Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 04, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38609 | |
Entity Registrant Name | KLX Energy Services Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-4904146 | |
Entity Address, Address Line One | 3040 Post Oak Boulevard | |
Entity Address, Address Line Two | 15th Floor | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 832 | |
Local Phone Number | 844-1015 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | KLXE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,407,421 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001738827 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 39.6 | $ 57.4 |
Accounts receivable–trade, net of allowance of $5.9 and $5.7 | 193.2 | 154.3 |
Inventories, net | 27.2 | 25.7 |
Prepaid expenses and other current assets | 17.2 | 17.3 |
Total current assets | 277.2 | 254.7 |
Property and equipment, net | 197.5 | 168.1 |
Operating lease assets | 34.7 | 37.4 |
Intangible assets, net | 2 | 2.1 |
Other assets | 4.5 | 3.6 |
Total assets | 515.9 | 465.9 |
Current liabilities: | ||
Accounts payable | 93.7 | 84.2 |
Accrued interest | 11.7 | 4.8 |
Accrued liabilities | 28.8 | 41 |
Current portion of operating lease obligations | 14.3 | 14.2 |
Current portion of finance lease obligations | 12.2 | 10.2 |
Total current liabilities | 160.7 | 154.4 |
Long-term debt | 283.6 | 283.4 |
Long-term operating lease obligations | 20.1 | 22.8 |
Long-term finance lease obligations | 23.3 | 20.3 |
Other non-current liabilities | 0.7 | 0.8 |
Commitments, contingencies and off-balance sheet arrangements (Note 7) | ||
Stockholders’ equity (deficit): | ||
Common stock, $0.01 par value; 110.0 authorized; 16.8 and 14.3 issued | 0.1 | 0.1 |
Additional paid-in capital | 551.9 | 517.3 |
Treasury stock, at cost, 0.4 shares and 0.4 shares | (5.3) | (4.6) |
Accumulated deficit | (519.2) | (528.6) |
Total stockholders’ equity (deficit) | 27.5 | (15.8) |
Total liabilities and stockholders' equity (deficit) | $ 515.9 | $ 465.9 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable - trade, allowance for doubtful accounts | $ 5.9 | $ 5.7 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 110,000,000 | 110,000,000 |
Common stock, shares issued (in shares) | 16,800,000 | 14,300,000 |
Treasury stock (in shares) | 400,000 | 400,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 239.6 | $ 152.3 |
Costs and expenses: | ||
Cost of sales | 180.9 | 135 |
Depreciation and amortization | 16.5 | 13.7 |
Selling, general and administrative | 26.2 | 15 |
Research and development costs | 0.3 | 0.1 |
Bargain purchase gain | (3.2) | 0 |
Operating income (loss) | 18.9 | (11.5) |
Non-operating expense: | ||
Interest expense, net | 9.3 | 8.3 |
Net income (loss) before income tax | 9.6 | (19.8) |
Income tax expense | 0.2 | 0.1 |
Net income (loss) | $ 9.4 | $ (19.9) |
Net income (loss) per share-basic (in dollars per share) | $ 0.66 | $ (1.98) |
Net income (loss) per share-diluted (in dollars per share) | $ 0.65 | $ (1.98) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2021 | 10.5 | ||||||
Beginning balance at Dec. 31, 2021 | $ (51.4) | $ (0.2) | $ 0.1 | $ 478.1 | $ (4.3) | $ (525.3) | $ (0.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Restricted stock, net of forfeitures (in shares) | 0.2 | ||||||
Restricted stock, net of forfeitures | 0.7 | 0.7 | |||||
Purchase of treasury stock | (0.3) | (0.3) | |||||
Issuance of common stock, net of cost (in shares) | 0.7 | ||||||
Issuance of common stock, net of cost | 3.7 | 3.7 | |||||
Net income (loss) | (19.9) | (19.9) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 11.4 | ||||||
Ending balance at Mar. 31, 2022 | (67.4) | $ 0.1 | 482.5 | (4.6) | (545.4) | ||
Beginning balance (in shares) at Dec. 31, 2022 | 14.3 | ||||||
Beginning balance at Dec. 31, 2022 | (15.8) | $ 0.1 | 517.3 | (4.6) | (528.6) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Restricted stock, net of forfeitures | 0.7 | 0.7 | |||||
Purchase of treasury stock | (0.7) | (0.7) | |||||
Greene's acquisition (in shares) | 2.4 | ||||||
Greene's acquisition | 34 | 34 | |||||
Issuance of common stock, net of cost (in shares) | 0.1 | ||||||
Issuance of common stock, net of cost | (0.1) | (0.1) | |||||
Net income (loss) | 9.4 | 9.4 | |||||
Ending balance (in shares) at Mar. 31, 2023 | 16.8 | ||||||
Ending balance at Mar. 31, 2023 | $ 27.5 | $ 0.1 | $ 551.9 | $ (5.3) | $ (519.2) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 9.4 | $ (19.9) |
Adjustments to reconcile net income (loss) to net cash flows used in operating activities | ||
Depreciation and amortization | 16.5 | 13.7 |
Non-cash compensation | 0.7 | 0.7 |
Amortization of deferred financing fees | 0.4 | 0.3 |
Provision for inventory reserve | 0 | 0.1 |
Gain on disposal of property, equipment and other | (4.4) | (2) |
Bargain purchase gain | (3.2) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (22) | (3.8) |
Inventories | (1.5) | (2) |
Prepaid expenses and other current and non-current assets | 3.7 | 4.2 |
Accounts payable | 2.4 | (1.5) |
Other current and non-current liabilities | (10.7) | 4 |
Other | 0.1 | 0 |
Net cash flows used in operating activities | (8.6) | (6.2) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10.3) | (5.8) |
Proceeds from sale of property and equipment | 5 | 2.6 |
Cash from acquisition | 1.7 | 0 |
Net cash flows used in investing activities | (3.6) | (3.2) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (0.7) | (0.3) |
Proceeds from stock issuance, net of costs | (0.1) | 3 |
Payments on finance lease obligations | (3.1) | (1.5) |
Change in financed payables | (1.7) | (0.4) |
Net cash flows (used in) provided by financing activities | (5.6) | 0.8 |
Net change in cash and cash equivalents | (17.8) | (8.6) |
Cash and cash equivalents, beginning of period | 57.4 | 28 |
Cash and cash equivalents, end of period | 39.6 | 19.4 |
Cash paid during period for: | ||
Income taxes paid, net of refunds | (0.1) | 0 |
Interest | 2 | 0.7 |
Supplemental schedule of non-cash activities: | ||
Change in deposits on capital expenditures | 0.9 | 0 |
