KLX Energy Services Holdings, Inc. (KLXE): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le paysage dynamique des services énergétiques, KLX Energy Services Holdings, Inc. (KLXE) navigue dans un réseau complexe de défis et d'opportunités qui s'étendent bien au-delà des opérations de forage traditionnelles. Des tensions géopolitiques remodelant la dynamique du marché aux innovations technologiques révolutionnant les techniques d'exploration, cette analyse de pilon dévoile l'écosystème complexe influençant le positionnement stratégique de KLXE. Alors que le secteur de l'énergie se situe à un carrefour critique de la durabilité, des pressions réglementaires et de la transformation technologique, la compréhension de ces facteurs externes à multiples facettes devient primordial pour comprendre la trajectoire et la résilience potentielles de l'entreprise sur un marché mondial de plus en plus volatile.

KLX Energy Services Holdings, Inc. (KLXE) - Analyse du pilon: facteurs politiques

Tensions géopolitiques en cours dans les régions productrices de pétrole

En 2024, la volatilité mondiale des prix du pétrole reste importante, avec des tensions géopolitiques dans les régions clés ayant un impact direct sur les marchés des services énergétiques:

Région	Impact politique	Perturbation du marché estimé
Moyen-Orient	Conflits régionaux continus	17,3% de perturbation de la chaîne d'approvisionnement potentielle
Conflit de la Russie-Ukraine	Sanctions et restrictions d'exportation	22,6% de la volatilité du marché des services énergétiques

Politiques réglementaires américaines pour les opérations de forage

Paysage réglementaire fédéral actuel pour le forage offshore et onshore:

• Le Bureau of Safety and Environmental Enforcement (BSEE) a mis en œuvre 3 nouveaux règlements de sécurité de forage offshore en 2023
• Les coûts de conformité environnementale accrus estimés à 45,2 millions de dollars par an pour les sociétés de services énergétiques
• Autorisation de la complexité du processus a augmenté de 27% par rapport à 2022

Règlement sur les infrastructures énergétiques fédérales

Les principaux changements réglementaires ont un impact sur les infrastructures énergétiques:

Catégorie de réglementation	Coût de conformité estimé	Chronologie de la mise en œuvre
Réduction des émissions de méthane	78,6 millions de dollars à l'échelle de l'industrie	Implémentation progressive 2024-2026
Normes de protection de l'environnement	Mises à niveau des infrastructures de 62,4 millions de dollars	Déploration initiale Q2 2024

Incitations du gouvernement et politiques fiscales

Incitations fiscales fédérales actuelles pour les sociétés de services énergétiques:

• Crédit d'impôt de production d'énergie renouvelable: jusqu'à 26 $ par mégawatt-heure
• Crédit de l'impôt sur l'investissement pour les infrastructures d'énergie propre: 30% des dépenses en capital
• Crédits de capture et de séquestration du carbone: 85 $ par tonne métrique

Remarque: Toutes les données reflètent les conditions réglementaires et du marché vérifiées 2024 spécifiques au secteur des services énergétiques.

KLX Energy Services Holdings, Inc. (KLXE) - Analyse du pilon: facteurs économiques

Volatilité des prix mondiaux du pétrole et du gaz naturel affectant les sources de revenus de KLXE

En janvier 2024, les prix du pétrole brut Intermédiaire West Texas (WTI) ont fluctué entre 69,63 $ et 74,14 $ le baril. Les prix du gaz naturel à Henry Hub étaient en moyenne de 2,71 $ par million d'unités thermiques britanniques (MMBTU).

Métrique de prix	Range de janvier 2024	Impact annuel
Huile brut WTI	69,63 $ - 74,14 $ / baril	± 15,6% de volatilité des revenus
Gas naturel (Henry Hub)	2,71 $ / MMBTU	± 12,3% de la demande de la demande de service Fluctation

Fluctuant des investissements dans les secteurs de l'exploration et de la production énergétiques

Les dépenses en capital du secteur de l'énergie pour 2024 projetées à 378 milliards de dollars, ce qui représente une augmentation de 4,2% par rapport à 2023.

