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 commence a normal course issuer bid (the "NCIB"). Under the NCIB, PHX Energy may purchase for cancellation, from time to time, as PHX Energy considers advisable, up to a maximum of 2,929,494 common shares of the Corporation ("Common Shares"), which represents 5% of the 58,589,887 issued and outstanding Common Shares as at the date hereof.
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 38,749 Common Shares which equates to 25% of PHX Energy's average daily trading volume of 154,999 for the six months ended May 31, 2017. 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 June 26, 2017 and will terminate on June 25, 2018 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.
PHX Energy, 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, Albania and Russia. In addition the PHX Energy provides EDR technology and services through its Stream Services division.
The common shares of PHX Energy are traded on the Toronto Stock Exchange under the symbol "PHX Energy".
SOURCE: PHX Energy Services Corp.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.