Change in accrued capital expenditures | $ 3.9 | $ 1.3 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation Description of Business KLX Energy Services Holdings, Inc. (the “Company”, “KLXE”, “KLX Energy Services”, “we”, “us” or “our”) is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production (“E&P”) companies operating in both conventional and unconventional plays in major active basins throughout the United States. The Company delivers mission critical oilfield services focused on drilling, completion, production and intervention activities for technically demanding wells in over 60 service and support facilities located throughout the United States. The Company offers a complementary suite of proprietary products and specialized services that is supported by technically skilled personnel and a broad portfolio of innovative in-house manufacturing, repair and maintenance capabilities. KLXE’s primary services include coiled tubing, directional drilling, fishing, flowback, fluid pumping, hydraulic fracturing rentals, pressure control, pressure pumping, rig-assisted snubbing, special situation services, thru-tubing and wireline. KLXE’s primary rentals include accommodation units, blow out preventers, downhole tools, hydraulic fracturing stacks and tubulars. KLXE’s primary product offering includes a suite of proprietary dissolvable and composite plugs along with casing equipment, float equipment, inflatables, liner hangers and stage cementing tools. On March 8, 2023, KLXE acquired all of the equity interests of Greene’s Energy Group, LLC (“Greene’s”), including $1.7 in cash remaining with Greene’s, in an all-stock transaction. Greene’s is a leading provider of wellhead protection, flowback and well testing services. The acquisition of Greene’s, which is expected to be accretive to KLX in 2023, augments the KLX frac rental and flowback offering, providing KLX with a broader presence in the Permian and Eagle Ford basins. See Note 2 - Business Combinations. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments which, in the opinion of the Company’s management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full year 2023 or for any future period. The information included in these condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and accompanying notes included in the Company’s 2022 Annual Report on Form 10-K filed with the SEC on March 9, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business CombinationsOn March 8, 2023, KLXE acquired all of the equity interests of Greene’s, including $1.7 in cash remaining with Greene’s, in an all-stock transaction. The total consideration for the acquisition consisted of the issuance of approximately 2.4 million shares of KLXE common stock, par value $0.01 per share (the “Common Stock”), subject to customary post-closing adjustments, with an implied enterprise value of approximately $30.3 based on a 30-day volume weighted average price as of March 7, 2023 and less acquired cash. Following the closing of the transaction, former shareholders of Greene’s hold approximately 14.7% of the fully diluted Common Stock of the Company. This transaction was accounted for as a purchase under Financial Accounting Standards Board Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). The results of operations for the acquisition are included in the accompanying condensed consolidated statements of operations from the respective date of acquisition. Under the acquisition method of accounting, we allocate the fair value of purchase consideration transferred to the tangible assets and intangible assets acquired, if any, and liabilities assumed based on their estimated fair values on the date of the acquisition. The fair values assigned, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants, are based on estimates and assumptions determined by management. The estimated fair value of the assets acquired, net of liabilities assumed, exceeds the purchase consideration, resulting in a bargain purchase gain. This has been presented as a separate line item on the consolidated statement of operation for the three months ended March 31, 2023. The fair values assigned to certain assets acquired and liabilities assumed in relation to the Company’s acquisition have been prepared on a preliminary basis with information currently available and are subject to change. The Company expects to finalize its analysis by the first quarter of 2024. The following table summarizes the fair values of assets acquired and liabilities assumed in the acquisition in accordance with ASC 805: Greene's Cash $ 1.7 Accounts receivable-trade 17.1 Other current and non-current assets 0.2 Property and equipment 23.1 Accounts payable (3.2) Accrued liabilities (1.1) Other current and non-current liabilities (0.6) Bargain purchase (3.2) Total purchase price (1) $ 34.0 (1) The total consideration of the acquisition was approximately $34.0, which was comprised of 2.4 million shares of the Company's Common Stock. Since March 8, 2023, the acquisition date of Greene's, stand-alone revenues for Greene's were $4.7 and operating income was $0.6. Unaudited Supplemental Pro Forma Information The unaudited supplemental pro forma financial information has been provided for illustrative purposes only and does not purport to be indicative of the actual results that would have been achieved by combining the companies for the periods presented, or of the results that may be achieved by the combined companies in the future. Further, actual results may vary significantly from the results reflected in the following unaudited supplemental pro forma financial information because of future events and transactions, as well as other factors. The unaudited supplemental pro forma financial information does not include adjustments to reflect the impact of other cost savings or synergies that may result from the acquisition. On a pro forma basis to give effect to the acquisition, as if it occurred on January 1, 2022, revenues and net income (loss) for the three months ended March 31, 2023 and March 31, 2022 would have been as follows: Unaudited Pro Forma Three Months Ended March 31, 2023 March 31, 2022 Revenues $ 251.9 $ 167.4 Net income (loss) 9.4 (18.7) |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net Inventories consisted of the following: