CALGARY, Alberta, Aug. 11, 2021 (GLOBE NEWSWIRE) -- 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 expired on August 13, 2021. 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 3,131,388 common shares ("Common Shares") of the Corporation at an average price paid of $1.58 per Common Share, which represents all the approved securities available for repurchase under the previous NCIB.
Under the renewed NCIB, PHX Energy may purchase for cancellation, from time to time, as PHX Energy considers advisable, up to a maximum of 3,679,797 Common Shares, which represents 10% of the Corporation's public float of 36,797,979 Common Shares as at August 6, 2021. 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 23,467 Common Shares which equates to 25% of PHX Energy's average daily trading volume of 93,868 Common Shares for the six months ended July 31, 2021. 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, 2021 and will terminate on August 15, 2022 or such earlier time as the NCIB is completed or terminated at the option of PHX Energy. PHX Energy may enter into an automatic securities purchase plan in connection with the NCIB which would permit the Corporation to repurchase its Common Shares during periods of blackout or other periods in which the Corporation would not ordinarily be permitted to repurchase its Common Shares. Such automatic securities purchase plan would be subject to certain parameters set by the Corporation from time to time which would govern the automatic purchase of Common Shares.
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 in Canada, the US and the Middle East through a partnership with National Energy Services Reunited Corp.
The common shares of PHX Energy are traded on the Toronto Stock Exchange under the symbol "PHX".