Greetings. Welcome to KLX Energy Services Q4 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Ken Dennard. Please go ahead, sir. Thank you, operator. Good morning, everyone. We appreciate you joining us for KLX Energy Services Conference Call and Webcast to Review Q4 2022 Results. With me today are Chris Baker, KLX Energy's President and Chief Executive Officer, and Keefer Lehner, Executive Vice President and Chief Financial Officer. Following my remarks, management will provide a high-level commentary on the financial details of the Q4 and outlook before we open the call up for your questions. As you know, there'll be a replay of today's call that'll be available by webcast on the company's website at klxenergy.com. There'll also be a telephonic recorded replay available until March 23, 2023. More information on how to access these replay features was included in yesterday's earnings release. Please note that information reported on this call speaks only as of today, March 9th, 2023, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Comments on this call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of KLX management. Various risks and uncertainties and contingencies could cause actual results, performance, or achievements to differ materially from those expressed in the statements made by management. The listener or reader is encouraged to read the annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K to understand certain of those risks, uncertainties, and contingencies. These comments today may also include certain non-GAAP financial measures. Additional details and reconciliations to the most direct comparable GAAP financial measures are included in the press release, which can be found on the KLX Energy website. Now with that behind me, I'd like to turn the call over to KLX Energy Services President and CEO, Mr. Chris Baker. Chris. Thank you, Ken, and good morning, everyone. We will start with the acquisition news and move into Q4 prepared remarks. Yesterday, after Q4 earnings were released, KLX announced that we acquired 100% of the equity of Greene's Energy Group, LLC in an all-stock, accretive, deleveraging transaction. The total consideration for the acquisition consisted of the issuance of approximately 2.4 million shares of KLX stock, subject to customary post-closing adjustments, with an enterprise value of approximately $30.3 million, based on a 30-day VWAP as of March 7, less acquired cash of approximately $1.7 million. Former Greene's shareholders will own approximately 14.7% of the fully diluted common stock of KLX. Greene's is a leading provider of wellhead protection, flowback, and well testing services. The acquisition of Greene's is expected to be accretive to KLX in 2023 and augments the KLX frac rental and flowback offering, providing KLX with a broader presence in the Permian and Eagle Ford basins. I'd like to take this opportunity to personally welcome every member of the Greene's team to KLX. We are thrilled to welcome Greene's' exceptional management team and talented team members to KLX. Greene's has an excellent industry reputation and fits naturally within KLX's Southwest segment, supporting both Permian and Eagle Ford operators. Greene's has a strong unlevered balance sheet, reporting unaudited 2022 revenue and adjusted EBITDA of $68 million and $14.7 million, respectively. We are excited about the synergistic fit between the organizations and look forward to growing our surface pressure control franchise with the addition of Greene's. Looking forward to 2023, we expect Greene's revenue and adjusted EBITDA of $70 -$75 million and $18 -$20 million, respectively, on a full year basis. Lastly, this transaction is deleveraging for KLX and pro forma for the combination, the KLX second half 2022 annualized net leverage ratio drops to 1.4 times from 1.5 times on a standalone basis. We expect $2-$3 million in annualized cost synergies within 12 months and believe this enhances our inorganic consolidation strategy as we continue to focus on increasing returns and enhancing shareholder value. Moving to Q4 in 2022. 2022 was a record year for KLX Energy. We exited the year with a Q4 and second half run rate that was back in line with our pro forma 2019 results. This was an original objective at the time of the QES merger, we're extremely proud of our team's dedication to help deliver on this multi-year objective. Over the course of 2022, we reallocated assets to maximize operating results and drive in-basin scale and increase pricing as the market rebounded to drive margin. Combined, these efforts enabled KLX to rapidly grow back into our capital structure and significantly reduce our net debt and net leverage ratio. From an operating results perspective, we ended the year with a slight sequential improvement in both revenue and adjusted EBITDA despite the Q4 seasonality, the holiday lull, and customer third-party drilling delays impacting KLX completions activity. During the Q4, KLX generated $223.3 million in revenue, which was towards the top end of the previously provided guidance range and delivered adjusted EBITDA of $37.3 