March 31, 2023 December 31, 2022 Spare parts $ 19.1 $ 17.9 Plugs 6.3 6.3 Consumables 3.5 3.2 Other 2.6 2.7 Subtotal 31.5 30.1 Less: Inventory reserve (4.3) (4.4) Total inventories, net $ 27.2 $ 25.7 Inventories are made up of spare parts, composite and dissolvable plugs, consumables (including thru-tubing accessory tools, chemicals and cement) and other (including fluid ends) used to perform services for customers. The Company values inventories at the lower of cost or net realizable value. Inventories are reported net of inventory reserve of $4.3 and $4.4 as of March 31, 2023 and December 31, 2022, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following: Useful Life (Years) March 31, 2023 December 31, 2022 Land, buildings and improvements 1 — 40 $ 35.5 $ 33.1 Machinery 1 — 20 227.5 216.2 Equipment and furniture 1 — 15 212.1 194.5 ROU assets - finance leases 1 — 20 50.0 39.9 Total property and equipment 525.1 483.7 Less: Accumulated depreciation (336.3) (320.8) Add: Construction in progress 8.7 5.2 Total property and equipment, net $ 197.5 $ 168.1 Depreciation expense related to non-leased fixed assets was $13.4 and $12.1 for the three months ended March 31, 2023 and March 31, 2022, respectively. Finance lease amortization expense was $3.1 and $1.5, respectively, for the three months ended March 31, 2023 and March 31, 2022. Assets Held for Sale As of March 31, 2023, the Company’s condensed consolidated balance sheet included assets classified as held for sale of $4.9. The assets held for sale are reported within prepaid expenses and other current assets on the condensed consolidated balance sheet and represent the value of two operational facilities, land and |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Outstanding long-term debt consisted of the following: March 31, 2023 December 31, 2022 Senior Secured Notes $ 237.3 $ 237.3 ABL Facility 50.0 50.0 Total principal outstanding 287.3 287.3 Less: Unamortized debt issuance costs 3.7 3.9 Total debt $ 283.6 $ 283.4 As of March 31, 2023, long-term debt consisted of $237.3 principal amount of 11.5% senior secured notes due 2025 (the “Senior Secured Notes”) offered pursuant to Rule 144A under the Securities Act of 1933 (as amended, the “Securities Act”) and to certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act. On a net basis, after taking into consideration unamortized debt issuance costs for the Senior Secured Notes, total debt related to the Senior Secured Notes as of March 31, 2023 was $233.6. The Senior Secured Notes bear interest at an annual rate of 11.5%, payable semi-annually in arrears on May 1 and November 1. Accrued interest related to the Senior Secured Notes was $11.5 as of March 31, 2023. As of March 31, 2023, the Company also had a $100.0 asset-based revolving credit facility pursuant to a senior secured credit agreement dated August 10, 2018, as amended by the ABL Amendment (as defined below) and other amendments (the “ABL Facility”). The ABL Facility matures in September 2024. On September 22, 2022, the Company entered into a Third Amendment to the ABL Facility, with certain of its subsidiaries party thereto, as guarantors, with JPMorgan Chase Bank, N.A., as administrative agent and an issuing lender, and the other lenders and issuing lenders party thereto from time to time (the “ABL Amendment”). The ABL Amendment, among other things, (i) extends the maturity date of the ABL Facility by a year from September 14, 2023 to September 15, 2024, (ii) increases the applicable margin by 0.50%, (iii) replaces London Inter-Bank Offered Rate (“LIBOR”) as the benchmark rate with Term Secured Overnight Financing Rate (“Term SOFR”), (iv) provides the Company with the ability to redeem, repurchase, defease or otherwise satisfy its outstanding Senior Secured Notes using proceeds of equity issuances or by converting or exchanging Senior Secured Notes for equity, (v) resets consolidated EBITDA solely for purposes of calculating the springing fixed charge coverage ratio (“FCCR”) to be annualized beginning with the fiscal quarter ended as of June 30, 2022 until the fourth fiscal quarter ended thereafter (provided that fixed charges will continue to be calculated on a trailing-twelve-month basis), (vi) requires that, after giving effect to any borrowing and the use of proceeds thereof, the Company not have more than $35.0 in excess cash on its balance sheet and (vii) increases the availability trigger for a cash dominion event. The ABL Facility is tied to a borrowing base formula and has no maintenance financial covenants as long as the minimum level of borrowing availability is maintained. The ABL Facility is secured by, among other things, a first priority lien on the Company’s accounts receivable and inventory and contains customary conditions precedent to borrowing and affirmative and negative covenants. The ABL Facility includes a springing financial covenant which requires the Company’s consolidated FCCR to be at least 1.0 to 1.0 if availability falls below the greater of $15.0 or 20.0% of the line cap. At all times during the three months ended March 31, 2023, availability exceeded this threshold, and the Company was not subject to this financial covenant. As of March 31, 2023, the FCCR was above 1.0 to 1.0, and the Company was in full compliance with its ABL Facility. Borrowings outstanding under the ABL Facility were $50.0 as of March 31, 2023 and bear interest at a rate equal to SOFR plus the applicable margin (as defined in the ABL Facility). The effective interest rate under the ABL Facility was approximately 7.7% on March 31, 2023. Total letters of credit outstanding under the ABL Facility were $5.6 both at March 31, 2023 and at December 31, 2022. Accrued interest under the ABL Facility was $0.2 as of March 31, 2023. We have funds available under the ABL Facility of $44.4 on the March 31, 2023 borrowing base certificate. |
Fair Value Information
