cost structure optimization initiatives, improved crude utilization, seasonally reduced payroll tax exposure, incremental activity and a shift in revenue mix towards higher-margin geographies and PSLs including the rockies and our rentals and tech services product service lines particularly, within the rockies and southwest segment.

調整後EBITDA 和調整後EBITDA 利潤率的環比改善是由於2024 年第一季暫時性問題不再發生、成本結構優化措施、原油利用率提高、工資稅風險季節性減少、增量活動以及收入組合向更高利潤率的轉變地區和 PSL，包括落基山脈以及我們的租賃和技術服務產品服務線，特別是在落基山脈和西南地區。

During late Q1 and early Q2, we implemented approximately $16 million of annualized cost savings. Q2 benefited from almost a full quarterly impact of those savings. The cost reductions benefited both cost of sales and G&A. Recurring cost of sales and G&A were down sequentially 5% and 8%, respectively.

在第一季末和第二季初，我們實現了約 1,600 萬美元的年度成本節省。第二季度受益於這些節省的幾乎整個季度的影響。成本的降低有利於銷售成本和一般管理費用。經常性銷售成本和一般管理費用分別較上一季下降 5% 和 8%。

Moving to our segment results, geographically, the Southwest represented 39% of Q2 revenue compared to 40% in Q1. The Northeast Mid-Con represented 27% of revenue compared to 34% in Q1 and the rockies generated 34% of revenue compared to 26% in Q1, illustrating the normalization of the contribution of our rockies business.

轉向我們的分部業績，從地理位置來看，西南航空佔第二季收入的 39%，而第一季為 40%。東北中型地區佔收入的 27%，而第一季為 34%；落基山脈佔收入的 34%，而第一季為 26%，這表明我們落基山脈業務的貢獻已正常化。

More importantly, adjusted EBITDA margin expanded in two of our three geo segments, led by the previously mentioned PSL rotation and seasonal normalization. From a product line perspective, completion-focused activity drove 51% of Q2 revenue.

更重要的是，在前面提到的 PSL 輪調和季節性正常化的帶動下，調整後的 EBITDA 利潤率在我們三個地理區域中的兩個區域有所擴大。從產品線的角度來看，以完成為中心的活動推動了第二季營收的 51%。

Drilling with 21% and production and intervention was 28%. The sequential improvement in production and intervention revenue was driven by the culmination of our strategic capital spending and repositioning efforts across our rental portfolio over the last few quarters and continued positive traction with the KLX downhole technology portfolio plus a rebound in fishing activity coming off to down hold of early 2024.

鑽井佔 21%，生產和介入佔 28%。生產和介入收入的連續改善是由於過去幾季我們的策略資本支出和整個租賃組合的重新定位努力的高潮，以及 KLX 井下技術組合的持續積極牽引力以及捕撈活動的回升所推動的2024 年初舉行。

Our geographic and product service line diversification continues to drive sustainability in earnings and cash flow. And our team continues to demonstrate their agility in managing difficult markets, effectively and decisively repositioning assets and maintaining a lean cost structure.

我們的地域和產品服務線多元化繼續推動盈利和現金流的可持續性。我們的團隊繼續展示他們在管理困難市場、有效和果斷地重新定位資產以及維持精實成本結構方面的敏捷性。

Lastly, I'd highlight that the KLX team has once again set all-time low HSE records across our three key metrics, all while delivering our market-leading services and proprietary products for the largest, most active and well-capitalized operators in the US onshore market.

最後，我要強調的是，KLX 團隊在我們的三個關鍵指標上再次創下了 HSE 歷史最低記錄，同時為全球最大、最活躍和資本雄厚的運營商提供市場領先的服務和專有產品。在岸市場。

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. 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討論我們的前景。基弗？

Thanks, Chris, and good morning, everyone. As Chris mentioned, we reported Q2 revenue of $180.2 million, representing a 3% sequential increase and consolidated Q2 adjusted EBITDA of $27 million. Adjusted EBITDA margin was 15%.

謝謝克里斯，大家早安。正如 Chris 所提到的，我們報告第二季營收為 1.802 億美元，季增 3%，第二季調整後綜合 EBITDA 為 2,700 萬美元。調整後 EBITDA 利潤率為 15%。

We returned the business to positive levered free cash flow for the quarter. On a consolidated basis, the sequential increase in revenue was driven by improved crew utilization and increased activity with higher contributions from the Lockheed’s and from our rentals and tech service product service lines.

本季我們使業務恢復到正槓桿自由現金流。綜合來看，收入的連續增長是由於船員利用率的提高以及洛克希德公司以及我們的租賃和技術服務產品服務線的貢獻增加而增加的活動所推動的。

The Southwest and Northeast Mid-Con segments contributed 39% and 27% of Q2 revenue, respectively. Led in the Southwest by our directional drilling, rentals and frac rentals product service lines and in the Mid-Con by our pressure pumping, accommodation and directional drilling offerings. The rockies contributed 34%, led by rentals, coiled tubing and tech services.

西南和東北中型企業細分市場分別貢獻了第二季營收的 39% 和 27%。我們的定向鑽井、租賃和壓裂租賃產品服務系列在西南地區處於領先地位，而我們的壓力泵、住宿和定向鑽井產品在中部地區處於領先地位。落基山脈貢獻了 34%，其中以租賃、連續油管和技術服務為主。

Total SG&A expense for Q2 was $19.3 million. When you back out nonrecurring costs, adjust SG&A expense for Q2 would have been only $17.1 million or just 9% of quarterly revenue. During Q2, we actioned several changes to our cost structure related to insurance IT and third-party professional fees to reduce our overhead going forward.

