PHX Energy Secures TSX Authorization for Normal Course Issuer Offering Renewal
PHX Energy Services Corp. Renews Normal Course Issuer Bid
PHX Energy Services Corp. has announced the renewal of its Normal Course Issuer Bid (NCIB) for a one-year term, beginning August 18, 2025, and ending August 17, 2026. The company is authorised to repurchase up to 4,035,757 common shares, representing approximately 10% of its public float.
The NCIB aims to enhance long-term shareholder returns by reducing the number of outstanding shares. PHX Energy will enter into an Automatic Share Purchase Plan (ASPP) with a broker, allowing share purchases during self-imposed blackout periods to facilitate the NCIB. Outside blackout periods, management will decide on repurchases within TSX and securities law parameters.
Share repurchases under the NCIB will be cancelled, potentially increasing per-share metrics such as earnings per share. This initiative supports PHX Energy’s Return of Capital Strategy, which targets returning up to 70% of annual excess cash flow to shareholders, bolstered by the company’s strong operational cash flow and conservative debt levels.
The Toronto Stock Exchange (TSX) has approved the bid, and PHX Energy believes the repurchase of its common shares represents an attractive opportunity to enhance its per-share metrics and increase the underlying value to its shareholders.
The bid will commence on August 18, 2025, and terminate on August 17, 2026. PHX Energy will enter into an automatic share purchase plan with a broker prior to commencement of the bid. The actual number of common shares that may be purchased and the timing of any such purchases will be determined by PHX Energy.
Purchases of common shares will be made at the prevailing market price, and PHX Energy may make one block purchase per calendar week which exceeds the daily repurchase restrictions. Any common shares that are purchased under the bid will be cancelled.
The forward-looking statements in the press release are made as of the date of the press release. Shareholders are encouraged to read PHX Energy's Annual Information Form, detailing risks and uncertainties, which can be accessed at www.sedarplus.ca.
For further information, please contact PHX Energy Services Corp. at Tel: 403-543-4466 or Fax: 403-543-4485. The company's headquarters is located at Suite 1600, 215 - 9th Street SW, Calgary, Alberta T2P 0K3. Michael Buker is the President & CEO, and Cameron Ritchie is the Senior Vice President Finance and CFO of PHX Energy Services Corp. The press release was issued by GlobeNewswire, Inc.
- The renewal of PHX Energy Services Corp.'s Normal Course Issuer Bid (NCIB) will operate within the Toronto Stock Exchange (TSX) regulations for a year, starting on August 18, 2025, and ending on August 17, 2026, during which they can repurchase up to 10% of their public float, approximately 4,035,757 common shares.
- PHX Energy will implement an Automatic Share Purchase Plan (ASPP) with a broker, permitting share purchases during self-imposed blackout periods, while management will decide on tenders during normal conditions within TSX and securities law boundaries.
- The cancelled shares as a result of the NCIB may positively impact per-share metrics like earnings per share, aligning with PHX Energy’s Return of Capital Strategy, which focuses on returning up to 70% of annual excess cash flow to shareholders.
- With its strong operational cash flow, conservative debt levels, and the Toronto Stock Exchange’s approval of the bid, PHX Energy views the repurchase of its common shares as a potential opportunity to increase per-share value for its shareholders in the Canadian energy industry.