Fair Value Information | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Information | Fair Value Information All financial instruments are carried at amounts that approximate estimated fair value. The fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. Assets measured at fair value are categorized based upon the lowest level of significant input to the valuations. Level 1 – quoted prices in active markets for identical assets and liabilities. Level 2 – quoted prices for identical assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The carrying amounts of cash and cash equivalents, accounts receivable-trade and accounts payable represent their respective fair values due to their short-term nature. There was $50.0 debt outstanding under the ABL Facility as of March 31, 2023. The fair value of the ABL Facility approximates its carrying value as of March 31, 2023. The following tables present the placement in the fair value hierarchy of the Senior Secured Notes, based on market prices for publicly traded debt, as of March 31, 2023 and December 31, 2022: Fair value measurements at reporting date using March 31, 2023 Level 1 Level 2 Level 3 Senior Secured Notes, 11.5 Percent Due 2025 $ 223.1 $ — $ 223.1 $ — Total Senior Secured Notes $ 223.1 $ — $ 223.1 $ — Fair value measurements at reporting date using December 31, 2022 Level 1 Level 2 Level 3 Senior Secured Notes, 11.5 Percent Due 2025 $ 213.5 $ — $ 213.5 $ — Total Senior Secured Notes $ 213.5 $ — $ 213.5 $ — The following tables present the placement in the fair value hierarchy of Assets Held for Sale, as disclosed in Note 4, based on sales contracts and comparative price quotes, as of March 31, 2023 and December 31, 2022: Fair value measurements at reporting date using March 31, 2023 Level 1 Level 2 Level 3 Assets Held for Sale $ 2.3 $ — $ 2.3 $ — Total Assets Held for Sale $ 2.3 $ — $ 2.3 $ — Fair value measurements at reporting date using December 31, 2022 Level 1 Level 2 Level 3 Assets Held for Sale $ 2.3 $ — $ 2.3 $ — Total Assets Held for Sale $ 2.3 $ — $ 2.3 $ — During the three months ended March 31, 2023 and March 31, 2022, there was no before-tax loss (gain) related to Assets Held for Sale. |
Commitments, Contingencies and
Commitments, Contingencies and Off-Balance Sheet Arrangements | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Off-Balance-Sheet Arrangements | Commitments, Contingencies and Off-Balance-Sheet Arrangements Environmental Regulations & Liabilities The Company is subject to various federal, state and local environmental laws and regulations that establish standards and requirements for the protection of the environment. The Company continues to monitor the status of these laws and regulations. However, the Company cannot predict the future impact of such laws and regulations, as well as standards and requirements, on our business, which are subject to change and can have retroactive effectiveness. Currently, the Company has not been fined, cited or notified of any environmental violations or liabilities that would have a material adverse effect on its condensed consolidated financial statement position, results of operations, liquidity or capital resources. However, management does recognize that by the very nature of its business, material costs could be incurred in the future to maintain compliance. The amount of such future expenditures is not determinable due to several factors, including the unknown magnitude of possible regulation or liabilities, the unknown timing and extent of the corrective actions that may be required, the determination of the Company’s liability in proportion to other responsible parties and the extent to which such expenditures are recoverable from insurance or indemnification. Litigation The Company is at times either a plaintiff or a defendant in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate are likely to result in a material adverse effect on the Company’s condensed consolidated financial statements. On March 9, 2021, the Company filed claims in the District Court of Harris County, Texas against Magellan E&P Holdings, Inc. (“Magellan”), Redmon-Keys Insurance Group, Inc. and certain underwriters at Lloyd's to recover $4.6 owed on invoices duly issued by the Company for services rendered on behalf of the defendants in response to an offshore well blowout near Bob Hall Pier in Corpus Christi, Texas. Magellan filed for bankruptcy pursuant to Chapter 7 of the U.S. bankruptcy code. The bankruptcy proceedings are ongoing. During the fiscal year ended January 31, 2021, the Company reserved the full amount of its invoices totaling $4.6 as a prudent action in light of the Chapter 7 filing. Indemnities, Commitments and Guarantees |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | Stockholders' Equity (Deficit) Equity Distribution Agreement On June 14, 2021, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with Piper Sandler & Co. as sales agent (the “Agent”). Pursuant to the terms of the Equity Distribution Agreement, the Company may sell from time to time through the Agent (the “ATM Offering”) the Company’s Common Stock, par value $0.01 per share, having an aggregate offering price of up to $50.0. On November 16, 2022, the Company entered into Amendment No. 1 to the Equity Distribution Agreement (the “EDA Amendment”). Among other things, the EDA Amendment allows for debt-for-equity exchanges in accordance with Section 3(a)(9) of the Securities Act. Any Common Stock offered and sold in the ATM Offering may be issued pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-256149) filed with the SEC on May 14, 2021 and declared effective on June 11, 2021 (the “Registration Statement”), the prospectus supplement relating to the ATM Offering filed with the SEC on June 14, 2021 and any applicable additional prospectus supplements related to the ATM Offering that form a part of the Registration Statement. Sales of Common Stock under the Equity Distribution Agreement may be made in any transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act. The Equity Distribution Agreement contains customary representations, warranties and agreements by the Company, indemnification obligations of the Company and the Agent, including for liabilities under the Securities Act, other obligations of the parties and termination provisions. Under the terms of the Equity Distribution Agreement, the Company will pay the Agent a commission equal to 3.0% of the gross sales price of the Common Stock sold. The