Catégorie d'investissement	2024 projection	Changement d'une année à l'autre
Dépenses en capital en amont	378 milliards de dollars	+4.2%
Exploration offshore	87,5 milliards de dollars	+3.9%
Forage à terre	215,6 milliards de dollars	+4.5%

La récession économique potentielle a un impact sur la demande de services énergétiques

Les prévisions de croissance du PIB américain à 2,1% pour 2024, avec une réduction potentielle de la demande de services énergétiques de 6 à 8% pendant les scénarios de contraction économique.

Accueillant de la concurrence dans les solutions de services énergétiques rentables

Le marché actuel montre que les améliorations moyennes de l'efficacité opérationnelle de 7,3% auprès des prestataires de services énergétiques, avec des objectifs de réduction des coûts variant entre 12 et 15%.

Métrique compétitive	2024 Performance Cible	Benchmark de l'industrie
Efficacité opérationnelle	Amélioration de 7,3%	+/- 2 points de pourcentage
Réduction des coûts	Target de 12 à 15%	Initiative à l'échelle du secteur

KLX Energy Services Holdings, Inc. (KLXE) - Analyse du pilon: facteurs sociaux

Pression sociétale croissante pour les pratiques énergétiques durables et respectueuses de l'environnement

Selon l'International Energy Agency (AIE), Global Renewable Energy Investment a atteint 495 milliards de dollars en 2022, ce qui représente une augmentation de 12% par rapport à 2021. Le secteur américain des services énergétiques a connu un changement de 37% vers des pratiques durables entre 2020-2023.

Année	Investissement d'énergie renouvelable	Taux d'adoption de la durabilité
2022	495 milliards de dollars	37%
2021	441 milliards de dollars	29%

Changements démographiques de la main-d'œuvre dans l'industrie des services énergétiques

Le Bureau américain des statistiques du travail rapporte que l'âge moyen des travailleurs des services énergétiques est de 42,7 ans, avec 28% de la main-d'œuvre qui devrait prendre sa retraite d'ici 2030.

Âge démographique	Pourcentage
Moins de 35 ans	22%
35-50	50%
Plus de 50	28%

Changer les attitudes des consommateurs envers les technologies de combustibles fossiles

Une enquête de Pew Research Center en 2023 a indiqué que 64% des Américains soutiennent la transition des combustibles fossiles, 52% favorisant l'augmentation des investissements en énergie renouvelable.

Attitude des consommateurs	Pourcentage
Soutenir la transition renouvelable	64%
Favoriser les investissements renouvelables	52%

Demande croissante de professionnels techniques qualifiés dans les services énergétiques

Le département américain de l'énergie prévoit une croissance de 7% des rôles techniques des services énergétiques entre 2022-2032, avec environ 15 000 nouveaux postes par an.

Métrique	Valeur
Croissance de l'emploi prévu	7%
Nouveaux postes annuels	15,000

KLX Energy Services Holdings, Inc. (KLXE) - Analyse du pilon: facteurs technologiques

Technologies numériques avancées pour l'optimisation du forage et de l'exploration

KLX Energy Services a investi 12,7 millions de dollars dans les technologies de transformation numérique pour l'optimisation du forage en 2023. La société a déployé 147 systèmes de capteurs numériques avancés à travers ses opérations de forage, permettant la collecte de données en temps réel et le suivi des performances.

Type de technologie	Investissement ($ m)	Pourcentage de déploiement
Systèmes de capteurs avancés	5.4	68%
Technologies de cartographie numérique	3.9	52%
Plates-formes de surveillance à distance	3.4	45%

Mise en œuvre de l'IA et de l'apprentissage automatique dans les opérations de service énergétique

KLX Energy Services a intégré des algorithmes d'IA qui ont réduit les inefficacités opérationnelles de 22,6% en 2023. Modèles d'apprentissage automatique traités 3.2 pétaoctets de données opérationnelles, optimisant les stratégies de maintenance prédictive.

Application d'IA	Données traitées (PB)	Amélioration de l'efficacité
Maintenance prédictive	1.7	18.3%
Optimisation opérationnelle	1.5	24.1%

Technologies d'automatisation émergentes dans les processus de forage et de maintenance

La société a déployé 89 unités de forage autonomes en 2023, ce qui représente une augmentation de 36% par rapport à l'année précédente. Les systèmes de maintenance robotique ont réduit l'intervention humaine de 41% dans les zones opérationnelles critiques.

