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KLXE

KLXE US Stock
$14.99
Open: $14.39 High: $15 Low: $13.7 Close: $13.98
Range: 2021-03-02 - 2021-03-03
Volume: 338,567
Market: Extended-hours
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KLXE
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KLXE News
Latest news about the KLXE
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  • KLX Energy Services Holdings, Inc. to Host Earnings Call

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  • KLX Energy Services Holdings, Inc. Reports Fiscal Third Quarter 2020 Results

    HOUSTON, Dec. 07, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) (“KLXE” or the “Company”) today reported financial results for its fiscal third quarter ended October 31, 2020. On July 28, 2020, KLXE completed its previously announced merger with Quintana Energy Services, Inc. (“QES”) (the “Merger”) and the results for the three months ended October 31, 2020 include an entire quarter of combined results for both legacy KLXE and legacy QES.Fiscal Third Quarter 2020 Highlights * Revenue increased 30.1% sequentially from the fiscal second quarter 2020 on a pro forma basis * Net loss and Adjusted EBITDA (a non-GAAP measure) loss reduced 30.1% and 72.0%, respectively, relative to pro forma fiscal second quarter results * Ended the fiscal third quarter with $79.8 million in cash and $106.2 million in total liquidity Merger Integration Highlights * Fully implemented actions to achieve previously announced annualized run-rate cost synergies of $40.0 million * Successfully relocated KLXE’s corporate headquarters to Houston, Texas, and closed the legacy Wellington, Florida headquarters during the fiscal third quarter ended October 31, 2020 * Consolidated 13 facilities across our operational platform to further optimize and rationalize our cost structure * Identified approximately $6.0 million of incremental synergies with estimated capture by the fiscal second quarter 2021*See “Non-GAAP Financial Measures” at the end of this release for a discussion of Adjusted EBITDA and its reconciliation to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). In addition, for comparative purposes, we have also presented supplemental pro forma combined financial information for the three months ended October 31, 2020 and July 31, 2020, giving effect to the Merger as if it had occurred on April 30, 2020.Chris Baker, President and Chief Executive Officer of KLXE, stated, “Despite the well-documented challenges in the North American market, fiscal third quarter activity picked up considerably from the second quarter. Since our low point in June, revenue has increased every month, with third quarter revenue being up 30.1% compared to pro forma second quarter results. The Q3 revenue gains coupled with the cost reduction and synergy realization efforts drove a meaningful reduction in our Adjusted EBITDA loss, and we exited the quarter approaching breakeven Adjusted EBITDA.“Highlights of the third quarter included cost synergy realization and efficiency gains resulting from our integration efforts that continue to exceed initial expectations,” added Baker. “As we forecasted during the Merger announcement, we expected to capture annualized run-rate cost synergies of at least $40.0 million by the end of the fiscal first quarter of 2021. I am pleased to report that we are several months ahead of that completion date and now believe that there are at least $6.0 million of incremental cost savings that we expect to achieve over and above our initial projection.“The Merger with QES and the accompanying cost synergies and efficiencies have afforded KLXE more levers to manage our cost structure and profitability than others in our industry who have not participated in consolidation, providing us a substantial competitive edge as we navigate the challenging market. Ultimately, we believe our new streamlined organization will allow us to return to profitability faster than either legacy business would have been able to achieve on a standalone basis and positions us to provide an enhanced suite of products and services to our customers. Additionally, we believe we have evolved to create one of the strongest brands and teams in the market today and are eager to build on this momentum as market fundamentals continue to improve as we enter 2021,” concluded Baker.Fiscal Third Quarter 2020 Financial ResultsRevenue for the fiscal third quarter of 2020 totaled $70.9 million, an increase of 30.1%, compared to pro forma fiscal second quarter revenue of $54.5 million ($36.2 million actual). The increase in revenue reflects the impact of the sequential monthly activity increases experienced during the fiscal third quarter compared to the pro forma fiscal second quarter, driven primarily by a rebound in completions and to a lesser extent, drilling, production and intervention activity. On a product line basis, drilling, completion, production and intervention services contributed approximately 21.6%, 43.8%, 10.6% and 24.0%, respectively, to fiscal third quarter revenues.Net loss for the fiscal third quarter of 2020 was $38.3 million, compared to pro forma fiscal second quarter net loss of $54.8 million ($20.4 million actual). Adjusted EBITDA loss for the fiscal third quarter of 2020 was $5.4 million, a decrease of $13.9 million compared to pro forma fiscal second quarter Adjusted EBITDA loss of $19.3 million ($10.6 million actual).Fiscal Third Quarter 2020 Segment ResultsThe Company reports revenue and Adjusted EBITDA through three geographic business segments: Rocky Mountains, Southwest and Northeast/Mid-Con. Revenue increased across all three segments driven by the rebound in completions and, to a lesser extent, drilling, production and intervention activity, as rig count grew approximately 18.6% during the fiscal third quarter. Fiscal third quarter 2020 segment results are compared to KLXE's actual results for the fiscal second quarter of 2020, which only include three days of results from legacy QES.Historically, and through July 31, 2020, the Company’s total corporate overhead costs were allocated and reported within each reportable segment. During the fiscal third quarter of 2020, the Company changed the corporate overhead allocation methodology to include corporate costs incurred on behalf of its operating segments. The remaining unallocated corporate costs are reported as a reconciling item in the Company’s segment reporting disclosures (see “Segment Reporting Presentation”). * Rocky Mountains: Revenue and Adjusted EBITDA for the Rocky Mountains segment was $18.2 million and $0.5 million, respectively, for the fiscal third quarter of 2020. Revenue represents a 1.1% increase over fiscal second quarter of 2020. * Southwest: Revenue and Adjusted EBITDA loss for the Southwest segment, which includes the Permian and South Texas, was $24.8 million and $2.2 million, respectively, for the fiscal third quarter of 2020. Revenue represents a 490.5% increase over the fiscal second quarter of 2020 driven by a full quarter impact of the legacy QES business. * Northeast/Mid-Con: Revenue and Adjusted EBITDA for the Northeast/Mid-Con segment was $27.9 million and $1.5 million, respectively, for the fiscal third quarter of 2020. Revenues increased 99.3% over the fiscal second quarter of 2020 driven by a full quarter impact of the legacy QES business. For the fiscal third quarter ended October 31, 2020, the Rocky Mountains segment operating loss was $4.6 million, Northeast/Mid-Con segment operating loss was $5.1 million and Southwest segment operating loss was $9.3 million.The following is a tabular summary of revenue and Adjusted EBITDA for the three-month periods ended October 31, 2020 and July 31, 2020 (in millions of U.S. dollars):  Three Months Ended   October 31, 2020 July 31, 2020 Revenue:     Southwest $24.8 $4.2 Rocky Mountains 18.2 18.0 Northeast/Mid-Con 27.9 14.0 Total Revenue $70.9 $36.2   Three Months Ended   October 31, 2020 July 31, 2020 Adjusted EBITDA     Southwest $(2.2) $(4.6) Rocky Mountains 0.5  1.5  Northeast/Mid-Con 1.5  (2.5) Segment Total (0.2) (5.6) Corporate and other (5.2) (5.0) Total Adjusted EBITDA (loss)1 $(5.4) $(10.6) 1 Excludes one-time costs, as defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA (loss) table below, non-cash compensation expense and non-cash asset impairment expense. Merger and Integration CostsMerger and integration costs were recorded separately from the acquisition of assets and assumptions of liabilities in the Merger. Merger costs consist of legal and professional fees and accelerated stock compensation expense (“Merger costs”). Integration costs consist of expenses to relocate corporate headquarters, integrate the QES business, reduce headcount, and consolidate service and support facilities (“Integration costs”).The following table presents Merger and Integration costs that were recorded for the three months ended October 31, 2020 and July 31, 2020 in the interim condensed consolidated statements of operations (in millions of U.S. dollars): Three Months Ended  October 31, 2020 July 31, 2020 Merger costs$1.3 $26.5 Integration costs8.5 — Total Merger and Integration Costs$9.8 $26.5 As the Company continues its integration of the QES business, there will be further charges in future periods relating to, among other things, fixed assets, facilities, workforce reductions and other assets.Segment Reporting PresentationCertain presentation changes have been made to the prior year segment reporting disclosures to conform to the current period presentation.The Company changed its presentation of reportable segments related to the allocation of corporate overhead costs to reflect the presentation used by the chief operational decision-making group (“CODM”) to make decisions about resources to be allocated to the Company’s reportable segments and to assess segment performance. Historically, and through July 31, 2020, the Company’s total corporate overhead costs were allocated and reported within each reportable segment. During the third quarter of 2020, the Company changed the corporate overhead allocation methodology to include corporate costs incurred on behalf of its operating segments, which includes accounts payable, accounts receivable, payroll, procurement, audit fees and insurance costs. The remaining unallocated corporate costs are reported as a reconciling item in the Company’s segment reporting disclosures.The Company also changed its presentation of service offering revenues. Historically, and through July 31, 2020, the Company’s service offering revenues included revenues from the completion, production and intervention market types within segment reporting. During the third quarter of 2020, the Company changed the presentation of its service offering revenues by separately reporting a drilling market type revenue, which includes directional drilling, drilling accommodation units and other drilling related support services.These current period changes to the Company’s corporate allocation method and service offering revenue disclosures have no net impact to the condensed consolidated financial statements. The change better reflects the CODM’s philosophy on assessing performance and allocating resources, and improves our comparability to our peer group.Balance Sheet and LiquidityTotal debt outstanding as of October 31, 2020 was $243.6 million, compared to $243.0 million as of January 31, 2020. As of October 31, 2020, cash and equivalents totaled $79.8 million. Total available liquidity as of October 31, 2020 was approximately $106.2 million, including availability under our undrawn ABL Facility. During the fiscal fourth quarter of 2020, $2.8 million of the outstanding letters of credit have been extinguished, further increasing the Company’s liquidity position.Other Financial InformationCapital expenditures were $2.6 million during the fiscal third quarter of 2020, a decrease of $1.1 million, or 29.7%, compared to capital expenditures of $3.7 million in the fiscal second quarter of 2020. Capital spending during the fiscal second and third quarters of 2020 was driven primarily by maintenance capital expenditures across our segments.Conference Call InformationKLXE has scheduled a conference call for 9:00 a.m. Central Time (10:00 a.m. Eastern Time) on Tuesday, December 8, 2020, to review reported results. You may access the call by telephone at 1-201-389-0867 and ask for the KLXE 2020 Fiscal Third Quarter Conference Call. The webcast of the call may also be accessed through the Investor Relations section of the Company’s website at https://investor.klxenergy.com/events-and-presentations/events. A replay of the call can be accessed on the Company’s website for 90 days and will be available by telephone through December 15, 2020, at 1-201-612-7415, access code 13713295.About KLX Energy ServicesKLXE is a provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. The Company delivers mission critical oilfield services focused on drilling, completion, intervention and production activities for the most technically demanding wells from over 50 service facilities located in the United States. KLXE’s complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house research and development, manufacturing, repair and maintenance capabilities. More information is available at www.klxenergy.com.Forward-Looking Statements and Cautionary StatementsThe Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information to investors. This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) includes forward-looking statements that reflect our current expectations and projections about our future results, performance and prospects. Forward-looking statements include all statements that are not historical in nature and are not current facts. When used in this news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein), the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could,” “will” or the negative of these terms or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events with respect to, among other things: our expected cost synergies related to the Merger; our operating cash flows; the availability of capital and our liquidity; our future revenue, income and operating performance; our ability to sustain and improve our utilization, revenue and margins; our ability to maintain acceptable pricing for our services; future capital expenditures; our ability to finance equipment, working capital and capital expenditures; our ability to execute our long-term growth strategy and to integrate our acquisitions, including QES; our ability to successfully develop our research and technology capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and special projects.Forward-looking statements are not assurances of future performance and actual results could differ materially from our historical experience and our present expectations or projections. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us and other factors believed to be appropriate. Although management believes the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Our forward-looking statements involve significant risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: a decline in demand for our services, including due to the ongoing COVID-19 pandemic, declining commodity prices, overcapacity and other competitive factors affecting our industry; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by E&P companies; a decline in, or substantial volatility of, crude oil and gas commodity prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; and other risks and uncertainties listed in our filings with the U.S. Securities and Exchange Commission, including our Current Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law.KLX Energy Services Holdings, Inc. Condensed Consolidated Statements of Operations (Unaudited - In Millions of U.S. dollars and shares, except per share amounts)  Three Months Ended    October 31, 2020 July 31, 2020   Revenues$70.9 $36.2  Costs and expenses:    Cost of sales80.1 48.1  Selling, general and administrative14.3 41.8  Research and development costs0.1 0.2  Impairment and other charges4.4 —  Bargain purchase gain2.4 (41.1) Operating loss(30.4)(12.8) Non-operating expense:     Interest expense, net7.7 7.6  Loss before income tax(38.1)(20.4) Income tax expense0.2 —  Net loss$(38.3)$(20.4)      Net loss per common share(1):    Basic$(4.56)$(4.12) Diluted$(4.56)$(4.12)       Weighted average common shares:     Basic8.4 5.0  Diluted8.4 5.0  (1) Basic and diluted net loss per common share were retroactively adjusted for the Company’s 1-for-5 reverse stock split effective July 28, 2020.KLX Energy Services Holdings, Inc. Condensed Consolidated Balance Sheets (Unaudited – In millions of U.S. dollars and shares) October 31, 2020 January 31, 2020   ASSETS Current assets:       Cash and cash equivalents$79.8 $123.5  Accounts receivable–trade, net of allowance of $3.8 and $12.949.4 79.2  Inventories, net23.1 12.0  Other current assets16.2 13.8  Total current assets168.5 228.5  Property and equipment, net220.5 306.8  Goodwill— 28.3  Intangible assets, net2.6 45.8  Other assets6.0 14.0  Total assets$397.6 $623.4  LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:    Accounts payable$34.4 $31.4  Accrued interest14.4 7.2  Accrued liabilities33.8 26.2  Total current liabilities82.6 64.8  Long-term debt243.6 243.0  Deferred income taxes0.1 —  Other non-current liabilities9.4 3.4  Commitments, contingencies and off-balance sheet arrangements (Note 11)    Stockholders’ equity:    Common stock, $0.01 par value; 110.0 authorized; 8.5 and 5.0 issued (1)0.1 0.1  Additional paid-in capital468.5 416.6  Treasury stock, at cost, 0.1 shares and 0.1 shares (1)(4.0) (3.6) Accumulated deficit(402.7) (100.9) Total stockholders’ equity61.9 312.2  Total liabilities and stockholders' equity$397.6 $623.4  (1) Common stock and treasury stock were retroactively adjusted for the Company’s 1-for-5 reverse stock split effective July 28, 2020.KLX Energy Services Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited – In millions of U.S. dollars) Nine Months Ended    October 31, 2020 October 31, 2019   Cash flows from operating activities:    Net loss$(301.8)$(71.3) Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities    Depreciation and amortization43.8 48.0  Impairment and other charges213.1 45.8  Non-cash compensation17.2 13.8  Amortization of deferred financing fees1.0 0.8  Provision for inventory reserve2.8 2.0  Change in allowance for doubtful accounts(9.4) 10.7  (Gain) loss on disposal of property, equipment and other(0.2)2.1  Bargain purchase gain(38.7)—  Changes in operating assets and liabilities:    Accounts receivable51.5 14.8  Inventories(2.2) 3.4  Other current and non-current assets7.0 (5.5) Accounts payable(20.2)(9.3) Other current and non-current liabilities0.3 (2.1) Net cash flows (used in) provided by operating activities(35.8)53.2  Cash flows from investing activities:     Purchases of property and equipment(11.1)(67.4) Proceeds from sale of property and equipment1.8 0.5  Acquisitions, net of cash acquired(1.0)(27.6) Net cash flows used in investing activities(10.3)(94.5) Cash flows from financing activities:      Purchase of treasury stock(0.4)(1.2) Shares cancelled by employees for taxes— (1.0) Cash proceeds from stock issuance— 0.8  Change to financed payables2.8 —  Net cash flows provided by (used in) financing activities2.4 (1.4) Net decrease in cash and cash equivalents(43.7)(42.7) Cash and cash equivalents, beginning of period123.5 163.8  Cash and cash equivalents, end of period$79.8 $121.1               Supplemental disclosures of cash flow information:    Cash paid during period for:    Income taxes paid, net of refunds$(0.3)$1.0  Interest14.8 14.8  Supplemental schedule of non-cash activities:      Issuance of common stock and stock based payments for QES acquisition$34.7 $—  Change in deposits on capital expenditures(5.6)(5.8) Accrued capital expenditures0.5 5.0  KLX Energy Services Holdings, Inc. Additional Selected Operating Data (Unaudited)Non-GAAP Financial MeasuresThis release includes Adjusted EBITDA and free cash flow measures. Each of the metrics are “non-GAAP financial measures” as defined in Regulation G of the Securities Exchange Act of 1934.Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted EBITDA is not a measure of net earnings or cash flows as determined by GAAP. We define Adjusted EBITDA as net earnings (loss) before interest, taxes, depreciation and amortization, further adjusted for (i) goodwill and/or long-lived asset impairment charges, (ii) stock-based compensation expense, (iii) restructuring charges, (iv) transaction and integration costs related to acquisitions and (v) other expenses or charges to exclude certain items that we believe are not reflective of ongoing performance of our business. Adjusted EBITDA is used to calculate the Company’s leverage ratio, consistent with the terms of the Company’s ABL Facility.We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.We define free cash flow as net cash provided by operating activities less capital expenditures. Our management uses free cash flow to assess the Company’s liquidity and ability to repay maturing debt, fund operations and make additional investments. We believe that free cash flow provides useful information to investors because it is an important indicator of the Company’s liquidity, including its ability to reduce net debt, make strategic investments and repurchase stock.The following tables present a reconciliation of the non-GAAP financial measures of Adjusted EBITDA and free cash flow to the most directly comparable GAAP financial measure for the periods indicated:KLX Energy Services Holdings, Inc. Reconciliation of Consolidated Net Loss to Adjusted EBITDA Loss (Unaudited – In millions of U.S. dollars) Three Months Ended    October 31, 2020 July 31, 2020   Consolidated net loss (1)$(38.3)$(20.4) Income tax expense (benefit)0.2 —  Interest expense, net7.7 7.6  Operating loss(30.4)(12.8) Bargain purchase gain2.4 (41.1) One-time costs (2)7.4 30.8  Adjusted operating loss(20.6) (23.1) Depreciation and amortization14.7 12.9  Non-cash compensation0.5 17.4  Less: one-time costs - restricted stock acceleration— (15.1) Less: one-time costs — amortization— (2.7) Adjusted EBITDA loss$(5.4)$(10.6) (1) Consolidated net loss for the fiscal third quarter includes a $2.0 million gain on termination of leased vehicles which related to the fiscal second quarter but was recorded in the fiscal third quarter. (2) The one-time costs in the fiscal third quarter relate to business rationalization and other costs related to the Merger and Integration costs of $1.3 and $8.5 million, respectively, and other additional adjustments offset by an insurance reimbursement related to 2019 credit card theft of $2.5 million. One-time costs in the fiscal second quarter relate to Merger costs, non-Merger severance costs, and customer relationship intangible amortization costs of $26.5 million, $1.6 million, and $2.7 million, respectively.Reconciliation of Rocky Mountains Operating Loss to Adjusted EBITDA (Unaudited – In millions of U.S. dollars) Three Months Ended    October 31, 2020 July 31, 2020   Rocky Mountains operating loss$(4.6) $(6.7) One-time costs (1)0.8 3.4  Adjusted Rocky Mountains operating loss(3.8)(3.3) Depreciation and amortization expense4.1 7.5  Non-cash compensation0.2 (0.1) Less: one-time costs — amortization— (2.6) Rocky Mountains Adjusted EBITDA$0.5 $1.5  (1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA (loss) table above.Reconciliation of Northeast/Mid-Con Operating Loss to Adjusted EBITDA (Unaudited – In millions of U.S. dollars) Three Months Ended    October 31, 2020 July 31, 2020   Northeast/Mid-Con operating loss$(5.1)$(5.4) One-time costs (1)2.7 0.3  Adjusted Northeast/Mid-Con operating loss(2.4)(5.1) Depreciation and amortization expense3.8 2.5  Non-cash compensation0.1 0.1  Northeast/Mid-Con Adjusted EBITDA (loss)$1.5 $(2.5) (1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA (loss) table above.Reconciliation of Southwest Operating Loss Income to Adjusted EBITDA (Unaudited – In millions of U.S. dollars) Three Months Ended    October 31, 2020 July 31, 2020   Southwest operating loss$(9.3) $(7.3) One-time costs (1)0.8  0.3   Adjusted Southwest operating loss(8.5) (7.0) Depreciation and amortization expense6.3  2.4   Southwest Adjusted EBITDA (loss)$(2.2) $(4.6) (1) One-time costs are defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA (loss) table above.KLX Energy Services Holdings, Inc. Segment Adjusted EBITDA Margin (1) (Unaudited – In millions of U.S. dollars)  Three Months Ended     October 31, 2020 July 31, 2020   Southwest     Adjusted EBITDA (loss) $(2.2) $(4.6) Revenue 24.8  4.2  Adjusted EBITDA Margin Percentage (8.9)% (109.5)% Rocky Mountains     Adjusted EBITDA $0.5  $1.5  Revenue 18.2  18.0  Adjusted EBITDA Margin Percentage 2.7% 8.3% Northeast/Mid-Con     Adjusted EBITDA (loss) $1.5  $(2.5) Revenue 27.9  14.0  Adjusted EBITDA Margin Percentage 5.4% (17.9)% (1) Segment Adjusted EBITDA Margin is defined as the quotient of Segment Adjusted EBITDA (loss) income and total segment revenue. Segment Adjusted EBITDA is segment operating income (loss) excluding one-time costs (as defined above), non-cash compensation expense and non-cash asset impairment expense.The following table presents a reconciliation of the non-GAAP financial measure of free cash flow to the most directly comparable GAAP financial measure for the periods indicated: KLX Energy Services Holdings, Inc. Reconciliation of Net Cash Flow Provided by Operating Activities to Free Cash Flow (Unaudited – In millions of U.S. dollars) Three Months Ended    October 31, 2020 July 31, 2020   Net cash flow (used in) provided by operating activities$(20.3) $(22.5) Capital expenditures(2.6) (3.7) Free cash flow$(22.9) $(26.2) Unaudited Supplemental Pro Forma InformationThe unaudited supplemental pro forma financial information for the three months ended October 31, 2020 and July 31, 2020 reflect the results of legacy KLXE for the periods presented and the results of legacy QES assuming the Merger had occurred on April 30, 2020. 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, 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 Merger.KLX Energy Services Holdings, Inc. Pro Forma Condensed Consolidated Statement of Operations for the Three Months Ended October 31, 2020 and July 31, 2020 (Unaudited – In millions of U.S. dollars) Three Months Ended    October 31, 2020 July 31, 2020   Revenues$70.9 $54.5  Costs and expenses:      Cost of sales80.1 76.7  Selling, general and administrative14.3 24.8  Research and development costs0.1 0.2  Impairment and other charges4.4 —   Bargain purchase gain—  —   Operating loss(28.0) (47.2) Non-operating expense:      Interest expense, net7.7 7.6  Loss before income tax(35.7) (54.8) Income tax expense0.2 —  Net loss (1)$(35.9)$(54.8) (1) The pro forma condensed consolidated statement of operations for the three months ended October 31, 2020 and July 31, 2020 reflect the results of legacy KLXE for the periods presented and the results of legacy QES assuming the Merger had occurred on April 30, 2020.KLX Energy Services Holdings, Inc. Reconciliation of Pro Forma Operating Loss to Pro Forma Adjusted EBITDA for the Three Months Ended October 31, 2020 and July 31, 2020 (Unaudited – In millions of U.S. dollars) Three Months Ended    October 31, 2020 July 31, 2020   Pro forma Operating Loss$(28.0) $(47.2) Depreciation and amortization14.7 21.5  Non cash compensation0.5 4.8  Other one-time costs7.4 1.6  Pro forma Adjusted EBITDA (loss) (1)$(5.4) $(19.3) (1) The pro forma Adjusted EBITDA (loss) for the three months ended July 31, 2020, reflects the results of legacy KLXE for the period presented and the results of legacy QES assuming the Merger had occurred on April 30, 2020.Contacts:KLX Energy Services Holdings, Inc.  Keefer M. Lehner, EVP & CFO  832-930-8066  IR@klxenergy.com     Dennard Lascar Investor Relations  Ken Dennard / Natalie Hairston  713-529-6600  KLXE@dennardlascar.com

