KLX Energy Services Holdings Inc (KLXE) 2025 Q1 法說會逐字稿

Greetings. Welcome to the KLX Energy Services 2025 first-quarter earnings conference call.

問候。歡迎參加 KLX 能源服務公司 2025 年第一季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）提醒一下，本次會議正在錄音。

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

現在我很高興介紹你們的主持人，投資者關係部的肯‧丹納德 (Ken Dennard)。謝謝。肯，你可以開始了。

Thank you, operator. Good morning, everyone.

謝謝您，接線生。大家早安。

We appreciate you joining us for the KLX Energy Services conference call and webcast to review first-quarter 2025 results.

感謝您參加 KLX 能源服務電話會議和網路廣播，以回顧 2025 年第一季的業績。

With me today are Chris Baker, President and Chief Executive Officer; and Keefer Lehner, Executive Vice President and Chief Financial Officer.

今天與我一起的還有總裁兼執行長克里斯貝克 (Chris Baker) 和執行副總裁兼財務長基弗萊納 (Keefer Lehner)。

Following my remarks, management will provide a commentary on quarterly financial results and outlook before opening the call for your questions. There will be a replay of today's call that will be available by webcast on the company's website at klx.com. And there will also be a telephonic recorded, with replay available until May 23, 2025. More information on how to access these replay features was included in yesterday's earnings release.

在我發言之後，管理階層將對季度財務表現和前景發表評論，然後再開始回答大家的提問。今天的電話會議將透過網路直播在公司網站 klx.com 上播放。此外，還將提供電話錄音，重播有效期至 2025 年 5 月 23 日。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報告中。

Please note that the information reported on this call speaks only as of today, May 9, 2025, 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.

請注意，本次通話中報告的資訊僅截至今天（2025 年 5 月 9 日），因此，請注意，在重播或閱讀記錄時，時間敏感資訊可能不再準確。

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.

此外，本次電話會議的評論將包含美國聯邦證券法所定義的前瞻性陳述。這些前瞻性陳述反映了 KLX 管理階層的當前觀點。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結果、業績或成就有重大差異。

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.

鼓勵聽眾或讀者閱讀 10-K 表年度報告、10-Q 表季度報告和 8-K 表當前報告，以了解其中的某些風險、不確定性和意外事件。

The comments today will also include certain non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP measures were included in the quarterly press release that can be found on the KLX 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更多詳細資訊以及與最直接可比較的 GAAP 指標的對賬，可在 KLX 網站上找到。

Now, I'd like to turn the call over to Chris Baker. Chris?

現在，我想將電話轉給克里斯貝克。克里斯？

Thank you, Ken. Good morning, everyone.

謝謝你，肯。大家早安。

I'll start with commentary on our Q1 results, recent operational performance, and strategic initiatives; then, provide some perspective on the current market environment and our outlook.

我將首先評論我們的第一季業績、近期營運表現和策略舉措；然後，對當前的市場環境和我們的前景提供一些看法。

As discussed last quarter, Q1 is seasonally our toughest quarter. But I'm pleased to report that KLX delivered improved adjusted EBITDA and adjusted EBITDA margin in Q1 2025 versus Q1 2024, despite a meaningfully lower rig count environment.

正如上個季度所討論的，第一季是我們最艱難的一個季度。但我很高興地報告，儘管鑽機數量明顯減少，但 KLX 在 2025 年第一季度實現了調整後 EBITDA 和調整後 EBITDA 利潤率與 2024 年第一季相比有所提高。

March was our best month of the quarter for both revenue and adjusted EBITDA. And our Southwest segment posted its strongest quarterly results since Q3 of 2023. Importantly, Q1 results were in line with guidance.

三月是我們本季營收和調整後 EBITDA 表現最好的一個月。我們的西南航空部門取得了自 2023 年第三季以來最強勁的季度業績。重要的是，第一季的業績符合預期。

Revenue and adjusted EBITDA were down sequentially but ahead of Q1 last year. Our company-wide focus on cost controls enabled us to increase our first-quarter 2025 adjusted EBITDA margin by 208 basis points over last year's first quarter, despite revenue and rig count being down 12% and 5%, respectively, over the same period.

營收和調整後的 EBITDA 環比下降，但高於去年第一季。我們全公司都注重成本控制，這使得我們 2025 年第一季的調整後 EBITDA 利潤率比去年第一季提高了 208 個基點，儘管同期收入和鑽機數量分別下降了 12% 和 5%。

The macro environment remains volatile, driven by OPEC+'s increasing production and dynamic US tariff policy driving recessionary risk and commodity price volatility. We are closely monitoring customer activity plans and our cost structure in real time.

宏觀環境仍動盪，受OPEC+產量增加和美國動態關稅政策推動，經濟衰退風險與大宗商品價格波動加劇。我們正在密切即時監控客戶活動計劃和我們的成本結構。

With that said, we continue to see green shoots in certain PSLs and areas, as we expand our market leadership position across our rentals and tech services PSLs.

話雖如此，隨著我們在租賃和技術服務 PSL 領域的市場領導地位不斷擴大，我們繼續看到某些 PSL 和領域的復甦跡象。

In our tech services PSL, we're in the process of developing a Gen 2 version of our Oracle SRT, which is rapidly gaining market acceptance. We now have over 0.5 million running feet downhole. And this tool should position us exceptionally well in the gas basins in the years to come.

在我們的技術服務 PSL 中，我們正在開發 Oracle SRT 的第二代版本，該版本正在迅速獲得市場認可。目前，我們的井下運作深度已超過 50 萬英尺。這種工具將使我們在未來幾年內在天然氣盆地中佔據有利地位。

We have a cycle-tested team and remain ready to respond quickly to evolving market conditions. Our diversified service offering and strong customer relationships continue to differentiate KLX and support our performance through market cycles.