Company plans to use the net proceeds from the ATM Offering, after deducting the Agent’s commissions and the Company’s offering expenses, for general corporate purposes, which may include, among other things, paying or refinancing all or a portion of the Company’s then-outstanding indebtedness, and funding acquisitions, capital expenditures and working capital. During the three months ended March 31, 2023 and March 31, 2022, the Company sold zero and 695,377 shares of Common Stock, respectively, in exchange for gross proceeds of approximately $0.0 and $3.7, respectively, and incurred legal and administrative fees of $0.1 and $0.1, respectively. Stock-Based Compensation The Company has a Long-Term Incentive Plan (“LTIP”) under which the compensation committee of the Board of Directors (the “Board”) of the Company (the “Compensation Committee”) has the authority to grant stock options, stock appreciation rights, restricted stock, restricted stock units or other forms of equity-based or equity-related awards. Compensation cost for the LTIP grants is generally recorded on a straight-line basis over the vesting term of the shares based on the grant date value using the closing trading price. On February 12, 2021, the stockholders of KLXE approved the KLX Energy Services Holdings, Inc. Long-Term Incentive Plan (Amended and Restated as of December 2, 2020) (the “Amended and Restated LTIP”), which, among other things, increased the total number of shares of Company Common Stock, par value $0.01 per share, and reserved for issuance under the Amended and Restated LTIP by 632,051 shares. A description of the Amended and Restated LTIP is included in the Company’s proxy statement, filed with the SEC on January 11, 2021. Compensation cost recognized during the three months ended March 31, 2023 and March 31, 2022 was related to grants of restricted stock as approved by the Compensation Committee. Stock-based compensation was $0.7 and $0.7 for the three months ended March 31, 2023 and March 31, 2022, respectively. Unrecognized compensation cost related to restricted stock awards made by the Company was $5.8 at March 31, 2023 and $4.2 at December 31, 2022. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense was $0.2 and $0.1 for the three months ended March 31, 2023 and March 31, 2022, respectively, and was comprised primarily of state and local taxes. The Company has a valuation allowance against its deferred tax balances and, as a result, it was unable to recognize any tax expense on its year-to-date income. The Company continues to monitor additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and others. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe Company is organized on a geographic basis. The Company’s reportable segments, which are also its operating segments, are comprised of the Rocky Mountains Region (the Bakken, Williston, DJ, Uinta, Powder River, Piceance and Niobrara basins), the Southwest Region (the Permian Basin and the Eagle Ford Shale) and the Northeast/Mid-Con Region (the Marcellus and Utica Shale as well as the Mid-Continent STACK and SCOOP and Haynesville Shale). The segments regularly report their results of operations and make requests for capital expenditures and acquisition funding to the Company's chief operational decision-making group. As a result, the Company has three reportable segments. The following table presents revenues and operating income (loss) by reportable segment: Three Months Ended March 31, 2023 March 31, 2022 Revenues Rocky Mountains $ 67.9 $ 43.3 Southwest 73.4 51.9 Northeast/Mid-Con 98.3 57.1 Total revenues 239.6 152.3 Operating income (loss) Rocky Mountains 9.8 (0.8) Southwest 4.8 (0.4) Northeast/Mid-Con 18.7 (0.8) Corporate and other (14.4) (9.5) Total operating income (loss) 18.9 (11.5) Interest expense, net 9.3 8.3 Net income (loss) before income tax $ 9.6 $ (19.8) The following table presents revenues by service offering by reportable segment: Three Months Ended March 31, 2023 March 31, 2022 Rocky Southwest Northeast Total Rocky Southwest Northeast Total Drilling $ 9.6 $ 26.1 $ 25.2 $ 60.9 $ 3.7 $ 23.6 $ 15.6 $ 42.9 Completion 37.4 31.3 61.3 130.0 25.5 17.5 33.9 76.9 Production 14.6 8.0 5.2 27.8 9.0 5.7 3.2 17.9 Intervention 6.3 8.0 6.6 20.9 5.1 5.1 4.4 14.6 Total revenues $ 67.9 $ 73.4 $ 98.3 $ 239.6 $ 43.3 $ 51.9 $ 57.1 $ 152.3 The following table presents capital expenditures by reportable segment: Three Months Ended March 31, 2023 March 31, 2022 Rocky Mountains $ 1.6 $ 1.6 Southwest 3.1 1.6 Northeast/Mid-Con 5.6 2.6 Corporate and other — — Total capital expenditures $ 10.3 $ 5.8 The following table presents total assets by segment: March 31, 2023 December 31, 2022 Rocky Mountains $ 142.9 $ 133.0 Southwest 191.9 152.2 Northeast/Mid-Con 141.3 123.3 Total 476.1 408.5 Corporate and other 39.8 57.4 Total assets $ 515.9 $ 465.9 |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic net income (loss) per common share is computed using the weighted average common shares outstanding during the period. Diluted net income (loss) per common share is computed by using the weighted average common shares outstanding, including the dilutive effect of restricted shares based on an average share price during the period. For the three months ended March 31, 2023 and March 31, 2022, 0.0 and 0.4 million shares of the Company’s Common Stock, respectively, were excluded from the determination of diluted net income (loss) per common share because their effect would have been anti-dilutive. The computations of basic and diluted net income (loss) per share for the three months ended March 31, 2023 and March 31, 2022 are as follows: Three Months Ended March 31, 2023 March 31, 2022 Net income (loss) $ 9.4 $ (19.9) (Shares in millions) Basic weighted average common shares 14.2 10.1 Effect of dilutive securities - dilutive securities 0.2 — Diluted weighted average common shares 14.4 10.1 Basic net income (loss) per common share $ 0.66 $ (1.98) Diluted net income (loss) per common share $ 0.65 $ (1.98) |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All adjustments which, in the opinion of the Company’s management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full year 2023 or for any future period. The information included in these condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements and accompanying notes included in the Company’s 2022 Annual Report on Form 10-K filed with the SEC on March 9, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of assets acquired and liabilities assumed in the acquisition in accordance with ASC 805: Greene's Cash $ 1.7 Accounts receivable-trade 17.1 Other current and non-current assets 0.2 Property and equipment 23.1 Accounts payable (3.2) Accrued liabilities (1.1) Other current and non-current liabilities (0.6) Bargain purchase (3.2) Total purchase price (1) $ 34.0 (1) The total consideration of the acquisition was approximately $34.0, which was comprised of 2.4 million shares of the Company's Common Stock. |
