|Over a month ago|
KLX Inc, QES announce leadership structure of combined company » 05:4705/0405/04/20
KLXE (KLXE) and QES (QES)…
KLXE (KLXE) and QES (QES) announced Chris Baker, President and CEO of QES, will be President and CEO. Tom McCaffrey, President and CEO of KLXE, will be a member of the board of the combined company and will be Chairman of the Integration Committee of the board. Keefer Lehner, EVP and CFO of QES, will be EVP and CFO. Upon closing of the transaction, the combined company's board will consist of nine directors, five of whom will be from the legacy KLXE board, including John Collins as Chairman, and four of whom will be from the legacy QES board.
KLX Energy, Quintana Energy Services to combine in all-stock merger » 05:4505/0405/04/20
KLX Energy Services…
KLX Energy Services Holdings (KLXE) and Quintana Energy Services (QES) announced that they have entered into a definitive agreement whereby the companies will combine in an all-stock merger transaction. The combined company will have an industry-leading, asset-light product and service offering present in all major US onshore oil and gas basins, with more than $1 billion of pro forma fiscal year 2019 revenue and approximately $106 million in fiscal year 2019 adjusted EBITDA, excluding an estimated $40 million of annualized cost synergies and a strong liquidity profile with approximately $118 million of cash and a $100 million revolving credit facility. Under the terms of the Merger Agreement, which has been unanimously approved by the Boards of Directors of both companies, QES shareholders will receive 0.4844 shares of KLXE common stock for each share of QES common stock. Upon closing, KLXE and QES shareholders 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. Tom McCaffrey, President and CEO of KLXE, said, "We expect this transaction will also generate significant annualized cost synergies of at least $40 million within 12 months, which include substantial savings from the closure of KLXE's corporate headquarters in Wellington, Florida and the combination of both companies' Houston headquarters. In addition, KLXE's broad range of intervention services assures the combined company will be on the front end of the recovery." The transaction has been unanimously approved by the boards of both KLXE and QES. The merger is expected to close in the second half of 2020.
KLX Energy CEO Amin Khoury to resign, Tom McCaffrey to succeed » 06:0304/2004/20/20
Amin Khoury, Chairman of…
Amin Khoury, Chairman of the Board of Directors and CEO, announced that he will be resigning for personal family health reasons on May 1. Khoury will continue to be a member of the Board of Directors and serve as a consultant to the company following his resignation. Also effective on May 1, Tom McCaffrey, currently Senior Vice President and CFO, will become President and CEO of the company and will join the company's Board of Directors. John Collins, who is currently a member of the company's Board of Directors and Chairman of the Compensation Committee, will then become Chairman of the Board of Directors.
|Over a quarter ago|
KLX Energy announces additional workforce reduction of about 170 employees » 10:0204/0804/08/20
KLX Energy announced…
KLX Energy announced several additional cost reduction measures being taken in response to rapidly deteriorating market conditions as a result of the unprecedented demand destruction being caused by the Covid-19 pandemic in addition to the Saudi Arabia/Russia oil market share price war. On March 9, the company announced that it had initiated a cost rationalization program in which it implemented an approximately 360 person, or 22%, reduction in force. The company is announcing an additional reduction in its workforce of approximately 170 employees, which it expects to complete by April 10. In addition, the company has instituted a widespread wage reduction program. The aggregate impact of the reduction in force plus the wage reduction, together with certain other cost reductions, is an approximate $23M annualized reduction in costs on top of the approximately $45M annualized reduction in costs announced on March 9. KLX Energy Services ended the fiscal year with a cash balance of approximately $124M and maintains an undrawn $100M credit facility with a current availability of approximately $60M and no debt maturities until November 2025. Ongoing efforts to cut costs and preserve liquidity will continue as demand for the company's products and services declines. "A strong financial position will continue to be a key differentiator for us and allow the company to continue to explore strategic combinations," stated Amin Khoury, Chairman, CEO & President of KLX Energy Services.
Macy's to replace KLX Energy in S&P 600 at open on 4/6 04:5504/0604/06/20
S&P announces changes to S&P 100, 500, 600 indices » 17:4103/3103/31/20
UTX, OTIS, CARR, RTN, M, AMT, KLXE
United Technologies (UTX)…
United Technologies (UTX) is spinning off Otis Worldwide and Carrier Global and then merging with Raytheon in transactions expected to be completed on April 3. Post spin-off and merger transactions, United Technologies will remain in the S&P 500 & 100 indices. It will change its name to Raytheon Technologies and its ticker symbol to "RTX." Otis Worldwide (OTIS) and Carrier Global (CARR) will be added to the S&P 500 prior to the open of trading on Friday, April 3. Otis Worldwide will replace Raytheon (RTN), and Carrier Global will replace Macy's (M) both of which will be removed from the S&P 500 effective prior to the open of trading on Monday, April 6. Also effective on April 6, American Tower (AMT) will replace Raytheon in the S&P 100, and Macy's will replace KLX Energy Services Holdings (KLXE) in the S&P SmallCap 600. Macy's has a market capitalization more representative of the small-cap market space. KLX Energy is no longer representative of the small-cap market space.
Macy's to replace KLX Energy in S&P 600 at open on 4/6 17:2603/3103/31/20
KLX Energy downgraded to Hold from Buy at Gabelli » 09:2503/1603/16/20
Gabelli analyst Simon…
Gabelli analyst Simon Wong downgraded KLX Energy to Hold from Buy given his outlook for lower U.S. drilling and completion activity in 2020 amid the uncertainties on the duration of the oil price war between Saudi Arabia and Russia.
KLX Energy sees 'improved financial performance' in Q1 » 06:2403/0903/09/20
Commenting on the…
Commenting on the company's outlook, CEO Khoury stated, "Demand began to improve in the later part of January and the improvement continued in February. We are therefore expecting an increase in revenues and improved financial performance in our first quarter ending April 30, 2020 as compared to our fourth quarter ended January 31, 2020. We are continuing to recruit additional experienced coiled tubing personnel to join the Company in the first quarter, as we have now received and are deploying the last of our five new large diameter coiled tubing spreads. The coiled tubing start-up costs related to the deployment of these new spreads are expected to be a drag on our first quarter earnings. We expect to have all 13 of our large diameter coiled tubing spreads in operation by the end of the first quarter of 2020. We plan to remain focused on serving the needs of our customers and gaining share of customer spend by providing a broad portfolio of services and equipment across all major basins, while preserving a solid balance sheet, maintaining a healthy level of liquidity and prudently managing our capital expenditures. In an operating environment where our financial strength is a key differentiator, we believe that our ongoing cost reduction efforts along with the anticipated positive impact from the roll-out of our new large diameter coiled tubing units and the resulting pull through of our broad range of asset light services, will allow us to continue to both increase the number of customers served and gain share of customer spend, with a goal of generating positive free cash flow through 2020. Nevertheless, oil and gas demand destruction that is currently being caused by the corona virus pandemic with WTI and natural gas prices at just over $40 and $1.75, respectively, could cause further deterioration in E&P spending and investment in the coming months."
KLX Energy reports Q4 adjusted EPS (56c), consensus (39c) » 06:0203/0903/09/20
Reports Q4 revenue…
Reports Q4 revenue $98.8M, consensus $114.9M.