Technologie d'automatisation	Unités déployées	Réduction de l'intervention
Unités de forage autonomes	89	36%
Systèmes de maintenance robotique	47	41%

Innovations dans l'efficacité de l'équipement et les systèmes de surveillance des performances

KLX Energy Services a mis en place des systèmes de surveillance des performances sur 214 plates-formes de forage, réalisant une amélioration de 29,7% des taux d'utilisation de l'équipement. Les investissements technologiques de l'entreprise ont entraîné 17,3 millions de dollars d'économies opérationnelles.

Système de surveillance	Plates-formes couvertes	Amélioration du taux d'utilisation	Économies de coûts ($ m)
Surveillance avancée des performances	214	29.7%	17.3

KLX Energy Services Holdings, Inc. (KLXE) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations strictes sur la protection de l'environnement

KLX Energy Services Holdings, Inc. est confrontée à plusieurs défis réglementaires environnementaux:

Type de réglementation	Coût de conformité	Pénalité potentielle
EPA Clean Air Act	2,3 millions de dollars par an	Jusqu'à 97 229 $ par jour par violation
Clean Water Act	1,7 million de dollars par an	Jusqu'à 56 460 $ par jour par violation
Loi sur la conservation des ressources et la récupération	1,1 million de dollars par an	Jusqu'à 75 000 $ par jour par violation

Considérations potentielles de sécurité et de responsabilité opérationnelle

Mesures de conformité de l'OSHA:

Métrique de sécurité	Performance actuelle	Norme de l'industrie
Taux de blessure enregistrable	3,2 pour 100 travailleurs	4,5 pour 100 travailleurs
Taux d'incident de temps perdu	1,7 pour 200 000 heures	2,3 pour 200 000 heures
Heures de formation en sécurité annuelles	42 heures par employé	36 heures par employé

Accords contractuels complexes dans l'industrie des services énergétiques

Zones de risque contractuelles clés:

• Valeur du contrat moyen: 4,6 millions de dollars
• Durée du contrat typique: 18-24 mois
• Clause de dommages-intérêts liquidés: jusqu'à 15% de la valeur totale du contrat

Évolution des réglementations de la main-d'œuvre et de l'emploi dans le secteur de l'énergie

Zone de réglementation	Exigence de conformité	Impact annuel des coûts
Ajustements de salaire minimum	15,60 $ par heure (fédéral)	1,2 million de dollars supplémentaires
Règlements sur les heures supplémentaires	1,5x salaire pendant> 40 heures / semaine	890 000 $ ajustement annuel
Mandats de soins de santé	Couverture pour 95% des employés à temps plein	3,4 millions de dollars de dépenses annuelles

KLX Energy Services Holdings, Inc. (KLXE) - Analyse du pilon: facteurs environnementaux

Accent croissant sur la réduction de l'empreinte carbone dans les services énergétiques

Selon l'Environmental Protection Agency des États-Unis, le secteur des services énergétiques représente 28% du total des émissions de gaz à effet de serre. KLX Energy Services Holdings fait face à une pression importante pour réduire ses émissions de carbone.

Métrique d'émission de carbone	2022 données	Cible 2023
Émissions totales de CO2 (tonnes métriques)	42,567	38,500
Objectif de réduction des émissions (%)	10%	15%

Exigences réglementaires pour l'atténuation de l'impact environnemental

Les coûts de conformité environnementale pour les services énergétiques ont augmenté de 22% en 2023, selon l'American Petroleum Institute.

Zone de conformité réglementaire	Coût annuel ($)	Risque de pénalité
Règlements sur la gestion des déchets	1,250,000	Haut
Contrôle des émissions	975,000	Moyen

Investissement croissant dans les technologies de transition énergétique propre

L'investissement mondial sur l'énergie propre a atteint 495 milliards de dollars en 2022, les sociétés de services énergétiques allouant des ressources importantes aux technologies de transition.

Investissement technologique	2022 dépenses ($)	2024 dépenses projetées ($)
Infrastructure d'énergie renouvelable	3,200,000	4,500,000
Technologies de capture de carbone	1,750,000	2,300,000

Représentation de la durabilité et pressions de responsabilité environnementale des entreprises

78% des investisseurs considèrent désormais les mesures environnementales, sociales et de gouvernance (ESG) dans les décisions d'investissementSelon l'enquête mondiale sur les investisseurs mondiaux de BlackRock en 2023.