Business Acquisition, Pro Forma Information | On a pro forma basis to give effect to the acquisition, as if it occurred on January 1, 2022, revenues and net income (loss) for the three months ended March 31, 2023 and March 31, 2022 would have been as follows: Unaudited Pro Forma Three Months Ended March 31, 2023 March 31, 2022 Revenues $ 251.9 $ 167.4 Net income (loss) 9.4 (18.7) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following: March 31, 2023 December 31, 2022 Spare parts $ 19.1 $ 17.9 Plugs 6.3 6.3 Consumables 3.5 3.2 Other 2.6 2.7 Subtotal 31.5 30.1 Less: Inventory reserve (4.3) (4.4) Total inventories, net $ 27.2 $ 25.7 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: Useful Life (Years) March 31, 2023 December 31, 2022 Land, buildings and improvements 1 — 40 $ 35.5 $ 33.1 Machinery 1 — 20 227.5 216.2 Equipment and furniture 1 — 15 212.1 194.5 ROU assets - finance leases 1 — 20 50.0 39.9 Total property and equipment 525.1 483.7 Less: Accumulated depreciation (336.3) (320.8) Add: Construction in progress 8.7 5.2 Total property and equipment, net $ 197.5 $ 168.1 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Outstanding | Outstanding long-term debt consisted of the following: March 31, 2023 December 31, 2022 Senior Secured Notes $ 237.3 $ 237.3 ABL Facility 50.0 50.0 Total principal outstanding 287.3 287.3 Less: Unamortized debt issuance costs 3.7 3.9 Total debt $ 283.6 $ 283.4 |
Fair Value Information (Tables)
Fair Value Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy Based on Market Prices for Publicly Traded Debt | The following tables present the placement in the fair value hierarchy of the Senior Secured Notes, based on market prices for publicly traded debt, as of March 31, 2023 and December 31, 2022: Fair value measurements at reporting date using March 31, 2023 Level 1 Level 2 Level 3 Senior Secured Notes, 11.5 Percent Due 2025 $ 223.1 $ — $ 223.1 $ — Total Senior Secured Notes $ 223.1 $ — $ 223.1 $ — Fair value measurements at reporting date using December 31, 2022 Level 1 Level 2 Level 3 Senior Secured Notes, 11.5 Percent Due 2025 $ 213.5 $ — $ 213.5 $ — Total Senior Secured Notes $ 213.5 $ — $ 213.5 $ — The following tables present the placement in the fair value hierarchy of Assets Held for Sale, as disclosed in Note 4, based on sales contracts and comparative price quotes, as of March 31, 2023 and December 31, 2022: Fair value measurements at reporting date using March 31, 2023 Level 1 Level 2 Level 3 Assets Held for Sale $ 2.3 $ — $ 2.3 $ — Total Assets Held for Sale $ 2.3 $ — $ 2.3 $ — Fair value measurements at reporting date using December 31, 2022 Level 1 Level 2 Level 3 Assets Held for Sale $ 2.3 $ — $ 2.3 $ — Total Assets Held for Sale $ 2.3 $ — $ 2.3 $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenues and Operating Income (Loss) by Reportable Segment | The following table presents revenues and operating income (loss) by reportable segment: Three Months Ended March 31, 2023 March 31, 2022 Revenues Rocky Mountains $ 67.9 $ 43.3 Southwest 73.4 51.9 Northeast/Mid-Con 98.3 57.1 Total revenues 239.6 152.3 Operating income (loss) Rocky Mountains 9.8 (0.8) Southwest 4.8 (0.4) Northeast/Mid-Con 18.7 (0.8) Corporate and other (14.4) (9.5) Total operating income (loss) 18.9 (11.5) Interest expense, net 9.3 8.3 Net income (loss) before income tax $ 9.6 $ (19.8) |
Schedule of Revenues by Service Offering by Reportable Segment | The following table presents revenues by service offering by reportable segment: Three Months Ended March 31, 2023 March 31, 2022 Rocky Southwest Northeast Total Rocky Southwest Northeast Total Drilling $ 9.6 $ 26.1 $ 25.2 $ 60.9 $ 3.7 $ 23.6 $ 15.6 $ 42.9 Completion 37.4 31.3 61.3 130.0 25.5 17.5 33.9 76.9 Production 14.6 8.0 5.2 27.8 9.0 5.7 3.2 17.9 Intervention 6.3 8.0 6.6 20.9 5.1 5.1 4.4 14.6 Total revenues $ 67.9 $ 73.4 $ 98.3 $ 239.6 $ 43.3 $ 51.9 $ 57.1 $ 152.3 |
Schedule of Capital Expenditures by Reportable Segment | The following table presents capital expenditures by reportable segment: Three Months Ended March 31, 2023 March 31, 2022 Rocky Mountains $ 1.6 $ 1.6 Southwest 3.1 1.6 Northeast/Mid-Con 5.6 2.6 Corporate and other — — Total capital expenditures $ 10.3 $ 5.8 |
Schedule of Total Assets by Reportable Segment | The following table presents total assets by segment: March 31, 2023 December 31, 2022 Rocky Mountains $ 142.9 $ 133.0 Southwest 191.9 152.2 Northeast/Mid-Con 141.3 123.3 Total 476.1 408.5 Corporate and other 39.8 57.4 Total assets $ 515.9 $ 465.9 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The computations of basic and diluted net income (loss) per share for the three months ended March 31, 2023 and March 31, 2022 are as follows: Three Months Ended March 31, 2023 March 31, 2022 Net income (loss) $ 9.4 $ (19.9) (Shares in millions) Basic weighted average common shares 14.2 10.1 Effect of dilutive securities - dilutive securities 0.2 — Diluted weighted average common shares 14.4 10.1 Basic net income (loss) per common share $ 0.66 $ (1.98) Diluted net income (loss) per common share $ 0.65 $ (1.98) |
Description of Business and B_3
Description of Business and Basis of Presentation (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 facility | Mar. 08, 2023 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Number of service facilities | facility | 60 | |
