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KLX Energy Services Holdings Inc. (NASDAQ:KLXE) stock has reached a new 52-week low, trading at $2.95, as the company faces ongoing market headwinds. According to InvestingPro data, the company operates with a significant debt burden of $345 million and a concerning current ratio of 1.66. This latest price point marks a significant downturn for the energy services provider, which has seen its stock value decrease by 65.83% over the past year. With revenue declining by 20.16% and an EBITDA of $78.6 million in the last twelve months, investors are closely monitoring KLXE as it navigates through a challenging period, with the broader energy sector experiencing volatility and price pressures. The company’s performance and strategic responses in the coming quarters will be critical in determining its ability to recover from this low and regain value for its shareholders. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional ProTips available to subscribers providing deeper insights into the company’s financial health and prospects.
In other recent news, KLX Energy Services Holdings Inc. reported its financial results for the fourth quarter of 2024, revealing a revenue shortfall. The company posted a revenue of $165.5 million, which fell short of the projected $173.65 million, despite meeting earnings per share expectations at -0.8. Additionally, KLX Energy expanded its stock offering program by $25 million, bringing the total potential offering size to approximately $57.75 million. This move is part of a strategic effort to raise additional capital through the sale of common stock.
S&P Global Ratings recently upgraded KLX Energy’s credit rating to ’CCC+’ from ’ CCC (WA:CCCP)’, with the outlook adjusted to ’stable’ from ’negative’, due to the company’s successful debt management initiatives. KLX refinanced its upcoming debt maturities with a new five-year, $232 million senior secured note offering and an asset-based lending facility. Furthermore, S&P Global Ratings withdrew all ratings on KLX at the company’s request. These developments are part of KLX’s broader strategy to maintain financial stability and explore potential growth opportunities.
Analyst firms such as Sidoti have noted the company’s efforts in cost control and strategic capital allocation, which are expected to contribute to flat to slightly increased revenue in 2025. KLX’s focus remains on deleveraging and potential mergers and acquisitions, supported by the recent refinancing. The company’s board has approved the increase in the stock offering program, and legal counsel Vinson & Elkins L.L.P. has reviewed the legality of the issuance and sale of the stock under the amended agreement.
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