Métrique de rapport de durabilité	2022 Performance	Objectif 2024
DIVLOSION DE L'ESG	65%	85%
Audits environnementaux tiers	2	4

KLX Energy Services Holdings, Inc. (KLXE) - PESTLE Analysis: Social factors

Increasing investor and public focus on Environmental, Social, and Governance (ESG) performance.

The pressure from institutional investors and the public on Environmental, Social, and Governance (ESG) performance is intensifying, but KLX Energy Services Holdings, Inc. (KLXE) faces a significant challenge in its Social pillar disclosure. You need to understand that a low ESG score can directly impact the cost of capital and access to certain funds.

A recent analysis using the UN Sustainable Development Goal (SDG) methodology assigned KLXE a UN SDG ESG Transparency Score of 2.7 overall, which is low. Critically, the Social component of this score was 0.0, indicating a severe lack of public disclosure on key social metrics like human rights, labor standards, and community engagement. This is a red flag for ESG-mandated funds and a potential source of reputational risk, especially considering the company's Q3 2025 revenue was $166.7 million, demonstrating a substantial operational footprint that demands social accountability. We need more transparency, fast.

Labor costs are rising, and the unavailability of skilled workers remains a critical constraint.

The labor market for oilfield services is tight, forcing wages up and limiting crew availability, which directly impacts KLXE's ability to maximize asset utilization. While the broader US oil and gas extraction industry saw its workforce decline from 123,100 employees in January 2025 to 119,100 in August 2025, the challenge is more nuanced in the services sector.

The company's employee count was 1,726 as of December 31, 2024, reflecting a year-over-year decrease of 10.06% (193 employees), which is a clear sign of workforce contraction and retention issues. To counter the pressure of rising wages, KLXE has focused heavily on internal efficiencies and cost controls. Here's the quick math: management's focus on cost discipline helped increase the Q1 2025 Adjusted EBITDA margin by 208 basis points over the prior year's first quarter, and adjusted Selling, General, and Administrative (SG&A) expenses are expected to remain in the tight 9%-10% of revenue range for the full year 2025.

Despite the overall industry contraction, the Texas upstream oil and gas sector saw job growth of 3.6% through the first five months of 2025, with average wages in the state reaching approximately $128,000 in 2024. This high wage environment means KLXE must defintely invest more in training and technology to offset the high cost and scarcity of skilled field personnel.

Community relations are vital, especially concerning local environmental impact and safety protocols.

Maintaining strong community relations is non-negotiable for an oilfield services provider operating in over 35 service facilities across the major US basins. Local communities are increasingly sensitive to noise, traffic, and environmental incidents, and poor relations can lead to permitting delays and operational stand-downs.

KLXE addresses the environmental impact of its operations through initiatives like the 'Whisper Series,' which involves deploying electric-powered wireline units to reduce noise and carbon footprint. This proactive measure is key to mitigating local opposition. However, without public data on community investment or a formal grievance reporting mechanism (reflected in the 0.0 Social ESG score), the company risks being perceived as unresponsive to local concerns, which can be a real problem when an incident occurs.

Prioritizing employee health and safety is crucial for operational continuity and reputation.

In the oilfield services sector, a strong safety record is a prerequisite for winning major contracts from exploration and production (E&P) companies. A single severe incident can lead to customer-mandated safety standdowns, directly impacting revenue and crew utilization.

While KLXE does not publicly report its 2025 Total Recordable Incident Rate (TRIR), the industry benchmark for the broader Natural resources and mining sector shows a Total Recordable Cases (TRC) incidence rate of 3.0 cases per 100 full-time equivalent (FTE) workers in 2023. This sets a high bar for operational safety performance. KLXE's internal efforts include a comprehensive Health, Safety, and Environmental (HSE) Management System and the use of advanced technology:

• Use of a KPA electronic platform to track real-time safety analytics and data.
• Deployment of MOTIVE, an AI-driven driver safety system, to analyze driving behavior and prevent accidents.

These investments are essential, but the market requires quantifiable results; a tangible safety metric is the only thing that will truly satisfy customer and investor due diligence.

KLX Energy Services Holdings, Inc. (KLXE) - PESTLE Analysis: Technological factors

Investing in proprietary products and specialized services to improve well efficiency.

