PHX Energy Announces Increase in 2022 Capital Expenditure Program
CALGARY, Alberta, December 1, 2021 (GLOBE NEWSWIRE) – PHX Energy Services Corp. (“PHX energy“or the”company“) (TSX: PHX) announces that its Board of Directors (the”Plank“) approved a $ 10 million increase in the Company’s 2022 capital spending program (the”Program“). With this increase, the Company now expects to spend $ 40 million in capital expenditures during the year 2022. PHX Energy will need more fleet capacity to meet the activity levels expected in 2022 and to mitigate supply chain challenges that persist in the market. The increase will be mainly devoted to the expansion of the high performance Atlas drilling engine (“Atlas Engines“), real-time speed system (“Speedâ) And the PowerDrive Orbit rotary steerable system (âRSS“) Fleets. Of the $ 40 million program, $ 12 million is expected to be spent on maintenance capital, while the remaining $ 18 million is expected to be spent on growth.
Like many other industries, PHX Energy’s supply chain has been disrupted by the COVID-19 pandemic and the Company is experiencing increasing costs, shortages and long lead times. The Company takes advantage of its strong financial position to enable it to place orders well in advance and considers this prudent given the problems it is already experiencing. Industry activity forecasts indicate that the number of drilling rigs in North America could increase by 20% in 2022 and currently, PHX Energy is operating at full capacity and growing steadily in the United States and the United States. Canada. In addition, the Company anticipates that its technology partnership in the Middle East and North Africa region will be awarded contracts in 2022, which may require sending additional equipment to the region; However, it will take time to gain significant momentum. The Company also plans to increase its fleet of RSS in the United States in order to maintain high utilization of its owned fleet in order to protect its operating margins.
PHX Energy will continue to take a disciplined approach to growth and believes that the increase in the 2022 program will contribute to further improvements in profitability over the coming year. The 2022 program is expected to be funded from a combination of cash and cash equivalents, cash flow from operations and unused credit facilities of the Company, if required.
About PHX Energy Services Corp.
The Company, through its directional drilling subsidiaries, provides horizontal and directional drilling technologies and services to oil and natural gas companies in Canada, the United States, Russia and Albania. PHX Energy also provides EDR technology and services.
Certain statements contained in this document constitute âforward-looking statementsâ and / or âforward-looking informationâ within the meaning of applicable securities laws (collectively, âforward-looking statementsâ). When used in this document, the words “may”, “would”, “could”, “may”, “intention”, “plan”, “anticipate”, “believe”, “estimate”, ” expect âand similar phrases, are intended to identify forward-looking statements. These statements reflect the current views of PHX Energy with respect to future events, program and operating performance and speak only as of the date of this document. In particular, this document contains forward-looking statements regarding the amount of the Company’s 2022 capital expenditure program, the source of the program’s funding, the expected program allocation, the expected activity and demand in 2022 for our services, the expected contract award in the MENA region and resulting activity, expected growth to 2022 and beyond, and continued supply chain disruptions.
Forward-looking statements involve significant risks and uncertainties, should not be interpreted as guarantees of future performance or results, and will not necessarily constitute a precise indication of the achievement of such results. Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including, but not limited to, factors mentioned under the heading âRisk Factorsâ in the Company’s Annual Information Form (âFIA“) for the fiscal year ended December 31, 2020 and the management report of the Company for the three-month period and the fiscal year ended on that date on December 31, 2020. Although the forward-looking statements contained in this press release are Based on what the Company considers reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. otherwise requires, PHX Energy has no obligation to update these forward-looking statements.
For more information, please contact:
John Hooks, CEO;
Michael Buker, President; Where
Cameron Ritchie, Senior Vice President of Finance and Chief Financial Officer
PHX Energy Services Corp.
Suite 1400, 250 2nd Street SW
Calgary, Alberta T2P 0C1
Phone. : 403-543-4466 Fax. : 403-543-4485 www.phxtech.com