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KLX Energy Services Holdings Inc (KLXE)

NASDAQ
Currency in USD
Disclaimer
6.04
-0.02(-0.33%)
Closed
Pre Market
6.06+0.02(+0.33%)

KLXE Price Commentary

Earnings guidance 2022: ~40% increase in revenue. In CC management feel "bullish". Baker Hughes rig count: +13 today. Biden team exhorting shale drillers to up rig count. Increased oil price (post Russia/Ukraine conflict), clearly not even factored in yet (but will be by next earnings). Costs should come down as maintenance (getting equipment out of storage duration of covid lock downs) costs level off. The West and East are de-coupling. USA energy independence is getting rightful place back: front and center. If USA is to lead the way in LNG, then "drill baby drill" is back. DUC counts have been depleted. New wells are required in addition to DUC replacements. KLX Eenergy are a solid company with expert management and top line crews. KLX Energy are, in the current context, an essential component of US national security in terms of energy independence. Currently way undervalued -valued as if oil is $45 and going out of fashion. The opposite is the case. Bullish.
Directional drilling, measurement while drilling and well planning seem to distinguish KLX Energy from its competitors.The merger with QES has resulted in a new consolidated KLXE with the power to provide greater than the sum of its parts.Short interest is quite high, possibly due to lack of drilling practice knowledge.Let's see how KLX Energy performs in the new shale patch boom.Earnings going up.Next earnings, 10th March '22, will be interesting; and the CCall following day.
"We are effectively are sold out of these rigs in the Permian basin," Hendricks said. "It's been a few years since we had this level of utilization and leading edge rates" for rigs. "We've seen leading edge day rates move up in the last month and I expect that trend to continue." https://www.spglobal.com/platts/en/market-insights/latest-news/oil/110421-us-oil-gas-rig-count-climbs-15-to-674-as-oil-drilling-activity-accelerates-enverus
Larry Fink re-thinks:https://www.zerohedge.com/energy/fink-flip-flops-fears-social-unrest-short-termist-anti-fossil-fuel-furore
"Global annual upstream spending needs to increase by as much as 54% to $542 billion if the oil market is to avert the next supply shortage shock, Moody’s said earlier this month."
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