PHX Energy Announces 2021 Capital Expenditure Program & Reinstatement of Quarterly Dividend - Seite 2

Additionally, the Board has approved our preliminary 2021 capital expenditure program of $15 million (the “Program”). The Program is anticipated to principally be allocated toward expanding PHX Energy’s Velocity and Atlas high performance drilling technology fleets, with $7 million expected to be allocated toward growth expenditures and $8 million expected to be allocated towards maintenance expenditures.

Exiting 2020, the industry rig counts are slowly recovering from the all-time lows experienced and we are also seeing a similar trend in our operations in the fourth quarter. With North American rig counts forecasted to slightly improve in 2021, we anticipate our activity levels will remain steady and our premium technologies will continue to be in high demand. The additional fleet capacity that will result from the Program is expected to meet this demand and allow for continued growth. We are cautiously optimistic for 2021, knowing the volatility of the current environment, and anticipate we will continue to strengthen our enviable position as both a financial and operational leader.

About PHX Energy Services Corp.

The Corporation, through its directional drilling subsidiary entities, provides horizontal and directional drilling technology and services to oil and natural gas producing companies in Canada, the US, Russia and Albania.

Forward Looking Statements

Certain statements contained in this document constitute "forward looking statements" and/or "forward looking information" within the meaning of applicable securities laws (collectively referred to as "forward looking statements"). When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, are intended to identify forward looking statements. Such statements reflect the current views of PHX Energy with respect to future events, the Program and operating performance and speak only as of the date of this document. In particular, this document contains forward looking statements pertaining to the amount of the Corporation's 2021 capital expenditure program, the source of funding the Program, the planned allocation of the Program, the anticipated 2021 activity and demand for our services, anticipated growth into 2021 and beyond, and the continuation of our quarterly dividend.