第二季的 SG&A 支出總額為 1,930 萬美元。當您取消非經常性成本時，調整第二季的 SG&A 費用將僅為 1,710 萬美元，即僅佔季度收入的 9%。第二季度，我們對與保險 IT 和第三方專業費用相關的成本結構進行了多項調整，以減少未來的管理費用。

Q2 benefited substantially from the reductions but there will likely be some marginal amount of incremental savings into Q3. These cost reductions will continue through the remainder of 2024 and beyond.

第二季從削減中受益匪淺，但第三季可能會出現一些邊際增量節省。這些成本削減將持續到 2024 年剩餘時間及以後。

Turning now to a review of our segment results. Starting with the rockies, rocky mountain revenue, operating income and adjusted EBITDA were $61.4 million, $10.5 million and $17.2 million, respectively for the second quarter of 2024.

現在回顧一下我們的部門業績。從落基山開始，2024 年第二季落基山的收入、營業收入和調整後 EBITDA 分別為 6,140 萬美元、1,050 萬美元和 1,720 萬美元。

Second quarter revenue represents a 35% sequential increase over the first quarter of 2024 despite a 4% reduction in average active regional rig count, a normalization of rockies activity driven by a non-recurrence of Q1 transitory issues. Coupled with an outsized rebound in rentals and tech services revenue led to sequential revenue expansion. We experienced sequential revenue growth across all PSLs that we operate in this segment.

儘管區域平均活躍鑽機數量減少了 4%（第一季暫時性問題未再次出現，導致落基山脈活動正常化），但第二季度收入較 2024 年第一季環比增長 35%。再加上租金和技術服務收入的大幅反彈導致收入連續成長。我們在該細分市場運營的所有 PSL 的收入都經歷了環比增長。

Adjusted EBITDA increased approximately 220% sequentially as a function of the increase in revenue, a revenue mix shift and the reduced cost structure. Moving to the Southwest, revenue, operating income and adjusted EBITDA for Q2 were $69.9 million, $2.6 million and $10.4 million, respectively.

由於收入增加、收入結構轉變和成本結構降低，調整後 EBITDA 環比增長約 220%。轉向西南地區，第二季的收入、營業收入和調整後 EBITDA 分別為 6,990 萬美元、260 萬美元和 1,040 萬美元。

Second quarter revenue represents a 1% sequential increase over the first quarter of 2024. Largely due to a shift towards higher-margin product service lines, such as rentals and tech services, including our fishing business.

第二季營收較 2024 年第一季較上季成長 1%。很大程度上是由於轉向利潤率較高的產品服務線，例如租賃和技術服務，包括我們的漁業業務。

Segment adjusted EBITDA increased 55% sequentially as a function of cost structure optimization initiatives, improved crew utilization and incremental activity and higher-margin service lines. Moving to the Northeast Mid-Con, revenue, operating loss and adjusted EBITDA for the Northeast Mid-Con segment was $48.9 million, negative $2.5 million and $6.4 million respectively, for the second quarter of 2024.

由於成本結構優化措施、船員利用率提高、增量活動以及利潤率更高的服務線，部門調整後 EBITDA 環比增長了 55%。轉向東北中型企業，2024 年第二季東北中型企業的營收、營運虧損和調整後 EBITDA 分別為 4,890 萬美元、負 250 萬美元和 640 萬美元。

Second quarter revenue represents an 18% sequential decrease over the first quarter of 2024 due to reduced regional gas focused activity across the vast majority of our drilling completion and production offerings, including coiled tubing, directional drilling, accommodations and tech services.

第二季營收較 2024 年第一季環比下降 18%，原因是我們絕大多數鑽井完井和生產產品（包括連續油管、定向鑽井、住宿和技術服務）以區域天然氣為重點的活動減少。

Segment operating income and adjusted EBITDA decreased 204% and 37% respectively, largely due to lower activity and pricing. At corporate, our adjusted operating loss and adjusted EBITDA loss for Q2 were $9.2 million and $7 million, respectively. Our corporate adjusted EBITDA loss decreased 32% sequentially and is expected to remain at similar levels in Q3.

部門營業收入和調整後 EBITDA 分別下降 204% 和 37%，主要是因為活動和定價下降。在公司方面，第二季調整後的營運虧損和調整後的 EBITDA 虧損分別為 920 萬美元和 700 萬美元。我們的公司調整後 EBITDA 虧損比上一季下降了 32%，預計第三季將維持在類似水準。

I'll now turn to our balance sheet, cash flow and capitalization. We ended the quarter with a net debt balance of $198 million. Our June 30, cash balance was $87 million, up by $2 million sequentially and up 6% from $82 million in Q2 of 2023.

現在我將談談我們的資產負債表、現金流量和資本化。本季結束時，我們的淨債務餘額為 1.98 億美元。截至 6 月 30 日，我們的現金餘額為 8,700 萬美元，比上一季增加 200 萬美元，比 2023 年第二季的 8,200 萬美元增加 6%。

We ended the second quarter with roughly $121 million in liquidity, consisting of $87 million in cash and availability of $34 million under our June 2024, ABL borrowing base certificate. Note, we did have approximately $3 million of suppressed availability as of June 30, due to structural limitations within the ABL that are expected to reverse in Q3.