Greene's Energy Group, LLC | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash | $ | $ 1.7 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | ||||
Mar. 08, 2023 | Mar. 31, 2023 | Mar. 07, 2023 | Dec. 31, 2022 | Feb. 12, 2021 | |
Business Combinations | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Greene's Energy Group, LLC | |||||
Business Combinations | |||||
Cash | $ 1.7 | ||||
Number of shares in acquisition (in shares) | 2.4 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Equity value | $ 30.3 | ||||
Fully diluted common stock | 14.70% | ||||
Revenue | $ 4.7 | ||||
Operating income | $ 0.6 |
Business Combinations - Schedul
Business Combinations - Schedule of Fair Values of Assets Acquired and Liabilities Assumed (Details) - Greene's Energy Group, LLC shares in Millions, $ in Millions | Mar. 08, 2023 USD ($) shares |
Business Combinations | |
Cash | $ 1.7 |
Accounts receivable-trade | 17.1 |
Other current and non-current assets | 0.2 |
Property and equipment | 23.1 |
Accounts payable | (3.2) |
Accrued liabilities | (1.1) |
Other current and non-current liabilities | (0.6) |
Bargain purchase | (3.2) |
Total purchase price | 34 |
Total consideration | $ 34 |
Number of shares in acquisition (in shares) | shares | 2.4 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Greene's Energy Group, LLC - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Business Combinations | ||
Revenues | $ 251.9 | $ 167.4 |
Net income (loss) | $ 9.4 | $ (18.7) |
Inventories, Net - Inventory (D
Inventories, Net - Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Spare parts | $ 19.1 | $ 17.9 |
Plugs | 6.3 | 6.3 |
Consumables | 3.5 | 3.2 |
Other | 2.6 | 2.7 |
Subtotal | 31.5 | 30.1 |
Less: Inventory reserve | (4.3) | (4.4) |
Total inventories, net | $ 27.2 | $ 25.7 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory reserve | $ 4.3 | $ 4.4 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
ROU assets - finance leases | $ 50 | $ 39.9 |
Less: Accumulated depreciation | (336.3) | (320.8) |
Total property and equipment, net | 197.5 | 168.1 |
Depreciable Property, Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 525.1 | 483.7 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 35.5 | 33.1 |
Land, buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 1 year | |
Land, buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 40 years | |
Machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 227.5 | 216.2 |
Machinery | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 1 year | |
Machinery | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 20 years | |
Equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 212.1 | 194.5 |
Equipment and furniture | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 1 year | |
Equipment and furniture | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 15 years | |
ROU assets - finance leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 1 year | |
ROU assets - finance leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life (Years) | 20 years | |
Add: Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8.7 | $ 5.2 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) facility | Mar. 31, 2022 USD ($) | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 13.4 | $ 12.1 |
Amortization of ROU assets | 3.1 | $ 1.5 |
Assets Held for Sale | $ 4.9 | |
Number of operational facilities | facility | 2 |
Long-Term Debt - Long-term Debt
Long-Term Debt - Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long term debt, gross | $ 287.3 | $ 287.3 |
Less: Unamortized debt issuance costs | 3.7 | 3.9 |
Total debt | 283.6 | 283.4 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | 237.3 | 237.3 |
Total debt | 233.6 | |
ABL Facility | ||
Debt Instrument [Line Items] | ||
Long term debt, gross | $ 50 | $ 50 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) | Sep. 22, 2022 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |||
Long term debt outstanding | $ 283,600,000 | $ 283,400,000 | |
Accrued interest | 11,700,000 | 4,800,000 | |
Asset Based Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Outstanding letter of credit amount | 5,600,000 | $ 5,600,000 | |
Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Principle amount | $ 237,300,000 | ||
Debt instrument, stated interest rate (as a percent) | 11.50% | 11.50% | |
Long term debt outstanding | $ 233,600,000 | ||
Accrued interest | $ 11,500,000 | ||
ABL Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, stated interest rate (as a percent) | 7.70% | ||
Accrued interest | $ 200,000 | ||
ABL Facility | Asset Based Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $ 100,000,000 | ||
Debt instrument, basis spread on variable rate increase | 0.0050 | ||
Debt instrument, covenant, excess cash maximum | $ 35,000,000 | ||
Fixed charge coverage ratio | 1 | ||
Liquidity threshold amount | $ 15,000,000 | ||
Liquidity threshold, percent of borrowing base | 20% | ||
Amount outstanding | $ 50,000,000 | ||
Current borrowing capacity | $ 44,400,000 |
Fair Value Information - Additi
Fair Value Information - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Gain (loss) on disposition of assets | $ 0 | $ 0 |
Asset Based Revolving Line of Credit | ABL Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Amount outstanding | $ 50,000,000 |
Fair Value Information - Senior
Fair Value Information - Senior Secured Notes and Assets Held for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | $ 223.1 | $ 213.5 |
Assets Held for Sale | 2.3 | 2.3 |
Level 1 | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | 0 | 0 |
Assets Held for Sale | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | 223.1 | 213.5 |
Assets Held for Sale | 2.3 | 2.3 |
Level 3 | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | 0 | 0 |
Assets Held for Sale | $ 0 | $ 0 |
Senior Secured Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, stated interest rate (as a percent) | 11.50% | 11.50% |
Senior Secured Notes | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | $ 223.1 | $ 213.5 |
Senior Secured Notes | Level 1 | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | 0 | 0 |
Senior Secured Notes | Level 2 | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | 223.1 | 213.5 |
