Canada's PHX Energy Q1 revenue falls 5% on weaker drilling activity

PHX Energy Services

05/05/2026 22:43

Overview

Canada oilfield services firm's Q1 revenue fell 5% yr/yr amid weaker drilling activity

Adjusted EBITDA and earnings declined, impacted by higher costs

Company paid both a regular and special dividend, exceeding its targeted payout ratio

Outlook

PHX Energy raises 2026 capital expenditure budget by $5 mln to $65 mln, focused on premium technologies

Company expects RSS services to represent a greater portion of activity in Q2 2026

PHX Energy anticipates inflationary pressures on costs to persist in the near term

Result Drivers

SOFTER DRILLING ACTIVITY - Weaker industry drilling activity in North America led to a 7% decline in consolidated operating days and contributed to lower revenue

RECORD RSS ACTIVITY - Increased deployment of Rotary Steerable Systems helped offset weaker market conditions, with RSS representing 18% of consolidated activity, up from 15% a year earlier

HIGHER COSTS AND DEPRECIATION - Increased equipment repair and rental costs, inflation, and higher depreciation from capital additions and asset life changes reduced profitability

Company press release: ID:nGNX5TBnMH

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
C$183.89 mln
C$182.30 mln (1 Analyst)
Q1 EPS
C$0.20
Q1 Adjusted EBITDA
C$29.96 mln
Q1 FFO
C$20.65 mln
Q1 Capex
C$28.51 mln
Q1 FFO Per Share
C$0.46


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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$13.38, about 6.7% above its May 4 closing price of C$12.54

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)