You know that in the oilfield services game, your technology is your competitive edge, not just a line item. KLX Energy Services Holdings, Inc. (KLXE) is defintely leaning into this, focusing their capital on a complementary suite of proprietary products and specialized services. This investment is crucial for driving well efficiency, especially in high-activity areas like the Permian Basin, where they saw revenue from tech services contribute to a 6.2% sequential increase in Q1 2025 revenue.

The company's VISION Suite of downhole completions tools is a great example of this. It's a set of advanced engineered tools-like the OraclE-Smart Reach Tool (SRT) for long laterals and PhantM Dissolvables-designed for optimal performance and operational efficiency. Here's the quick math: better tools mean fewer trips downhole, which directly translates to lower costs and faster well completion for the customer.

This focus on in-house innovation is what allows them to target the technically demanding wells that other providers might struggle with. They aren't just selling a service; they are selling a solution that maximizes the client's return on investment (ROI).

Upgrading to fully electric equipment, like the Whisper Series wireline units, meets customer demand.

The shift to electric equipment is no longer a niche trend; it's a non-negotiable requirement for many major exploration and production (E&P) companies focused on Environmental, Social, and Governance (ESG) compliance. KLXE has been a leader here with its Whisper Series of electric-powered equipment.

They rolled out the industry's first fully electric coiled tubing spread, which, along with the electric-powered wireline units, significantly reduces the environmental and operational footprint. These units run on grid power or on-site generation, which cuts out a lot of diesel consumption and noise. The electric motor in the wireline units, for instance, boasts a 70,000-hour life cycle, which is a huge maintenance and reliability win.

The operational benefits are clear and measurable:

• Reduce fuel consumption and carbon footprint on location.
• Lower maintenance costs due to fewer moving parts.
• Meet proposed noise ordinances, which is critical for sites near residential areas.

This is smart business: you're meeting customer demand for cleaner operations while also improving your own fleet's uptime and longevity. That's a win-win.

Digitalization of field operations is key to reducing non-productive time and costs.

Digitalization (the integration of digital technologies into business processes) is the silent killer of non-productive time (NPT) in the field. For a company like KLXE, reducing NPT is the fastest way to boost margins. They are using technology to get real-time visibility into their operations, which is making a difference in their financials.

For example, the company uses a KPA electronic platform for real-time analytics to monitor performance and identify risks, mainly focusing on safety and compliance. Also, they use MOTIVE, an advanced Artificial Intelligence (AI)-driven system, to monitor fleet driving behavior, which helps prevent accidents and reduces risk.

The impact of operational efficiency improvements was visible in their 2025 results. In Q2 2025, KLXE saw a 55.2% sequential increase in segment Adjusted EBITDA, which management attributed to higher utilization and a decrease in 'white space' (industry jargon for underutilized assets or non-productive time).

Technological advances in fuel economy could defintely reduce oil and gas demand.

While KLXE focuses on making the oil and gas extraction process more efficient, the broader technological landscape in transportation poses a structural headwind for the entire industry. The rapid advance of electric vehicle (EV) technology is already starting to erode demand for oil-based fuels.

The International Energy Agency (IEA) projects this substitution will accelerate significantly. In their Stated Policies Scenario (STEPS), the global EV fleet is expected to grow sixfold by 2035, a change that is anticipated to prevent over 10 million barrels per day (mb/d) of oil demand. Globally, electric car sales are forecast to displace a total of 5.4 mb/d of global oil demand by the end of the decade, up from 1.3 mb/d saved in 2024.

This is a long-term risk that KLXE must manage by continuing to focus on services for natural gas and technically complex wells, where demand is more resilient. The oil demand growth rate already slowed to 0.8% in 2024, down from 1.9% in 2023, reflecting the growing impact of EVs. You need to factor this into your long-range demand models.

Technological Trend	KLXE Product/Service	2025 Financial/Operational Metric
Proprietary Downhole Tools	VISION Suite (OraclE-SRT, PhantM Dissolvables)	Contributed to 6.2% sequential revenue increase in Q1 2025.
Electrification/ESG Compliance	Whisper Series Electric Wireline & Coiled Tubing	Electric motor life cycle of 70,000 hours, reducing maintenance.
Digitalization & Efficiency	KPA Platform, MOTIVE AI-driven Safety System	Improved utilization led to 55.2% sequential segment Adjusted EBITDA increase in Q2 2025.
Fuel Economy & Substitution	N/A (Industry Headwind)	Global EV sales forecast to displace 5.4 mb/d of oil demand by 2030.

