KLXE - Earnings call 3 2023 | KLX Energy Services Holdings, Inc.

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Operator

Greetings, and welcome to the KLX Energy Services Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ken Dennard. Thank you.

You may begin.

Ken Dennard

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

XX, as call, details you're its questions. advised features be remarks, my the today's outlook a reported X, on that available replay the November for to information accurate therefore, your More in financial of available access XXXX, before will this of any be and provide Please third be our these transcript was quarter replay speaks of call no today, commentary on recorded a note telephonic at opening until that on Following the replay may high-level and longer There reading. by as a November company's will listening replay the of or be only information the yesterday's klx.com. XXXX. management will that of and talk on included about call earnings also information There'll webcast website time-sensitive time release.

contain United Also, views These call within this will of management. the KLX statements of comments statements meaning reflect States on the laws. securities current federal forward-looking forward-looking the

to or Form those management. contingencies. X-K on listener differ quarterly reports achievements various XX-K, those risks The current However, annual XX-Q understand and is expressed and risks, made certain uncertainties uncertainties report and reports cause read actual materially the from to by Form the and performance or encouraged could on of Form results, on contingencies in to statements reader

non-GAAP also will include today measures. financial comments The certain

and be included to me, the the with GAAP Chris? Baker. on President most behind found now CEO, that which Energy and in the I'd also directly can KLX details are turn call like comparable Additional Energy over quarterly Mr. And KLX press Chris the website. release, measures Services reconciliations financial to to

Christopher Baker

we Thank X% pleased flow we everyone. our margins spread rig quarter good in and third XX% despite Last extremely decline are and cash you, prolonged earnings, incremental count weakness maintained sequential continued QX a natural in a and with in night, decline free generated KLX basins. count, Ken, frac morning, and released gas our performance.

As have we report rebounded it count bodes gas is bottom activity well XXXX. natural QX, for prices directed appears which to levels, activity rig considerably the future incremental and gas into including trying

the third discuss utilization margins the price before continues highlights go Keefer to KLX I'll our to focus detail. our financials quarter on in flow. free of cash to turning through over driving and maximize to call defending and

has adjusting discipline. done pricing fantastic their job structures and operations a Our cost maintaining all team year

KLX drive continues to geographic and diversification to Overall, product results. line leverage service its

onshore well members to products. comprehensive positioned X,XXX are deliver than more all major and team proprietary of portfolio our Our basins U.S. across differentiated services

We of best our the most a allows larger team of us to largest, spending quality capitalized believe customer the active outsized U.S. onshore with share services exposure and in to the operators and market. capture

mix outsized to revenue, and basin in and from rotate our crews the down market-leading We represented in from by a The our QX the Rockies from from and slightly generating assets in of Northeast/Mid-Con XX% markets. QX XX% the had we Rockies of QX balanced ability contribution balanced mix additional geographic that up the quarter, softness third revenue in the with was down the represented QX, our saw given basis. in XX% on For product a XX% revenue, was QX. revenue, XX% and QX. in position to driven extremely both business other Geographically, XX% Southwest of

basin tubing our and coiled and drive majority the by product QX the an Rockies lack of and directional were to within increase seasonality. across both driven was of sequential able utilization given is the by vast the We the in improvement in-basin drilling. in was quarter rentals, typically offering the adjusted service and most revenue active led it EBITDA pricing though

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

we reduction perspective, very of able more a in the competitive to largely bit or, it From maximize mid-single-digit cases, completion-oriented was a sequential to pricing. to low a this some efforts our in was activity. experienced of maintain increase in market led were a percentage a where The count, but with by despite strong the lines head some price in other service reduction we and lines of to X% as pricing modest declines mixed service bag offset pricing control combination costs, coupled protect quarter utilization,

EBITDA numbers QX Revenue guidance within provided very prior an which at or all above implied slightly the came previously in of $XXX above is range adjusted our and range, within which $XX.X our at and consistent reported to the of XX% guidance QX guidance. EBITDA led we million. solid top coming reported million, margin range prior with in guidance of top adjusted our We

all-time year-to-date Further, performance both records. our and X-month are LTM company

of has cash our million to cash meaningfully million driven position to market us increase the consistent during reduced yielding adjusted which is Our underlying and XXXX, enabling generated and quarter, debt the $XXX all-time reported We free $XX.X $XX.X strong strategy a high sequentially $XXX after We trailing X.Xx for leverage QX flow X% an both year-over-year. of million XX-month million net diversification ratio $XX performance generating LTM net relatively to despite in million. up of EBITDA annualized as volatility. QX

that strong in long-term a diversification flow highlighted oil strategy QX's our strength challenging KLX's to of generate recent and The cash the gas upstream U.S. market. on the market ability of has consolidation fundamentals. production strong view performance the KLX's frenzy free of cements demonstrated side and