截至第二季末，我們的流動資金約為 1.21 億美元，其中包括 8,700 萬美元現金以及 2024 年 6 月 ABL 借款基礎證書下可用的 3,400 萬美元。請注意，截至 6 月 30 日，由於 ABL 內的結構性限制，我們確實有約 300 萬美元的受抑制可用性，預計將在第三季扭轉。

Our ABL and senior secured notes both mature in the fall of 2025. Given our conservative capitalization, strong Q2 results returning to 2023 margins and positive free cash flow and generally strong consistent performance over the last two years, we believe the business is well positioned. We will continue to monitor market conditions and evaluate opportunities to refi the outstanding notes and ABL in 2024.

我們的 ABL 和優先擔保票據均將於 2025 年秋季到期。鑑於我們保守的資本、強勁的第二季度業績恢復到 2023 年的利潤率、正的自由現金流以及過去兩年總體強勁的一致業績，我們相信該業務處於有利地位。我們將繼續監控市場狀況並評估 2024 年未償票據和 ABL 的再融資機會。

Now turning to CapEx, second quarter capital expenditures were $15.3 million, which were primarily focused on maintenance spending across our segments. Q2 net CapEx, defined as CapEx less asset sales was approximately $12 million.

現在轉向資本支出，第二季資本支出為 1,530 萬美元，主要集中在我們各部門的維護支出。第二季淨資本支出（定義為資本支出減去資產銷售）約 1,200 萬美元。

Going forward, we continue to expect total CapEx for 2024 to be in the range of $50 million to $55 million, with approximately 80%-plus earmarked for maintenance expenses. Going forward, our focus remains on maximizing margin and free cash flow generation, ensuring robust financial strength and flexibility and that KLX is well positioned to execute our strategy.

展望未來，我們仍預期 2024 年的資本支出總額將在 5,000 萬至 5,500 萬美元之間，其中約 80% 以上專門用於維護費用。展望未來，我們的重點仍然是最大限度地提高利潤和自由現金流的產生，確保強大的財務實力和靈活性，並且 KLX 能夠很好地執行我們的策略。

With that, I'll now turn the call back to Chris.

這樣，我現在將電話轉回給克里斯。

Thanks, Keefer. Before we wrap up, I'd like to share some additional color on our outlook. Our current calendar for Q3 calls for continued strength in the rockies and Southwest with an uptick in the Northeast Mid-Con. We expect the completions and production-oriented activity will continue to lead the way in the current market.

謝謝，基弗。在結束之前，我想分享一些關於我們的前景的額外資訊。我們目前的第三季日曆要求落基山脈和西南部地區繼續走強，而東北中部地區則有所上升。我們預計竣工量和生產導向活動將繼續引領當前市場。

Consistent with our pre-release and our prior guidance for Q3 issued 23 days ago, we continue to expect third quarter 2024 revenue to be flat to slightly up relative to the second quarter with adjusted EBITDA margins similar to the second quarter based on current schedules and latest customer conversations.

與我們的預發布和23 天前發布的第三季指引一致，我們繼續預計2024 年第三季的營收將與第二季持平或略有上升，調整後的EBITDA 利潤率根據當前計畫和第二季度與第二季相似。

KLX is maintaining and improving our asset base to ensure we are well positioned from the technology and equipment specification standpoint to continue to deliver the highest levels of performance on the most demanding wells and will ultimately be well positioned for the next market up cycle.

KLX 正在維護和改善我們的資產基礎，以確保我們從技術和設備規格的角度處於有利位置，能夠繼續在最苛刻的油井上提供最高水平的性能，並最終為下一個市場上升週期做好準備。

As we begin to look at 2025, we expect an increase in activity over 2024 levels driven by our customers completing ongoing integration initiatives related to the massive wave of consolidation that has occurred over the last 18 months and an increase in gas directed activity driven by robust future demand from LNG export volumes and data centers.

當我們開始展望 2025 年時，我們預計，在客戶完成與過去 18 個月發生的大規模整合浪潮相關的持續整合計劃的推動下，活動將超過 2024 年水平，而強勁的天然氣主導活動將增加。液化天然氣出口量和資料中心的未來需求。

We believe KLX is more efficient today and in a rising rig count environment has substantial upside back to 2023 levels and beyond based on our improved cost structure differentiated technology portfolio and well maintained and upgraded asset base.

我們相信，KLX 如今的效率更高，並且在鑽機數量不斷增加的環境中，基於我們改進的成本結構、差異化技術組合以及維護和升級良好的資產基礎，KLX 具有大幅上漲至2023 年及以後的水平。

KLX stands apart with its performance-driven, technologically differentiated offerings, exemplary safety record and premier job execution. These capabilities combined with our broad geographic footprint contributes to our strong competitive position.

KLX 以其性能驅動、技術差異化的產品、堪稱典範的安全記錄和卓越的工作執行力而脫穎而出。這些能力與我們廣泛的地理足跡相結合，有助於我們保持強大的競爭地位。

I would like to thank our customers and shareholders for their support of KLX and most importantly, our team members for their essential role in our collective success.

我要感謝我們的客戶和股東對 KLX 的支持，最重要的是，感謝我們的團隊成員在我們集體成功中發揮的重要作用。

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)

（操作員說明）

Luke Lemoine, Piper Sandler.

