PHX Energy Announces 2021 Capital Expenditure Program & Reinstatement of Quarterly Dividend

CALGARY, Alberta, Dec. 07, 2020 (GLOBE NEWSWIRE) -- PHX Energy Services Corp. ("PHX Energy" "we" "our" or the "Corporation") (TSX: PHX) is pleased to provide an operational update as well as announce that its Board of Directors (the “Board”) has approved the reinstatement of a quarterly dividend program and its 2021 capital expenditures program.

The 2020-year has been unprecedented due to the impact of COVID-19 on the global economy and the decline in energy demand, commodity prices and rig counts. Knowing the cyclical nature of the energy industry, one of our ongoing strategies is to always be positioned for the next downturn. This includes protecting and building balance sheet strength and focusing on being a vital provider in Operators’ drive for drilling efficiency. As a result of these objectives, we entered this volatile time with one of the strongest balance sheets in the energy services sector and with a strong reputation as a leader in premium technologies and operational performance. This has allowed us to not only survive in these trying times but to outperform and achieve financial and operational successes.

In a time when US rig counts hit historical lows, we are growing our market share because of the strength of our technology and expertise of our personnel, and today, we are arguably the most active directional provider in the largest basin in the US, the Permian. In Canada we are continuing to maintain our healthy market share despite the persistent challenges of this market. As a result of our swift actions to protect our financial position at the onset of what became the worst downturn in the energy industry’s history, we have generated positive cash flows as well as eliminated all bank debt and hold cash and cash equivalents of $18.9 million as at September 30, 2020. Additionally, we have leveraged our NCIB as a tool to enhance total long-term shareholder returns by purchasing and cancelling approximately 5% of our shares outstanding during the 2020 fiscal year, and since December 31, 2017 we have repurchased and cancelled approximately 15% of shares outstanding.

We have diligently worked over the past few years to build a business model that allows us to further enhance shareholder returns even in a down market, and as a result, we are pleased to announce that our Board has approved the reinstatement of a quarterly dividend program effective immediately. The Board has declared a cash dividend of $0.025 per common share designated as an “eligible dividend” within the meaning of subsection 89(1) of the Income Tax Act (Canada), and payable on January 15, 2021, to shareholders of record at the close of business on December 31, 2020. The ex-dividend date is December 30, 2020. We believe we have built financial strength that can sustain a capital allocation strategy that includes a quarterly dividend as a further way to reward shareholders as we continue to differentiate ourselves from other energy service providers.