PHX Energy Services stock leans on rotary steerable growth

PHX Energy Services used its Planet MicroCap Toronto presentation on October 28, 2026, to outline how rotary steerable technology is supporting growth as North American drilling activity remains selective. A TradingView report based on the presentation said President and CEO Mike Buker expects customers in the Permian Basin to increase activity as they prepare 2027 budgets.

Technology lifts drilling economics

PHX Energy steers oil and gas wells from vertical into horizontal formations. Its crews use measurement-while-drilling equipment, steering tools and field personnel to guide the well path for operators in Canada, the United States and a smaller Middle East operation.

Management said rotary steerable tools can improve drilling speed and support higher day rates. The company has recorded four consecutive years of record revenue despite a 30% contraction in its total addressable market, with technology expansion cited as a key reason for that performance.

Rig outlook remains gradual

The company expects the U.S. rig count to rise from about 600 to 650 by the end of 2027, while Canadian activity is expected to increase more gradually. Management also pointed to pipeline developments, liquefied natural gas activity and higher oil exports as potential support for Canadian drilling.

PHX Energy estimated that rotary steerable tools are used on about 20% of North American rigs and said adoption could reach 30% to 40% over the next several years. The company plans to keep investing in equipment while returning about 70% of excess cash to shareholders after technology spending and debt needs.

Business model and competition

PHX Energy Services is headquartered in Calgary, Canada, and provides horizontal and directional drilling services to oil and gas exploration and production companies. Its business includes downhole measurement, steering equipment and technology development, with most revenue generated in the United States.

PHX operates in a concentrated North American market alongside larger oilfield-service groups. Management described PHX as the second-largest North American provider of rotary steerable technology behind Schlumberger, while Halliburton is another named competitor in the tool market. PHX therefore occupies a specialized technology position rather than competing as a drilling-rig contractor.

Quartr's presentation summary said the company has about 10% to 11% of the U.S. directional-drilling market and about 22% in Canada, placing its outlook between technology-led expansion and the capital demands of a competitive services market.

Canadian energy shares remain linked to the broader S&P/TSX Composite market environment.

More news and analyses on PHX Energy Services stock are available in the company topic.