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  • KLX Energy Services Announces Fiscal 2020 Third Quarter Earnings Release and Conference Call Schedule

    HOUSTON, Nov. 25, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (“KLXE” or the “Company”) (NASDAQ: KLXE) announced today that it will release its fiscal third quarter 2020 financial results on Monday, December 7, 2020 after the market closes. In conjunction with the release, the Company has scheduled a conference call, which will also be broadcast live over the Internet, on Tuesday, December 8, 2020 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).  What: KLX Energy Services Fiscal 2020 Third Quarter Earnings Conference Call   When: Tuesday, December 8, 2020 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time   How:  Live via phone – By dialing 1-201-389-0867 and asking for the  KLXE call at least 10 minutes prior to the start time, or  Live over the Internet – By logging onto the web at the address below    Where: https://investor.klxenergy.com/events-and-presentations/events  For those who cannot listen to the live call, a replay will be available through December 15, 2020 and may be accessed by dialing 1-201-612-7415 and using passcode 13713295. Also, an archive of the webcast will be available shortly after the call at https://investor.klxenergy.com/events-and-presentations/events for 90 days.About KLX Energy ServicesKLX Energy Services is a provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the U.S. The Company delivers mission critical oilfield services focused on drilling, completion, intervention and production activities for the most technically demanding wells from over 50 service facilities located in the U.S. KLXE’s complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house R&D, manufacturing, repair and maintenance capabilities. More information is available at www.klxenergy.com.Contacts: KLX Energy Services   Keefer M. Lehner, EVP & CFO   832-930-8066   IR@klxenergy.com       Dennard Lascar Investor Relations   Ken Dennard / Natalie Hairston   (713) 529-6600   KLXE@dennardlascar.com

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  • KLX Energy Services Holdings (NASDAQ:KLXE) Share Prices Have Dropped 89% In The Last Year

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  • KLX Energy to Participate in the Barclays CEO Energy-Power Virtual Conference

    HOUSTON, Sept. 08, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) (“KLXE” or the “Company”) announced that Chris Baker, President and Chief Executive Officer, and Keefer Lehner, EVP and Chief Financial Officer will participate in the Barclays CEO Energy-Power Virtual Conference. KLX Energy Services is a provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States. The Company delivers mission critical oilfield services focused on drilling, completion, intervention and production activities for the most technically demanding wells from over 60 service facilities located in the United States. KLXE’s complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house research and development, manufacturing, repair and maintenance capabilities. More information is available at www.klxenergy.com.Contacts: KLX Energy Services Holdings, Inc. Keefer M. Lehner, EVP & CFO 832-930-8066 IR@klxenergy.comDennard Lascar Investor Relations Ken Dennard / Natalie Hairston 713-529-6600 KLXE@dennardlascar.com

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  • KLX Energy Services Holdings, Inc. Reports Fiscal 2020 Second Quarter Results

