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.