We provide operators opportunity our to also to smaller larger larger customers. offering a consolidation of differentiated integrated as an view of for the number KLX

units where in sold experienced envelope R&D push phantom vision to KLX we XXX-plus and our launched have QX, efforts KLX the percent increase quarters launched sold new plugs plug sequential in includes the products. combined. more we continue on in recently line This QX the and did than additional our of we We commercialized and In X proprietary dissolvable completion prior a tools. new

rapid operators. multiple basins with across leading plug generation seen market has latest adoption Our

performance game in commercialized SRT. extended and also smart tools safer our Oracle with have coiled we patent-pending drill we clearly out operations. of end By also running over cutting-edge short Reach the tubing logged will is with enabling the downhole Oracle and changer delivers Additionally, the for tool, this X a tubing tool reach while synergistic offerings. proprietary KLX fee technology SRT. SRT, The is a true Oracle through Smart week, downhole million

efficiencies KLX. turn and will These and in performance for which our for customers, differentiated drive margins utilization advancements will drive

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

Keefer Lehner

Thanks, Chris. morning, everyone. Good

representing X% sequential XX% Chris lower is a sequential than decline decrease, As the rig which we mentioned, $XXX of count. reported in million, quarterly revenue

XXXX reported purposes, strategy. to which third of revenue year-over-year down diversification comparison compared rig strength our in we million, $XXX XX to testament count only XX% For of is basis the was quarter which the points, decline a

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

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

in while run can We we as business down believe expense revenue. G&A continue leanest the the for to further drive of one overhead structures to sector percentage and with continuing a scale diversified of

income were and net share and million $X.X were EPS respectively. $X.XX, diluted and adjusted and diluted $X.X earnings million per income respectively. QX Adjusted $X.XX, net

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

coiled third for million. increase million million experienced a EBITDA Rockies The the second $XX $XX.X increase an led and was quarter income The in was and Adjusted our pumping. in in space strong in driven than was $XX.X rentals adjusted XX% Adjusted white $XX.X compared profitability. quarter contribution to services by million by prior of EBITDA increase Wyoming profitability sequential Bakken higher operating quarter. DJ, tubing, throughout pressure and year higher-margin the and from reduced the

success and XXXX revenue $XX.X Moving The and lower segment increase operating a revenue across for million driven segment. utilization revenue, our EBITDA revenue XX% million of KLX. the our drilling experienced the QX which adjusted income QX was product was pricing to Southwest increase a adjusted been and acquisition for The approximately driven of $XX.X QX. has $X major Southwest Greene's, in million. sequential decline Southwest year-over-year by The was now generating lines. in by was completion year-over-year in

within our is of second the segment revenue reminder, a and QX business margin fully now the quarter As contribution. being Greene's with full integrated Southwest

successfully annualized million We actioned have cost also $X synergies. of

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

for adjusted million the for Segment $X $XX.X over EBITDA quarter. and adjusted operating million, was was income third quarter just the

The thesis corporate economies and scale. to QX X% adjusted few XXXX, corporate, improved EBITDA the This ability $XX.X a tenet our QX realize At sequentially layer adjusted in to XX% loss and last out million, adjusted our M&A by were $X.X of benefits compared respectively. the core of deals. acquisitions and EBITDA play million demonstrating operating significant our seen over and and have we is losses income dramatic for

capitalization. capital, and turn now cash I'll to net flow our working

driven largely cash debt quarter $XXX.X QX. was in to efficiently X% up was $XX.X EBITDA by XXXX The $XX reduced flow. ability quarter million ending capital with million, to Our our sequential adjusted cash QX. $XX.X We approximately as third sequentially, free balance the Net in million increase net debt convert balance net working a of from was million. XX% of cash

KLX X.Xx. LTM XXXX just base a they with any of issue any as third roughly Based consisting in on net under leverage in week position we thereby We and QX of share KLX $XX.X not XXX,XXX and We $XXX part in in million Archer of annualized that cash ended last September ratio million availability ATM reducing liquidity their the XXXX. QX and Limited their our have materially certificates. of note, million did Also announced ABL overhang refinancing, shares have borrowing results, shares of of $XX.X to issued not roughly under in shares. date our quarter exited