    HOUSTON, Sept. 02, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) (“KLXE” or the “Company”) today reported financial results for its fiscal second quarter ended July 31, 2020. On July 28, 2020, KLXE completed its previously announced merger with Quintana Energy Services Inc. (“QES”) and effected a one-for-five reverse stock split concurrently with closing the transaction. Given that the merger was completed at the end of the KLXE fiscal quarter ended July 31, 2020, results for KLXE largely reflect the performance of KLXE, and include three days of QES results. Fiscal Second Quarter Highlights * Completed merger with QES on July 28, 2020, becoming the foremost provider of large diameter coiled tubing services and one of the largest independent providers of wireline services. * Effected a one-for-five reverse stock split concurrently with the merger completion. * Ended the quarter with $98.5 million in cash and $113.4 million in total liquidity (excluding the benefit of QES current assets not yet included in borrowing base due to merger timing). * Expects cost synergies of at least $40.0 million to be fully implemented as of the end of the first quarter of fiscal 2021 on a run rate basis, several months ahead of the timing at the announcement of the Merger. * Captured approximately $18.0 million of annualized run-rate cost synergies to date.See “Non-GAAP Financial Measures” at the end of this release for a discussion of Adjusted EBITDA and its reconciliation to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).Chris Baker, President and Chief Executive Officer of KLXE, stated, “We are excited to complete our merger ahead of schedule, creating an industry-leading diversified oilfield service provider. I appreciate the tremendous efforts made by our collective team to achieve this milestone and look forward to the continued success of KLXE. Our leadership team is focused on executing on our robust integration plan and best positioning KLXE to continue to deliver industry-leading products and services to our customers and partners.“Our fiscal second quarter results were affected by the COVID-19 pandemic, the Saudi Arabia and Russia market share dispute and the resulting supply-demand imbalance, which led to a deterioration in industry conditions and decreased demand for our services. Our geographic segments, the Southwest, Rocky Mountains and the Northeast/Mid-Con, posted fiscal second quarter revenue of $4.2 million, $18.0 million and $14.0 million, respectively."KLXE will continue to streamline its asset base and operational footprint as we integrate the QES merger in order to realize synergies and to align with current market conditions, thereby delivering enhanced efficiency and improving returns. KLXE is uniquely positioned to operate with comparatively lower capital expenditures given the asset-light nature of its product and service offerings. In the early days post-merger, we have seen material benefits from the combined operational reach and customer relationships along with the deep product expertise brought together by each of the legacy companies. We are confident that this coordination will allow us to pull through tools and technologies across our coiled tubing footprint as well as drive additional utilization in other product lines.“As we look ahead, market conditions for U.S. drilling and completions will be challenging during the second half of 2020, driven by low commodity prices and significantly lower E&P capital spending. Despite  the industry backdrop, KLXE is now well equipped to deliver value to all stakeholders, supported by industry-leading safety and service quality, a strong balance sheet, a broad mix of product service lines and further investments in innovative solutions,” concluded Baker.Keefer Lehner, Executive Vice President and Chief Financial Officer of KLXE, added, “We have accelerated the timing of our $40.0 million run-rate cost synergy commitment, which we now expect to fully capture by the end of the first fiscal quarter of 2021."Our management team has deep experience in integration planning, analysis and execution in a similar market environment having successfully integrated Archer's U.S. operations into QES in 2016. The $40.0 million in synergies are predominantly corporate and administrative in nature and, thus, more readily achievable. Additionally, we are optimistic we will find additional cost saving opportunities as we work through the integration process and believe the current market environment, albeit challenging, should help facilitate an expedited integration process. We remain highly confident in our ability to achieve our targets and believe KLXE’s liquidity profile, along with its reduced cost structure, will allow the Company to navigate the current market uncertainty and ultimately position the Company for long-term success.”Merger Related Highlights * KLXE and QES merger closed on July 28, 2020, creating an industry-leading diversified provider of asset-light drilling, completion, production and intervention products and services. * The Company operates from over 60 service facilities throughout all major basins and provides services to a combined group of blue-chip independent and major E&P companies. * KLXE will operate under the executive leadership of QES’s legacy management team, including Christopher J. Baker, President and Chief Executive Officer, and Keefer M. Lehner, EVP and Chief Financial Officer. * The Board of Directors is comprised of nine directors, with five legacy KLXE directors and four legacy QES directors. * KLXE’s corporate headquarters are now located in Houston, Texas, and the Company plans to close the legacy Wellington, Florida headquarters by October 31, 2020.The combined organization has a highly talented workforce with a commitment to safety, performance, customer satisfaction and profitability. As the foremost U.S. provider of large diameter coiled tubing services, KLXE also offers its blue-chip customer base a complementary portfolio of products and services, including thru-tubing services, throughout all major onshore oil and gas basins in the U.S. The Company is now able to streamline operational support and technology advancements across a broader suite of service offerings. Finally, through its increased scale and product and service offerings designed to meet the needs of customers throughout the well lifecycle, KLXE is expected to generate cross-selling opportunities that allow for an increased share of customer spend.Excluding the impact of the estimated $40.0 million of annualized run-rate cost synergies that will result from the merger, the combined companies’ fiscal year 2019 pro forma revenues were more than $1.0 billion, and adjusted EBITDA was $106.0 million. As of July 31, 2020, KLXE had approximately $98.5 million of cash and an undrawn $100.0 million revolving credit facility, of which approximately $14.9 million was available (excluding the benefit of QES current assets). Importantly, the combined company has a strong balance sheet to support critical ongoing business initiatives as well as the pursuit of additional value-creating consolidation opportunities within the oilfield service industry.Asset and Product Portfolio UpdateOn a combined basis following the closing of the merger, KLXE has a substantial asset base comprised of high-quality young assets and has conducted a thorough review of its joint coiled tubing and wireline asset base as part of the Company’s integration plan.KLXE now has a fleet of 39 coiled tubing units (24 of which are large diameter), making KLXE the largest provider of large diameter coiled tubing in the United States. In addition to the market leading coiled tubing offering, KLXE is a premier provider of wireline, fishing, thru-tubing and well control services.The KLXE portfolio now includes QES’ Directional Drilling platform and expects to capture synergies on downhole tools and motors with the products and services provided through the completion and production offerings.Reverse Stock Split On July 24, 2020, KLXE stockholders approved a proposal to amend KLXE's certificate of incorporation to effect a one-for-five reverse stock split.Fiscal Second Quarter 2020 Financial Results Revenue for the fiscal second quarter of 2020 totaled $36.2 million, a decrease of 56.4%, compared to $83.0 million for the first quarter of 2020. Net loss for the fiscal second quarter of 2020 was $20.4 million, compared to net loss of $243.1 million, inclusive of $208.7 million non-cash asset impairment charge, for the first quarter of 2020. Adjusted EBITDA loss for the fiscal second quarter of 2020 was $10.6 million, compared to Adjusted EBITDA income of $2.6 million for the first quarter of 2020. Selling, general and administrative expenses, inclusive of $5.5 million of deal costs, $7.5 million of severance and $15.1 million of non-cash equity compensation tied to accelerated vesting for the fiscal second quarter of 2020 totaled $41.8 million, as compared to $17.4 million for the first quarter of 2020. The decrease in revenues reflects the impact of the COVID-19 pandemic and the impact of the Saudi Arabia and Russia market share dispute and resulting supply-demand imbalance, which led to a deterioration in industry conditions and a decrease in demand for our services. On a product line basis, completion, production and intervention services contributed approximately 60.5%, 18.8% and 20.7%, respectively, to fiscal second quarter revenues.Fiscal Second Quarter 2020 Segment ResultsThe Company reports through three geographic business segments, the Rocky Mountains, Southwest and Northeast/Mid-Con. Revenue decreases across all three geographic segments were driven by the combination of the lingering impacts of the Saudi Arabia and Russia oil market share dispute and the prolonged demand destruction caused by the COVID-19 pandemic, which have  jointly driven the demand for oil to depressed levels resulting in decreases in demand for services such as those provided by the Company.Rocky Mountains:  Revenue and adjusted EBITDA loss for the Rocky Mountains segment was $18.0 million and $3.7 million, respectively for the fiscal second quarter of 2020. Revenue represents a 46.7% decrease over first quarter 2020.Southwest:  Revenue and adjusted EBITDA loss for the Southwest segment, which includes the Permian and South Texas, was $4.2 million and $1.9 million, respectively, for the fiscal second quarter of 2020. Revenue represents an 82.8% decrease over first quarter 2020.Northeast/Mid-Con:  Revenue and adjusted EBITDA loss for the Northeast/Mid-Con segment was $14.0 million and $5.0 million, respectively, for the fiscal second quarter of 2020. Revenues decreased 43.5% over first quarter 2020.For the quarter ended July 31, 2020, the Rocky Mountains segment operating loss was $25.6 million, Northeast/Mid-Con segment operating loss was $17.2 million and Southwest segment operating loss was $11.1 million.The following is a tabular summary of revenue and Adjusted EBITDA for the three-month periods ended July 31, 2020 and April 30, 2020 ($ in millions):  Three Months Ended   July 31, 2020 April 30, 2020 Revenue:     Southwest $4.2  $24.4  Rocky Mountains 18.0  33.8  Northeast/Mid-Con 14.0  24.8  Total revenue $36.2  $83.0    Three Months Ended   July 31, 2020 April 30, 2020 Adjusted EBITDA     Southwest $(1.9) $0.5  Rocky Mountains (3.7) 1.7  Northeast/Mid-Con (5.0) 0.4  Total Adjusted EBITDA (loss) income1 $(10.6) $2.6  1 Excludes Costs as Defined, as defined in the Reconciliation of Consolidated Net Loss to Adjusted EBITDA (loss) income table below, non-cash compensation expense and non-cash asset impairment expense.Fiscal Second Quarter 2020 EBITDA AddbacksAdjusted EBITDA loss for the fiscal second quarter of 2020 includes net adjustments of $10.3 million, driven by the $41.1 million bargain purchase gain, offset by $13.0 million of transaction related costs, $15.1 million of non-cash stock compensation expense and $2.7 million in other costs.Balance Sheet and LiquidityTotal debt outstanding as of July 31, 2020 was $243.4 million, compared to $243.0 million as of January 31, 2020.  As of July 31, 2020, cash and equivalents totaled $98.5 million.Total available liquidity as of July 31, 2020 was approximately $113.4 million, including availability under our undrawn ABL Facility. As of July 31, 2020, approximately $26.2 million of accounts receivable and inventories had not yet been included in our borrowing base.Bargain Purchase GainOn July 28, 2020, the Company completed the merger with QES for an aggregate acquisition price of approximately $44.4 million, comprised of 3.4 million shares of the Company’s common stock. Total consideration includes the $34.7 million purchase price and repayment of $9.7 million in outstanding borrowings and associated fees and expenses of QES's five-year asset-based revolving credit agreement (the “QES ABL Facility”).Based on the Company’s preliminary purchase price allocation, the purchase price was less than the fair value of the identifiable assets acquired, which resulted in a $41.1 million bargain purchase gain being recorded on the condensed consolidated statements of operations for the three and six months ended July 31, 2020.Acceleration of Intangible AmortizationDuring the fiscal quarter ended July 31, 2020, management evaluated the intangible assets primarily related to customer relationships. Considering current customer activity and market conditions, the Company elected to accelerate intangible amortization costs that resulted in an amortization charge of $2.7 million.Other Financial InformationCapital expenditures were $3.7 million during the fiscal second quarter of 2020, decreased of $1.1 million, or 22.9%, compared to capital expenditures of $4.8 million in the first quarter of 2020. Capital spending during the fiscal first and second quarters of 2020 was driven primarily by maintenance capital expenditures across our segments.Conference Call InformationKLXE has scheduled a conference call for 9:00 a.m. Central Time (10:00 a.m. Eastern Time) on Thursday, September 3, 2020, to review reported results.  