盧克·勒莫因，派珀·桑德勒。

Yeah, hey, good morning. Chris, Keefer. Really good outlook for 3Q that you put out a couple of weeks ago and reiterating today. Chris, just wanted to see if you had any kind of visibility in 4Q yet and kind of what you're thinking about activity or how results could be just kind of a seasonal slowdown and what that could look like?

是的，嘿，早安。克里斯，基弗。您幾週前發布並今天重申的第三季前景非常好。克里斯，只是想看看您對第四季度是否有任何了解，以及您對活動的看法，或者結果如何可能只是季節性放緩，以及會是什麼樣子？

Good morning, Luke. Yeah, it's a great question. We put out 3Q guidance, I guess, 23 days ago, we iterated it yesterday. Look, I guess, let's address 3Q first, the reality is basin-by-basin schedules are as episodic as we've ever seen. I mean at least here in COVID, it was one way down then back up. But at this base level of D&C activity as you well know, it's really difficult to backfill spot work or more importantly, difficult to backfill spot work that actually has margin and it doesn't just cover crew cost.

早上好，盧克。是的，這是一個很好的問題。我想，我們在 23 天前就發布了第三季指引，昨天我們對此進行了迭代。聽著，我想，讓我們先解決第三季的問題，現實是每個流域的時間表都是我們所見過的間歇性的。我的意思是，至少在新冠疫情期間，情況先是下降，然後又上升。但如您所知，在 D&C 活動的基礎水平上，確實很難回填現場工作，或者更重要的是，很難回填實際上有利潤的現場工作，而且它不僅僅涵蓋船員成本。

And so in Q2, we had a couple of dedicated customers that took some one month completion breaks, et cetera, reduced fleet as part of their integration efforts from the M&A wave et cetera. And so as we sit here today, what we see for 3Q is far fewer breaks. We see some of the customers that are conducting those integration efforts kind of fully rationalizing programs and putting some spreads and some rigs kind of back to work.

因此，在第二季度，我們有一些專門的客戶，他們花了大約一個月的時間完成任務，減少了機隊，作為併購浪潮等整合工作的一部分。因此，當我們今天坐在這裡時，我們看到第三季的休息時間要少得多。我們看到一些正在進行這些整合工作的客戶完全合理化了計劃，並使一些價差和一些鑽孔機重新投入工作。

So I don't, I'm not saying it's a step change whatsoever. I think it's purely customer alignment and activity and timing as it pertains to KLX and our customer base as you think through Q3 guidance. To your question on Q4, look it's premature and we haven't provided Q4 at this point.

所以我不這麼認為，我並不是說這是一個巨大的改變。我認為這純粹是客戶的調整、活動和時機，因為它與 KLX 和我們的客戶群有關，正如您透過第三季指導所思考的那樣。對於你關於第四季的問題，現在看來還為時過早，我們目前還沒有提供第四季的資訊。

We have talked historically about there's the potential opportunity set for some of the Haynesville and Northeast operators start to complete some [DUC]. That looked maybe more viable a month ago as natural gas prices really started to rally, they since retrenched.

我們過去曾討論過，海恩斯維爾和東北部的一些運營商有可能開始完成一些工作[DUC]。一個月前，隨著天然氣價格真正開始上漲，這種做法看起來可能更可行，但後來又開始緊縮。

But as you and I both know, they can turn on the spending tap really quick. And so I think the question is, do you see some completions activity ramp, trying to get molecules into the pipeline late this year and does that soften some of the typical seasonality in the rockies and other basins. And you give us another two months and I think we have a lot better line of sight on that, the reality of it.

但正如你我都知道的那樣，他們可以很快地打開支出水龍頭。所以我認為問題是，你是否看到一些完井活動增加，試圖在今年晚些時候將分子帶入管道，這是否會軟化落基山脈和其他盆地的一些典型季節性。如果再給我們兩個月的時間，我認為我們對現實有更好的認識。

Got it. All right. Thanks, Chris.

知道了。好的。謝謝，克里斯。

Yeah, sure. No problem. Thank you, Luke.

是的，當然。沒問題。謝謝你，盧克。

Steve Ferazani, Sidoti & Company.

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

Morning, Chris, Keefer. Appreciate the color on the call. Obviously, a very nice bounce back quarter. But beyond just the sequential in the rockies, we're looking at your margins there, even year over year, getting better.

早上好，克里斯，基弗。欣賞通話中的顏色。顯然，這是一個非常好的反彈季度。但除了落基山脈的連續成長之外，我們還關注那裡的利潤率，甚至逐年提高。

And obviously, there's pricing pressure and you talked about trying to backfill work. How are you getting margins better in that market? Is that mix have you brought in higher margin type assets into that market? If you can explain a little bit because that was the surprise to us.

顯然，存在定價壓力，並且您談到了嘗試回填工作。您如何在該市場獲得更好的利潤？您是否已將較高利潤類型的資產引入該市場？如果您能解釋一下，因為這讓我們感到驚訝。

Yeah, it's a great question. Look, we talked in Q1, how Q1 was plagued by transitory issues and in Q2 definitely returned to operating levels, and we've alluded to this in the past, some of the KPIs we track, et cetera.