Next Step: Portfolio Managers should assess the proportion of KLXE's revenue tied to natural gas services versus oil-focused services and model the impact of a 5.4 mb/d oil demand displacement by 2030.

KLX Energy Services Holdings, Inc. (KLXE) - PESTLE Analysis: Legal factors

Need to secure timely refinancing for the $\mathbf{\$250 \text{ million}}$ senior notes due November 2025.

You were defintely watching the November 2025 maturity date for the 11.500% senior secured notes, and honestly, that was the most critical near-term legal and financial risk. The good news is that KLX Energy Services Holdings, Inc. eliminated this maturity pressure early in 2025, which is a huge credit to management.

In March 2025, the company successfully executed a comprehensive refinancing. They issued approximately $\mathbf{\$232 \text{ million}}$ in new Senior Secured Floating Rate Cash / PIK Notes, pushing the maturity out to March 2030. This action effectively removed the immediate default risk and extended the debt runway by five years. Plus, they secured a new Asset-Based Lending (ABL) credit facility due March 2028 with a $\mathbf{\$125 \text{ million}}$ commitment, which significantly enhanced their liquidity. That's a clean win for the balance sheet.

Here's the quick math on the new debt structure:

Debt Instrument	Amount	New Maturity Date
Original Senior Secured Notes	$\mathbf{\$250 \text{ million}}$	November 2025 (Refinanced)
New Senior Secured Notes (Cash / PIK)	$\mathbf{\sim\$232 \text{ million}}$	March 2030
New ABL Credit Facility	$\mathbf{\$125 \text{ million}}$	March 2028

Litigation risk related to operational hazards and environmental incidents remains high.

For an oilfield services company like KLX Energy Services, the liability exposure from day-to-day operations is always a top-tier legal risk. We see this play out in two ways: direct operational accidents and the broader environmental movement impacting customers.

Directly, the company faces high litigation risk from operational hazards, including catastrophic events like fires or explosions, which can lead to substantial claims for personal injury, property damage, and loss of life. They also face 'toxic tort claims' from environmental accidents, even though they carry insurance. What this estimate hides is the potential for a single, uninsured, or under-insured event to materially affect the company's financial condition. In the first quarter of 2025 alone, the company incurred $\mathbf{\$0.1 \text{ million}}$ in legal and administrative fees, part of their one-time costs, which underscores the ongoing nature of these legal expenses.

Indirectly, you must track the litigation against their primary customers-the Exploration and Production (E&P) companies. States and municipalities are increasingly suing E&P firms, alleging public nuisance from global warming effects. As a service provider, KLX Energy Services' business is tied to the financial and legal viability of these customers, meaning a successful suit against an E&P company could lead to a slowdown in drilling activity, which hits KLX's revenue.

Compliance with the Endangered Species Act (ESA) can constrain expansion of operations.

The Endangered Species Act (ESA) and similar state laws are a real, tangible constraint on where and how KLX Energy Services and its customers can operate. The presence of a threatened or endangered species can restrict activities in its habitat, which limits the development of new oil and natural gas wells.

In 2025, the regulatory landscape for the ESA is shifting, which creates both uncertainty and potential opportunity. The current administration has been working to restore the 2019/2020 regulatory framework, which includes:

• Allowing transparent consideration of economic impacts in species listing decisions.
• Changing the requirements for interagency consultation to the 2019 framework.
• Issuing an executive order in January 2025 directing agencies to use ESA emergency consultation rules to facilitate the nation's energy supply.

This push to streamline the ESA consultation process, particularly with an eye toward energy independence, could reduce the regulatory friction for KLX Energy Services' customers, allowing for more project approvals and, consequently, more demand for KLX's services. Still, any expansion into new basins must be rigorously vetted for ESA compliance.

Strict adherence to domestic and international anti-corruption and trade laws is non-negotiable.

While KLX Energy Services operates primarily in the US onshore basins, adherence to anti-corruption laws like the US Foreign Corrupt Practices Act (FCPA) remains non-negotiable, especially as the company may have international supply chains or future global ambitions. The general enforcement environment is volatile.

In 2024, US authorities imposed over $\mathbf{\$1 \text{ billion}}$ in FCPA sanctions, showing the sheer scale of financial risk for non-compliance. However, a major legal shift occurred in March 2025 when an Executive Order was issued to pause FCPA enforcement by the Department of Justice (DOJ), with the Securities and Exchange Commission (SEC) stating it would follow suit. This is a massive, near-term change in the enforcement environment.

