- PHX Energy (PHX) looks toward the future with increases to its 2021 capital expenditure program
- The Board of Directors approved a C$10 million increase
- The company will allocate $8 million towards growth and $2 million towards maintenance
- The majority of the capital will go toward growing the Velocity Real Time System and Atlas high-performance drilling motor fleets
- The company expects to spend $25 million in capital expenditures during 2021
- PHX Energy Services provides horizontal and directional drilling technology and services to oil and natural gas companies
- PHX Energy (PHX) is up 3.45 per cent and is currently trading at $3 per share
PHX Energy (PHX) looks toward the future with increases to its 2021 capital expenditure program.
The Board of Directors approved a C$10 million increase with $8 million going towards growth and $2 million towards maintenance.
The majority of the capital will go toward growing the Velocity Real Time System and Atlas high-performance drilling motor fleets.
PHX believes the increase to the 2021 program will improve profitability while maintaining a strong financial position.
With the increase PHX now expects to spend $25 million in capital expenditures during 2021.
In Q1 2021, PHX experienced an uptick in activity from the previous quarter as industry activity has continued to rebound. Both Velocity and Atlas continue to be in high demand with expected strengthening in Canada and the U.S. in the later half of the year.
With this anticipated North American demand and its new technology partnership in the Middle East and North Africa regions, PHX believes its fleet will reach capacity in the second half of 2021.
A portion of the expenditures will also be directed towards equipping the MENA fleet to meet rising demand.
PHX Energy Services provides horizontal and directional drilling technology and services to oil and natural gas companies in Canada, the U.S., Russia, the Middle East, North Africa and Albania.
PHX Energy (PHX) is up 3.45 per cent and is currently trading at $3 per share as of 1:48 pm ET.