You may access the call by telephone at 1-201-389-0867 and ask for the KLXE 2020 Fiscal Second Quarter Conference Call.  The webcast of the call may also be accessed through the Investor Relations section of the Company’s website at https://investor.klxenergy.com/events-and-presentations/events. A replay of the call can be accessed on the Company’s website for 90 days and will be available by telephone through September 10, 2020, at (201) 612-7415, access code 13708491.About KLX Energy ServicesKLX Energy Services is a provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the United States.  The Company delivers mission critical oilfield services focused on drilling, completion, intervention and production activities for the most technically demanding wells from over 60 service facilities located in the United States. KLXE’s complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house research and development, manufacturing, repair and maintenance capabilities.  More information is available at www.klxenergy.com.Forward-Looking Statements and Cautionary StatementsThe Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information to investors. This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) includes forward-looking statements that reflect our current expectations and projections about our future results, performance and prospects. Forward-looking statements include all statements that are not historical in nature and are not current facts. When used in this news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein), the words “believe,” “expect,” “plan,” “intend,” "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," “could,” “will,” or the negative of these terms or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events with respect to, among other things: our operating cash flows; the availability of capital and our liquidity; our future revenue, income and operating performance; our ability to sustain and improve our utilization, revenue and margins; our ability to maintain acceptable pricing for our services; future capital expenditures; our ability to finance equipment, working capital and capital expenditures; our ability to execute our long-term growth strategy and to integrate our acquisitions, including QES; our ability to successfully develop our research and technology capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and special projects.Forward-looking statements are not assurances of future performance and actual results could differ materially from our historical experience and our present expectations or projections. These forward-looking statements are based on management’s current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us, and other factors believed to be appropriate. Although management believes the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Our forward-looking statements involve significant risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: a decline in demand for our services, including due to the ongoing COVID-19 pandemic, declining commodity prices, overcapacity and other competitive factors affecting our industry; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by E&P companies; a decline in, or substantial volatility of, crude oil and gas commodity prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; and other risks and uncertainties listed in our filings with the U.S. Securities and Exchange Commission, including our Current Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law. KLX Energy Services Holdings, Inc. Condensed Consolidated Statements of Operations (In millions of U.S. dollars and shares, except per share amounts)  (Unaudited) Three Months Ended  July 31, 2020 April 30, 2020 Revenues$36.2  $83.0  Costs and expenses:    Cost of sales48.1  92.2  Selling, general and administrative41.8  17.4  Research and development costs0.2  0.3  Goodwill and long-lived asset impairment charge—  208.7  Bargain purchase gain41.1  —  Operating loss(12.8) (235.6) Non-operating expense:    Interest expense, net7.6  7.4  Loss before income tax(20.4) (243.0) Income tax expense—  0.1  Net loss$(20.4) $(243.1)      Net loss per common share(1):    Basic$(4.12) $(52.41) Diluted$(4.12) $(52.41)      Weighted average common shares:    Basic5.0  4.6  Diluted5.0  4.6  (1) Basic and diluted net (loss) earnings per share were retroactively adjusted for the Company’s 1-for-5 reverse stock split effective July 28, 2020. KLX Energy Services Holdings, Inc. Condensed Consolidated Balance Sheets (In millions of U.S. dollars and shares) (Unaudited) July 31, 2020 January 31, 2020 ASSETS Current assets:    Cash and cash equivalents$98.5  $123.5  Accounts receivable–trade, net of allowance of $5.1 and $12.940.5  79.2  Inventories, net26.7  12.0  Other current assets13.8  13.8  Total current assets179.5  228.5  Property and equipment, net234.1  306.8  Goodwill—  28.3  Intangible assets, net2.6  45.8  Other assets8.9  14.0  Total assets$425.1  $623.4  LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:    Accounts payable$33.1  $31.4  Accrued interest7.2  7.2  Accrued liabilities33.8  26.2  Total current liabilities74.1  64.8  Long-term debt243.4  243.0  Deferred income taxes0.1  0.0  Other non-current liabilities7.8  3.4  Commitments, contingencies and off-balance sheet arrangements    Stockholders’ equity:    Common stock, $0.01 par value; 110.0 authorized; 8.5 and 5.0 issued; 8.5 and 4.7 outstanding (1)0.1  0.0  Additional paid-in capital468.0  416.7  Treasury stock, at cost, 0.1 shares and 0.1 shares (1)(4.0) (3.6) Accumulated deficit(364.4) (100.9) Total stockholders’ equity99.7  312.2  Total liabilities and stockholders' equity$425.1  $623.4  (1) Common stock and treasury stock was retroactively adjusted for the Company's 1-for-5 reverse stock split effective July 28, 2020. KLX Energy Services Holdings, Inc. Condensed Consolidated Statements of Cash Flows (In millions of U.S. dollars) (Unaudited) Six Months Ended  July 31, 2020 July 31, 2019 Cash flows from operating activities:    Net loss$(263.5) $(1.5) Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities    Depreciation and amortization29.1  31.3  Goodwill and long-lived asset impairment charge208.7  —  Non-cash compensation16.7  9.1  Amortization of deferred financing fees0.6  0.5  Provision for inventory reserve1.4  0.7  Change in allowance for doubtful accounts(7.8) 1.8  Loss on disposal of property, equipment and other0.7  1.4  Bargain purchase gain(41.1) —  Changes in operating assets and liabilities:    Accounts receivable58.8  (26.5) Inventories(2.2) 1.4  Other current and non-current assets6.0  0.6  Accounts payable(22.2) (0.2) Other current and non-current liabilities(0.7) (6.7) Net cash flows (used in) provided by operating activities(15.5) 11.9  Cash flows from investing activities:    Purchases of property and equipment(8.5) (56.8) Proceeds from sale of property and equipment0.4  0.3  Acquisitions, net of cash acquired(1.0) (27.6) Net cash flows used in investing activities(9.1) (84.1) Cash flows from financing activities:    Purchase of treasury stock(0.4) —  Cash proceeds from stock issuance—  0.8  Net cash flows (used in) provided by financing activities(0.4) 0.8  Net decrease in cash and cash equivalents(25.0) (71.4) Cash and cash equivalents, beginning of period123.5  163.8  Cash and cash equivalents, end of period$98.5  $92.4       Supplemental disclosures of cash flow information:    Cash paid during period for:    Income taxes paid, net of refunds$0.3  $1.0  Interest14.6  14.7  Supplemental schedule of non-cash activities:    Issuance of common stock and stock based payments for QES acquisition34.7  —  Change in deposits on capital expenditures(5.4) (4.5) Accrued capital expenditures1.2  8.4  KLX Energy Services Holdings, Inc. Additional Selected Operating Data (Unaudited)Non-GAAP Financial MeasuresThis release includes Adjusted EBITDA (loss) and free cash flow to reflect net loss before amortization, Costs as Defined and non-cash compensation expense. This release also includes “Adjusted EBITDA (loss),” which excludes Costs as Defined and non-cash compensation expense. Adjusted EBITDA (loss) is used to calculate the Company’s leverage ratio, consistent with the terms of the Company's ABL facility. Each of the metrics are “non-GAAP financial measures” as defined in Regulation G of the Securities Exchange Act of 1934. See “Reconciliation of Non-GAAP Financial Measures.”Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies.We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. We define free cash flow as net cash provided by operating activities less capital expenditures.Our management uses free cash flow to assess the Company's liquidity and ability to repay maturing debt, fund operations and make additional investments. We believe that free cash flow provides useful information to investors because it is an important indicator of the Company's liquidity, including its ability to reduce net debt, make strategic investments and repurchase stock.The following tables present a reconciliation of the non-GAAP financial measures of Adjusted EBITDA and free cash flow to the most directly comparable GAAP financial measure for the periods indicated:KLX Energy Services Holdings, Inc. Reconciliation of Consolidated Net Loss To Adjusted EBITDA (Loss) Income (in millions) (Unaudited) Three Months Ended  July 31, 2020 April  30, 2020 Consolidated net loss$(20.4) $(243.1) Income tax expense (benefit)—  0.1  Interest expense, net7.6  7.4  Operating loss(12.8) (235.6) Bargain purchase gain(41.1) —  Costs as defined 130.8  222.7  Adjusted operating loss(23.1) (12.9) Depreciation and amortization12.9  16.2  Non-cash compensation17.4  (0.7) Less: Costs as defined - restricted stock acceleration(15.1) —  Less: Costs as defined - amortization(2.7) —  Adjusted EBITDA (loss) income$(10.6) $2.6  Reconciliation of Rocky Mountains Operating Loss To Adjusted EBITDA (in millions) (Unaudited) Three Months Ended  July 31, 2020 April  30, 2020 Rocky Mountains operating loss$(25.6) $(37.8) Costs as Defined (1)17.3  34.2  Adjusted Rocky Mountains operating loss(8.3) (3.6) Depreciation and amortization expense7.9  5.6  Non-cash compensation7.6  (0.3) Less: Costs as defined - restricted stock acceleration(8.2) —  Less: Costs as defined - amortization(2.7) —  Rocky Mountains Adjusted EBITDA (loss) income$(3.7) $1.7  Reconciliation of Northeast/Mid-Con Operating Loss To Adjusted EBITDA (in millions) (Unaudited) Three Months Ended  July 31, 2020 April  30, 2020 Northeast/Mid-Con operating loss$(17.2) $(97.4) Costs as Defined (1)8.8  92.4  Adjusted Northeast/Mid-Con operating loss(8.4) (5.0) Depreciation and amortization expense2.7  5.6  Non-cash compensation5.6  (0.2) Less: Costs as defined - restricted stock acceleration(4.9) —  Less: Costs as defined - amortization—  —  Northeast/Mid-Con Adjusted EBITDA (loss) income$(5.0) $0.4  Reconciliation of Southwest Operating Loss Income To Adjusted EBITDA (in millions) (Unaudited) Three Months Ended  July 31, 2020 April  30, 2020 Southwest operating loss$(11.1) $(100.4) Costs as Defined (1)4.7  96.1  Adjusted Southwest operating loss(6.4) (4.3) Depreciation and amortization expense2.3  5.0  Non-cash compensation4.2  (0.2) Less: Costs as defined - restricted stock acceleration(2.0) —  Less: Costs as defined - amortization—  —  Southwest Adjusted EBITDA (loss) income$(1.9) $0.5  (1) Costs as Defined in the fiscal second quarter relates to accelerated stock based compensation costs, severance costs, customer relationship intangible amortization costs and Merger costs of $15.1 million, $7.5 million, $2.7 million and $5.5 million, respectively.  The first quarter relates to a goodwill and long-lived asset impairment charges, business rationalization and other costs related to the merger with QES and new product and service line start-up costs of $208.7, $11.9, $1.1 and $1.0, respectively. KLX Energy Services Holdings, Inc. Segment Adjusted EBITDA Margin (in millions) (Unaudited)  Three Months Ended   July 31, 2020 April 30, 2020 Segment Adjusted EBITDA Margin(1)     Southwest     Adjusted EBITDA (loss) income $(1.9) $0.5  Revenue 4.2  24.4  Adjusted EBITDA Margin Percentage (45.2)% 2.0% Rocky Mountains     Adjusted EBITDA (loss) income (3.7) 1.7  Revenue 18.0  33.8  Adjusted EBITDA Margin Percentage (20.6)% 5.0% Northeast/Mid-Con     Adjusted EBITDA (loss) income (5.0) 0.4  Revenue 14.0  24.8  Adjusted EBITDA Margin Percentage (35.7)% 1.6% (1)  Segment Adjusted EBITDA Margin is defined as the quotient of Segment Adjusted EBITDA (loss) income and total segment revenue. Segment Adjusted EBITDA is net income (loss) excluding Costs as Defined, non-cash compensation expense and non-cash asset impairment expense. The following table presents a reconciliation of the non-GAAP financial measure of free cash flow to the most directly comparable GAAP financial measure for the periods indicated:KLX Energy Services Holdings, Inc. Reconciliation of Net Cash Flow Provided by Operating Activities to Free Cash Flow (in millions) (Unaudited) Three Months Ended  July 31, 2020 April  30, 2020 Net cash flow (used in) provided by operating activities$(22.5) $7.0  Capital expenditures(3.7) (4.8) Free cash flow$(26.2) $2.2  Contacts: KLX Energy Services Holdings, Inc. Keefer M. Lehner, EVP & CFO 832-930-8066 IR@klxenergy.comDennard Lascar Investor Relations Ken Dennard / Natalie Hairston 713-529-6600 KLXE@dennardlascar.com

