KLX Energy Services Holdings, Inc. filed a current report on September 23, 2026, disclosing that its Board of Directors adopted a stockholder protection rights plan and declared a dividend of one right per outstanding share of common stock.

Key Highlights

  • Rights dividend declared: One right per issued and outstanding share of common stock, payable to stockholders of record at the close of business on October 5, 2026.
  • Triggering threshold: Any person or group that acquires beneficial ownership of 10% or more of outstanding common stock without prior Board approval becomes an "Acquiring Person."
  • Exercise price: Each right initially entitles the holder to purchase one one-thousandth of a share of Series A Junior Participating Preferred Stock at $9.00 per right, subject to certain adjustments.
  • Flip-in provision: Upon a triggering event, non-Acquiring Person holders may receive common stock with a market value of two times the exercise price upon exercising a right.
  • Rights expiration: The rights will expire at the close of business on September 23, 2027, unless earlier redeemed, exchanged, or subject to certain other transactions.
  • Rights agent: Computershare Trust Company, N.A. is named as rights agent under the Stockholder Protection Rights Agreement dated September 23, 2026.

KLX Energy Services Rights Plan Structure and Key Provisions

According to the filing, KLX Energy Services Holdings, Inc. (NASDAQ:KLXE), a Delaware corporation headquartered at 3040 Post Oak Boulevard, 15th Floor, Houston, Texas, provides oilfield services and has its common stock listed on the Nasdaq Global Select Market. The Board adopted the rights plan on September 23, 2026, entering into a Stockholder Protection Rights Agreement with Computershare Trust Company, N.A. as rights agent. The plan is structured to impose significant dilution on any person or group that acquires 10% or more of the company's outstanding common stock without prior Board approval.

The filing describes two primary dilution mechanisms. Under the "flip-in" provision, if an Acquiring Person emerges, all other holders of rights may purchase common stock at a value equal to two times the $9.00 exercise price. Under the "flip-over" provision, if the company is subsequently acquired in a merger or if 50% or more of its consolidated assets or earning power are sold, rights holders (excluding the Acquiring Person and affiliates) may purchase common stock of the acquiring entity at the same two-times-exercise-price formula, according to the filing.

The filing notes certain exemptions. A stockholder who files a statement pursuant to Rule 13d-1(b) under the Securities Exchange Act of 1934, and who beneficially owns less than 20% of outstanding common stock, is designated a "13G Investor" and is not treated as an Acquiring Person, though this status can be lost under circumstances specified in the Rights Agreement. Additionally, the filing states that no signatory to the Backstop Agreement will become an Acquiring Person solely as a result of acquiring common stock pursuant to that agreement, up to ownership levels permitted thereunder. Rights become exercisable only upon a "Distribution Date," defined as the close of business on the tenth business day after a public announcement that a person has become an Acquiring Person, or after a qualifying tender or exchange offer is published.

What Was Disclosed

KLX Energy Services Holdings, Inc. reported the adoption of a stockholder protection rights plan, the declaration of a rights dividend payable October 5, 2026, and the terms of the Stockholder Protection Rights Agreement, including a 10% ownership trigger, a $9.00 exercise price, and a September 23, 2027 expiration date.