PHX Energy Services Corp. Announces It Has Entered a Technology Partnership With National Energy Services Reunited Corp.
March 25 2021 - 6:34AM
PHX Energy Services Corp. ("
PHX Energy" or the
"
Corporation") (TSX: PHX) is pleased to announce
it has entered into a technology partnership (the
“
Partnership”) with National Energy Services
Reunited Corp (“
NESR”) (NASDAQ: NESR). Pursuant to
the Partnership, PHX Energy will provide its premium downhole
technology, namely the Corporation’s Atlas High Performance Motors
(“
Atlas”) and Velocity Systems, for use in NESR’s
directional drilling operations in the Middle East and North Africa
(“
MENA”).
PHX Energy’s high-performance fleet of equipment
is widely recognized in North America for its increased reliability
and operating advantages that deliver faster drilling and increased
efficiency at the well site. This reputation has led PHX Energy to
grow its US market share to the highest level in its history.
Through the Partnership, these same advantages will become
accessible to operators in NESR’s international markets and PHX
Energy and NESR will work in collaboration to deliver directional
drilling solutions that provide the same step change in performance
that is now demanded in North American drilling operations. A
series of preliminarily wells in the Middle East are being drilled
using the Corporation’s technology, with the first recently
completed and breaking the current operating record in the
area.
PHX Energy’s strategic initiatives that have
positioned the Corporation as the technology leader in the
directional drilling sector, have led to an extensive fleet of
Atlas Motors and Velocity Systems. With the size of its current
Atlas and Velocity fleets, PHX Energy has allocated assets to the
Partnership with minimal capital expenditures required. The
Partnership is anticipated to grow throughout 2021 and PHX Energy
intends to allocate future assets and capital expenditures based on
the successes achieved. PHX Energy is committed to maintaining its
balance sheet strength and protecting its financial position,
especially given the current volatility in the economic and
industry conditions. PHX Energy believes the Partnership will
further its financial strength, creating another revenue stream
that leverages the higher margins generated by its high performance
fleet.
About PHX Energy Services
Corp.
The Corporation, 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, Russia and Albania.
The common shares of PHX Energy are traded on
the Toronto Stock Exchange under the symbol "PHX".
About National Energy Services Reunited
Corp.
Founded in 2017, NESR is one of the largest
national oilfield services providers in the MENA and Asia Pacific
regions. With over 5,000 employees, representing more than 60
nationalities in over 15 countries, NESR helps its customers unlock
the full potential of their reservoirs by providing Production
Services such as Hydraulic Fracturing, Cementing, Coiled Tubing,
Filtration, Completions, Stimulation, Pumping and Nitrogen
Services. NESR also helps its customers to access their reservoirs
in a smarter and faster manner by providing Drilling and Evaluation
Services such as Drilling Downhole Tools, Directional Drilling,
Fishing Tools, Testing Services, Wireline, Slickline, Drilling
Fluids and Rig Services.
Forward Looking Statements
Certain statements contained in this document
constitute "forward looking statements" and/or "forward looking
information" within the meaning of applicable securities laws
(collectively referred to as "forward looking statements"). When
used in this document, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "estimate", "expect"
“foresees”, and similar expressions, are intended to identify
forward looking statements. Such statements reflect the current
views of PHX Energy with respect to future events, programs and
operating performance and speak only as of the date of this
document. In particular, this document contains forward looking
statements pertaining to the anticipated allocation of assets to
the Partnership and potential for growth in the Partnership and the
corresponding increase to asset allocation in the future, the
anticipated obligation under and benefits of the Partnership,
including the expectation that it will further the Corporation’s
financial strength, and the continued success and growth of
operations in the MENA region.
Forward looking statements involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results and will not necessarily be accurate
indications of whether such results will be achieved. Readers are
cautioned not to place undue reliance on these statements as a
number of factors could cause actual results to defer materially
from the results discussed in these forward looking statements,
including but not limited to those factors referred to under the
heading "Risk Factors" in the Corporation's Annual Information Form
("AIF") for the year ended December 31, 2019 and
the Corporation's management's discussion and analysis for the
three-month period and year then ended December 31, 2020. Although
forward looking statements contained in this press release are
based upon what the Corporation believes are reasonable
assumptions, the Corporation cannot assure investors that actual
results will be consistent with these forward looking statements.
The forward looking statements in this press release are expressly
qualified by this cautionary statement. Unless otherwise required
by law, PHX Energy does not intend, or assume any obligation, to
update these forward looking statements.
For further information please contact: John
Hooks, CEO; Michael Buker, President; or Cameron Ritchie, Senior
Vice President Finance and CFO
PHX Energy Services Corp. Suite 1400, 250 2nd
Street SW Calgary, Alberta T2P 0C1 Tel: 403-543-4466
Fax: 403-543-4485 www.phxtech.com
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