PHX Energy Services Corp.: A Canadian Oil and Gas Services Company Announces Eligible Quarterly Dividend
Calgary, Alberta, March 14, 2025 – In a recent press release, PHX Energy Services Corp. (“PHX Energy” or the “Company”) announced that its Board of Directors had declared a quarterly cash dividend of $0.20 per common share. This dividend is designated as an “eligible dividend” under the Income Tax Act (Canada).
About PHX Energy Services Corp.
PHX Energy is a growth-oriented, public oil and natural gas services company based in Calgary, Alberta. The Company specializes in providing various services to the upstream oil and natural gas industry. These services include drilling, completion, and production services. PHX Energy’s mission is to deliver safe, efficient, and innovative solutions to its clients while maintaining a strong commitment to sustainability and the environment.
Impact on Shareholders
For shareholders of PHX Energy, this dividend announcement is a welcome sign. The quarterly payment of $0.20 per common share represents a 2% yield based on the current stock price. Eligible dividends, as defined by the Income Tax Act (Canada), offer certain tax advantages. These dividends are included in the taxpayer’s income but benefit from a gross-up and a tax credit. As a result, shareholders may receive a higher after-tax return on their investment compared to other types of income.
Global Implications
The energy sector, particularly the oil and gas industry, plays a significant role in the global economy. PHX Energy’s decision to pay an eligible dividend to its shareholders could have positive implications for the broader market. The payment of dividends is often seen as a sign of financial strength and stability, which can lead to increased investor confidence. Moreover, the tax advantages associated with eligible dividends can incentivize long-term investment in the sector, potentially contributing to its growth and development.
Conclusion
PHX Energy Services Corp.’s announcement of a quarterly cash dividend of $0.20 per common share is a positive development for the Company’s shareholders. Eligible dividends offer tax advantages, providing a higher after-tax return on investment. Furthermore, this dividend payment could have a ripple effect on the global energy market, potentially boosting investor confidence and long-term investment in the sector.
- PHX Energy Services Corp. declared a quarterly cash dividend of $0.20 per common share.
- The dividend is eligible under the Income Tax Act (Canada) and offers tax advantages.
- The payment could lead to increased investor confidence in the energy sector.
- Long-term investment in the sector could contribute to its growth and development.
