KLX Energy Services Acquires the Assets of Wolfpack Rentals, LLC Increasing Scale Across Four Major U.S. Operating Areas
Rhea-AI Summary
KLX Energy Services (NASDAQ:KLXE) is acquiring the assets of Wolfpack Rentals for $17 million, including $14 million at closing and two $1.5 million deferred payments. Wolfpack generated 2025 revenue of $38.2 million and Adjusted EBITDA of $5.8 million.
The deal is expected to be immediately accretive on all financial metrics, with over $2 million in anticipated annual synergies. Wolfpack adds about 350 accommodations trailers, 14 proprietary water filtration systems, and broad surface rental offerings across four major U.S. operating areas.
Positive
- Adds $38.2 million revenue business for $17 million purchase price
- Wolfpack 2025 Adjusted EBITDA of $5.8 million at low 2x post-synergy multiple
- Expected annual synergies in excess of $2 million
- Transaction expected to be immediately accretive on all financial metrics
- Differentiated asset base: ~350 trailers and 14 proprietary water filtration systems
- Funding mix includes capital lease, ABL borrowings, and cash on hand
Negative
- None.
News Market Reaction – KLXE
In the Jun 3 session, KLXE declined 2.91%, reflecting a moderate negative market reaction. Argus tracked a peak move of +43.0% during that session. Argus tracked a trough of -12.1% from its starting point during tracking. Our momentum scanner triggered 15 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.0x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | Q1 2026 earnings | Positive | +10.6% | Q1 loss but guidance for higher Q2 revenue and margin expansion. |
| May 06 | Earnings call schedule | Neutral | -5.0% | Announcement of timing and access details for Q1 2026 call. |
| Mar 11 | FY 2025 results | Negative | -9.5% | Full-year net loss, high debt levels, and Q4 2025 performance details. |
| Mar 05 | Earnings call schedule | Neutral | -4.2% | Notice of 2025 full-year and Q4 earnings release and conference call. |
| Dec 10 | CFO transition | Neutral | +9.0% | Interim CFO appointment and planned resignation of prior CFO. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
KLXE often shows sizable price reactions around fundamental updates, with both positive and negative moves following earnings and governance news.
Over the last six months, KLXE has reported weak profitability but meaningful scale. Full-year 2025 revenue was $637M with a $77M net loss, and Q1 2026 revenue of $144.7M came with a $24.0M net loss but guidance for higher Q2 revenue. Debt and leverage remain notable, with total debt around the mid-$200M range and limited cash. Against this backdrop, the Wolfpack acquisition adds a business with $38.2M revenue and positive Adjusted EBITDA, fitting management’s focus on accretive, scale-building moves.
Key Terms
adjusted ebitda financial
capital lease financing arrangement financial
abl borrowings financial
intellectual property rights regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Transaction Highlights
- Purchase price of
$17 million $14 million $1.5 million - Cashflow accretive. Wolfpack reported 2025 revenue of
$38.2 million $5.8 million $2 million - Differentiated, hard-to-replicate asset base with approximately 350 accommodations trailers and command centers, 14 water filtration systems with exclusive North American oil and gas IP rights, and a full suite of ancillary surface rentals and logistics solutions
- The acquisition will be funded via a capital lease financing arrangement, ABL borrowings supported by the acquired accounts receivable, and cash on hand
Commenting on the acquisition, Chris Baker, President and Chief Executive Officer of KLX, stated, "We are pleased to welcome Stewart Cooper and the entire Wolfpack team to KLX. Wolfpack has built a strong, diversified platform with a blue-chip customer base supported by a culture centered on accountability, safety, and customer service. Wolfpack operates in four areas, two of which overlap directly with our existing KLX Accommodations areas, creating immediate and compelling opportunities to realize synergies, increase scale, and enhance service and product offering for our shared customers. Wolfpack reported 2025 revenue of
Wolfpack is a
"The transaction structure is both cash flow accretive and deleveraging and will create meaningful, durable value for our stockholders," added Baker. "Stewart Cooper will join KLX to assist with integration and drive continued growth, and we look forward to the contributions of the Wolfpack team as part of the KLX family."
