KLX Energy Services KLXE NASDAQ Non-Deal Road Show September 25 - - PowerPoint PPT Presentation

KLX Energy Services “KLXE” NASDAQ Non-Deal Road Show September 25 - 27

KLX Energy Services - A New Publicly Traded Company FY2018E Exchange: NASDAQ Revenues: ~$500MM, Up ~55% Y-O-Y Ticker: KLXE Adj. EBITDA: ~$110MM, Up +300% Y-O-Y 1 Scalable platform, well-positioned to participate in sector consolidation 2 Differentiated services and market position generates superior profit margins 3 Performance continues to accelerate 4 Strong balance sheet, ample liquidity and no funded debt at time of spin-off Intangible assets have substantial basis for tax purposes, and are expected to shelter 5 ~$34 million per year in taxable income through January 31, 2029 1

Management Overview Tom McCaffrey Gary Roberts Amin Khoury Senior Vice President and Chief Vice President and General Manager Chairman, Chief Executive Officer Financial Officer  Founded B/E Aerospace in 1987  President and COO of KLX since 2014  Vice President and General Manager of Energy Services business of KLX since  Spun-off KLX in 2014  Previously Senior Vice President and 2014 Chief Financial Officer of B/E Aerospace  Serves as Chairman, President and  Over 30 years of experience in Oilfield from 1993 to 2014 CEO of KLX since 2014 Services industry, including  Prior to joining B/E in 1993, practiced as  Previously founder, Chairman and CEO 6 years at Baker Hughes and 16 years at a CPA for 17 years of B/E Aerospace until its acquisition by Weatherford Rockwell Collins in April 2017  Previously CEO of Vision Oil Tools from 2010 until its acquisition by B/E Aerospace in 2014 Mr. Khoury and Mr. McCaffrey will continue in their current roles with KLX through the consummation of The Boeing/KLX Transaction and have entered into employment contracts with KLX Energy Services. The entire KLX Board of Directors will remain in place as the KLXE Board. 2

Board of Directors 8 highly-qualified directors, of which 7 are independent, bringing with them diverse knowledge and expertise • Founded B/E Aerospace in 1987 Amin J. Khoury • Chairman of B/E Aerospace since 1987 and CEO until its acquisition by Rockwell Collins Chairman & CEO • Serves as Chairman, CEO of KLX since 2014 pending its acquisition by The Boeing Company • Chairman and Chief Executive Officer of the Collins Group John T. Collins • Previously served as President & CEO of Quebecor Printing Director • Former director of Bank of America and Fleet Bank • Adjunct Professor of Finance at the University of Pittsburgh Peter V. Del Presto • Partner with PNC Equity Partners from 1985 until his retirement in 2010 Director • A member of the Board of Directors of B/E Aerospace since July 1987 Richard G. Hamermesh • Professor of Management Practice at Harvard Business School since July 1, 2002 Director • Owner of Alta Energy LLC since 2010 Benjamin A. Hardesty Director • President of Dominion E&P, Inc. until his retirement in May 2010 • Previously President and CEO of Lenovo Corporation Stephen M. Ward, Jr. • Spent 26 years at IBM Corporation holding various management positions Director • Business consultant and a member of the Board of Directors of Hawthorne Global Aviation Theodore L. Weise • Previously President and CEO of Federal Express Corporation until 2000 Director • A member of the Board of Directors of B/E Aerospace since February 2012 John T. Whates, Esq. • Partner at Deloitte & Touche until retired in 2005 Director 3

Compensation Systems Aligned with Shareholders  Executive leadership and board member compensation comprised of restricted stock  Short term and long term incentive compensation for other managers based on operating earnings, operating margin, ROIC and HSE metrics on a relative basis with peers 4

Building Businesses: Long History of Successful Strategic Acquisitions and Integrations Leading to Superior Value Creation Executive Management of KLX Energy Services has a proven track record of building industry-leading businesses through platform acquisitions and selective tuck-ins B/E Aerospace (BEAV) – Founded in 1987, with revenues in that year of approximately $3 million, BEAV acquired and completely integrated numerous businesses over 30 years to become the world’s leading manufacturer of aircraft cabin interior products. The business was sold to Rockwell Collins for $8.6 billion in 2017, representing a transaction multiple of 14x LTM EBITDA KLX Aerospace Solutions Group (“ASG”) – ASG was spun-off from BEAV in December, 2014. BEAV acquired M&M Fasteners in 2001 with revenues of $37 million. Over the following 15 years, 8 additional acquisitions were made and completely integrated , creating the world’s leader in aerospace consumables distribution with revenues of over $1.4 billion in 2017. On May 1, 2018 KLX announced the sale of ASG to The Boeing Company for $4.25 billion, representing a transaction multiple of 15.7x 2017 LTM EBITDA KLX Energy Services (now “KLXE”) – ESG was part of the spin-off from BEAV in 2014. BEAV entered into the oilfield services market in 2013 with the acquisition of seven businesses over a 10 month period of time. The acquired businesses were consolidated and completely integrated . The business is expected to generate 2018 revenues of approximately $500 million and Adjusted EBITDA of approximately $110 million, representing increases of approximately 55 percent and approximately 300 percent, respectively, as compared to the prior year. This performance reflects the peer leading growth rate, superior margins, and free cash flow afforded by the differentiation arising from highly experienced, well trained technical personnel, a broad range of certified tools, and proprietary services arising from successful R&D initiatives KLX has completely integrated all seven acquisitions into a metrics-driven, scalable platform 5

