PHX Energy Services (PHX) Conference presentation summary

Operating profile and market position

• Largest independent directional drilling service and technology provider in North America; works for 16 of the top 20 North American energy producers.

• 73% of annual revenue generated in the US; 85% of US revenue comes from the Permian Basin.

• Vertically integrated across the product and service value chain; 22% Canadian and 10% US market share; 971 employees.

• Tier 1 positioning relies on premium technology, auditable quality and HSE systems, and reliable drilling performance; capital requirements create a significant barrier to entry.

Technology and drilling performance

• Proprietary portfolio includes Velocity real-time systems, Atlas motors, Echo wireless antennas, Universal-Sub, and high-speed real-time rotary steerable systems.

• Since 2017, technology investment has reduced well construction times by more than 50% while improving drilling performance.

• Montney 3,000m average well: time to total depth fell from 9.1 days in 2015 to 2.6 days in 2025; drilling days declined 71% and rate of penetration rose 132%.

• Permian 3,000m average well: time to total depth fell from 8.7 days in 2015 to 3.8 days in 2025; rate of penetration rose 104%.

Q2 2026 results and priorities

• Q2 revenue was $178,911k vs. $167,670k in Q2 2025, up 7% YoY; H1 revenue was $362,795k vs. $361,374k.

• Q2 adjusted EBITDA was $32,951k vs. $27,356k; H1 adjusted EBITDA was $62,907k vs. $68,043k, down 8%.

• Q2 excess cash flow was $20,489k vs. $9,322k, up 120%; H1 excess cash flow was $23,483k vs. $27,485k, down 15%.

• At June 30, 2026, working capital was $134,970k vs. $110,910k at Dec. 31, 2025; net debt was $43,901k vs. $6,382k.

• 2026 priorities: shareholder value, technology leadership and operational efficiency, regional and client diversification, and margin protection in a volatile environment.