Phx Energy Services Corp. · TSX:PHX
Phx Energy Services — Shareholder Meeting (May 2022)
13 slides from Phx Energy Services's shareholder meeting presentation, May 5, 2022
Slide 1: Annual General Meeting May 5, 2022
ANNUAL GENERAL MEETING MAY 5, 2022
Slide 2: Breaking News: 2022 Capital Expenditure Program Increase
Breaking News PHX Energy increases its 2022 Capital Expenditure Program by Approximately 80% to $85 million Our premium technology fleet is currently running at capacity as activity levels continue to grow and demand strengthens. Supply chain challenges persist with long lead times, increased co
Slide 3: Who Is PHX?
Who Is PHX ? We are the largest independent supplier of directional drilling services in the North American land market and strategic international locations ‒ Directional drilling is the process of steering the well path towards an intended target and doing so in a manner that increases the overa
Slide 4: Q1 2022 Financial Results
Q1 2022 Financial Results Three-month period ended March 31, Years ended Dec 31, Stated in thousands of dollars rig counts and operating days 2022 2021 % Chg 2021 2020 % Chg Strong profitability and cash Operating Results positive position Revenue 112,126 70,106 60 349,920 246,402 42 Adjusted EBITDA
Slide 5: 2021 North American Activity
2021 North American Activity PHX DRILLED AN INCREDIBLE 9 MILLION METERS IN 2021 THIS IS EQUAL TO DRIVING FROM 2,191 YYC to YYZ to IAH to YYC 100+ CLIENTS WELLS GEOGRAPHICAL REVENUE As a percentage of 2021 revenue 80% OF PHX US ACTIVITY IS IN LUCRATIVE Canada United States PERMIAN BASIN 19% 78%
Slide 6: Drill Baby Drill
Tell Me What You Want What You Really Really Want Operators are in a race, ongoing demand to continually drill faster Premium technology needs to be ultra reliable and provide fast data and well bore information Operators have no tolerance for non-productive time MORE FOOTAGE MORE WORK MORE WE
Slide 7: Recent History of Drilling Efficiencies
Recent History of Drilling Efficiencies DRILLING TECHNOLOGY - 10 YRS AGO CURRENT PHX DRILLING TECHNOLOGY Conventional 6.5“ Drilling Motor Atlas 7.25" High Performance Motor Max Torque 10,460 lb-ft Max Torque 19,050 lb-ft Horsepower Output 310 HP Horsepower Output 664HP Game Changer
Slide 8: It's the Name of the Game: Technology Case Study
It’s the Name of the Game Te c h n o l o g y C a s e S t u d y : T h e I m p a c t o f Fa s te r D r i l l i n g SAME AREA - SAME WELL PROFILE - NEW TECHNOLOGY 2017 - Permian Basin, Midland County 2021 - Permian Basin, Midland County 10,000ft Lateral 11,282ft Lateral Conventional technology
Slide 9: Record After Record
Record After Record x ENERGY, MCCLAIN COUNTY,OK j RECORD LATERAL SECTION 2,939 Ft/Day EDDY COUNTY, TX BACK TO BACK CLIENT RECORDS New Record 20,064' Spud to TD _ » 5h davs rg aa DRILLED WITH McClain County, OK Drilled with the Unmatched Combination of Atlas & Velocity MONTNEY Spud to Rig Release - e
Slide 10: PHX is the Enabler
PHX is the Enabler PREMIUM TECHNOLOGY FLEET IS COMPRISED OF THE INDUSTRY’S TOP TECHNOLOGIES, CANNOT BE OUTPERFORMED DESIGNED, DEVELOPED, MANUFACTURED, AND OPERATED BY PHX VELOCITY ATLAS PERFORMANCE DRILLING POWERDRIVE ORBIT REAL-TIME SYSTEM MOTORS RSS New generation MWD system, with Engineered to be
Slide 11: Low Valuation = Share Buy Back
Low Valuation = Share Buy Back Strong profitability and cash = Opportunity 17% of Shares repurchased = Opportunity Reinstated quarterly dividend positive position since March 2017 and increased two times NCIB Purchases NCIB Purchases 192,000 Shares Cancelled 1,960,788 Shares Cancelled NCIB Purchases
Slide 12: Buy Backs Will Continue
PHX is Energy Service Sector Outlier PHX is one of the few fortunate companies to be positioned to initiate dividend since worldwide pandemic Superior performance allowed two increases dividend in just over a year – unmatched! BUY BACKS WILL CONTINUE
Slide 13: Experience/Tenure = Success
Experience/ Tenure = Success 27 YEARS 24 YEARS 25 YEARS 10 YEARS 23 YEARS