Stewart Cooper, Chief Executive Officer of Wolfpack, said, "We are excited to join KLX and believe the combination creates a stronger, more capable platform to serve our E&P customers across major
Transaction Details
Total consideration for the Wolfpack acquisition consisted of
KLX's legal advisor was Vinson & Elkins LLP.
About KLX Energy Services
KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout
About Wolfpack Rentals
Wolfpack Rentals is a leading one-stop-shop provider of surface rental solutions to oil and gas E&P, construction, and events customers across the United States. Founded in 2005 and headquartered in Fulshear, Texas, Wolfpack operates eight facilities across four areas — South Texas, West Texas, East Texas, and the Northeast (West Virginia/Ohio) — serving leading publicly traded E&P operators with a comprehensive suite of rental assets and services. Please visit www.wolfpackind.com for more information.
Forward Looking Statements
This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, including statements regarding the Wolfpack acquisition, expected synergies, financial performance, integration, and growth strategy. Words such as "believe," "expect," "anticipate," "estimate," "intend," "may," "should," "could," "will" and similar expressions identify forward-looking statements, though not all forward-looking statements contain such words.
These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events with respect to, among other things: our operating cash flows; the availability of capital and our liquidity; our ability to renew and refinance our debt; our future revenue, income and operating performance; our ability to sustain and improve our utilization, revenue and margins; our ability to maintain acceptable pricing for our services; future capital expenditures; our ability to finance equipment, working capital and capital expenditures; our ability to execute our long-term growth strategy and to integrate our acquisitions; our ability to successfully develop our research and technology capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and special projects, as well as our ability to integrate the business of Wolfpack and realize the expected benefits of the Wolfpack acquisition.
Forward-looking statements are not guarantees of future performance, and actual results could differ materially from our current expectations. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: general economic conditions, including inflation, increases in interest rates, or a recession; persistent volatility in national and global crude oil demand and crude oil prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by oil and natural gas exploration and production companies; overall domestic and global political and economic conditions, including the imposition of tariffs or trade or economic sanctions, political instability or armed conflict, including the ongoing conflicts in Ukraine, the Israel-Gaza region and elsewhere in the Middle East; the level of capital spending and access to capital markets by our customers; overcapacity and other competitive factors affecting our industry; supply chain issues; legislative or regulatory changes affecting the energy industry; the loss of or interruption in operations of one or more key suppliers; hazards and operational risks that may not be fully covered by insurance; increased labor costs or the inability to employ a sufficient number of key employees and skilled workers; reliance on information technology and the possibility of cyberattacks; and other risks and uncertainties listed in our filings with the U.S. Securities and Exchange Commission, including our Current Reports on Form 8-K that we file from time to time, Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. We undertake no obligation to update any forward-looking statement, except as required by law.
Non-GAAP Measures
This release references Wolfpack Adjusted EBITDA, a non-GAAP financial measure. We define Wolfpack Adjusted EBITDA as Wolfpack's net earnings (loss) before interest, taxes, depreciation and amortization, further adjusted for impairment charges, stock-based compensation, restructuring charges, acquisition-related transaction and integration costs, and other items not reflective of ongoing business performance. Wolfpack revenue and Adjusted EBITDA are based on Wolfpack's internally prepared financial statements. Our independent auditors have not audited, reviewed, compiled, or performed any procedures with respect to Wolfpack revenue or Adjusted EBITDA for the purpose of their inclusion in this communication, and accordingly, have not expressed an opinion or provided any other form of assurance with respect thereto for the purpose of this communication.
Historical Wolfpack revenue and Adjusted EBITDA and revenue are not guarantees of future performance, and actual results in future periods may differ materially from prior periods.
Adjusted EBITDA should not be considered an alternative to net income or any other GAAP measure, and our calculation may not be comparable to similarly titled measures used by other companies.
Contacts:
KLX Energy Services
Geoffrey C. Stanford, SVP, Interim CFO & CAO
832-930-8066
IR@klxenergy.com
Dennard Lascar Investor Relations
Ken Dennard / Natalie Hairston
(713) 529-6600
KLXE@dennardlascar.com
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SOURCE KLX Energy Services Holdings, Inc.