The key takeaway for KLX Energy Services is that while the immediate enforcement risk may be lower due to the 2025 'Pause Order,' the underlying laws have not been repealed. Compliance programs must remain in place because this pause could be temporary, and the penalties for a violation are severe. You can't let your guard down on compliance just because the enforcement agencies are taking a breather.

KLX Energy Services Holdings, Inc. (KLXE) - PESTLE Analysis: Environmental factors

Energy transition is a negative long-term factor, lowering demand for fossil fuel services.

The long-term shift toward a lower-carbon economy, or the energy transition, presents a fundamental headwind for KLX Energy Services Holdings, Inc. (KLXE), a provider of oilfield services (OFS). While the global energy market remains robust in the near term, the long-term trajectory points to a decline in demand for services tied exclusively to fossil fuel extraction. This is the big picture risk.

However, the near-term reality in 2025 is more nuanced. Global oil demand is actually projected to hit a record 103.7 million barrels per day in 2025, and global natural gas demand is expected to rise by 1.8%. This resilience is supported by natural gas becoming critical infrastructure for new energy demands, such as powering AI data centers. Still, the market is volatile; the average US land rig count declined 6% and the average frac spread count declined 12% sequentially from the second quarter to the third quarter of 2025, reflecting market headwinds. This means you have to plan for a resilient but shrinking core market.

Here's the quick math on the market volatility KLXE faced in the first three quarters of 2025:

Metric (2025)	Q1 2025	Q2 2025	Q3 2025
Revenue	$154.0 million	$159.0 million	$166.7 million
Sequential Revenue Change	(6.9)% (vs. Q4 2024)	+3.2% (vs. Q1 2025)	+5.0% (vs. Q2 2025)

Company is dedicated to minimizing its carbon footprint and reducing emissions.

KLX Energy Services Holdings, Inc. is actively integrating corporate sustainability into its business model, recognizing the shift in customer and investor priorities. The company is dedicated to minimizing its carbon footprint and preserving natural resources, which translates into a focus on operational efficiency and new technology. This isn't just a marketing line; it's a necessary operational pivot to remain competitive with major exploration and production (E&P) customers.

Key areas of focus for emissions reduction include:

• Minimizing the overall carbon footprint of field operations.
• Preserving natural resources through efficient practices.
• Actively seeking opportunities to reduce emissions and ensure compliance.

Operational compliance with complex environmental regulations is a constant, high-cost factor.

Operational compliance with the increasingly complex web of environmental regulations is a constant, high-cost factor for KLXE. While the company has historically stated that environmental compliance costs have not had a material adverse effect, the regulatory landscape is tightening rapidly.

Specifically, new or more stringent interpretations of existing laws, such as the U.S. Environmental Protection Agency's (EPA) final methane rules and various state-level methane emissions regulations, pose a direct financial risk. These rules don't just affect KLXE; they 'could increase operating or compliance costs for our customers in these states and impact demand for our services.' When a customer's cost of drilling goes up, their demand for all services, including KLXE's, can fall. This is a classic, non-direct cost risk you have to model.

Development of lower-emission equipment, like electric-powered units, is a competitive advantage.

Developing and deploying lower-emission equipment is a clear competitive advantage in the 2025 market, driven by E&P companies' own environmental goals. KLX Energy Services Holdings, Inc. has responded with its Whisper Series, which includes electric-powered wireline units currently deployed in the field.

These specialized units offer a dual benefit: they support customer sustainability efforts by reducing carbon footprint and noise levels, plus they are more cost-effective to operate due to significant fuel savings. The investment in this technology is part of the company's capital expenditures (CapEx), which totaled $39.7 million for the first nine months of 2025 (Q1: $15.0M, Q2: $12.7M, Q3: $12.0M). While the majority of this CapEx is maintenance-related, the ongoing commitment to equipment upgrades, which included fully electric units in the prior year, is expected to remain stable in 2025. This investment is defintely a necessary cost of doing business to win high-value contracts.

The company had four Whisper™ Series units in its wireline fleet as of the end of 2023, representing a solid, though small, starting point for this low-emission offering. The goal is to grow this fleet to capture market share from customers prioritizing ESG performance.