million, similarly near the top end of the guidance range. Adjusted EBITDA margin held at 16.7%, flat sequentially, and also in line with our guidance. Our Q4 results represented the second consecutive quarter equaling 2019 pro forma profitability levels while running fewer assets and operating in a market that is 23% smaller than 2019 on a rig count basis. We also generated near record levels of quarterly net income and earnings per share, generating $13.2 million and $1.07 in Q4 2022, respectively. To further support our capital structure, in September, we refinanced our ABL under improved terms, providing sufficient runway and improved flexibility to support continued improvement in both our financial and operating performance and our balance sheet. Additionally, during Q4, we exchanged approximately $13 million in notes, reducing our 2025 senior secured notes by over 5% from $250 to $237 million. Over the course of 2022, we decreased net debt by 8% and reduced our annualized net leverage ratio from 13 times in Q1 2022 to 1.5 times for the annualized Q4 and second half of 2022. Our aggressive focus on net leverage ratio reduction allowed us to exit the year at KLX's lowest leverage level since prior to the 2018 bond offering, while also returning the business to positive free cash flow generation in the second half of 2022. Lastly, for 2022 highlights, when looking at KLX's second half exit rate, 80% of our product lines in every geography are performing near or above pro forma 2019 performance levels. This was not an easy feat given the post-pandemic challenges that we've navigated. We spent significant time and focus over the last two years streamlining our operations and ensuring that we have in-basin scale for every service line that we operate. The company today is more efficient, which combined with the return of pricing power to service companies, has enabled our rapid return to historic levels of profitability. I'm thrilled with how we exited 2022 and couldn't be prouder of our team for all that we've accomplished. We have done the hard work over the last few years and believe we are extremely well-positioned for 2023. With that, I'll now turn the call over to Keefer, who will review our financial results, and I will return later in the call to discuss our outlook in greater detail. Keefer? Thanks, Chris. Good morning, everyone. Let me begin by discussing the acquisition, and then I'll jump into our Q4 2022 consolidated results. First, I'd like to echo Chris's comments on the Greene's transaction and welcome the Greene's team to the KLX family. We are thrilled with this strategic, accretive, deleveraging combination that follows a similar equity-oriented framework, which we believe best drives integration and alignment of incentives. We believe this transaction drives accretive shareholder value and galvanizes our go-forward consolidation strategy. 2022 was a big year for KLX. We experienced a 79% sequential increase in annual revenue, outpacing the 33% increase in rig count and 37% increase in oil price. Adjusted EBITDA increased approximately $100 million year-over-year, and net income and EPS improved $102 million and $12 per share, respectively. All of that growth translated into a material reduction in net debt. Jumping into Q4 results. We were pleased to have experienced slight sequential improvement in our consolidated revenue and margins despite seasonality and customer drilling and schedule delays. For the Q4, revenues were $223.3 million. Similar to our Q3 results, were driven by continued strong pricing and utilization across our drilling, completion, production, and intervention activities. In Q4, we were able to overcome seasonal slowdowns and still generate sequential increases in revenue, adjusted operating income, adjusted EBITDA, net income, and EPS. On a product line basis, drilling, completion, production, and intervention services contributed approximately 30%, 49%, 12%, and 9% respectively to revenues for the Q4 of 2022. Adjusted operating income for the Q4 was $21.7 million. This is the third consecutive positive quarterly result on the adjusted operating income line. Adjusted EBITDA and adjusted EBITDA margin were $37.3 million and 16.7% respectively. Net income and EPS for the Q4 were post-merger KLX records at $13.2 million and $1.07 respectively, representing a 19% and 11% sequential increase, also respectively. Please note, we continue to be burdened by $2.1 million of quarterly lease expense related to five coiled tubing packages. As a reminder, we do not add this cost back, but it does impact our comparability to peer results. Total SG&A expense for Q4 was approximately $19.4 million, which equates to roughly 8.7% of Q4 revenue. As we've discussed on prior calls, post the QES merger integration, KLX now has one of the most efficient cost structures in the OFS industry, and we believe we can continue to scale from current levels while reducing SG&A as a% of revenue. Turning now to review our segment results. I'll begin with the Rockies. The Rockies segment's Q4 revenue was $66.1 million, representing a flat sequential result. Adjusted