KLX Energy Services : H.C. Wainwright 24th Annual Global Investment Conference Presentation

H.C. Wainwright 24th Annual Global Investment Conference

September 2022

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Disclaimer & Forward-looking Statements

Cautionary Statement on Forward-looking Statements

This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Such forward- looking statements involve risks and uncertainties. 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 ability to renew and refinance our debt; 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; 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. The Company's actual experience and results may differ materially from the experience and results anticipated in such statements. Factors that might cause such a difference include those discussed in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), which include its Transition Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. For more information, see the section entitled "Forward-Looking Statements" contained in the Company's Transition Report on Form 10-K and in other filings. Any forward-looking statements included in this presentation are made only as of the date of this presentation and, except as required by federal securities laws and rules and regulations of the SEC, the Company 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 Measures

This presentation includes Adjusted EBITDA which is a "non-GAAP financial measure" 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, (v) costs incurred related to the COVID-19 pandemic and (vi) 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.

The Company's results for the periods Q1'19 through Q1'20 are presented on a pre-merger combined basis, which is the sum of KLX Energy Services Holdings, Inc. ("KLXE") and Quintana Energy Services, Inc. ("QES") results as disclosed for the given period, without any pro forma adjustments. Note that legacy QES fiscal year ended on December 31 and legacy KLXE fiscal year ended on January 31, which continued for KLXE until the Company changed its fiscal year-end from January 31 to December 31, effective beginning with the year ended December 31, 2021. As a result, our pre-merger combined quarterly data for Q1'19 includes legacy KLXE for three months ended April 30, 2019 and legacy QES for three months ended March 31, 2019, for Q2'19 includes legacy KLXE for three months ended July 31, 2019 and legacy QES for three months ended June 30, 2019, for Q3'19 includes legacy KLXE for three months ended October 31, 2019 and legacy QES for three months ended September 30, 2019, for Q4'19 includes legacy KLXE for three months ended January 31, 2020 and legacy QES for three months ended December 31, 2019, and for Q1'20 includes legacy KLXE for three months ended April 30, 2020 and legacy QES for three months ended March 31, 2020.

Additional information is available from KLXE at its website, www.klxenergy.com

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Company Overview

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Cycle-tested Executive Team with Deep Industry Experience

Management team successfully led merger integration

Chris Baker

President &

Chief Executive Officer

• Founded QES in 2014 as COO; CEO starting Q3 2019
• 27 years of industry experience
• Previously Managing Director - Oilfield Services for Quintana Capital Group
• Prior to joining Quintana in 2008, worked at Citigroup Global Markets Inc. and Theta II Enterprises, Inc.
• BS in Mechanical Engineering from Louisiana State University and MBA from Rice University

 Founded QES in 2014 serving as VP of Finance & Corp Dev and later

		CFO starting in 2016
Keefer Lehner	 16 years of industry experience
	Previously Vice President of Quintana Capital Group, focused on
EVP,
	energy private equity investing
Chief Financial Officer
	Prior to joining Quintana, worked for Simmons & Company in the
		investment banking group
	 BSBA from Villanova University
	 Previously QES's Executive VP, General Counsel and CCO
	 25+ years of legal experience in the oilfield services sector
Max Bouthillette		At Archer, served as Executive VP, GC and CCO and pre-QES IPO
EVP,		Director
General Counsel	BJ Services (pre Baker Hughes), served as Deputy GC and CCO
	Schlumberger, served as Litigation Counsel, OFS Counsel Asia, and GC
and CCO
	Products

 BBA in Accounting from Texas A&M and a JD from the University of Houston

Key operations leadership with deep industry experience from prior leadership roles at HAL, BHI, WFT, H&P and others

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A Transformed KLXE

Post-merger, KLXE transformed into industry leader

People		 Veteran operators throughout the organization
	 Deep technical expertise
		 Transparent alignment of incentives
Performance		 Performance culture
		Detailed KPI tracking and data-driven decision making
Asset Integrity		 Rigorous maintenance program to minimize downtime and ensure
		utmost equipment integrity and consistency in service quality
		 Selective evaluation of opportunities to ensure equipment integrity
Safety		 Employees value safe, professional field operations
		Strong interdependent safety culture and track record of strong safety
			metrics affords KLXE the opportunity to work for the largest operators
Customer			Long-term relationships with blue-chip customers
Focus			Strong visibility into drilling and completion programs
Profitability			Significant operating leverage
		Return on capital orientation

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