Our at XX.X share million remains shares. count

primarily across expenditures spending were were on third to the quarter turning and Capital our maintenance approximately focused $XX.X for Now various CapEx. segments. million

rentals, for of projects maintained earmarked end primarily forward, the will Going business, million remaining operations and our focused with directional approximately others. frac in for wireline of on that ongoing This quick at expect XXXX and the spending maintenance rentals, total and across range but focused CapEx currently $XX come payback drilling to to spend amongst reactivation range. million, XX% on be supporting the CapEx growth be we in guidance $XX to top

review and identify we levels continuously CapEx to inefficiencies conditions. always, based on trends prevailing As current or drivers market determine

end balance on sale the $X.X During quarter, QX, assets. still we held our of the assets had we sold approximately for third At $X million sheet. reflected in million of

as net pursue as look about focus as capital well Chris, back color we additional turn our to who I'll being the on debt cash market remainder think remains maximizing reducing while to and current M&A. begin value-creating of of prudent and provide flow we XXXX will on the As some outlook. to XXXX, further free our the now stewards current additional call all

Christopher Baker

Thanks, Keefer.

share and our additional details up, on to outlook wrap some strategy. we Before like I'd

expect but in the we due activity budget bottom. to seasonality market believe QX and a bit find the trying slowdown We of to is exhaustion,

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

natural fourth As XXX we QX average low quarter, rigs. in XX% while count compared price gas and currently an the $X.XX. hovers a QX a average enter with is XXs the seen very approximately flat is around incremental rig which we've below consolidated the X% WTI constructive end, of decrease price quarter to

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

$XXX guidance, and with free expect due perform Consistent will crew expect in to and business prior that focus full million of pricing and continue to EBITDA drive million flow. order on well to our XXXX in the to to be utilization cash adjusted year range margins $XXX the we

margin generation combined generation our in XXXX. cash we free flow our expectations, expect strong cash and flow continued revenue strong in and CapEx XXXX Given guidance, with free

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

operator, of Mid-Con frac frac entered we development for into with will our XX-month baseload pave which XXXX our a could spread. frac leading First, the way a and activity underpinning contract business third the to

we customer to P&A to and looking scale Rockies response have Second, that pressure. an legislative launched offering and business integrated in are in demand the

which fully wireline customer Third, equipment strong QX [ augmenting taking demand. in units, ] we we are new X delivery our Whisper for series completions electrified electric of of have

beyond. fourth, the mentioned technological material be differentiator advancements previously a and XXXX And prove could to in

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

is becoming on active Finally, accretive deleveraging our The M&A sell to continue on opportunity. strategy the focus will more side. market

being this a market that an multiples customers. stock. still believe well-capitalized depressed exit is attractive sector opportunity is a the due outpaced transaction consolidation their E&P OFS we on to execute However, by to public but in our and ultimately We continue liquid value-creating time counterparties believe KLX to via offers

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

all and to strong like their I'd execution summary, each safety hard performance. for into In across strategic to initiatives. again Their commitment financial work KLX once every of thank translated aspects has team continued and member our

continue assets manage flow, Looking focus exciting up take to questions. With of to proactively we'll we will our results XXXX believe now that, beyond. your will free on a ahead, generating for and with KLX portfolio which set our cash maximize an Operator? meaningful we

Operator

Daniel Your from John first question Instructions] [Operator with Daniel comes Energy.

John Daniel

heard I said a you Mid-Con. potentially got the one in the side. X getting right? you've [indiscernible] the and Is guess correctly, first on frac that If is to the I you third

Christopher Baker

spreads we broke the Mid-Con? asking little I if bit, you in you John, but set think X a operating up were

John Daniel

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

Christopher Baker

question. Great Yes.

