PHX Energy Announces Increase to its 2026 Capital Expenditure Program
CALGARY, Alberta, June 03, 2026 (GLOBE NEWSWIRE) -- PHX Energy " or the "Corporation ") (TSX: PHX) announces that its Board of Directors (the "Board ") has approved an increase to its 2026 capital expenditure program (the "Program ") to $80 million, a $15 million increase from the previously announced Program.
The increased investment is expected to be primarily directed towards expanding the Corporation 's fleet of Rotary Steerable Systems ( "RSS ") in Canada and the United States, Atlas High Performance Drilling Motors ( "Atlas Motors "), and the Velocity Real-Time System ( "Velocity "). Of the $80 million Program, approximately 60 percent is now anticipated to be spent on growth. The remainder is anticipated to be spent on maintenance of the Corporation 's fleet of drilling and other equipment and replacement of equipment lost downhole during drilling operations. Net capital expenditures(1)are expected to be lower than $80 million after accounting for equipment replacements and dispositions. In the first quarter of 2026, proceeds on disposition of drilling equipment were $12.3 million.
Following a strong first quarter supported by higher RSS activity, the demand for the Corporation’s premium technology has remained robust with RSS, Atlas and Velocity fleet utilization currently at or near capacity. In particular, we continue to experience growing demand for RSS services including the deployment of our Real-Time RSS Communication Technology. The addition of more iCruise and PowerDrive Orbit systems will further enhance our ability to meet customer demand within both our US and Canadian operations while continuing to expand this high margin business line.
Although the higher commodity price environment that has persisted has not yet resulted in higher rig counts, we believe a slight uptick in industry activity will materialize in the second half of the year. As momentum picks up after the Canadian spring break up period ends, our fleet capacity will be strained and now is an opportunistic time to build up the fleet for the anticipated growth.
PHX Energy 's disciplined capital allocation framework remains unchanged and the decision to increase the Program reflects the continued strength of customer demand and our confidence in the returns these investments will generate. We continue to balance strategic growth investments with maintaining a strong balance sheet and financial flexibility, while returning capital to shareholders through dividends, share repurchases, and potential special distributions under our Return of Capital Strategy ( "ROCS ") framework.
We believe that this additional capital investment supports our 2026 strategic priorities of: creating shareholder value, maintaining technology leadership, delivering operational efficiencies, diversifying regional and customer exposure, and protecting margins in a volatile operating environment. We expect these investments to generate attractive returns, support continued growth in its premium technology offerings, and drive continued margin expansion while strengthening our competitive position in key markets.
The 2026 Program is expected to be financed from cash flow from operating activities, proceeds on disposition of drilling equipment, cash and cash equivalents, and the Corporation’s credit facilities, if necessary.
Note:
(1) "Net capital expenditures " is a capital management measure that does not have any standardized meanings under IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. Reference should be made to the section entitled “Non-GAAP and Other Financial Measures” in the Corporation 's MD&A for the three-month period ended March 31, 2026 for historical information on net capital expenditures, which information is incorporated by reference into this press release and can be found on the Corporation 's SEDAR+ profile at www.sedarplus.ca.
About PHX Energy Services Corp.
PHX Energy is a growth oriented, public oil and natural gas services company. The Corporation, through its directional drilling subsidiary entities provides horizontal and directional drilling services and technologies to oil and natural gas exploration and development companies principally in Canada and the US. In connection with the services it provides, PHX Energy engineers, develops and manufactures leading-edge technologies. In recent years, PHX Energy has developed various new technologies that have positioned the Corporation as a technology leader in the horizontal and directional drilling services sector in North America.
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 "). The use of "expect ", "anticipate ", "continue ", "estimate ", "objective ", "ongoing ", "may ", "will ", "project ", "could ", "should ", "can ", "believe ", "plans ", "intends ", "strategy ", “targets” and similar expressions are intended to identify forward-looking information or 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 2026 Program, the sources of funding the Program, the planned allocation of the Program, expectations regarding net capital expenditures, the anticipated fleet increases, the anticipated 2026 industry activity, the Corporation 's beliefs regarding its 2026 strategic priorities and the anticipated benefits therefrom, and demand for the Corporation’s services and its activity levels.
The forward-looking information in this document also includes financial outlooks and other related forward-looking information relating to PHX Energy, including, but not limited to the expectations of PHX Energy regarding net capital expenditures. The internal projections, expectations, or beliefs are based on the 2026 capital budget, which is subject to change in light of ongoing results, prevailing economic conditions and industry conditions and regulations. These financial outlook and other related forward-looking statements are also subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the continuous disclosure documents of the Corporation referenced herein. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, and as such, undue reliance should not be placed on financial outlook and/or forward-looking statements.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether such results will be achieved. Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to defer materially from the results discussed in these forward looking statements, including but not limited to those factors referred to under the heading "Risk Factors " in the Corporation 's Annual Information Form ( "AIF ") for the year ended December 31, 2025 and the most recently filed management 's discussion and analysis. Additional information on these and other factors that could affect the Corporation’s operations and financial results are included in reports on file with the Canadian Securities Regulatory Authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca) or at the Corporation’s website. The forward-looking statements and information contained in this Press Release are expressly qualified by this cautionary statement. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
For further information please contact:
Michael Buker, CEO & President; or
Cameron Ritchie, Senior Vice President Finance and CFO
PHX Energy Services Corp.
Suite 1600, 215 9th Avenue SW
Calgary, Alberta T2P 1K9
Tel: 403-543-4466 www.phxtech.com
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