我們擁有一支經過週期考驗的團隊，隨時準備好對不斷變化的市場狀況做出快速反應。我們多樣化的服務和牢固的客戶關係繼續使 KLX 脫穎而出，並支持我們在整個市場週期中的表現。

We saw particular strength in the Southwest, while the Rockies and Northeast regions experienced sequential declines due to seasonality and a slowdown in Mid-Con completions due to an unforeseen operational issue, driving material downtime for one of our two frac fleets. So we expect these trends to reverse in Q2.

我們看到西南部地區表現特別強勁，而落基山脈和東北部地區則因季節性因素而出現連續下滑，並且由於不可預見的運營問題導致 Mid-Con 完井速度放緩，導致我們的兩個壓裂車隊之一出現重大停工。因此我們預計這些趨勢將在第二季度發生逆轉。

Geographically, the Southwest represented 42% of Q1 revenue, up from 37% in Q4. The Northeast/Mid-Con was 27%, down from 30% in Q4. And the Rockies was 31%, down from 33% in Q4. The Southwest benefited from robust completion and production activity, especially in rentals and tech services, while the Rockies completion PSLs made significant contributions.

從地理位置來看，西南航空佔第一季總營收的 42%，高於第四季的 37%。東北部/中部地區的比例為 27%，低於第四季的 30%。落磯山脈的比例為 31%，低於第四季的 33%。西南地區受益於強勁的完井和生產活動，尤其是在租賃和技術服務領域，而落基山脈完井 PSL 也做出了重大貢獻。

Going forward, we expect continued strength in the Southwest compared to prior years, as we have continued to strengthen market share; and we expect the Rockies to bounce back in Q2, as is customary coming out of the winter season.

展望未來，我們預計西南地區將繼續保持強勁勢頭，因為我們的市場份額已持續增強；我們預計落基山脈地區將在第二季度出現反彈，這是冬季過後的慣例。

By end market, drilling, completion and production and intervention services contributed approximately 20%, 51%, and 29% of Q1 revenue, respectively.

按終端市場劃分，鑽井、完井和生產及乾預服務分別貢獻了第一季收入的約 20%、51% 和 29%。

In response to the evolving tariff landscape, we continue to assess impacts on our supply chain and cost structure. With that said, we are proud that many of our PSL components and products, such as our plugs, ERT, and thru-tubing motors have always been 100% manufactured in the USA, which positions KLX uniquely in the market.

為了應對不斷變化的關稅形勢，我們將繼續評估對我們的供應鏈和成本結構的影響。話雖如此，我們感到自豪的是，我們的許多 PSL 組件和產品（例如我們的插頭、ERT 和油管電機）始終 100% 在美國製造，這使 KLX 在市場上佔據獨特的地位。

While we generally anticipate some short-term disruption and pressure on our cost structure for certain equipment, our strategy is to pass along increased costs where possible and adjust sourcing to mitigate medium- to longer-term risk.

雖然我們普遍預期某些設備的成本結構會在短期內出現一些中斷和壓力，但我們的策略是盡可能轉嫁增加的成本，並調整採購以減輕中長期風險。

We also strengthened our balance sheet, reducing notes outstanding as part of our March refinancing that also increased our flexibility versus the prior capital structure. The new structure also allows us to pay interest on our notes in kind. This flexibility positions us well to navigate the ongoing market volatility and maintain financial flexibility.

我們也加強了資產負債表，作為 3 月再融資的一部分，減少了未償票據，這也提高了我們相對於先前資本結構的靈活性。新的結構也允許我們以實物形式支付票據利息。這種靈活性使我們能夠很好地應對持續的市場波動並保持財務靈活性。

The ability to elect PIK interest proved almost immediately valuable as we utilized this option in early April, during a period of heightened market uncertainty and sharp declines in oil prices following new tariff announcements on April 2. The ability to adjust our cash outflows in real time enhances our liquidity and preserves capital for operations and strategic opportunities, even in the face of unpredictable macroeconomic swings.

選擇 PIK 利息的能力幾乎立即被證明是有價值的，因為我們在 4 月初就使用了這個選項，當時正值市場不確定性加劇、4 月 2 日新關稅公告發布後油價大幅下跌的時期。即時調整現金流出的能力增強了我們的流動性，即使面對不可預測的宏觀經濟波動，也能為營運和策略機會保留資本。

As a result, we remain well capitalized and able to respond decisively to both risk and opportunities as they arise throughout the year.

因此，我們仍然擁有充足的資本，能夠果斷應對全年出現的風險和機會。

I'll now turn the call over to Keefer to review our financial results in greater detail. And I will return later in the call to discuss our outlook for 2025. Keefer?

現在我將把電話轉給 Keefer，讓他更詳細地回顧我們的財務結果。我稍後會在電話會議上再次討論我們對 2025 年的展望。基弗？

Thanks, Chris. Good morning, everyone.

謝謝，克里斯。大家早安。

As Chris mentioned, Q1 2025 revenue was $154 million, a 7% sequential decline and 12% lower than Q1 2024. Consolidated adjusted EBITDA was $13.8 million with a 9% margin, down from 13.7% in Q4 2024; but more importantly, up from 7% in Q1 of 2024.

正如克里斯所提到的，2025 年第一季的營收為 1.54 億美元，季減 7%，比 2024 年第一季下降 12%。合併調整後 EBITDA 為 1,380 萬美元，利潤率為 9%，低於 2024 年第四季的 13.7%；但更重要的是，高於 2024 年第一季的 7%。

As Chris noted, given the Q1 seasonality within our Rockies business, it is more helpful to compare year-over-year versus sequential, when reviewing the first quarter. Also, as Chris mentioned, we exited Q1 on a high note as March 2025 was the quarter's high point for both revenue and margin.