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  • KLX Energy Services Announces Fiscal 2020 Second Quarter Earnings Release and Conference Call Schedule

    HOUSTON, Aug. 18, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (“KLXE” or the “Company”) (NASDAQ: KLXE) announced today that it will release its fiscal second quarter 2020 financial results on Wednesday, September 2, 2020 after the market closes.  In conjunction with the release, the Company has scheduled a conference call, which will also be broadcast live over the Internet, on Thursday, September 3, 2020 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).What:  KLX Energy Services Fiscal 2020 Second Quarter Earnings Conference Call     When:  Thursday, September 3, 2020 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time     How:  Live via phone – By dialing 1-201-389-0867 and asking for the KLXE call at least 10 minutes prior to the start time, or Live over the Internet – By logging onto the web at the address below     Where:  https://investor.klxenergy.com/events-and-presentations/events For those who cannot listen to the live call, a replay will be available through September 10, 2020 and may be accessed by dialing 1-201-612-7415 and using passcode 13708491.  Also, an archive of the webcast will be available shortly after the call at https://investor.klxenergy.com/events-and-presentations/events for 90 days. About KLX Energy ServicesKLX Energy Services is a provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout the U.S.  The Company delivers mission critical oilfield services focused on drilling, completion, intervention and production activities for the most technically demanding wells from over 50 service facilities located in the U.S. KLXE’s complementary suite of proprietary products and specialized services is supported by technically skilled personnel and a broad portfolio of innovative in-house R&D, manufacturing, repair and maintenance capabilities.  More information is available at www.klxenergy.com.Contacts:  KLX Energy Services                  Keefer M. Lehner, EVP & CFO                  832-930-8066                  IR@klxenergy.com                 Dennard Lascar Investor Relations                  Ken Dennard / Natalie Hairston                  (713) 529-6600                  KLXE@dennardlascar.com

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  • Earnings Preview: KLX Energy Services (KLXE) Q2 Earnings Expected to Decline

    KLX Energy Services (KLXE) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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  • KLX Energy Services and Quintana Energy Services Complete Merger