operating income for the Q4 was $12.4 million, as compared to $12 million for the Q3. Adjusted EBITDA was $17.9 million, as compared to Q3 adjusted EBITDA of $17.3 million. The increase in profitability and margin was driven by reduced white space in our drilling and completion product lines and modestly improved pricing across most Product Service Lines. Moving now to our Southwest segment. The segment increased its revenue by 9.2% sequentially, generating revenue of $74.8 million in the Q4. The increase in revenue was primarily driven by increased activity, reduced white space, and modestly improved pricing across the majority of our product service lines, given the shape of Q3 pricing increases benefiting the entirety of the Q4 with directional drilling, coiled tubing, and wireline experiencing the largest increases. Q4 adjusted operating income for the segment was $7.8 million compared to $5.6 million in the Q3, and adjusted EBITDA was $12.4 million for the Q4 compared to Q3 adjusted EBITDA of $10.2 million. The increase in profitability was driven by the previously mentioned increases in activity and pricing across our various Product Service Lines, but led by strong margin expansion across drilling and completion services. To wrap up the segment discussion with the Northeast and MidCon. Northeast MidCon Q4 revenue was $82.4 million, a modest decrease relative to Q3, driven largely by seasonal holiday impacts and some micro issues with the customer experiencing delays in their drilling program, which impacted our completion activity. This is our broadest geographic segment and the geographic segment with the most gas exposure, as it includes both the Haynesville and the Marcellus Utica. For the Q4, the Haynesville accounted for only 26% of segment revenue and approximately 9% of consolidated revenue. Separately, the Northeast accounted for 18% of segment revenue in the Q4 of 2022. Adjusted operating income for the Q4 was $15.5 million, and adjusted EBITDA was $19.7 million in the Q4. The sequential decline in adjusted operating income and adjusted EBITDA at this segment was similarly driven by the previously mentioned scheduling issues and seasonality, driving unforeseen schedule gaps where we are burdened by labor costs with no corresponding revenue. I'll now turn to our balance sheet and cash flow. Our year-end 2022 cash balance increased by $29.4 million or 105% to $57.4 million when compared to year-end 2021 and increased 39%, excuse me, sequentially. The sequential increase in cash was largely driven by $12 million in operating cash inflows, $15 million in opportunistic share sales under our ATM program, and continued monetization of $5 million in obsolete assets and non-core real property. Those were offset by $14.4 million of semi-annual interest paid in Q4 and $9.5 million of capital spending. We continue to proactively manage working capital and convert cash flow as quickly as possible. Net working capital was $72.1 million in Q4, up 15% compared to Q3 and up 78% relative to year-end 2021. The sequential increase in net working capital was largely driven by the 1% increase in revenue and a 7% increase in DSO, driven by customers slow paying at the end of the year. It was offset slightly by modestly increasing our days payable outstanding over that same period. Far in Q1, we've seen a normalization of DSO. We believe this was just a year-end phenomenon. Capital expenditures for the Q4 were approximately $9.5 million and were primarily focused on maintenance spending across our segments. Going forward, total CapEx for 2023 is expected to be in the range of $60 -$70 million. That's inclusive of Greene's. This spend will be primarily focused on maintenance spending with approximately 70% supporting ongoing operations and the remaining CapEx earmarked for reactivation and growth focused on quick payback projects across both drilling and completions, including the continued electrification of our wireline and coiled tubing fleets. At year-end 2022, we had $4.9 million of assets held for sale related primarily to real property and equipment in both the Rockies and Southwest segments. We're continuing to work through our options to monetize these assets in the near term. Based on current status, we hope to close approximately 50% of that balance in the first half of 2023. Total debt outstanding as of December 31st, 2022 was $283.4 million compared to $295.6 million as of September 30th, 2022. Net debt balance as of year-end 2022 was $226 million, down 11% sequentially. The decrease in total debt was driven by debt exchange transactions for 12.8 million of our senior secured 2025 notes for 778,000 shares across multiple transactions. These exchanges reduced future annual cash interest expense by approximately $1.5 million. Accrued interest as of December 31st was approximately $4.6 million related to senior secured notes and roughly $200,000 related to the ABL. We ended the year with almost $102 million in total liquidity, an 18% sequential increase consisting of $57.4 million of cash on hand and $44.4 million of available borrowing capacity based on the