正如克里斯所指出的，考慮到我們落基山脈業務第一季的季節性，在回顧第一季時，比較同比和環比情況更有幫助。此外，正如克里斯所提到的，我們以高調結束了第一季度，因為 2025 年 3 月是該季度收入和利潤率的最高點。

Total SG&A for Q1 was $21.6 million. But backing out non-recurring items, adjusted SG&A would have been $16.5 million, a 12% reduction versus Q1 2024 and flat compared to Q4 2024, despite a 3% higher benefit burden in Q1 versus Q4. Q1 average G&A headcount was down 3% versus the Q4 average.

第一季銷售、一般及行政費用總額為 2,160 萬美元。但剔除非經常性項目後，調整後的銷售、一般及行政費用將為 1,650 萬美元，與 2024 年第一季相比減少 12%，與 2024 年第四季相比持平，儘管第一季的福利負擔比第四季高出 3%。第一季平均 G&A 員工人數較第四季平均下降 3%。

Total SG&A for Q1 was $21.6 million. But backing out non-recurring items, adjusted SG&A would have been $16.5 million, a 12% reduction versus Q1 2024 and flat versus Q4 2024. despite a 3% higher benefits burden in Q1 versus Q4. Q1 average G&A headcount was down 3% versus the fourth-quarter average.

第一季銷售、一般及行政費用總額為 2,160 萬美元。但剔除非經常性項目後，調整後的銷售、一般及行政費用將為 1,650 萬美元，與 2024 年第一季相比減少 12%，與 2024 年第四季相比持平。儘管第一季的福利負擔比第四季高出 3%。第一季平均 G&A 員工數量較第四季平均下降 3%。

The cost structure changes we implemented in 2024 continue to benefit us. We expect this lower SG&A level to continue and to actually improve further, as we navigate 2025.

我們在 2024 年實施的成本結構變更繼續使我們受益。我們預計，隨著 2025 年的到來，這種較低的銷售、一般及行政費用水準將會持續下去，甚至會進一步改善。

Moving to our segment results.

轉向我們的分部業績。

For the Rockies segment, revenue was $47.8 million, operating loss was $200,000, and adjusted EBITDA was $6.7 million. Sequential revenue and adjusted EBITDA declined 11% and 43%, respectively, primarily due to seasonality. But when compared to Q1 2024, revenue and adjusted EBITDA were higher by 5% and 24%, respectively, despite Rockies' rig count being down 13% year over year.

落磯部門的營收為 4,780 萬美元，營業虧損為 20 萬美元，調整後 EBITDA 為 670 萬美元。連續收入和調整後 EBITDA 分別下降 11% 和 43%，主要原因是季節性因素。但與 2024 年第一季相比，儘管 Rockies 的鑽井數量比去年同期下降了 13%，但營收和調整後的 EBITDA 分別成長了 5% 和 24%。

Given Q1 is our most seasonally-impacted quarter, we expect Rockies activity and revenue to improve meaningfully on a sequential basis.

鑑於第一季是我們受季節性影響最大的季度，我們預計落基山脈的活動和收入將比去年同期顯著改善。

In the Southwest segment, revenue, operating income, and adjusted EBITDA were $65.2 million, $3 million, and $11.7 million, respectively. On a quarterly basis, Q1 revenue increased 6% sequentially, with operating income and adjusted EBITDA up 173% and 22%, respectively, due to a shift towards higher contribution from higher-margin product service lines and increased revenue across a static fixed cost structure.

西南航空部門的收入、營業收入和調整後的 EBITDA 分別為 6,520 萬美元、300 萬美元和 1,170 萬美元。按季度計算，第一季營收季增 6%，營業收入和調整後 EBITDA 分別成長 173% 和 22%，這得益於利潤率更高的產品服務線貢獻的增加以及靜態固定成本結構的收入增加。

Q1 was a standout for the Southwest segment, with adjusted EBITDA at its highest level since Q3 2023. We expect continued strength relative to historical results, as we have expanded the customer base by deploying latest generation assets across our rentals, fishing, and thru-tubing businesses.

第一季西南航空表現突出，調整後 EBITDA 達到 2023 年第三季以來的最高水準。我們預計相對於歷史業績將繼續保持強勁，因為我們透過在租賃、捕魚和油管業務中部署最新一代資產來擴大客戶群。

For the Northeast/Mid-Con segment, revenue was $41 million, operating loss was $8.1 million, and adjusted EBITDA was $2.7 million. The sequential decrease in revenue of 18% was primarily driven by the previously mentioned white space in our Q1 calendar.

東北/中部地區部門的收入為 4,100 萬美元，營業虧損為 810 萬美元，調整後 EBITDA 為 270 萬美元。收入連續下降 18% 主要是由於我們之前提到的第一季日曆中的空白期。

Adjusted EBITDA declined 72% sequentially, largely driven by the completions of white space Chris mentioned in his opening remarks. To put it in perspective, we missed out on approximately $6 million to $7 million of scheduled Q1 Mi-Con revenue due to the aforementioned non-recurring operational issue.

調整後的 EBITDA 環比下降 72%，這主要是由於 Chris 在開場白中提到的空白區域的完成。從客觀角度來看，由於上述非經常性營運問題，我們損失了原定的第一季 Mi-Con 收入約 600 萬至 700 萬美元。

At Corporate, our operating loss and adjusted EBITDA loss for Q1 were $12.4 million and $7.3 million, respectively, both of which were in line with recent quarters.