是的，這是一個很好的問題。看，我們在第一季度討論過，第一季度如何受到暫時性問題的困擾，而在第二季度肯定恢復到運營水平，我們過去已經提到過這一點，我們跟踪的一些關鍵績效指標等等。

But Q2 across the company returned to operating levels. But candidly in many instances were better than Q4 of 2023. When you think about rig count that declined 7% on a quarterly basis, 7% on a year-to-date basis.

但第二季整個公司恢復到營運水準。但坦白說，在許多情況下都比 2023 年第四季好。考慮到鑽機數量按季度下降 7%，按年初至今下降 7%。

We returned revenue across the company. Revenue per head count returns almost $100,000 per employee that's up from kind of the high 80s in Q1. If you think about revenue per active rig across North America, we averaged almost $315,000 per rig. That's up from low 280s in Q1, and it's candidly higher than any revenue per rig count that you back into in 2022 and compares very favorably to $334,000 average in '23. And so there's probably four key factors that drove the improvement, not just in the rockies, but in the rockies as well as the Southwest.

我們返還了整個公司的收入。每位員工的人均收入回報接近 10 萬美元，高於第一季的 80 多美元。如果您考慮北美每台活躍鑽機的收入，我們平均每台鑽機的收入接近 315,000 美元。這比第一季的 280 多美元有所上升，坦白說，它比您在 2022 年回溯到的每台鑽機的任何收入都要高，並且與 23 年的平均 334,000 美元相比非常有利。因此，可能有四個關鍵因素推動了這一改善，不僅在落基山脈，而且在落基山脈和西南部。

Look, we had $6 million of incremental revenue largely from higher-margin PSLs. We talked about the $16 million of cost cuts, we realized approximately 80%, 90% of that in Q2. That was across both the fixed and variable side of the business.

看，我們的 600 萬美元增量收入主要來自利潤率較高的 PSL。我們談到了 1600 萬美元的成本削減，我們在第二季度實現了大約 80%、90%。這涉及業務的固定和可變方面。

To your point, the rockies rebounded to $61 million that's approaching our average level of revenue in 2023, and the Southwest was basically flat to slightly up revenue despite a continuous slide in Permian and Eagle Ford rig count, but yet margin expanded right, from 10% to 15%.

就你的觀點而言，落基山脈反彈至6,100 萬美元，接近我們2023 年的平均收入水平，而西南地區的收入基本上持平至略有上升，儘管二疊紀和鷹福特鑽機數量持續下滑，但利潤率卻從10 台向右擴大% 至 15%。

So and candidly, given the role in Mid-Con Northeast revenue, margin held in pretty well. And so what drove all that? Look, to your point, a sizable mix shift and that mix shift, we saw our tech services and our rentals business up 20% to 17%, respectively.

因此，坦白說，考慮到中型東北地區收入的作用，利潤率保持得相當不錯。那麼是什麼推動了這一切呢？就你的觀點而言，這是一個相當大的混合轉變，在這種混合轉變中，我們看到我們的技術服務和租賃業務分別成長了 20% 至 17%。

There's a couple of factors there, the first is that's being driven by some of our long-term capital spending and capital allocation when we think about strategic initiatives to both reposition assets, augment technology, improve our fleet so it's cutting edge, as you think about the majors and the title wave of M&A that's been driven largely by the majors, you have to have Tier 1 equipment, redundant backup engines, enhanced pressure control, et cetera, as well as our [Oracle-SRT].

這裡有幾個因素，第一個是，當我們考慮重新定位資產、增強技術、改進我們的機隊的戰略舉措時，這是由我們的一些長期資本支出和資本配置驅動的，因此正如您所想的那樣，它是最前沿的關於專業以及主要由專業推動的併購浪潮，你必須擁有一級設備、冗餘備用引擎、增強的壓力控制等等，以及我們的[Oracle-SRT]。

But that really culminated in an increase in underlying production intervention activity and as you know, a lot of our production intervention activity starts in February and March typically kind of runs through early fourth quarter.

但這實際上最終導致了基礎生產幹預活動的增加，正如您所知，我們的許多生產幹預活動在二月和三月開始，通常會持續到第四季度初。

And as we think about our PSLs, I think this was our lowest quarterly impact from completions, but a lot of those assets, whether it be tech services, rentals, coiled tubing assets, et cetera, are pretty fungible and they can go and attack that production and intervention market.

當我們考慮我們的 PSL 時，我認為這是竣工對我們的最低季度影響，但其中許多資產，無論是技術服務、租賃、連續油管資產等，都是相當可替代的，它們可以去攻擊生產和幹預市場。

I think our team did a great job of reallocating into the face of strength there. And I think it speaks to how well positioned we are when completions activity ultimately recovers in '25 and '26. So the long-winded way of saying, being lean, being diverse and agile is basically the name of the game.

我認為我們的團隊在重新分配實力方面做得很好。我認為這說明當竣工活動最終在 25 年和 26 年恢復時，我們處於多麼有利的位置。因此，冗長的說法，精實、多元和敏捷基本上就是遊戲的名稱。

Excellent. That's helpful. Talk to me about the balance sheet because this has been a very difficult last few quarters. But when I look at your net debt, it's lower than it was five quarters ago. It's basically flat for the last four quarters, and it was down $20 million into Q2 in what is a challenging environment.

出色的。這很有幫助。和我談談資產負債表，因為過去幾季非常困難。但當我查看你的淨債務時，它比五個季度前要低。過去四個季度基本上持平，在充滿挑戰的環境下第二季減少了 2000 萬美元。

How are you managing the balance sheet? Obviously, you've gone down to almost maintenance CapEx, but talk to me about cash flow and the balance sheet in this environment?

