KLX Energy expands stock offering program by $25 million

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE), a provider of oil and gas field services with annual revenue of $709.3 million, has amended its equity distribution agreement to increase the size of its at-the-market (ATM) offering program by $25 million, as detailed in a recent SEC Form 8-K filing. The company, headquartered in Houston, Texas, entered into this amendment on Monday, March 14, 2025. According to InvestingPro data, the company’s stock has declined nearly 8% over the past week, with analysts setting a target price of $10 per share.

The ATM offering program, which allows the company to sell shares of its common stock over time, initially had an aggregate offering price cap of $50 million. As of June 11, 2024, KLX Energy had sold approximately 4.18 million shares at an average price of $7.83 per share, generating net proceeds of around $31.8 million after accounting for commissions and fees. With the stock currently trading at $4.24 and a market capitalization of approximately $71 million, InvestingPro subscribers can access detailed analysis and 6 additional key investment tips about KLXE’s financial outlook.

This expansion brings the total potential offering size to approximately $57.75 million, which includes the shares already sold under the program. The remaining capacity for future sales is now $25 million. These sales will be made pursuant to the company’s shelf registration statement on Form S-3, which became effective on April 19, 2023. The company maintains a healthy liquidity position with a current ratio of 1.66, indicating its ability to meet short-term obligations.

The board of directors approved the increase in the program’s size, and the second amendment to the equity distribution agreement reflects this change. The company will file a prospectus supplement to cover the offer and sale of the additional $25 million of common stock.

The terms of the original agreement and its amendments are available in the full text of the documents filed with the SEC. Legal counsel Vinson & Elkins L.L.P. has provided an opinion on the legality of the issuance and sale of the common stock under the amended agreement.

This move by KLX Energy Services Holdings, Inc. is based on a press release statement and represents a strategic step to potentially raise additional capital through the sale of its common stock in the market.

In other recent news, KLX Energy Services Holdings Inc. reported its financial results for the fourth quarter of 2024, revealing a revenue miss despite meeting earnings per share (EPS) expectations. The company posted an EPS of -0.8, aligning with forecasts, while revenue fell short at $165.5 million against a projected $173.65 million. This represented a 15% year-over-year revenue decline. Despite the revenue shortfall, KLX Energy maintained its EPS forecast, reflecting some stability in earnings performance. The company also highlighted successful refinancing efforts and reduced SG&A expenses, which decreased by 8% year-over-year to $79.6 million. For 2025, KLX Energy projects revenue to be flat to slightly up, with an adjusted EBITDA margin of 13-15%. The company plans to focus on deleveraging and potential mergers and acquisitions. Analysts from Sidoti noted margin improvements across regions despite a decline in drilling and completions activity, attributing these to cost controls and favorable product line mixes.

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