在公司層面，我們第一季的營業虧損和調整後 EBITDA 虧損分別為 1,240 萬美元和 730 萬美元，均與最近幾季持平。

Turning to our balance sheet, cash flow, and capitalization. We

轉向我們的資產負債表、現金流量和資本化。我們

ended Q1 with $58.1 million in liquidity, consisting of $14.6 million of cash and cash equivalents and $43.5 million of availability on our revolving credit facility, including $4.9 million on an undrawn FILO facility.

截至第一季末，該公司流動資金為 5,810 萬美元，其中包括 1,460 萬美元的現金和現金等價物以及 4,350 萬美元的循環信貸額度，其中包括 490 萬美元的未提取 FILO 信貸額度。

Cash declined over $60 million from year end, mainly due to approximately $33 million in refinancing costs, working capital normalization and seasonality, and net CapEx spending. Refinancing costs included fees, OID, reduction in notes outstanding, and accrued interest.

現金較年底減少了 6,000 多萬美元，主要原因是約 3,300 萬美元的再融資成本、營運資本正常化和季節性以及淨資本支出。再融資成本包括費用、OID、未償還票據的減少和應計利息。

Consistent with our commentary on the Q4 call, our DSO normalized from Q4 levels to about 60 days and DPO decreased to approximately 43 days.

與我們對第四季度電話會議的評論一致，我們的 DSO 從第四季度水平正常化至約 60 天，DPO 減少至約 43 天。

As we've discussed in the past, Q1 is our most working capital-intensive quarter of the year, partly because there are always two extra payrolls in the quarter.

正如我們過去所討論過的，第一季是我們一年中營運資本最密集的季度，部分原因是該季度總是有兩個額外的薪資單。

Our Q1 balance sheet includes a restricted cash balance of approximately $8 million, primarily tied to the transition from our prior ABL agreement. And as of today, $6 million of this restricted cash has been freed up. We expect the remainder to be freed up during Q2.

我們的第一季資產負債表包括約 800 萬美元的受限現金餘額，主要與我們先前的 ABL 協議的過渡有關。截至今天，這筆受限現金中已有 600 萬美元被釋放。我們預計剩餘部分將在第二季釋放。

The new indenture includes a 2% quarterly mandatory redemption. And we made our first amortization payment on the new notes at the end of Q1.

新的契約包括每季 2% 的強制贖回。我們在第一季末對新票據進行了第一次攤銷付款。

In Q1 2025, KLX sold 143,000 shares of common stock under the ATM program for gross proceeds of approximately $500,000. For the terms of the new indenture, these funds are now available for share buybacks for the company's 2019 share buyback program.

2025 年第一季度，KLX 根據 ATM 計劃出售了 143,000 股普通股，總收益約為 500,000 美元。根據新契約的條款，這些資金現在可用於公司 2019 年股票回購計畫的股票回購。

CapEx for Q1 was $15 million gross and $10.2 million net of asset sales, focused primarily on maintenance spending within our rentals and coiled tubing fleets. We expect to reduce 2025 full-year CapEx from original estimates and now expect gross capital spending for 2025 of $40 million to $50 million and net CapEx of $30 million to $40 million.

第一季的資本支出總額為 1,500 萬美元，資產銷售淨額為 1,020 萬美元，主要用於租賃和連續油管船隊的維護支出。我們預計將 2025 年全年資本支出從最初的估計中減少，現在預計 2025 年的總資本支出為 4000 萬至 5000 萬美元，淨資本支出為 3000 萬至 4000 萬美元。

We have flexibility to further curtail second-half CapEx, if needed, as we exited Q1 with only $11 million of CapEx accrued as of 3/31. Our CapEx allocation strategy remains focused on balancing reinvestment in our core product service lines, with disciplined spending that supports long-term liquidity and value creation, including prioritizing investments in higher-margin service lines with quick cash-on-cash paybacks including rentals, fishing, and thru-tubing, where we hold market-leading positions and are expanding share with major customers.

如果需要，我們可以靈活地進一步削減下半年的資本支出，因為截至 3 月 31 日，我們在第一季結束時僅累計了 1,100 萬美元的資本支出。我們的資本支出分配策略仍專注於平衡核心產品服務線的再投資，並透過嚴格的支出來支持長期流動性和價值創造，包括優先投資利潤率較高、可快速實現現金回報的服務線，包括租賃、捕魚和油管，我們在這些領域佔據市場領先地位，並正在擴大與主要客戶的份額。

We expect cash and liquidity to improve, as we navigate the remainder of 2025. And our team is experienced at weathering the cyclicality and volatility of the oilfield.

我們預計，隨著 2025 年剩餘時間的到來，現金和流動性將會改善。我們的團隊在應對油田的周期性和波動性方面經驗豐富。

In real time, we are evaluating and enacting further measures to augment the cost structure, improve free cash flow, and maximize financial flexibility.

我們正在即時評估並制定進一步的措施，以增強成本結構、改善自由現金流並最大限度地提高財務靈活性。

I'll now hand it back to Chris for his concluding remarks and more color on our outlook.

現在我將發言權交還給克里斯，請他總結發言並進一步闡述我們的展望。

Thanks, Keefer.

謝謝，基弗。

As we look ahead to the remainder of 2025, we expect revenue and adjusted EBITDA growth in Q2, building on March's momentum. While the macro environment is volatile and uncertain, we are confident that our operational discipline, improved balance sheet flexibility, and proactive risk management positions us to navigate 2025.

展望 2025 年剩餘時間，我們預計第二季營收和調整後 EBITDA 將延續 3 月的成長動能。儘管宏觀環境動盪且不確定，但我們相信，我們的營運紀律、增強的資產負債表靈活性以及積極主動的風險管理使我們能夠應對 2025 年。

We are taking a more cautious approach to the remainder of 2025, as we work to maximize financial flexibility.