您如何管理資產負債表？顯然，您已經幾乎減少了維護資本支出，但是跟我談談這種環境下的現金流量和資產負債表嗎？

Yeah, absolutely. So we've obviously been focused on maximizing margins and turn driving free cash flow generation. Certainly coming off the blip that was Q1, we returned the business back to largely 2023 margin levels that, in turn, return the business back to positive leverage free cash flow as you think about our second quarter 2024 results. So I think from a capitalization standpoint, the business is well positioned.

是的，絕對是。因此，我們顯然一直專注於利潤最大化並推動自由現金流的產生。當然，在擺脫第一季的短暫影響後，我們將業務恢復到了2023 年的利潤率水平，反過來，當你考慮我們2024 年第二季度的業績時，這又使業務恢復到正槓桿自由現金流。因此，我認為從資本的角度來看，該業務處於有利地位。

On an LTM basis, we're roughly at 2 times leverage on a net basis. On a run rate basis, we're slightly below there at about a 1.8 times net leverage ratio. So I think the business continues to be conservatively capitalized from a leverage standpoint.

在 LTM 基礎上，我們的槓桿率大約是淨值的 2 倍。從運行率來看，我們的淨槓桿率略低於該水平，約為 1.8 倍。因此，我認為從槓桿的角度來看，該業務的資本化仍然保守。

And we're coming off a year in 2023 where we generated almost $80 million of levered free cash flow in the year. So to Chris point, we're continuing to focus on go-forward margin maximization, free cash flow maximization, reducing net debt, building cash and driving continued strength in the balance sheet.

2023 年我們將創造近 8,000 萬美元的槓桿自由現金流。因此，克里斯指出，我們將繼續關注未來利潤最大化、自由現金流最大化、減少淨債務、累積現金和推動資產負債表持續走強。

If I could get one more in, net leverage around 2 times. How does that position you potentially in the M&A pipeline front? We've seen some smaller deals. We've seen some slightly larger deals in [OFS]. What are you seeing out there? And what are you comfortable doing at a 2 times leverage right now spot?

如果我能多進一單，淨槓桿大約是 2 倍。這對您在併購通路中的潛在地位有何影響？我們看到了一些較小的交易。我們看到了一些規模稍大的交易[OFS]。你在外面看到什麼？現在您願意在 2 倍槓桿水平下做什麼？

Yeah, good question. I think first and foremost, we're more focused today on strategically refinancing our existing notes and ABL. With that said, we're always evaluating M&A and strategic inorganic opportunities. By and large, we've looked to use equity currency historically to effectuate M&A.

是的，好問題。我認為首先也是最重要的是，我們今天更加關注對現有票據和 ABL 進行策略性再融資。話雖如此，我們始終在評估併購和策略性無機機會。總的來說，我們歷史上一直尋求使用權益貨幣來實現併購。

We think that drives alignment, and we've been able to do deals that I think are largely highly accretive, very synergistic and strong strategic fit. I think green is a good blueprint by which we'd look to execute additional M&A.

我們認為這會推動一致性，而且我認為我們已經能夠進行一些交易，這些交易在很大程度上具有高度增值、非常協同和強大的策略契合度。我認為綠色是一個很好的藍圖，我們希望透過它來執行更多的併購。

But today, we are focused both more internally from a margin maximization, cash flow maximization standpoint as well as a focus on the refinancing, but we're always continuing to monitor the market as it relates to M&A.

但今天，我們從利潤最大化、現金流最大化的角度更加關注內部，並專注於再融資，但我們始終繼續監控與併購相關的市場。

Thanks, Chris. Thanks, Keefer.

謝謝，克里斯。謝謝，基弗。

Yeah, thanks, Steve.

是的，謝謝，史蒂夫。

John Daniel, Daniel Energy.

約翰·丹尼爾，丹尼爾·能源。

Hey, guys. Chris you noted in one of the answers or maybe his prepared remarks about repositioning assets and things like that. I'm curious, some of your peer group has started talking about facility rationalizations for potentially closures of stuff.

嘿，夥計們。克里斯，您在其中一個答案中註意到了，或者可能是他準備好的關於重新定位資產之類的言論。我很好奇，你們的一些同儕小組已經開始討論可能關閉的設施的合理化問題。

Have you guys come to that point yet? And is that something that might be on the table? And then if so, just your thoughts on how the industry then reacts four to five quarters from now if the market does, in fact, turn with natural gas recovery? Big picture question.

你們已經到那個地步了嗎？這是可能擺在桌面上的事情嗎？如果是這樣，您對如果市場確實隨著天然氣復甦而轉向的話，您對四到五個季度後行業將如何反應有何看法？大局問題。

Right. No, fair enough. Look, I mean, it feels like we've gone through four years of facility rationalization and consolidation coming off the heels of the KLX QES integration, right. So you think about that situation, we were north of 60 facilities. We're now operating approximately 35.

正確的。不，很公平。我的意思是，感覺我們在 KLX QES 整合之後經歷了四年的設施合理化和整合，對吧。所以你想想那個情況，我們在 60 個設施的北部。我們現在運營大約 35 個。

There's a couple real-time live that we've consolidated two into one, et cetera. I think our footprint is by and large, rationalized. Do we look at opportunity sets to drive efficiencies we do so all at the time, but we don't have any big picture plan.

