PHX Energy Announces All-Time Record Revenue, and Strong Profitability

Core Viewpoint - PHX Energy achieved record quarterly revenue and strong profitability in Q1 2025, driven by growth in high-margin services and effective capital management [3][10][11]. Financial Highlights - Consolidated revenue reached $193.7 million, a 17% increase from $166.1 million in Q1 2024 [2][3]. - Earnings rose to $20.2 million, or $0.44 per share, up 15% from $17.5 million, or $0.37 per share, in the same period last year [2][4]. - Adjusted EBITDA was $40.7 million, a 16% increase from $35 million in Q1 2024, representing 21% of consolidated revenue [2][4][10]. Operational Performance - The US division generated record revenue of $136.1 million, a 19% increase from $114.2 million in Q1 2024 [12][48]. - The Canadian division reported revenue of $57.6 million, an 11% increase from $52 million in the same quarter last year, marking the highest level since 2014 [13][56]. - The Corporation generated excess cash flow of $18.2 million after net capital expenditures of $13.8 million [3][4]. Capital Expenditures - The capital expenditure budget for 2025 was increased to $65 million, focusing on expanding the Rotary Steerable Systems (RSS) fleet and Real Time RSS Communications technology [24][7]. - In Q1 2025, capital expenditures totaled $24.7 million, with $15.6 million allocated for growth and $7.8 million for maintenance [21][61]. Shareholder Returns - A dividend of $0.20 per share was declared, totaling $9.1 million, which is 4% lower than the previous year due to share repurchases [15][16]. - The Return of Capital Strategy (ROCS) aims to utilize up to 70% of annual excess cash flow for shareholder returns, with $3.6 million remaining distributable under ROCS for Q1 2025 [16][17]. Market Outlook - The company anticipates continued strong demand for RSS despite potential industry disruptions from global economic conditions and fluctuating oil prices [5][6]. - The strategic focus remains on advancing technology and maintaining a strong balance sheet to navigate market uncertainties [7][8].