December 31st ABL borrowing base certificate. Based on annualized Q4 results, we have returned the net leverage ratio to 1.5 times. This is a major achievement considering that just a year ago, we had a Q4 2021 annualized net leverage ratio of 9.2 times. We are in compliance with our financial covenants at year-end 2022 and expect to remain in compliance going forward. Our primary focus remains prudent capital deployment, a disciplined focus on free cash flow maximization, and further reduction to net debt, all while pursuing a combination of organic and inorganic value-creating growth opportunities. I'll now turn the call back to Chris, who will provide some additional color on our 2023 outlook. Thanks, Keefer. Before we wrap up, I'd like to share some more detail on our go-forward strategy, including potential for further consolidation in light of the Greene's acquisition. As I mentioned earlier, we ended the year on a strong exit rate. That has carried forward into January and February. While the recent headwinds on the natural gas side have generated concerns regarding activity disruptions, thus far, we have successfully mitigated the majority of our activity losses, backfilling utilization with other customers or existing pent-up demand for KLX's services. Furthermore, to Keefer's earlier comments regarding our Haynesville exposure, we believe we are aligned with the most active operators in the basin and customers who intend on continuing forward with drilling programs are restarting them in the summer, assuming gas prices have rebounded. Our revenue in the Haynesville is also more heavily weighted towards drilling. Should operators elect to DUC wells, reductions in completions activity will be less impactful to KLX. For the most part, our calendars across most of our basins are booked solid through at least April, if not into May. We believe there's ample opportunity across our diversified opportunity set to continue to drive revenue growth. Looking ahead, our operational strategy will continue to be focused on an efficient deployment of assets, maintaining strong utilization, and driving pricing marginally higher where possible and ahead of inflationary pressures. We will work to integrate the Greene's acquisition as quickly as possible and believe there is a compelling fit within our existing Southwest segment and PSLs that will enable a seamless integration. We will remain prudent with our capital spending program by focusing our budgeted CapEx predominantly on maintenance spending along with high quality, quick payback projects that are front-end loaded in the year in order to both execute on the current industry trends and maximize our returns throughout 2023. As a reminder, our capital investments are reassessed in real time based on market conditions. Yesterday, we released standalone 2023 guidance of revenue of $925 -$975 million and adjusted EBITDA margins of 16%-18%. Pro forma for the subsequent announcement of the Greene's transaction, we are updating full year guidance to a revenue range of $975 -$1.04 billion and an adjusted EBITDA margin range of 17%-19%. KLX has built a strong foundation on which to grow in 2023, both organically and by pursuing additional accretive transactions. The Greene's acquisition again provides a structural framework by which we believe is executable on additional transactions. We've said for a while now that consolidation is absolutely necessary in our industry. We are proud to continue to lead the way in this area. Looking forward, the macro backdrop, fragmentation of the OFS landscape, and lack of liquidity and cash consideration from prospective acquirers for well-run, well-capitalized private businesses has created a favorable backdrop for consolidation and growth. KLX has a strong team with a track record of successful integration and a diversified platform offering, providing the opportunity to consolidate across various high-performing market segments, conservative capitalization and diversified shareholder base with healthy public float to continue to effectuate accretive value-enhancing consolidation. We are extremely optimistic about 2023, given our 2022 execution, our 2022 exit run rate, and the favorable 2023 capital budgets that our customers have published given the constructive WTI backdrop and outlook. With that, we'll now take your questions. Operator? Thank you. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment while we poll for questions. Cherry, while we're polling for questions, I just wanted to let everybody know real quick, this is Ken. Management will be at Piper Sandler's Energy Conference later this month. I think it's the 21st of March. Hope to see many of you there, signing up in person. Thank you. Our first question is from Luke Lemoine with Piper Sandler. Please proceed. Yeah. Yeah. Good morning, Chris, Keefer, and Ken, thanks for the nice plug there, March 21st and 22nd in Las Vegas for the conference. First, congratulations on the deal. Chris, you know, looking at Greene's and from your press release on our website, it looks like this is exclusively an Eagle Ford and Permian business. Just wanted to make sure that was correct. I'm guessing the revenue or EBITDA split is probably fairly proportional to the activity levels between those two basins. Is all that pretty fair, or how should we think about that? Good morning, Luke. Appreciate it and look forward to seeing you guys out there in Vegas. Look, we're really excited about the Greene's opportunity. You are 100% correct. As of today, their opportunity set is Permian and Eagle Ford-focused. We haven't provided any detail on the split, but I think your assessment's probably pretty consistent with the overall activity set. Okay, got it. Keefer, you talked about some of your growth CapEx being for the continued electrification for coil and wireline. Can you just kind of refresh us where you are on this initiative? I'll jump in and then Keefer can. Okay. This is Chris. Yeah. Last year, we electrified one of our power packs on our coiled tubing units. We've electrified one of our snubbing units. We've got a couple of hybrid electric wireline units in the field and have been running in the field for better part of the last year. I think we mentioned on our 3Q call that we've got two that are in process, two wireline units, that is, that are in process of being electrified today, which should come out and be ready to go to the field kind of late Q1. We've got some additional electrification initiatives underway on the coil front. All right, good deal. Just sneak one more in here, Chris. Can you remind us where you are in your active frac fleet count and where are these working right now? The numbers are spot on similar to the conversation we had in 3Q. Okay T wo in the MidCon and, the smaller spread up in Gillette and still have the incremental horsepower to reactivate. All right, got it. Appreciate it. Congratulations again. Yeah. No, appreciate it. Thank you. Our next question is from Ignacio Bernaldez with EF Hutton. Please proceed. Hey, good morning. Thank you for your time today, and congratulations on the really great quarter and the great acquisition as well. When you talk about M&A and consolidation, are we talking, you know, bolt-on acquisitions, or do you see a scenario where you could be looking at, you know, larger scale things? Yeah, it's a great question. We've talked over, I think, the last four quarters that the industry continues to need consolidation, as we talked about in our prepared remarks. We think the Greene's platform provides a very synergistic fit to our existing platform. It's, to your point, one of the opportunity sets from a bolt-on perspective. You know, when you think about Greene's, it really bolsters and adds a third operating region to our now realigned flowback and well testing franchise. A big part of our initiatives last year was to realign our asset base. Flowback was one of those asset classes or PSLs that we realigned into two core asset bases to provide scale. This now provides a third. When you think about Greene's West Texas, it provides scale to our existing frac rentals and monoline business, as well as the addition of their proprietary isolation tool for wellhead protection. We believe that isolation tool, along with our recently acquired pressure control valve fleet, is gonna create kind of a market leading and comprehensive surface pressure solution for our clients. That is a example of kind of a tuck-in or bolt-on that is just incredibly synergistic to our platform, given our diversified offering. We also think we've got the roadmap and the management team that's you know, has executed on a couple in the past and is very capable of executing on transformative, more merger of equal type opportunities, and we'll evaluate those as they come. That's really helpful. Thank you so much. Again, congratulations on the quarter. Yeah, appreciate it. Our next question is from John Daniel with Daniel Energy Partners. Please proceed. Hey guys, good morning. I guess first question, follow up a little bit to Luke's query. You spoke about electrification on some of the other product lines. Can you speak to any efforts to incorporate dual fuel into any of your services? You know, we've had some conversations, especially around some of the stacked horsepower with clients, John, as to if we were to reactivate that, the incremental cost to reactivate it to dual fuel isn't that onerous. We've had conversations as well with a couple of the manufacturing parties. Specifically with the electrification, we just found, especially on the smaller assets, if you will, relative to a frac spread, such as wireline coil, et cetera, going straight electric, especially for clients that are especially ESG sensitive in certain basins is maybe the preferred step. Got it. Okay. The final one, just your philosophy on pricing. The reason I ask is there's some isolated anecdotes of outbreaks of hostility out there, and I'm just curious if we're in a slight, you know, flat to slightly down market, like, what's your directive to the team, and how would you envision pricing over the course of the next several quarters? Yeah. It's a, it's a fair question. Of course, I think, as you well know, and