我們將對 2025 年剩餘時間採取更謹慎的態度，努力最大限度地提高財務靈活性。

For Q2, we anticipate continued strength in our Southwest segment, along with modestly improving revenue as Rockies' seasonality normalizes and the Mid-Con bounces back from the unforeseen Q1 white space.

對於第二季度，我們預計西南地區將繼續保持強勁勢頭，同時隨著落基山脈的季節性恢復正常以及中康涅狄格州從第一季不可預見的空白中反彈，收入也將略有提高。

Based on our current schedules, we are targeting a modest sequential revenue increase, with revenue expected to be up low to mid-single digits on a percentage basis and margin expansion.

根據我們目前的計劃，我們的目標是實現收入的適度連續增長，預計收入將以百分比和利潤率的形式增長低至個位數。

We continue to be bullish on the US natural gas macro story and its implications for service providers and KLX, in particular. We are closely watching developments in natural gas and LNG exports, commodity price volatility, and global economic trends.

我們繼續看好美國天然氣宏觀情況及其對服務供應商和 KLX 的影響。我們密切關注天然氣和液化天然氣出口的發展、大宗商品價格波動以及全球經濟趨勢。

Our exposure to gas-focused basins positions us well for any uptick in activity, especially as new LNG capacity comes online over the next 12 to 24 months. This could drive improved pricing and utilization across our core markets.

我們對天然氣盆地的關注使我們在任何活動上升時都處於有利地位，特別是隨著未來 12 至 24 個月內新的液化天然氣產能上線。這可以推動我們核心市場的定價和利用率的提高。

An increase in gas-directed activity could serve to cushion softness in crude-directed activity, given reduced WTI pricing and the oil-focused CapEx cuts we've seen from public E&P operators recently.

鑑於最近 WTI 價格下跌以及公共 E&P 業者削減以石油為重點的資本支出，天然氣導向活動的增加可能有助於緩解原油導向活動的疲軟。

We remain focused on strategic accretive M&A that aligns with our growth and deleveraging goals. Clearly, M&A is complicated given the current market backdrop and our share price. But we believe we are fundamentally undervalued today and our enhanced debt structure gives us the flexibility to act quickly on attractive opportunities.

我們仍然專注於符合我們的成長和去槓桿目標的策略增值併購。顯然，鑑於當前的市場背景和我們的股價，併購是複雜的。但我們認為，我們今天從根本上被低估了，而我們增強的債務結構使我們能夠靈活地對有吸引力的機會迅速採取行動。

Post-refi, we have seen a handful of opportunities that we reviewed in early to mid-2024 approach us, as they were unable to consummate deals in '24 and now recognize the need for OFS consolidation.

再融資後，我們發現一些在 2024 年初至年中審查過的機會正在向我們走來，因為它們無法在 24 年完成交易，現在認識到 OFS 整合的必要性。

The market backdrop makes financing transactions incredibly difficult and consummating transactions in this environment will require creativity. But we fervently believe the OFS market needs meaningful consolidation.

市場背景使得融資交易極為困難，在這種環境下完成交易需要創意。但我們堅信 OFS 市場需要有意義的整合。

In summary, we are confident in our ability to execute our strategy and navigate what is a dynamic and volatile market. Our scale, diversified offering, and strong customer relationships positions KLX to capture share as the industry consolidates.

總而言之，我們有信心執行我們的策略並駕馭充滿活力和波動的市場。我們的規模、多樣化的產品和牢固的客戶關係使 KLX 在行業整合過程中佔據了主導地位。

Thank you to our employees, customers, and shareholders for your ongoing support.

感謝我們的員工、客戶和股東的持續支持。

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

現在我們來回答你們的問題。操作員？

(Operator Instructions)

（操作員指示）

Steve Ferazani, Sidoti & Company.

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

Morning, Chris. Morning, Keefer. I appreciate all the detail on the call this morning.

早上好，克里斯。早上好，基弗。我感謝今天早上電話中提供的所有詳細資訊。

I just want to start by asking about the 2Q guide. Given what 2Q and the Rockies has been in past years, the recovery and the fact that if that $6 million to $7 million hit on the frac spread was completely resolved in Q1, it seems like low to mid could be conservative for growth?

我首先想問一下有關第二季度指南的問題。考慮到第二季度和落基山脈過去幾年的情況、復甦以及如果壓裂價差中 600 萬至 700 萬美元的損失在第一季度完全解決，那麼中低水平對於增長來說似乎比較保守？

Look -- first of all, good morning, Steve. The reality is I think it's difficult, if not impossible, at this point, to provide a full -year guide. And so, we elected to provide a 2Q guide.

看——首先，早安，史蒂夫。事實上，我認為目前提供全年的指南非常困難，甚至是不可能的。因此，我們選擇提供第二季指南。

As we look at the second quarter, we think revenue will increase low to mid-single digits. There's puts-and-takes. It sounds like you understand the $6 million top-line hit that Keefer referenced.

展望第二季度，我們認為營收將成長低至個位數。有投入，也有收穫。聽起來你理解 Keefer 提到的 600 萬美元營收目標。

The reality of the situation is every basin and every product line rebounds differently. And as we've looked at the impacts since April 2, as soon as crude hit $56, we saw several operators elect to delay projects.

實際情況是，每個盆地和每條產品線的反彈情況都不同。從 4 月 2 日以來的影響來看，原油價格一旦達到 56 美元，我們就看到一些業者選擇推遲專案。

And in certain instances, we had multiple completions, PSLs scheduled to work on a given pad or a given set of pads. And so, then, you turn around a week later and WTI rallies back to $62 and the same operators begin to re-evaluate schedules.

在某些情況下，我們有多個完井作業，PSL 計劃在給定的平台或給定的一組平台上進行作業。那麼，一週後，WTI 價格回升至 62 美元，同樣的業者開始重新評估計畫。

So it's highly episodic. I'm not going to say the guide is conservative. But it's based off of our 90-day revenue forecast.

因此它具有很強的情景性。我不會說該指南是保守的。但這是基於我們 90 天的收入預測。

Just this week, we've seen WTI go to $59. And we start hearing the tea leaves shake that maybe there's delays. And then, it rallies back to -- it was $62 when we woke up this morning.

就在本週，我們看到 WTI 價格上漲至 59 美元。我們開始聽到茶葉搖晃的聲音，也許有延誤。然後，它又回升至——今天早上我們醒來時的價格是 62 美元。

So it's just really hard to provide projections, when you start to get out into the later months of that 90-day roll. And we're just trying to forecast what we have right in front of us, at this point in time.

因此，當你開始進入 90 天滾動的後幾個月時，提供預測真的很難。我們只是想預測一下此時此刻我們面臨的情況。

I appreciate that, Chris. I can imagine the uncertainty that's out there, right now.

我很感激，克里斯。我可以想像現在存在的不確定性。

So my question was going to be if you had seen the impact from lower oil price. And it sounds like -- because we think that's going to be more of a second-half impact on rig count. But it sounds like you already are seeing some.

所以我的問題是，您是否看到了油價下跌的影響。這聽起來像是——因為我們認為這將對下半年鑽井數量產生更大的影響。但聽起來你已經看到一些了。

Yeah. I think -- look, the smaller operators are more exposed and candidly more exposed to the tariff impact of line pipe, casing, et cetera. And they're more exposed to commodity prices. Some of the smaller operators we work for don't have the hedging programs of the larger operators.

是的。我認為——規模較小的業者更容易受到管道、套管等關稅的影響。而且他們更容易受到商品價格的影響。我們合作的一些小型業者沒有大型業者的對沖計劃。

And so, as you look across the news of the last week, where we've seen a lot of the blue-chip operators talk about reductions on the order of everything from zero to a banded range as high as 5% or 10% to their capital programs for 2025, I would agree: most of that seems to be second-half weighted.

因此，當您瀏覽上週的新聞時，我們看到許多藍籌股運營商都在談論將其 2025 年的資本計劃從零到高達 5% 或 10% 的區間進行削減，我同意：其中大部分似乎是下半年加權的。

But some of the smaller operators will react when crude hits -- has a 5% handle on it. And they'll at least elect to delay.

但當原油價格達到 5% 時，一些較小的業者就會做出反應。他們至少會選擇拖延。

It doesn't mean they cancel that project in totality. But delays can hit us, when they hit us across multiple product lines. They have a disproportionate impact, right?

這並不意味著他們完全取消該項目。但當延遲影響到多個產品線時，我們就會受到打擊。它們的影響不成比例，對嗎？

That's really helpful. Thanks, Chris.

這真的很有幫助。謝謝，克里斯。

Turning now to the new capital structure and how you're thinking about -- and I know, again, with all the uncertainty, it's hard to think about cash flow. I was a little surprised you already exercised the PIK option.

現在談談新的資本結構以及您是如何考慮的——我知道，由於存在種種不確定性，很難考慮現金流。我有點驚訝您已經行使了 PIK 選項。

How are you -- and I know Q1 is the biggest, the most working capital intensive and typically the lowest cash flow. But how are you thinking about the flexibility of the PIK option?

你好嗎——我知道第一季是規模最大、營運資金最密集、現金流通常最低的季度。但是您如何看待 PIK 選項的靈活性？

And I know you also talked about share repurchases. But then, you use the ATM. So a little bit of confusion there on my part, in terms of how you're thinking about capital allocation and using the capital structure, as we get into even more uncertainty.

我知道您也談到了股票回購。但是，您可以使用 ATM。因此，就您如何考慮資本配置和使用資本結構而言，我感到有點困惑，因為我們陷入了更多的不確定性。

Good question, Steve. This is Keefer. Good morning.

問得好，史蒂夫。這是基弗。早安.

Clearly, timing plays an impact into some of those actions, as you think about the last 45 days or so. Clearly, the ATM sales were executed on prior to the tremendous economic shift and shift in outlook that occurred, post-April 2.

顯然，時間對一些行動有影響，想想過去 45 天左右的情況。顯然，ATM 銷售是在 4 月 2 日之後發生的巨大經濟轉變和前景轉變之前進行的。

With that said, there is additional flexibility that we're able to put in place with the new credit docks, both on the indenture and ABL side.

話雖如此，我們能夠透過新的信用對接（無論是在契約方面還是在 ABL 方面）實現額外的靈活性。

You mentioned the PIK side. So the refinance notes do afford us the flexibility to PIK interest. The first month, we clearly paid cash. The PIK election for the second month was due the week of the tariff announcement.

您提到了 PIK 方面。因此，再融資票據確實為我們提供了 PIK 利息的靈活性。第一個月，我們明確支付的是現金。波士尼亞伊斯蘭黨第二月選舉將在關稅公告發布當週舉行。

Given that market uncertainty and the news from OPEC that week, we did elect to PIK interest. There's certainly a corresponding cost related to us picking interest. So there's an incremental 100 bps of interest rate spread that is tied to a PIK.

鑑於市場不確定性和本週來自 OPEC 的消息，我們確實選擇了 PIK 利率。我們選擇利息肯定會產生相應的成本。因此，與 PIK 掛鉤的利率差增量為 100 個基點。

With that said, picking interest does defer about $2.4 million, $2.5 million of monthly cash cost. So we do have tremendous flexibility there. And it is a tool with which we will continue to evaluate and, on a go-forward basis, make sure that we're maximizing and optimizing the company's flexibility, both to be defensive as well as offensive, as we navigate through the market.

話雖如此，選擇利息確實可以推遲每月約 240 萬美元、250 萬美元的現金成本。因此我們確實具有極大的靈活性。我們將繼續利用這項工具進行評估，並在未來確保公司在市場中保持最大程度的靈活性和最優化性，既能防禦，又能進攻。

So that's the main puts-and-takes.

這就是主要的得失。

On the buyback side, as you mentioned, clearly, we've had a $49 million or so authorized buyback in place. Since 2019, that is subject to availability under the new debt covenants.

在回購方面，正如您所提到的，顯然我們已經授權回購了約 4900 萬美元。自 2019 年起，該金額將取決於新債務契約的可用性。

Practically speaking, the availability is much smaller than the $49 million. And our share price has moved tremendously, particularly post the announcements from DC as well as OPEC in early April. And so, post-refinancing, this is flexibility that is now built back into the new debt documents that we didn't have historically. So there is an additional opportunity here when warranted and we believe prudent to buy back a small amount of shares.

實際上，可用資金遠少於 4,900 萬美元。我們的股價波動很大，特別是在 4 月初華盛頓和歐佩克發布聲明之後。因此，再融資後，這種彈性又重新融入我們過去所沒有的新債務文件中。因此，當有必要時，這裡有額外的機會，我們認為謹慎地回購少量股票是合理的。

So on a go-forward basis, in terms of cash flow management, we're obviously laser-focused on maximizing margins and driving as much free cash flow as possible, recognizing to Chris' point that there is a tremendous amount of market uncertainty today.

因此，從未來的角度來看，在現金流管理方面，我們顯然會專注於最大化利潤率和推動盡可能多的自由現金流，同時認識到克里斯的觀點，即當今市場存在巨大的不確定性。

But hopefully, some of this starts to come to resolution and we'll have a better line of sight on what's going to happen for the remainder of the year.

但希望其中一些問題能夠開始解決，並且我們將對今年剩餘時間將要發生的事情有更好的了解。

Great. I really appreciate all that detail. If I could get one more in.

偉大的。我真的很欣賞所有這些細節。如果我能再多拿一個的話。

There is some optimism around the gas plays. Maybe that can partially offset some of the rig count decline in the Permian and Rockies. You typically have had flexibility, in terms of being able to move your assets around.

人們對天然氣開採抱持一定樂觀態度。這或許可以部分抵消二疊紀和洛磯山脈鑽井數量的下降。在轉移資產方面，您通常具有一定的靈活性。

How are you positioning for that potential? Do you have to position ahead of time? And how are you thinking about what could be the reverse of what we saw two, three years ago, where gas plays were a little bit better while oil plays maybe get weaker?

您如何定位這項潛力？需要提前定位嗎？您如何看待我們兩三年前看到的情況可能出現逆轉？當時天然氣的潛力稍好一些，而石油的潛力可能會減弱？

Yeah. It's a great question.

是的。這是一個很好的問題。

I think we talked about this a little bit on our Q4 call. But look, we're continuing to monitor the market. The reality is, to your point, we are seeing some traction in the gas plays.

我想我們在第四季電話會議上討論過這個問題。但請看，我們正在繼續監控市場。事實是，正如您所說，我們看到天然氣開採領域出現了一些進展。

Our dry gas exposure as a percentage of revenue in Q1 was very similar to what it has been for the last four quarters. So holding in there at about 12.5%.

我們第一季乾氣敞口佔收入的百分比與過去四個季度的水平非常相似。因此保持在 12.5% 左右。

Our Northeast segment or our Northeast area within the Northeast/Mid-Con performed exceptionally well, from a seasonally adjusted perspective, in Q1, and we continue to see that opportunity expand throughout the year.

從季節性調整的角度來看，我們的東北分部或東北/中部-康涅狄格州內的東北地區在第一季表現非常出色，我們繼續看到這一機會在全年擴大。

We're aware of a number of operators that are adding rigs, both in the Haynesville -- frac spreads in the Haynesville -- as well as now in the Northeast, as we've continued to see -- that's the one place we have seen stability in natural gas prices and they continue to strengthen.

我們知道，許多業者都在增加鑽機，無論是在海恩斯維爾（海恩斯維爾的壓裂範圍）還是現在的東北部，正如我們所看到的，這是我們看到天然氣價格穩定並持續走強的唯一地方。

So we haven't relocated any assets, to your specific question, I think we're already pretty well positioned. But if we need to relocate additional assets, we clearly can.

因此，我們還沒有遷移任何資產，對於您的具體問題，我認為我們已經做好了充分的準備。但如果我們需要轉移額外的資產，我們顯然可以。

Thanks, Chris. Thanks, Keefer.

謝謝，克里斯。謝謝，基弗。

Yeah. Appreciate it, Steve. Thank you.

是的。非常感謝，史蒂夫。謝謝。

John Daniel, Daniel Energy.

約翰·丹尼爾，丹尼爾能源。

Hey, guys. Just thanks for having me. A couple of quick ones here.

嘿，大家好。非常感謝你們邀請我。這裡有幾個簡短的。

On M&A, because you touched on the opportunities that might potentially be unfolding, I'm just curious, as you look at the opportunity set and not wanting to go into, like, specifics on valuation or service line but really speak to geography.

關於併購，因為您提到了可能正在展開的機會，所以我很好奇，當您查看機會集時，並不想深入討論估值或服務線的具體細節，而是真正談論地理位置。

When you look at places like the Permian, they tend to be more fragmented and then, compare that to, say, the gassy markets, which are being better behaved: like, how are you -- as you think about strategy from a geographic perspective, can you walk us through just how you think about it?