So X do X operating still we and of for have spreads Mid-Con had XQ. we all the the spreads in

amount really of a we did a drilling early, finished we due had efficiencies. completion have space driven that might primarily by their few and clients honestly, imagine, delays you fair As to white programs

incremental to QX QX. work we maintain in late and elected given staffing So

maintain staffing So spreads. those we of X

we're very Look, accustomed.

there routes side is you our Rockies. know, business well the pressure Mid-Con the the and on As legacy of the pumping really

to into XXXX. we're think was down Spot somewhat. pricing base. entered really and But hopefully So activity, contract baseload get allows customer We drive space us customer accustomed that we gains limiting into we that that we base. with margins like the to as white efficiency

-- think the quarter. cement so load done reference do was was in elect last very we're XXXX, so, think operating have space. ready market if lack third, your well I on up the in stand have white And up the to spread in third base And yet. plays prepared our not spread, we remarks made small but we to the That that be what Depending our question in of on out Rockies the that us business. third to active the do and the have still we sets we how where we we'd to

John Daniel

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

Christopher Baker

times lead lead volatile. what are. are the times It's The

the we ground but -- months, to intel units. new were months. were would up. X number. about These depends X X the components. calling a X them X completely They it Those So refurbed that's be on Latest were moving from

Operator

Steve Ferazani & with is Sidoti question Next Company.

Steve Ferazani

But Southwest areas in Marcellus? you're as in certain the able opposed regionally Trying sustainable price Rockies difference outside of are? decline rig versus and your the didn't Rockies. how gassier about in to And margins to in place. margins the I stronger. how to Chris, seasonally get to the know sense Keefer, those count in seasonality, much it's strength the of wanted ask I as know the

Christopher Baker

question. Steve, Yes. great

gravity. saw this I that's the operating as Candidly, a think, spans of a we and most this of all a Rockies always you team or count reality really saw right? given operating base negative a rig right? operating that really look, know, great the some in the well that this the Rockies kind can or the through way quarter. year. got is leverage impact And and We've great and It areas, in last like [indiscernible] what is activity presence across works, at given Bakken, And leverage so basin. we leverage

third in the we had the And the and around those quarter. space anticipated. Mid-Con in to margins, whereas of segment, the on the leverage cover operating more some what and that work that's maybe saw Ford operating white Haynesville we assets on put and lot margin We Negative additional expansion a the see saw able activity, dampered and with Southwest especially a than mobilize in Eagle were Rockies, and we some to and leverage. redeploy we damper assets off

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

XXXX out out see exceptionally but quarter And well how the so look, plays business. we'll plays very in that we're fourth confident

Steve Ferazani

sort having the in But Great. the so gas in November, and get of Northeast/Mid-Con, I your in to prices, coming, additional your interest I so export I conversations far, know it's be follow it's know early that's early. to customers these And sense LNG on capacity early recovery trying if it's only conversations. with up the the natural

sort you some a plays? are pickup activity right in year, the pickup With of those now contract And a new those are in you to in confident in see when plays? expecting

Christopher Baker

having say there and there Great count story are markets as specifically, have in it in discussions I rig in story. the still And distinctly and categorize -- natural we've the pickup around Yes. would Haynesville completions we're XXXX. XXXX. question. gas a a so seen more a to seeing I'll different roll gone QX, in through ducked Clearly, and What slight wells is lot adds the tied X we're we've of LNG Haynesville operators rig the as Mid-Con slight definitely activity

QX I don't do pickup just XXXX, the others gas But and constructive and previously. we're look highly the conference talked strip we at Haynesville, seasonality, in from about in Northeast look, XXXX point. we're to your you forward We cetera. traders the the on this it outlook. think same feedback we bullish due weather, side, strong when is commodities in natural comes see winter at et that this and at the and very is more to looking the actually hearing positive that if gas more outlook partially

the wind of in I we've it comes gas to sale our some the So when think got side business.

Operator

question with [Operator from Next Research. Instructions] David Marsh Singular

David Marsh

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

Christopher Baker

in as So David, and can our question. jump in I'll full think, guidance. is Chris. Thanks in year remarks the we for prepared updated I was This Keefer well. What jump

what so And EBITDA EBITDA adjusted and right? $XXX full cash $XXX is guidance million. matters, to million flow the it's So and year

That on midpoint last think our the a guidance year-to-date full And quarter, $XXX you year when prior about change essentially basis, so guidance million. a we're approximately the equal really consensus. year right? so over to full didn't the of And is on basis and

number. there. just didn't revenue So nothing's changed really update the We

David Marsh

from pursue then right out a to Got perhaps regard you you about earn for pay cash, interim? income particularly with And guys terms we're to termed an guys the do that, as And interest reduce to cash expense. holding the it. the refresh expense positive in the that look holding to it. Got guess in something cash, mean, my when -- you're just down opportunities on a able you you are little extension. Keefer, us paying ABL more might now? any facility? follow-up, credit that could possibly is I of interest -- activity than I you And could you Or interest around bit just guys you to give there Where