我們已經將一些即時直播合而為一，等等。我認為我們的足跡總體上是合理的。我們是否會尋找機會集來提高效率，我們一直這樣做，但我們沒有任何總體計劃。

We have talked about moving assets out of some of the gassy basins, but maintaining capacity, maintaining expertise in personnel in those stations, and we've done that -- and we've done that while still driving profitable margins in the face of weakness.

我們已經討論過將資產移出一些含氣盆地，但保持產能，保持這些站人員的專業知識，我們已經做到了——而且我們已經做到了這一點，同時在面對疲軟的情況下仍然提高利潤率。

And so I feel like we're pretty well positioned. To your point look, everybody is well aware of the pending gas demand market inflection and I'm not going to anticipate on whether that's a first half of '25, second half of '25 or otherwise situation what we know is we're continuing to invest in our asset base, our customer base, latest generation tools and equipment.

所以我覺得我們處於非常有利的位置。就你的觀點而言，每個人都清楚即將到來的天然氣需求市場拐點，我不會預測這是 25 年上半年、25 年下半年還是我們所知道的我們正在繼續的其他情況投資於我們的資產基礎、客戶基礎、最新一代的工具和設備。

And I think is exceptionally well positioned if and when gas directed activity ramps or if and when some of the oil-directed activity as people rationalize some of their programs or sell off non-core assets to the privates with some of the hanging chads coming out of the acreage roll-ups. If and when activity rebounds, I think KLX is very well positioned to participate from both an asset and personnel standpoint.

我認為，如果天然氣導向的活動增加，或者當人們合理化一些計劃或將非核心資產出售給私人並出現一些懸而未決的問題時，一些石油導向的活動就會處於異常有利的位置面積匯總。如果活動反彈，我認為從資產和人員的角度來看，KLX 都處於非常有利的參與位置。

Okay. And then the follow-up for me, Chris, is slightly unrelated, is just different anecdote fuel that come out, it's about spot activity in the frac market, coil market, could you just provide your views on the business, what point does it make sense to idle staff versus are your customers, are they working with you recognizing the, if you will, the challenges and the attrition that is prevalent in that sector. Just again, big picture thoughts.

好的。然後，克里斯，對我來說，後續行動有點無關，只是出現了不同的軼事燃料，它是關於壓裂市場、盤管市場的現貨活動，您能提供一下您對業務的看法嗎？閒置員工和您的客戶來說有意義，他們與您一起工作是否認識到（如果您願意的話）該行業普遍存在的挑戰和人員流失。再說一遍，大局觀。

Yeah, it's a great question. Look, we have stacked assets. We have stacked assets in both of the product lines you referenced that we can redeploy into markets. There's some strategies that we've evaluated, especially on the coil business of unstacking some of those assets to provide better optionality.

是的，這是一個很好的問題。看，我們有堆積的資產。我們在您提到的兩條產品線中都累積了資產，我們可以將其重新部署到市場中。我們評估了一些策略，特別是在卷材業務上，將其中一些資產拆散以提供更好的選擇性。

But tying back to Luke's question, the reality is when you're a [580] something land-based rigs and the level of activity we're at, the spot market margin or the ability to drive margin in the spot market is very benign there's no two ways about it.

但回到盧克的問題，現實是，當你是一個 [580] 陸地鑽井平台並且我們所處的活動水平時，現貨市場利潤率或提高現貨市場利潤率的能力是非常良性的沒有兩種方法可以解決這個問題。

And so you would much prefer to position yourself with customers with dedicated programs, consistent well-to-well, pad-to-pad type packages and I think we've done that quite well. And as we look back to my point earlier, as we look at our Q3 calendar, it looks like it has less white space as we sit here today than candidly Q2 did for many of our completions service lines.

因此，您更願意向客戶提供專門的計劃、一致的孔對孔、墊對墊類型的套餐，我認為我們在這方面做得很好。當我們回顧我之前的觀點時，當我們查看第三季度的日曆時，我們今天坐在這裡的空白區域看起來比第二季度我們許多完工服務線的空白區域要少。

Candidly, specifically on coil, it feels like that market has held up better this cycle from a pricing standpoint in general than it has in past cycles. Whether there's been marginal consolidation there in that service line, not as much as in maybe well servicing, et cetera, but pricing definitely held up better than, say, YoY one of the product lines we talked about often.

坦白說，特別是在卷材方面，從定價的角度來看，這個週期的市場整體表現比過去的周期更好。該服務線是否有邊際整合，不如可能良好的服務等，但定價肯定比我們經常談論的產品線之一的同比表現更好。

Does that mean that it's held up well in the spot market? No, you still see a night fight occasionally. But I think in general, it's held up than prior cycles.

這是否意味著它在現貨市場上表現良好？不，你偶爾還是會看到夜戰。但我認為總的來說，它比之前的周期更好。

Okay. I appreciate the color. Thank you, guys.

好的。我很欣賞它的顏色。謝謝你們，夥計們。

Yes, sir. Appreciate the questions.

是的，先生。感謝您提出的問題。

David Marsh, Singular Research.

大衛馬什，奇異研究。

Hey, good morning, guys. Thanks for taking the questions.

嘿，早上好，夥計們。感謝您提出問題。

Good morning, guys.