當您觀察二疊紀這樣的地方時，它們往往更加分散，然後將其與表現更好的天然氣市場進行比較：例如，當您從地理角度考慮戰略時，您是怎樣的？您能否向我們講解一下您是如何看待它的？

That's it.

就是這樣。

Yeah. Look, it's a great question.

是的。瞧，這是一個很好的問題。

I think the current market is candidly driving some deal capitulation. And I think counterparties are, at least, now saying they're willing to be creative and they understand relative valuations have come off, as multiples have declined.

我認為當前市場正在坦率地推動一些交易的放棄。我認為，交易對手至少現在表示，他們願意發揮創造力，他們明白，隨著本益比的下降，相對估值已經下降。

So as I mentioned in the prepared remarks on the call, we have seen a couple of counterparties that are quality companies that were hung or dead deals last year pop up over the last couple of months. So we'll see how that plays out.

正如我在電話會議的準備好的發言中提到的那樣，我們看到一些交易對手是優質公司，而這些公司去年的交易都處於停滯或失敗狀態，但在過去幾個月裡卻出現了。我們將拭目以待事情將如何發展。

I wouldn't say that they are necessarily geographically-focused by any stretch. We're trying to be much more opportunistic.

無論如何，我不會說他們一定以地理位置為中心。我們正在努力變得更加抓住機會。

As we look at our new debt facility, post-refi, I want to be clear: the debt facility does have limitations.

當我們審視我們的新債務融資後，我想明確一點：債務融資確實有其限制。

The first most important limitation is the deal has to be deleveraging for us to add pari passu debt to the facility. And we realize certain counterparties are going to require some component of cash.

第一個最重要的限制是，交易必須去槓桿，以便我們可以為該機制添加同等債務。我們意識到某些交易對手將需要一定比例的現金。

The second is that the reality is we need the lenders or new lenders to step up, if there's a cash component required to consummate the deal.

第二，如果完成交易需要現金部分，那麼現實情況是我們需要貸款人或新的貸款人介入。

But the reality is, ultimately, deleveraging transactions benefit both all of our stakeholders, equity, and debt. And I think it's finally time in the market where some of the, to your point, fragmented smaller operators, in particular, as well as some of the larger ones, are realizing scale matters and scale matters to manage cycles.

但現實是，最終，去槓桿交易將使我們所有的利害關係人、股權和債務都受益。我認為現在終於到了市場需要注意的時候了，正如您所說，一些分散的小型運營商，以及一些大型運營商，都意識到規模的重要性，規模對於管理週期至關重要。

And that's what we're doing, right now, is managing the cycle, right? And so, we're going to continue to be opportunistic and go from there. But we're not necessarily geographically-focused, I would say.

這就是我們現在正在做的，管理週期，對嗎？因此，我們將繼續抓住機會，從那裡出發。但我想說，我們不一定是以地理位置為中心。

Fair enough. And then, just a quick follow-up, if I may, on the activity.

很公平。然後，如果可以的話，我對這項活動做一個快速的跟進。

Just looking at a lot of the announcements from your E&P customers, a lot of the reductions are coming in the Permian and, to your point, the gassy markets are improving. Can you just give us your thoughts on the other oily areas away from the Permian, in terms of what you're hearing from your customers?

從你們勘探與生產客戶發布的大量公告來看，二疊紀盆地的產量大幅減少，而且正如你們所說，天然氣市場正在改善。能否根據您從客戶那裡聽到的信息，談談您對二疊紀以外的其他產油區的看法？

Yeah. It's a great question.

是的。這是一個很好的問題。

Look, what I would say is similar to what I referenced with Steve, with some of the smaller operators -- and this is refrac opportunities, et cetera -- I think they are more opportunistic and sensitive to the whipsaw of commodity prices.

你看，我想說的與我向史蒂夫提到的類似，對於一些規模較小的運營商——這是再壓裂機會等等——我認為他們更具機會主義，對商品價格的波動更敏感。

So we've definitely seen in the Bakken, in the Rockies, and other areas, people delay projects, sit on the sidelines for some period of time. But we're also having conversations about when they're going to bring those back.

因此，我們確實看到，在巴肯、落基山脈和其他地區，人們推遲項目，在一段時間內袖手旁觀。但我們也在討論他們何時會將這些功能恢復。

So it's lost revenue for the time being. But we expect that some of that may come back to us in short order.

所以暫時來說這是收入損失。但我們預計其中一些可能很快就會回到我們身邊。

And then, the question is, to your point, the larger reductions in CapEx, how quick do the decline curve start to support crude prices and, potentially, in the second half of the year?

然後，問題是，正如您所說，資本支出大幅削減，下降曲線多快開始支撐原油價格，並可能在下半年支撐原油價格？

I think the smaller operators, they clearly are quick on the trigger to revamp projects. And so, we're trying to stay as close to them as we can.

我認為規模較小的營運商顯然會迅速採取行動來改造專案。因此，我們正努力盡可能地與他們保持密切聯繫。

Okay. Thank you for having me. Good luck, guys.

好的。謝謝你的邀請。祝大家好運。

All right. Thank you, John. I appreciate it.

好的。謝謝你，約翰。我很感激。

Thank you.

謝謝。

This now concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the floor back over to President and CEO, Christopher Baker, for closing remarks.

我想把發言權交還給總裁兼執行長克里斯托弗·貝克，請他做最後發言。

Thank you, once again, for joining us on this call and your continued interest in KLX.

再次感謝您參加本次電話會議並繼續關注 KLX。

We look forward to speaking with you again next quarter.

我們期待下個季度再次與您交談。

Ladies and gentlemen, thank you for your participation.

女士們、先生們，感謝你們的參與。

This does conclude today's teleconference.

今天的電話會議到此結束。

You may disconnect your lines.

您可以斷開線路。

Have a wonderful day.

祝您有美好的一天。