Keefer Lehner

here. Happy your I'll good second bit of out address order. jump little in Yes, go first, question question. a to

As cash point use clearly, opportunities We're through We're we've debt think net and flow, elected the organic to cash on continuing optionality focus building as of we to both the about and uses to cash in cash. in growing going continue and this it business, to initiatives continue of free there. pay evaluate free evaluate think to relates reduction and time, inorganic ABL. we'll to At to we down to build opportunities cash.

the the are we You interest see from cash our income generating can today face statement, of income pretty substantial balance. on

the the to do kind we're ABL continue than cost have that is today. cash that of evaluate. balance more on we So based But cash interest something we that offsetting

relates notes, years [indiscernible] it of has [indiscernible], The pieces of As in a debt ABL the they X XXXX. ABL broader of got capital there. X the fall inside The to paper roughly from the both we've but out structure, and today. the mature mature

I we're well. on kind based more back think results. structure. in business results, good the LTM exceptionally performing spot capital We've of So is QX The annualized than in grown a really

X.Xx. Our ratio net today leverage is

outlook last Moody's and upgraded to out positive. week our came

everything the left. head of direction So years that continues right still regard but have in tenure to X in we

to of down November dropped ] XXX premium Our as XX X. call just ] [ and [

to makes make best be that KLX we a to opportunity sure growth on start for going look strategy continue but just around to the capital patient and most business to of we're sense to I so execute the refinance harder execute we're to that positions year would so, opportunities forward. going And us the structure going refinancing expect over the and our next or

Ken Dennard

Keefer. David. Thanks, Thanks,

questions started the of call from folks. e-mail benefits couple mentioned Chris, a via from the numerous gotten you some SRT. we've So since Oracle

I So elaborate more interested there. can people you think on are that?

Christopher Baker

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

completion candidly benefit while accrued benefit largely the is due the accrued economic of to service to operator cost of of cetera. the equipment et tear cycle wear equipment drilling and has The of gains increased efficiency the the and company times, to detriment

reality across share paramount in. the Oracle the in that companies ways customer. potential to benefits so look coiled every margin-enhancing at it's as the efficiency to has bear technology the operate to SRT, we we which for margin service also bringing life, it And OFS gains line is And while is tubing inherently find really to extend benefit that simultaneously string

And down technology excited we're the on the the so but provide more we'll really benefits road, about ahead. opportunities

Ken Dennard

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

Christopher Baker

it's and And question. Great records. definitely in the news, we see setting people

And X in milers, configurations. operators of operators discussions host manufacturing lateral and we're discussions in while on business to there's believe most mode that of operators whole where drive experiment we their to certain and lengths situation would and is recoveries. see of find means building ways with in risk And milers wellbores. incremental continue to their drive the really to the create be a We are for they with other operators gas recoveries efficiencies oil ultimate to in basins, reality improve X prefer and

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

nice, wells of for execution highly our on we're clients records. focused reality the depth stakeholders technical setting consistent link while is serving so over maximizing are And records with margins our while

configurations. suite That as being address all us look, these and as services allows products to really lastly, said, of well of KLX's distances diversified

Ken Dennard

guidance. one We up customer on about would be talking based to It flat appears early XXXX spending also got outlook the slightly year-to-year.

If you want to that? comment on

Christopher Baker

Sure.

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

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

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

Ken Dennard

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

Keefer Lehner

And follow side. up to plug Yes. the on just

this drive a and I for think trend our longer products that's see towards be need to is certainly, ultimately going to per increased for you a as going consumables plugs suite wellbore laterals, certainly of which clearly benefit business. KLX

gen far launch we tremendous seen announced third market the in quarter. the so of our Chris PhantM We've Plug. As latest mentioned, response

of strong well. this XXXX to into north those up We been of Customer where QX as operators So remarks continued And really new we our multiple and market were mention prepared continue we've plug sales strong technology. across date. results, we we on our did sales plug into feedback in worked trend quarter-over-quarter. with would basins to the as based expect dissolvable seen that XXX% work adoption have has October numerous plug leading strong

Christopher Baker

Yes, absolutely.

Ken Dennard

comments, So it. Final Chris? that's

Christopher Baker

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

Ken Dennard

Thanks, everyone.

Operator

for Ladies does conclude This and your teleconference. thank today's gentlemen, participation. you

a have your disconnect lines, wonderful You day. and may

KLX Energy Services (KLXE) 7 Nov 232023 Q3 Earnings call transcript