Key Investment Highlights Attractive Long-Term Financial Growth Prospects with Superior Growth Rate, Margin Profile and 1 Return on Investment 2 Strong Footprint in Key Energy Producing Geographies Totally Integrated, Metrics Driven Business with Highly Effective R&D Group Supports Continuous 3 Improvement and Aligns New Tools with Field Engineers Serving Technically Demanding Wells Highly Trained and Experienced Technical Personnel, Broad Range of Certified Specialized 4 Equipment with Long Lives, and Proprietary Technology Create Competitive Advantage Customer Service Focus and HSE Culture Lead to Deeply Entrenched Relationships with Blue- 5 Chip Customers Well Positioned to Capture Share Resulting from Investments in Equipment, People, and R&D 6 made in Downturn Executive Management Team with Proven Track Record of Building Industry-Leading Businesses 7 and targeting sector consolidation 6

Best-in-Class Trajectory Year-on-Year Growth and Margin | Liquidity and Capital Structure 2017A – 2018E Revenue Growth 2017A – 2018E EBITDA Growth FY Q2 2018A EBITDA Margin Median = 24.5% Median = 12.5% 317% Median = 108.8% 56.0% 22.2% 48.9% 138% 42.9% 17.9% 109% 14.9% 14.4% 33.0% 95% 10.6% 8.3% 16.1% 14.8% 28% NM KLXE NINE CJ KEG BAS SPN KLXE NINE SPN CJ BAS KEG KLXE NINE CJ SPN BAS KEG Total Debt / 2018E EBITDA Net Debt / 2018E EBITDA Median = 3.8x Median = 3.5x 5.8x 4.6x 4.3x 3.9x 3.1x 3.4x 1.0x 0.4x 0.0x 0.0x (0.4)x KLXE NINE KEG BAS SPN CJ (0.5)x KLXE Nine KEG BAS SPN CJ Source: Company filings, IBES median estimates as of 17-Sep-2018 7 Note: C&J underwent restructuring in 2016 and wiped out ~$1.4bn in debt

KLX Energy Services at a Glance Business Overview Revenue Breakdown by Region  Leading provider of completion, intervention and production services and products in the major onshore oil FY 2017 Q2’18 and gas producing regions of the United States  Superior organic growth rate, profit margins, return on investment and free cash flow Northeast Northeast Southwest 26% 25% Rockies Rockies 34%  Offers a range of differentiated, complementary technical 40% 40% services and related asset light tools and equipment in North challenging environments Dakota & Southwest Southwest Rockies 34% 35% 40%  Provides technology-based just-in-time “JIT” solutions for customers throughout the life cycle of the well Product Service Line (PSL)  Differentiated service offering through in-house R&D team — 11 registered patents, 26 patents applied for, and 21 FY 2017 Q2’18 Rentals Rentals proprietary tools 22% 22%  Supports customer operations from 36 service facilities Production Production located in the key major shale basins 22% 23% Completion Completion  ~1,100 non-unionized employees 48% 52% Intervention Intervention 30% 25% 8

Broad Range of KLX Services and Certified Specialized Equipment Create Competitive Advantage Completion Intervention Production (52% of Q2’18 revenues) (25% of Q2’18 revenues) (23% of Q2’18 revenues)    Pump Down Wireline Services Fishing Tools (proprietary) Certified Pressure Control Services    FRAC Stack Services (proprietary) Reverse Units Conventional Wireline    Down Hole Completion Tools Thru Tubing (proprietary) Rental Tools (proprietary)   Pipe Recovery Machine Shops  Tubulars   Nitrogen Services Power Swivels  Cementation  Slick Line  Logging Wireline Services  Hydro-Testing  Air Packages  Portfolio of Down Hole Tools  Torque and Testing - Rental (proprietary)  Tubing Conveyed Perforating  Drilling Pumps and Tanks  Pressure Control  Torque and Testing Wireline 9 9