早安，夥計們。

If I could start, Keefer, just a question for you. Could you just tell me the total non-recurring for the quarter, I was trying to piece it together from the different segments, I was coming up with about $1.4 million. I was hoping you could confirm that for me.

基弗，我可以先問你一個問題嗎？您能否告訴我本季的非經常性總額，我試圖將不同的部分拼湊起來，得出大約 140 萬美元。我希望你能為我證實這一點。

Yeah. Recurring G&A was $17.1 million. Total non-recurring costs were $1.4 million. It's included on, I think, page 11 of the earnings release.

是的。經常性管理費用為 1,710 萬美元。非經常性費用總額為 140 萬美元。我想，它包含在收益發布的第 11 頁。

Got it. Perfect. Okay. And then congrats on the gross margin. I mean, this is a really good number in light of the revenue number. Could you just talk about your thoughts in terms of the sustainability of that type of level of gross margin and possible expansion back to kind of closer to those peaks that you near-term peaks you had in the middle of last year.

知道了。完美的。好的。然後恭喜毛利率。我的意思是，考慮到收入數字，這是一個非常好的數字。您能否談談您對這種毛利率水準的可持續性的看法，以及是否可能擴張回接近去年年中的近期高峰。

Yeah. Good question. And certainly, we're proud to see where margins return you back on a Q2 basis, which I think is certainly more normalized as you think about our 2023 performance across our various segments as well as the [8, 8] aggregate business. I think that was partly driven to Chris' point, by reduced white space in the calendar. He just said that we see kind of further reduction in white space as we look to Q3 versus Q2.

是的。好問題。當然，我們很自豪地看到第二季的利潤率為您帶來回報，當您考慮到我們在各個部門以及 [8, 8] 總體業務的 2023 年業績時，我認為這肯定更加正常化。我認為這在一定程度上符合克里斯的觀點，因為日曆中的空白區域減少了。他只是說，與第二季相比，我們看到第三季的空白區域進一步減少。

But certainly, another big driver of sequential margin from Q1 to Q2 or just that return to normalcy in general, with some of the cost cuts that we were able to effectuate that impacted both the G&A level as well as the cost of goods sold level.

但可以肯定的是，從第一季到第二季連續利潤率的另一個重要驅動因素，或者只是總體上恢復正常，我們能夠實現的一些成本削減既影響了一般管理費用水平，也影響了銷售商品的成本水準。

And so I think going forward, from a fixed cost standpoint, we really work to attack the cost structure. And I think those savings that were realized and effectuated during the second quarter are going to continue as we work through Q3 and the remainder of the year.

因此，我認為，從固定成本的角度來看，我們確實會努力改善成本結構。我認為，在我們第三季和今年剩餘時間裡，第二季實現和實現的節省將繼續下去。

That's great. Thank you. And then just on the if I could just circle back on the SG&A. So you said recurring is [$17.9 million. So obviously, as revenue fluctuates up and down, there's going to be some natural movement there. But so the $19.3 million] number, it sounds like that number could actually come down a little bit sequentially, potentially in 3Q. Am I reading that right?

那太棒了。謝謝。然後就問我可不可以回到 SG&A。所以你說經常性費用是[1790萬美元。顯然，隨著收入的上下波動，那裡將會出現一些自然的變化。但 1930 萬美元的數字，聽起來這個數字實際上可能會連續下降，可能在第三季下降。我讀得對嗎？

So right, so recurring costs quarter over quarter, it should be relatively consistent and the cost cuts that were actuated in the second quarter would continue into Q3.

因此，季度與季度之間的經常性成本應該相對一致，第二季實施的成本削減將持續到第三季。

Thanks. Got it. Okay. And then just lastly from me, in terms of the refinancing window, it does look like they are starting to get some deals done in some spaces that have been perhaps a little bit out of favor. I mean, you can you give us a sense of what the market is telling you in terms of your opportunity and your window around refinancing the facility and the notes.

謝謝。知道了。好的。最後，就再融資窗口而言，他們確實開始在某些可能有點失寵的領域完成一些交易。我的意思是，您能否讓我們了解市場在您的機會以及對設施和票據再融資的窗口方面告訴您什麼。

Yeah, good question. And we talked about this a little bit on a prior question. I think the business continues to be performing well. I think we're well positioned from a leverage, liquidity and cash perspective and what we've talked about is that we're going to continue to kind of analyze and monitor market conditions and we're working to evaluate opportunities during 2024. So for the remainder of the year to advantageously refinance the notes and the ABL.

是的，好問題。我們在先前的問題上對此進行了一些討論。我認為該業務繼續表現良好。我認為，從槓桿、流動性和現金的角度來看，我們處於有利地位，我們所討論的是，我們將繼續分析和監控市場狀況，並努力評估 2024 年的機會。因此，在今年剩餘時間內，可以有利地為票據和 ABL 進行再融資。

Great. Thank you so much, guys. Good luck in the rest of the year.

偉大的。非常感謝你們，夥伴們。祝你今年剩下的時間一切順利。

Thank you. Ladies and gentlemen, we have reached the end of question and answer session. I would now like to turn the floor over to Chris Baker for closing comments.

謝謝。女士們、先生們，問答環節已經結束。我現在想請克里斯貝克 (Chris Baker) 發表結束評論。

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

再次感謝您參加本次電話會議以及對 KLX 的興趣。我們期待下個季度再次與您交談。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。