    * Creates industry-leading, asset-light product and service offerings present in all major U.S. onshore oil and gas basins to serve its blue-chip customers * Adds one of the largest independent providers of directional drilling services and establishes one of the largest U.S. wireline fleets * Estimated annualized cost synergies of at least $40 million by the second quarter of 2021 * Expected to be accretive to free cash flow per share * Positions the combined company to pursue additional value-creating consolidation opportunities within the oilfield service industryHOUSTON, July 28, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (“KLXE” or the “Company”) (NASDAQ: KLXE) and Quintana Energy Services, Inc. (“QES”) (NYSE: QES) have successfully completed the all-stock merger transaction that was announced on May 3, 2020. The combined company will continue under the name KLX Energy Services Holdings, Inc.In conjunction with the closing of the merger, QES shares ceased trading on the New York Stock Exchange prior to the market open on July 28, 2020, and KLXE remains listed on the Nasdaq Global Select Market under the symbol “KLXE.” At the time of the closing, the holders of QES received 0.0969 shares of KLXE common stock in exchange for each share of QES common stock held. On July 26, 2020, the Company’s Board of Directors approved a 1 for 5 reverse stock split to stockholders that became effective at 12:01 a.m. on July 28, 2020. KLXE and QES stockholders own approximately 59% and 41%, respectively, of the equity of the combined company on a fully-diluted basis. The closing follows approval of the merger transaction by both KLXE and QES stockholders at stockholder meetings held on July 24, 2020.  “We are pleased to complete the previously announced merger of KLX Energy Services and Quintana Energy Services, bringing together two companies with tremendous strengths and capabilities that make us uniquely equipped to support our blue-chip customers during this unprecedented time,” said Christopher J. Baker, President and CEO of the combined company. “As a premier provider of completion, production and intervention, and drilling solutions, KLXE will continue to focus on operational excellence across its broad product and service offerings as it supports and expands its portfolio of proprietary technologies that provide a competitive advantage. Looking ahead, the Company expects to pursue strategic, accretive consolidation opportunities that further strengthen the Company’s competitive positioning and capital structure, drive efficiencies, accelerate growth, and create long‑term stockholder value.”Tom McCaffrey, former President and CEO of KLXE and a continuing KLXE Board member, said, “This transaction culminates an accelerated yet extensive process by the management and boards of both companies to enhance stockholder value. The company will be rationalizing two of the largest fleets of coiled tubing and wireline assets, which will dramatically reduce future capital spending and facilitate the pull-through of KLXE’s asset-light services. This transaction positions the Company to better weather the current storm and, ultimately, to grow on a significantly reduced capital expenditure budget. I look forward to chairing the Board’s Integration Committee to provide oversight of the integration and synergy realization plan, which is expected to generate at least $40 million in annualized cost savings within 12 months as management aligns common roles, processes and systems throughout each function and region in the Company. We are confident that KLXE will be on the leading edge of the recovery once our operations and support functions are fully integrated and aligned.”Financial Synergies Excluding the impact of the estimated $40 million of annualized cost synergies from the merger, the combined companies’ fiscal year 2019 pro forma revenues were more than $1 billion, and adjusted EBITDA was $106 million. Pro forma for the combination, KLXE has an improved liquidity and capital structure with approximately $117 million of cash1 and an undrawn $100 million revolving credit facility, of which approximately $95 million was available1. The merger is expected to be significantly accretive to free cash flow per share. Importantly, the combined company has a strong balance sheet to support critical ongoing business initiatives as well as the pursuit of additional value-creating consolidation opportunities within the oilfield service industry.Operational SynergiesThe combined organization has a highly talented workforce with a commitment to safety, performance, customer satisfaction, and profitability. Complementary to being the foremost U.S. provider of large diameter coiled tubing services, the Company also offers an industry-leading portfolio of asset-light products and services to its blue-chip customers across all major onshore oil and gas basins in the United States. The Company is now able to streamline operational support and technology advancements across a broader suite of service offerings. Finally, through its increased scale and product and service offerings designed to meet the needs of customers throughout the lifecycle of the well, KLXE is expected to generate cross-selling opportunities that allow for an increased share of customer spend.Leadership and StructureKLXE will operate under the executive leadership of QES’s legacy management team, including Christopher J. Baker, President and Chief Executive Officer, and Keefer M. Lehner, EVP and Chief Financial Officer. The Board of Directors is comprised of nine directors, with five legacy KLXE directors and four legacy QES directors. John Collins, current Chairman of the Board of KLXE, will continue to serve as Chairman, and Tom McCaffrey, former President and CEO of KLXE, will continue to serve on the Board and as chair of its Integration Committee. Additional leadership biographies will be available on the Company’s website, www.klxenergy.com. KLXE’s corporate headquarters is now located in Houston, Texas.Additional ResourcesFor more information on the combination, please view the initial announcement and presentation here:Announcement: https://investor.klxenergy.com/news-releases/news-release-details/klx-energy-services-and-quintana-energy-services-combine-allPresentation: https://investor.klxenergy.com/static-files/6014c6f9-5bdc-44dc-b81b-bb92b8b08d36AdvisorsGoldman Sachs & Co. LLC served as exclusive financial advisor to KLXE and Freshfields Bruckhaus Deringer US LLP served as legal counsel.Tudor, Pickering, Holt & Co. served as exclusive financial advisor to QES and Skadden, Arps, Slate, Meagher, & Flom LLP served as legal counsel.About KLX Energy ServicesKLX Energy Services is a leading US onshore provider of mission critical oilfield services focused on completion, production and intervention, and drilling activities for the most technically demanding wells. KLX Energy Services’ experienced and technically skilled personnel are supported by a broad portfolio of specialized tools and equipment, including innovative proprietary tools developed by KLXE’s in-house R&D team. KLX Energy Services supports its broad customer base on a 24/7 basis from over 50 service facilities located throughout the major onshore oil and gas producing regions of the United States. More information is available at www.klxenergy.com.____________ 1 Cash balance is presented based on respective Q1 2020 quarter end for KLXE (April 30, 2020) and QES (March 31, 2020), net of the repayment of the QES credit facility, and availability is also presented based on the respective Q1 2020 quarter end for KLXE and QES adjusted for the repayment of the QES credit facility. Contacts: Keefer M. Lehner, EVP & Chief Financial Officer 832-930-8066 IR@KLXEnergy,comDennard Lascar Investor Relations Ken Dennard / Natalie Hairston 713-529-6600 KLXE@dennardlascar.com Forward Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “projects,” “strategy,” or “anticipates,” or the negative of those words or other comparable terminology. Such forward-looking statements, including those regarding the transaction between KLXE and QES, involve risks and uncertainties. The combined company’s experience and results may differ materially from the experience and results anticipated in such statements. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the following factors: (1) the ability of KLXE to achieve the benefits anticipated from the business combination; (2) litigation relating to the transaction; (3) risks that the transaction disrupts the current plans and operations of KLXE; (4) the ability of KLXE  to retain and hire key personnel; (5) competitive responses to the transaction; (6) unexpected costs, charges or expenses resulting from the transaction; (7) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; (8) the combined company’s ability to achieve the synergies expected from the transaction, as well as delays, challenges and expenses associated with integrating the combined company’s existing businesses; and (9) legislative, regulatory and economic developments. Other factors that might cause such a difference include those discussed in KLXE’s filings with the SEC, which include its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and in the joint proxy statement/prospectus included in the registration statement on Form S-4 filed in connection with the transaction. For more information, see the section entitled “Risk Factors” and the forward-looking statements disclosure contained in KLXE’s and QES’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in other filings. The forward-looking statements included in this communication are made only as of the date hereof and, except as required by federal securities laws and rules and regulations of the SEC, KLXE undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Non-GAAP Financial MeasuresThis press release includes “Adjusted EBITDA.” Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies.Adjusted EBITDA is not a measure of net income or cash flows as determined by GAAP. We define Adjusted EBITDA as net income (loss) plus income taxes, net interest expense, depreciation and amortization, impairment charges, net (gain) loss on disposition of assets, stock based compensation, transaction expenses, rebranding expenses, settlement expenses, severance expenses, restructuring expenses, impairment expenses and equipment stand-up expense.We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The presentation of Adjusted EBITDA in this press release should not be construed as an inference that future results will be unaffected by unusual or non-recurring items.

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  • KLX Energy Services Announces Effectiveness of 1-for-5 Reverse Stock Split and Related Adjustment to Exchange Ratio for Merger

    WELLINGTON, Fla., July 27, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (“KLX Energy Services” or the “Company”) (NASDAQ:KLXE), a leading U.S. onshore provider of mission critical oilfield services, today announced that it will effect a 1-for-5 reverse stock split of its common stock that will be effective as of 7:30 a.m. Eastern Time tomorrow, July 28, 2020. KLXE’s common stock will begin trading on the Nasdaq Global Select Market on a split-adjusted basis when the market opens on Tuesday, July 28, 2020. KLX Energy Services anticipates that the reverse stock split will be effected immediately prior to closing of the Company’s pending merger with Quintana Energy Services Inc. (“QES”). The new CUSIP number for KLXE’s common stock following the reverse stock split is 48253L 205. Pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) among KLXE, QES, Krypton Intermediate LLC and Krypton Merger Sub Inc., the final Exchange Ratio under the Merger Agreement will be 0.0969, after giving effect to the reverse stock split.On July 24, 2020, the holders of a majority of KLXE’s outstanding shares of common stock approved the reverse stock split and gave KLXE’s board of directors’ discretionary authority to select a ratio for the split ranging from 1-for-5 to 1-for-10. The board of directors approved the reverse stock split at a ratio of 1-for-5 on July 26, 2020.The reverse stock split affects all issued and outstanding shares of KLXE’s common stock, as well as the number of shares of common stock available for issuance under KLXE’s Long Term Incentive Plan and Employee Stock Purchase Plan. The reverse stock split does not affect the number of authorized shares of KLXE’s common stock. The reverse stock split will reduce the number of shares of KLXE’s outstanding common stock from approximately 24.9 million to approximately 5.0 million, prior to closing of the merger. The reverse stock split will not change the par value of the common stock or the authorized number of shares of preferred stock of KLXE.The reverse stock split will affect all holders of common stock uniformly and will not alter any stockholder’s percentage ownership interest in KLXE, except to the extent that the reverse stock split would result in a stockholder owning a fractional share. No fractional shares of common stock will be issued in connection with the reverse stock split; stockholders who otherwise would be entitled to a fractional share of common stock will be entitled to receive a proportional cash payment.KLXE’s transfer agent, Computershare, is acting as the exchange agent for the reverse stock split. For those stockholders holding physical stock certificates, Computershare will send instructions for exchanging those certificates for shares held in book-entry form representing the post-split number of shares. Stockholders holding their shares in book-entry form or in brokerage accounts need not take any action in connection with the reverse stock split. Beneficial holders are encouraged to contact their bank, broker or custodian with any procedural questions.Forward Looking StatementsThis communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “projects,” “strategy,” or “anticipates,” or the negative of those words or other comparable terminology. Such forward-looking statements, including those regarding the timing and consummation of the proposed transaction with Quintana Energy Services Inc. (“QES”), involve risks and uncertainties. KLXE’s and QES’s experience and results may differ materially from the experience and results anticipated in such statements. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but are not limited to, the following factors: (1) the risk that the conditions to the closing of the transaction are not satisfied; (2) litigation relating to the transaction; (3) uncertainties as to the timing of the consummation of the transaction and the ability of each party to consummate the transaction; (4) risks that the proposed transaction disrupts the current plans and operations of KLXE or QES; (5) the ability of KLXE and QES to retain and hire key personnel; (6) competitive responses to the proposed transaction; (7) unexpected costs, charges or expenses resulting from the transaction; (8) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; (9) the combined companies’ ability to achieve the synergies expected from the transaction, as well as delays, challenges and expenses associated with integrating the combined companies’ existing businesses; and (10) legislative, regulatory and economic developments. Other factors that might cause such a difference include those discussed in KLXE’s and QES’s filings with the Securities and Exchange Commission (the “SEC”), which include their Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and in the joint proxy statement/prospectus included in the registration statement on Form S-4 filed in connection with the proposed transactions. For more information, see the section entitled “Risk Factors” and the forward looking statements disclosure contained in KLXE’s and QES’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in other filings. The forward-looking statements included in this communication are made only as of the date hereof and, except as required by federal securities laws and rules and regulations of the SEC, KLXE and QES undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Additional Information and Where to Find ItIn connection with the proposed transaction, KLXE has filed a registration statement on Form S-4 with the SEC, which has been declared effective, including a joint proxy statement of KLXE and QES that also constitutes a prospectus of KLXE (the “Registration Statement”). No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and shareholders may obtain free copies of these documents, and other documents containing important information about KLXE and QES, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by KLXE are available free of charge on KLXE’s website at http://www.KLXenergy.com or by contacting KLXE’s Investor Relations Department by email at Tom.McCaffrey@klxenergy.com or by phone at 561-791-5403. Copies of the documents filed with the SEC by QES are available free of charge on QES’s website at www.quintanaenergyservices.com or by contacting QES’s Investor Relations Department by email at IR@qesinc.com or by phone at 832-594-4004.Participants in the SolicitationKLXE, QES and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of QES is set forth in its proxy statement for its 2020 annual meeting of shareholders, which was filed with the SEC on March 27, 2020, and QES’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on March 6, 2020. Information about the directors and executive officers of KLXE is set forth in KLXE’s Form 10-K/A for the fiscal year ended January 31, 2020, which was filed with the SEC on May 29, 2020. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Registration Statement. You may obtain free copies of these documents from KLXE or QES using the sources indicated above.No Offer or SolicitationThis document is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. Subject to certain facts to be ascertained, the public offer will not be made, directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction, or by use of the mails or by any means or instrumentality (including without limitation, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or any facility of a national securities exchange, of any such jurisdiction.About KLX Energy ServicesKLX Energy Services is a leading U.S. onshore provider of mission critical oilfield services focused on completion, intervention and production activities for the most technically demanding wells. KLX Energy Services’ experienced and technically skilled personnel are supported by a broad portfolio of specialized tools and equipment, including innovative proprietary tools developed by the Company’s in-house R&D team. KLX Energy Services supports its customers on a 24/7 basis from over 40 service facilities located in the major onshore oil and gas producing regions of the United States.CONTACT:Tom McCaffrey President, Chief Executive Officer and Chief Financial Officer KLX Energy Services Holdings, Inc. (561) 791-5403 Tom.McCaffrey@klxenergy.com Ryan Tyler Vice President, Corporate Development, Financial Reporting and Internal Controls 561-273-7157 Ryan.Tyler@KLXEnergy.com

