PHX Energy's Strategic Push: Renewed Issuer Bid Announcement

Author: Thomas Cooper Updated: 08-13-2025 07:00 PM

PHX Energy Services Corp. Announces Renewal of Issuer Bid

In a strategic move to enhance shareholder value, PHX Energy Services Corp. (TSX: PHX) proudly reveals the Toronto Stock Exchange's acceptance of their plan to renew their normal course issuer bid (NCIB) for an additional one-year period. This renewal allows PHX Energy to continue their proactive approach in managing their capital and shares on the market.

Details of the Normal Course Issuer Bid

The previous NCIB is set to expire soon, but the newly approved plan enables PHX Energy to purchase up to 4,035,757 common shares for cancellation. This represents 10% of the corporation's public float. As of now, the total number of outstanding common shares stands at 45,181,072. This initiative allows PHX Energy to enhance its total shareholder returns.

Market Transactions and Timing

Purchases under the NCIB will be conducted from time to time, depending on market conditions and the company's assessment of its own shares’ value. The maximum daily pool for purchases is capped at 22,705 common shares, which is a quarter of PHX Energy's average daily trading volume. Interestingly, the corporation will be able to make one larger block purchase each week, exceeding daily buy limits, thus allowing them flexibility in timing and market impact.

Automatic Share Purchase Plan

To streamline this process, PHX Energy will establish an automatic share purchase plan (ASPP) with a broker. This arrangement ensures that shares can be bought even during internal blackout periods, thereby maximizing opportunities for share repurchases without risking compliance issues related to securities laws.

Impact on Shareholder Value

The decision to renew the NCIB stems from PHX Energy’s belief that the current market price does not always reflect the intrinsic value of their shares. By repurchasing shares, the corporation aims to bolster its per-share metrics, which could result in a significant increase in value for existing shareholders. This strategy aligns with PHX Energy's comprehensive Return of Capital Strategy (ROCS), ensuring a balanced approach to capital allocation.

About PHX Energy Services Corp.

PHX Energy is a prominent player in the energy sector, specializing in horizontal and directional drilling technologies and services. The corporation primarily serves oil and natural gas producers across North America, undertaking significant projects that contribute to the efficiency and effectiveness of energy extraction and delivery.

Contact Information

For more insightful information about the company and its activities, Michael Buker, President & CEO, or Cameron Ritchie, Senior Vice President Finance and CFO, can be contacted directly. Reach them at PHX Energy Services Corp., Suite 1600, 215 – 9th Street SW, Calgary, Alberta T2P 0K3. The contact numbers are 403-543-4466.

Frequently Asked Questions

What is the purpose of the NCIB?

The NCIB allows PHX Energy to repurchase its own shares from the market, helping to enhance per-share metrics and the overall value for shareholders.

How many shares is PHX Energy planning to repurchase?

PHX Energy intends to repurchase up to 4,035,757 common shares under the renewed NCIB, representing 10% of its public float.

When will the NCIB commence?

The normal course issuer bid is set to begin on August 18, 2025, and will last for one year.

What will be the impact of the ASPP?

The ASPP will allow PHX Energy to repurchase shares during blackout periods, ensuring timely execution of their buyback strategy.

How does the NCIB fit into PHX Energy's overall strategy?

It is a crucial component of their Return of Capital Strategy (ROCS), aimed at maximizing long-term shareholder returns through disciplined capital allocation.

About The Author

Hello, I'm Thomas Cooper, a financial expert and writer passionate about helping people understand and navigate the financial world. Having a solid financial background and a lot of experience, my area of expertise is simplifying difficult financial ideas into useful, understandable guidance. My goal with my writings and blog entries is to provide you the information and resources you need to make wise financial choices.

I am thrilled to contribute my ideas and engage with a lively investor community at Investors Hangout, where I recently joined the team. My mission is to make finance interesting and approachable so you may take charge of your financial future. I appreciate you coming along on this path to success and financial knowledge.

Contact Thomas Cooper privately here. Or send an email with ATTN: Thomas Cooper as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.