Mr. Michael Buker reports

PHX ENERGY RECEIVES TSX APPROVAL FOR RENEWAL OF NORMAL COURSE ISSUER BID

The Toronto Stock Exchange has accepted PHX Energy Services Corp.'s notice of intention to renew its normal course issuer bid (NCIB) for a further one-year term. The previous NCIB expires on Aug. 15, 2025. Pursuant to the corporation's previous NCIB, as at Aug. 5, 2025, the corporation has purchased, in the open market through the facilities of the TSX and through other alternative Canadian trading platforms, and cancelled, an aggregate of 1,451,111 common shares of the corporation at an average price paid of $9.54 per common share.

Under the renewed NCIB, PHX Energy may purchase for cancellation, from time to time, as PHX Energy considers advisable, up to a maximum of 4,035,757 common shares, representing 10 per cent of the corporation's public float of 40,357,579 common shares as at Aug. 5, 2025. Purchases of common shares may be made on the open market through the facilities of the TSX and through other alternative Canadian trading platforms at the prevailing market price at the time of such transaction. The actual number of common shares that may be purchased for cancellation and the timing of any such purchases will be determined by PHX Energy, subject to a maximum daily purchase limitation of 22,705 common shares, equating to 25 per cent of PHX Energy's average daily trading volume on TSX of 90,821 common shares for the six months ended July 31, 2025. As at Aug. 5, 2025, the corporation had 45,181,072 common shares issued and outstanding. PHX Energy may make one block purchase per calendar week that exceeds the daily repurchase restrictions. Any common shares that are purchased by PHX Energy under the NCIB will be cancelled.

PHX Energy will enter into an automatic share purchase plan (ASPP) with a broker prior to commencement of the NCIB in order to facilitate repurchases of its common shares. Under the corporation's ASPP, the broker may repurchase shares under the NCIB during the corporation's self-imposed blackout periods. Purchases will be made by the broker based upon the parameters prescribed by the TSX and applicable securities laws and the terms of the plan and the parties' written agreement. Outside of these blackout periods, common shares may be purchased under the NCIB in accordance with management's discretion.

The NCIB will commence on Aug. 18, 2025, and will terminate on Aug. 17, 2026, or such earlier time as the NCIB is completed or terminated at the option of PHX Energy. A copy of the Form 12 notice of intention to make a normal course issuer bid filed by the corporation with the TSX can be obtained from the corporation upon request without charge.

PHX Energy believes that within a continued volatile market environment, at times, the prevailing market price does not reflect the underlying value of its common shares, and the repurchase of its common shares for cancellation represents an attractive opportunity to enhance PHX Energy's per share metrics and thereby increase the underlying value to its shareholders. PHX Energy intends to use the NCIB as another tool to enhance total long-term shareholder returns under its return of capital strategy (ROCS) in conjunction with management's disciplined capital allocation strategy.

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 primarily in Canada and the United States.

The common shares of PHX Energy are traded on the Toronto Stock Exchange under the symbol PHX.

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