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  • KLX Energy Services Stockholders Approve Stock Issuance in Connection with the Proposed Merger with Quintana Energy Services

    WELLINGTON, Fla., July 24, 2020 (GLOBE NEWSWIRE) -- KLX Energy Services Holdings, Inc. (“KLXE” or the “Company”) (NASDAQ:KLXE), a leading U.S. onshore provider of mission critical oilfield services, announced that KLXE’s stockholders have approved the issuance of KLXE’s common stock (the “Stock Issuance Proposal”) in connection with the proposed merger of an indirect wholly owned subsidiary of KLXE with and into Quintana Energy Services Inc. (“QES”) (NYSE:QES) pursuant to an agreement and plan of merger, dated as of May 3, 2020 (the “Merger Agreement”), by and among QES, KLXE and two wholly owned subsidiaries of KLXE. The proposal to approve the stock issuance in connection with the proposed merger was passed by stockholders voting at KLXE’s annual meeting of stockholders (the “KLXE Annual Meeting”) held virtually on July 24, 2020. On that same day, the stockholders of QES voted to adopt the Merger Agreement. At the KLXE Annual Meeting, in addition to the Stock Issuance Proposal, KLXE stockholders also (i) approved an amendment to the amended and restated certificate of incorporation of the Company to effect a reverse stock split of KLXE common stock at a ratio within a range of 1-for-5 and 1-for-10, as determined by KLXE’s Board of Directors (the “Reverse Stock Split Proposal”), (ii) did not approve an amendment to KLXE’s Long-Term Incentive Plan to increase the number of shares issuable thereunder, and to provide for an annual limit on the awards to non-employee directors, (iii) approved the election of two Class II Directors (Benjamin A. Hardesty and Stephen M. Ward, Jr.) to the Company’s Board of Directors for a three-year term (the “Director Election Proposal”), (iv) approved an amendment to the Company’s Employee Stock Purchase Plan to increase the number of shares issuable thereunder and (v) approved the annual ratification of the appointment of Deloitte & Touche LLP to serve as the Company’s independent auditor for 2020. The KLXE stockholders also approved the adjournment of the Annual Meeting to solicit additional proxies for these proposals but no motion to adjourn the Annual Meeting was made because adjournment of the Annual Meeting was determined not to be necessary or appropriate. Other than the Stock Issuance Proposal, none of the other proposals voted on at the KLXE Annual Meeting are conditions to closing the merger under the Merger Agreement.Under the terms of the Merger Agreement, which was unanimously approved by the Boards of Directors of both companies, QES stockholders will receive 0.4844 shares of KLXE common stock for each share of QES common stock (the “Exchange Ratio”), subject to adjustment as a result of the Reverse Stock Split Proposal. Upon closing, KLXE and QES stockholders will, respectively, own approximately 59% and 41% of the equity of the combined company on a fully diluted basis. The combined company will retain the KLX Energy Services corporate name, the listing will remain on Nasdaq under the ticker “KLXE” and the corporate headquarters will be moved to Houston, Texas.The merger is expected to close on or about July 28, 2020, subject to the satisfaction of customary closing conditions.A full description of the proposed merger is included in the Joint Proxy Statement/Prospectus dated June 29, 2020, as supplemented, which is available without charge through the Securities and Exchange Commission (“SEC”) website at www.sec.gov. You may also obtain copies of documents filed by KLXE with the SEC on KLXE’s Internet website at http://www.klxenergy.com under the tab “Investor Relations,” then under the tab “Reports & SEC Filings.”Advisors In connection with the merger, Goldman Sachs & Co. LLC served as exclusive financial advisor to KLXE and Freshfields Bruckhaus Deringer US LLP served as legal counsel.Forward Looking StatementsThis communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “projects,” “strategy,” or “anticipates,” or the negative of those words or other comparable terminology. Such forward-looking statements, including those regarding the timing and consummation of the proposed transaction with QES, involve risks and uncertainties. KLXE’s and QES’s experience and results may differ materially from the experience and results anticipated in such statements. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but are not limited to, the following factors: (1) the risk that the conditions to the closing of the transaction are not satisfied; (2) litigation relating to the transaction; (3) uncertainties as to the timing of the consummation of the transaction and the ability of each party to consummate the transaction; (4) risks that the proposed transaction disrupts the current plans and operations of KLXE or QES; (5) the ability of KLXE and QES to retain and hire key personnel; (6) competitive responses to the proposed transaction; (7) unexpected costs, charges or expenses resulting from the transaction; (8) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; (9) the combined companies’ ability to achieve the synergies expected from the transaction, as well as delays, challenges and expenses associated with integrating the combined companies’ existing businesses; and (10) legislative, regulatory and economic developments. Other factors that might cause such a difference include those discussed in KLXE’s and QES’s filings with the SEC, which include their Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and in the joint proxy statement/prospectus included in the registration statement on Form S-4 filed in connection with the proposed transactions. For more information, see the section entitled “Risk Factors” and the forward looking statements disclosure contained in KLXE’s and QES’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and in other filings. The forward-looking statements included in this communication are made only as of the date hereof and, except as required by federal securities laws and rules and regulations of the SEC, KLXE and QES undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Additional Information and Where to Find ItIn connection with the proposed transaction, KLXE has filed a registration statement on Form S-4 with the SEC, which has been declared effective, including a joint proxy statement of KLXE and QES that also constitutes a prospectus of KLXE (the “Registration Statement”). No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and shareholders may obtain free copies of these documents, and other documents containing important information about KLXE and QES, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by KLXE are available free of charge on KLXE’s website at http://www.KLXenergy.com or by contacting KLXE’s Investor Relations Department by email at Tom.McCaffrey@klxenergy.com or by phone at 561-791-5403. Copies of the documents filed with the SEC by QES are available free of charge on QES’s website at www.quintanaenergyservices.com or by contacting QES’s Investor Relations Department by email at IR@qesinc.com or by phone at 832-594-4004.Participants in the SolicitationKLXE, QES and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of QES is set forth in its proxy statement for its 2020 annual meeting of shareholders, which was filed with the SEC on March 27, 2020, and QES’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on March 6, 2020. Information about the directors and executive officers of KLXE is set forth in KLXE’s Form 10-K/A for the fiscal year ended January 31, 2020, which was filed with the SEC on May 29, 2020. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the Registration Statement. You may obtain free copies of these documents from KLXE or QES using the sources indicated above.No Offer or SolicitationThis document is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. Subject to certain facts to be ascertained, the public offer will not be made, directly or indirectly, in or into any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction, or by use of the mails or by any means or instrumentality (including without limitation, facsimile transmission, telephone and the internet) of interstate or foreign commerce, or any facility of a national securities exchange, of any such jurisdiction.About KLX Energy ServicesKLX Energy Services is a leading U.S. onshore provider of mission critical oilfield services focused on completion, intervention and production activities for the most technically demanding wells. KLX Energy Services’ experienced and technically skilled personnel are supported by a broad portfolio of specialized tools and equipment, including innovative proprietary tools developed by the Company’s in-house R&D team. 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