Canada's PHX Energy declares special dividend after Q4 revenue beat

Overview

• Canadian oilfield services firm's Q4 revenue rose 3% yr/yr, reaching a record level and beating estimates

• Company declared a special cash dividend of C$0.20 per share

• U.S. and Canadian divisions outperformed industry trends despite softer conditions

Outlook

• Company plans to expand RSS capabilities and Real-Time Communications fleet in 2026

• PHX Energy aims to return up to 70% of excess cash flow to shareholders

Result Drivers

• RSS ACTIVITY - Increased RSS activity contributed to record Q4 revenue, particularly in the Canadian division

• US DIVISION STABILITY - US division revenue remained stable despite a 7% sequential decline in industry rig counts

• MOTOR RENTAL REVENUE - Motor rental revenue increased, showing resilience in a slower market environment

Company press release: ID:nGNX4s4b04

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas drilling peer group is "buy"

• Wall Street's median 12-month price target for PHX Energy Services Corp is C$8.50, about 7.1% below its February 24 closing price of C$9.15

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

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