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CALGARY, ALBERTA -- (Marketwire) -- 02/27/13 -- Aided by international and US growth, PHX Energy (TSX: PHX) generated an all-time record level of revenue, operating days, EBITDA and funds from operations in 2012.
For the year ended December 31, 2012, the Corporation generated consolidated revenue of $301.7 million as compared to $260.1 million in the 2011-year; an increase of 16 percent. EBITDA increased by 9 percent to $48.8 million in 2012 as compared to $45.0 million in 2011, and the Corporation's funds from operations were $50.6 million in 2012, which is 14 percent greater than the $44.2 million achieved in 2011.
In North America, the industry trend toward horizontal and directional drilling has never been sturdier. Industry horizontal and directional drilling activity represented approximately 88 percent (as measured by drilling days) and 71 percent (as measured by rigs running per day) of the 2012 total drilling activity in Canada and the US, respectively. This compared to 87 percent in Canada and 69 percent in the US for the 2011-year. (Sources: Daily Oil Bulletin and Baker Hughes)
US operations achieved significant growth in 2012 as a result of an expanded marketing team, successful penetration in the Permian Basin, South Texas, and Mid-Continent markets, and the expansion of the motor rental division in Midland, Texas. US revenue, as a percentage of consolidated revenue, was 46 percent in 2012 as compared to 36 percent in 2011.
International operations were also robust, particularly in Albania and Russia. In 2012, the international operating segment represented 12 percent of consolidated revenue as compared to 9 percent in the prior year. PHX Energy foresees this momentum continuing, and with the addition of resistivity work and a new client in Albania, intensified marketing efforts in Russia and Colombia, and a continued focus on delivering exceptional service, international operations' contribution to consolidated revenue is expected to increase in the future years.
During 2012, the Corporation successfully expanded the deployment of its various value added directional drilling technologies, particularly its resistivity while drilling ("RWD") systems, in most of its operating regions, and this contributed to higher positive margins. PHX Energy is committed to growing its RWD offering and expects to add 7 RWD systems by mid-year.
To support strong operational activity levels, a record level of capital expenditures, $51.5 million, was incurred in 2012. With these capital expenditures, PHX Energy's down hole performance drilling motor fleet increased by over 200 motors and job capacity increased to 210 concurrent jobs from 190 in 2011. The greater job capacity resulted from the addition of 9 P-360 positive pulse measurement while drilling ("MWD") systems, 6 E-360 electromagnetic ("EM") MWD systems, and 5 RWD systems. As at December 31, 2012, the Corporation's MWD fleet consisted of 133 P-360 positive pulse MWD systems, 65 E-360 EM MWD systems, and 12 RWD systems. Of these, 86 MWD systems were deployed in Canada, 94 in the US, 15 in Russia, 6 in Albania, 5 in Colombia, and 4 in Peru.
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