Tag Archives: $KLXE

KLX Energy Services (KLXE), mcap=$74m, price $6.24 vs $5.05

Highly levered oilfield service company.
Extreem optionality on rapidly improving US onshore oil services activity and pricing.
Stock could be 7x by 2023.
Gradually growing revenues and EBITDA are expected to lead to organic deleveraging and positive FCF by 2023.
Limited capex needs going forward, with half of EBITDA expected to transalte into FCF.
Revenue is highly correlated to industry activity.
The E&P industry underinvested since 2014 and now needs to catch up with the demand.