Senior Secured Notes | Level 3 | Fair Value, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior secured notes, fair value | $ 0 | $ 0 |
Commitments, Contingencies an_2
Commitments, Contingencies and Off-Balance Sheet Arrangements (Details) - USD ($) $ in Millions | Mar. 09, 2021 | Jan. 31, 2021 |
Positive Outcome of Litigation | ||
Loss Contingencies [Line Items] | ||
Gain contingency | $ 4.6 | $ 4.6 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Details) - USD ($) | 3 Months Ended | ||||
Jun. 14, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Feb. 12, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Shares reserved for issuance (in shares) | 632,051 | ||||
Share based compensation expense, net | $ 700,000 | $ 700,000 | |||
Unrecognized compensation cost | $ 5,800,000 | $ 4,200,000 | |||
At The Market Offering | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Maximum consideration on transaction | $ 50,000,000 | ||||
Commission fee | 3% | ||||
Number of shares issued in transaction (in shares) | 0 | 695,377 | |||
Consideration received on transaction | $ 0 | $ 3,700,000 | |||
Payments of stock issuance costs | $ 100,000 | $ 100,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 0.2 | $ 0.1 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Operating Income (Loss) by Reportable Segment (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Number of reportable segments | segment | 3 | |
Revenues | $ 239.6 | $ 152.3 |
Operating income (loss) | 18.9 | (11.5) |
Interest expense, net | 9.3 | 8.3 |
Net income (loss) before income tax | 9.6 | (19.8) |
Corporate and other | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Operating income (loss) | (14.4) | (9.5) |
Rocky Mountains | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Revenues | 67.9 | 43.3 |
Rocky Mountains | Operating Segments | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Operating income (loss) | 9.8 | (0.8) |
Southwest | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Revenues | 73.4 | 51.9 |
Southwest | Operating Segments | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Operating income (loss) | 4.8 | (0.4) |
Northeast/Mid-Con | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Revenues | 98.3 | 57.1 |
Northeast/Mid-Con | Operating Segments | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Operating income (loss) | $ 18.7 | $ (0.8) |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Service Offering by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 239.6 | $ 152.3 |
Rocky Mountains | ||
Segment Reporting Information [Line Items] | ||
Revenues | 67.9 | 43.3 |
Southwest | ||
Segment Reporting Information [Line Items] | ||
Revenues | 73.4 | 51.9 |
Northeast /Mid-Con | ||
Segment Reporting Information [Line Items] | ||
Revenues | 98.3 | 57.1 |
Drilling | ||
Segment Reporting Information [Line Items] | ||
Revenues | 60.9 | 42.9 |
Drilling | Rocky Mountains | ||
Segment Reporting Information [Line Items] | ||
Revenues | 9.6 | 3.7 |
Drilling | Southwest | ||
Segment Reporting Information [Line Items] | ||
Revenues | 26.1 | 23.6 |
Drilling | Northeast /Mid-Con | ||
Segment Reporting Information [Line Items] | ||
Revenues | 25.2 | 15.6 |
Completion | ||
Segment Reporting Information [Line Items] | ||
Revenues | 130 | 76.9 |
Completion | Rocky Mountains | ||
Segment Reporting Information [Line Items] | ||
Revenues | 37.4 | 25.5 |
Completion | Southwest | ||
Segment Reporting Information [Line Items] | ||
Revenues | 31.3 | 17.5 |
Completion | Northeast /Mid-Con | ||
Segment Reporting Information [Line Items] | ||
Revenues | 61.3 | 33.9 |
Production | ||
Segment Reporting Information [Line Items] | ||
Revenues | 27.8 | 17.9 |
Production | Rocky Mountains | ||
Segment Reporting Information [Line Items] | ||
Revenues | 14.6 | 9 |
Production | Southwest | ||
Segment Reporting Information [Line Items] | ||
Revenues | 8 | 5.7 |
Production | Northeast /Mid-Con | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5.2 | 3.2 |
Intervention | ||
Segment Reporting Information [Line Items] | ||
Revenues | 20.9 | 14.6 |
Intervention | Rocky Mountains | ||
Segment Reporting Information [Line Items] | ||
Revenues | 6.3 | 5.1 |
Intervention | Southwest | ||
Segment Reporting Information [Line Items] | ||
Revenues | 8 | 5.1 |
Intervention | Northeast /Mid-Con | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 6.6 | $ 4.4 |
Segment Reporting - Capital Exp
Segment Reporting - Capital Expenditures by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | $ 10.3 | $ 5.8 |
Corporate and other | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | 0 | 0 |
Rocky Mountains | Operating Segments | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | 1.6 | 1.6 |
Southwest | Operating Segments | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | 3.1 | 1.6 |
Northeast/Mid-Con | Operating Segments | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | $ 5.6 | $ 2.6 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets by Reportable Segment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 515.9 | $ 465.9 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 476.1 | 408.5 |
Corporate and other | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 39.8 | 57.4 |
Rocky Mountains | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 142.9 | 133 |
Southwest | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 191.9 | 152.2 |
Northeast/Mid-Con | Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 141.3 | $ 123.3 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive securities excluded from determination of diluted earnings per common share (in shares) | 0 | 0.4 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Computations of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 9.4 | $ (19.9) |
Basic weighted average common shares (in shares) | 14.2 | 10.1 |
Effect of dilutive securities - dilutive securities (in shares) | 0.2 | 0 |
Diluted weighted average common shares (in shares) | 14.4 | 10.1 |
Basic net income (loss) per common share (in dollars per share) | $ 0.66 | $ (1.98) |
Diluted net income (loss) per common share (in dollars per share) | $ 0.65 | $ (1.98) |
Uncategorized Items - klxe-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |