KLX ENERGY SERVICES HOLDINGS, INC REPORTS RECORD THIRD QUARTER 2022 RESULTS.

HOUSTON: KLX Energy Services Holdings, Inc. (Nasdaq: KLXE) ("KLX", the "Company", "we", "us" or "our") today reported financial results for the third quarter ended September 30, 2022. We also make reference to the three months ended September 30, 2021 ("Pro Forma Prior Year Third Quarter").

Third Quarter 2022 Financial and Operational Highlights

Revenue of $221.6 million, increased 20% sequentially

Generated net income of $11.1 million, a $18.6 million sequential increase, and EPS of $0.96/share

Adjusted EBITDA of $37.1 million, a 113% sequential increase

Adjusted EBITDA margin of 16.7%, a return to 2019 levels

Generated $18.5 million in net cash flow provided by operating activities, a $26.9 million sequential increase

Generated $20.3 million in unlevered free cash flow, a $23.9 million sequential increase

Ended the quarter with $41.4 million of cash, a 31% sequential increase

Ended the quarter with $86.4 million of available liquidity, consisting of $41.4 million of cash and $45.0 million of available borrowing capacity under the September 30, 2022 ABL Facility borrowing base certificate

Available liquidity at September 30, 2022 increased sequentially by $29.8 million, or 53%

Amended and extended ABL Facility Agreement under improved terms

Subsequent to the third quarter, exchanged $4.0 million of 2025 Senior Secured Notes for 235,281 shares

See "Non-GAAP Financial Measures" at the end of this release for a discussion of Adjusted EBITDA, Adjusted EBITDA margin, free cash flow, net working capital and their reconciliation to the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We have not provided reconciliations of our future expectations as to Adjusted EBITDA or Adjusted EBITDA margin as such reconciliation is not available without unreasonable efforts. In addition, for comparative purposes, we have also presented Pro Forma Operating Income (Loss) and Adjusted EBITDA for the three months ended September 30, 2021 in the Additional Selected Operating Data section below.

"Our strong third quarter results represented a record quarter for the Company since the merger," stated Chris Baker, President and Chief Executive Officer of KLX. "Despite the ever-volatile commodity price backdrop, the market remains highly constructive, driving increased demand and pricing for KLX's services. The industry's tightness in skilled labor and quality assets, coupled with KLX's ability to leverage efficiencies when mobilizing and deploying our personnel and equipment, enabled KLX to reduce white space, drive utilization and improve pricing. I am pleased to say that both revenue and margin increased in every KLX...