SCHEDULE: Cross Ocean Entities Disclose 5.9% Stake in KLX Energy

Cross Ocean Partners Management LP and related entities have disclosed a 5.9% beneficial ownership stake in KLX Energy Services Holdings, Inc., including warrants.

Summary

• Cross Ocean Partners Management LP, along with Cross Ocean Partners Management GP, LLC, GG Managers LLC, and Graham C. Goldsmith, collectively reported beneficial ownership of 1,174,325 shares of KLX Energy Services Holdings, Inc. common stock.
• This ownership stake represents 5.9% of the company's outstanding common stock.
• The total shares beneficially owned include warrants to purchase up to 305,438 shares at an exercise price of $0.01, which are currently exercisable.
• Cross Ocean GSS Onshore Feeder LP, a feeder fund, separately reported beneficial ownership of 436,349 shares (including 113,493 warrants), representing 2.2% of the class.
• The percentages are calculated based on 19,529,046 shares issued and outstanding as of February 27, 2026.
• The reporting persons certified that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, except for activities related to nominations under Rule 14a-11.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive development, as it signals institutional confidence in KLX Energy Services Holdings, Inc. without indicating any immediate operational changes or challenges.

Positives

• A significant institutional investor group, Cross Ocean Partners, has taken a notable stake in KLX Energy Services Holdings, Inc., potentially signaling confidence in the company's valuation or future prospects.
• The inclusion of warrants suggests a long-term bullish view on the stock, as warrants provide leverage to future price appreciation.

Risks

• The reporting persons disclaim beneficial ownership of the shares they report, which is a standard legal disclaimer but highlights the indirect nature of some of the holdings.
• The value of the warrants is dependent on the future stock price of KLX Energy Services Holdings, Inc., introducing market risk.

Future Outlook

The filing is a disclosure of beneficial ownership and does not contain specific forward-looking statements or guidance from the reporting persons regarding KLX Energy Services Holdings, Inc.'s future operations or financial performance, beyond the passive investment intent.

Management Comments

• The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

StockSavvy.ai notes that the energy services sector, particularly companies like KLX Energy Services Holdings, Inc., often attracts institutional investors seeking exposure to cyclical upturns in oil and gas activity. A 5.9% stake by a group like Cross Ocean Partners indicates a belief in the sector's recovery or specific company's value proposition, even if the investment is declared passive.

Comparison to Industry Standards

• A 5.9% stake is a significant passive position for an institutional investor, often placing them among the top shareholders.
• The inclusion of warrants with a low exercise price ($0.01) is common in certain investment structures, providing a cost-effective way to gain equity exposure and upside potential.
• Compared to activist investors who might take similar or larger stakes, Cross Ocean Partners' certification of passive intent (excluding 14a-11 nominations) aligns with typical Schedule 13G filings for investment funds.

Stakeholder Impact

• Shareholders: May view the increased institutional ownership as a positive signal of confidence in the company's value.
• Management: The company's management will be aware of a significant new institutional shareholder, which could lead to increased engagement.

Next Steps

• Cross Ocean Partners and related entities will continue to monitor their investment in KLX Energy Services Holdings, Inc.
• Future Schedule 13D or 13G/A filings would be required if their ownership stake significantly changes or if their investment intent shifts from passive to active.

Key Dates

Recommendation

The filing indicates a significant institutional stake, which is generally a positive signal of confidence. However, as a passive 13G filing, it does not provide new operational or financial data to warrant a 'buy' recommendation. The investment is a vote of confidence, but without further catalysts or detailed financial analysis, a 'hold' is appropriate for existing investors, while potential investors should conduct further due diligence.

Keywords

KLX Energy Services Holdings, KLXE, Cross Ocean Partners, Schedule 13G, Beneficial Ownership, Institutional Investor, Warrants, Energy Services, Passive Investment, Shareholder Disclosure