PHX Energy Receives TSX Approval for Renewal of Normal Course Issuer Bid
August 11 2023 - 7:00AM
PHX Energy Services Corp. ("
PHX Energy" or the
"
Corporation") (TSX: PHX) today announced
that the Toronto Stock Exchange ("
TSX") has
accepted PHX Energy's notice of intention to renew its normal
course issuer bid for a further one-year term (the
"
NCIB"). The previous NCIB expires on August 15,
2023. Pursuant to the Corporation's previous NCIB, the Corporation
purchased in the open market through the facilities of the TSX and
through other alternative Canadian trading platforms and cancelled
an aggregate of 1,509,800 common shares ("
Common
Shares") of the Corporation at an average price paid of
$6.39 per Common Share.
Under the renewed NCIB, PHX Energy may purchase
for cancellation, from time to time, as PHX Energy considers
advisable, up to a maximum of 3,552,810 Common Shares, which
represents 10% of the Corporation's public float of 35,528,100
Common Shares as at August 2, 2023. Purchases of Common Shares may
be made on the open market through the facilities of the TSX and
through other alternative Canadian trading platforms at the
prevailing market price at the time of such transaction. The actual
number of Common Shares that may be purchased for cancellation and
the timing of any such purchases will be determined by PHX Energy,
subject to a maximum daily purchase limitation of
12,793 Common Shares which equates to 25% of PHX Energy's
average daily trading volume of 51,173 Common Shares for the
six months ended July 31, 2023. PHX Energy may make one block
purchase per calendar week which exceeds the daily repurchase
restrictions. Any Common Shares that are purchased by PHX Energy
under the NCIB will be cancelled.
The NCIB will commence on August 16, 2023 and
will terminate on August 15, 2024 or such earlier time as the NCIB
is completed or terminated at the option of PHX Energy.
PHX Energy believes that within a continued
volatile market environment, at times, the prevailing market price
does not reflect the underlying value of its Common Shares and the
repurchase of its Common Shares for cancellation represents an
attractive opportunity to enhance PHX Energy's per share metrics
and thereby increase the underlying value to its shareholders. PHX
Energy intends to use the NCIB as another tool to enhance total
long-term shareholder returns in conjunction with management’s
disciplined capital allocation strategy.
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 primarily in Canada and the US.
The common shares of PHX Energy are traded on
the Toronto Stock Exchange under the symbol "PHX".
For further information please contact:
John Hooks, CEO; Michael Buker, President; or
Cameron Ritchie, Senior Vice President Finance and CFO
PHX Energy Services Corp. Suite 1600, 215 – 9th
Street SW Calgary, Alberta T2P 0K3 Tel: 403-543-4466 Fax:
403-543-4485 www.phxtech.com
Caution Regarding Forward-Looking
Statements
This news release contains certain statements
that may constitute forward-looking information within the meaning
of applicable securities laws. This information includes, but is
not limited to PHX Energy's intentions with respect to the NCIB and
purchases thereunder and the effects of repurchases under the NCIB.
Although PHX Energy believes that the expectations and assumptions
on which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because PHX Energy can give no assurance that they will
prove to be correct. Since forward-looking statements address
future events and conditions by their very nature they involve
inherent risks and uncertainties. Actual results could defer
materially from those currently anticipated due to a number of
factors and risks. Certain of these risks are set out in more
detail in PHX Energy's Annual Information Form which has been filed
on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this
press release are made as of the date hereof and PHX Energy
undertakes no obligation to update publically or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
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