you're having you probably have as many conversations with operators as we do collectively, so you're very much in tune with the market. You know, the interesting thing is the OFS market just got back to a level of sustainable service pricing late last year. As we look at our platform on a weighted average basis across all of our PSLs and regions, we increased pricing approximately 49% in 2022. Yet we were only generating a 16.7% EBITDA margin. We're just now getting back to a level that's truly sustainable. Of course, we've had cost pressures and supply chain pressures along the way. There is a natural tension out there, and I think just like many people espoused at the Thrive conference, we're gonna do our best to hold the line on pricing, not because we want to, but because we have to, right? Right. To reinvest in our asset base. As you know, all of our assets have wheels, can travel. However, longer term, candidly, we're pretty bullish on the natural gas market, once we get past the summer and the choppy market. If we have to stack out assets, we will. We'll kind of see how the market plays out. Fair answer. Thank you for including me today. Yeah, absolutely, John. Appreciate it. Our next question is from David Marsh with Singular Research. Please proceed. Thanks for taking the questions, guys. Congrats on the acquisition and the quarter. Yeah. Appreciate it, David. Thank you. Yeah, good morning. Thanks. If we could just take a look at the guidance. The updated guidance with the acquisition for top line is $975 million to a little over $1 billion. Could you talk about how that spreads across the year? Should we expect some seasonal weakness in the Q1 as a result of the nat gas slowdown and kind of a stronger second half? I'll jump in and then David, this is Chris, good morning, and Keefer can jump in as well. You know, as we look through our Q4, it was seasonally very strong relative to the typical wintertime and holiday slowdown. The reality of the situation, and Keefer alluded to this in our prepared remarks, you know, we estimate that we lost about $15 million of completions revenue across multiple product lines due to some last-minute third-party drilling delays in December. When you think about the base load of activity set for KLX in Q4, the market and demand was there really for KLX to do even better than we did, candidly. We're happy with Q4's results, but they could have been better. If you think about Q4's run rate, you're on a revenue run rate of $892 million and an adjusted EBITDA run rate of approximately $149 -$150 million of EBITDA. Clearly that could have even been improved. There's no doubt the natural gas market has some headwinds. That's somewhat impacting our Q1 guidance that we provided. There's also just natural seasonality to Q1, we talked about that in prepared remarks. As we get into April and we exit the winter season, and we go through what is typically very rough patterns, especially in our northern operations and seasonality in the northern districts, we really think they'll kick into fourth gear, which is what we saw last year, and think that mid-second through the mid-Q4 should be pretty robust. Got it. Thank you. Could you talk about, geographically, in terms of the acquisitions that you may be considering, if there's a particular region that's more appealing than others and that you are seeing more opportunity in? We take M&A as it comes. There's some opportunity sets that are negotiated on a one-off basis where we are the candidate that, or party that provides the outreach. I wouldn't say that we're necessarily targeting M&A geographically. Yeah. I think we're more focused on, you know, strategic fit, customer relationships, driving accretion, the ability to further de-lever our platform, focused on both revenue and cost synergies. It's probably those factors that are driving our consolidation M&A efforts more so than necessarily geography. Obviously, that's a consideration, but the fact that we are geographically diverse today probably provides for a more fertile hunting ground as we think about future M&A opportunities. Right. That makes sense. Then just lastly from me, when we look at CapEx guidance 60 to 70, should we expect that to kind of track with revenue across the course of the year? I mean, obviously Q1 you probably have a little less, but maybe in the latter part of the year you do a little more, or is there a different spread there? Yeah, it's a good question. On the maintenance side, it would largely more closely track revenue over time. With that said, we are trying to front-load our capital spending this year as much as we possibly can, just to try to bring forward the returns associated with that capital spending. Got it. Thank you. Thank you. Yeah. Thank you, David. This concludes our question and answer portion of the call. I will now turn the call back to Mr. Chris Baker for closing comments. Thank you, operator. Thank you once again for joining us on this call and your interest in KLX Energy Services. We look forward to speaking with you again next quarter. Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.