Phoenix Energy Reports Q2 2026 Quarter and Year to Date Financial and Operating Results

IRVINE, Calif., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Phoenix Energy One, LLC (NYSE American, PHXE.P) (“Phoenix Energy” or the “Company”), an energy company focused on oil and gas exploration and production across key U.S. basins, today reported its financial and operating results for the second quarter ended June 30, 2026 on Form 10-Q with the U.S. Securities and Exchange Commission.

Q2 2026 Highlights

• Generated total revenues of $405.9 million in Q2 2026 as compared to $163.8 million in Q2 2025, net income of $106.0 million as compared to $18.7 million in Q2 2025, EBITDA of $238.4 million as compared to $92.0 million in Q2 2025, and Adjusted EBITDA of $181.3 million as compared to $84.3 million in Q2 2025. Cash flow provided by operating activities was $277.3 million for the six months ended June 30, 2026, as compared to $100.6 million for the six months ended June 30, 2025;
• Achieved the Company's highest quarterly production of crude oil to date with 3.7 million barrels of oil produced in Q2 2026 and the highest monthly production of crude oil to date with 1.3 million barrels of crude oil produced in June 2026;
• Drilled the Company's first four-mile lateral switchback wells, which were the first such wells drilled in Montana, and completed the first full four-mile lateral unit development in Montana, consisting of two four-well unit developments, eight wells in total;
• Released rigs on 19 Bakken production wells, of which 11 were four-mile lateral wells and one was a four-mile switchback well. In addition, the Company released rigs on its first two horizontal saltwater disposal wells, both located in Montana, which had an average lateral length of approximately 2,783 feet;
• Completed hydraulic fracturing on 28 wells, consisting of one four-mile lateral well, two two-mile lateral wells, and 25 three-mile lateral wells, and placed 28 wells into production; and
• Produced approximately 13.4 million barrels of water and injected approximately 13.1 million barrels through the Company's saltwater disposal wells, with approximately 97.8% of total produced water volumes handled internally through the Company's operated facilities.
  
  

Q2 2026 Quarter and Year to Date Financial Results
	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2026			2025			2026				2025
Total revenues	$	405,851		$	163,834		$	704,531			$	279,581
Net income (loss)		105,985			18,698			(34,134	)			24,297
EBITDA(1)		238,392			91,977			210,819				163,961
Adjusted EBITDA(1)		181,263			84,332			311,479				153,493

^{(1) EBITDA and Adjusted EBITDA are non-GAAP measures. See “Non-GAAP Financial Measures” below for a reconciliation to net income (loss), the most directly comparable financial measure under GAAP.}

Net income for the three months ended June 30, 2026 was $106.0 million, as compared to $18.7 million for the same period in 2025. The year-over-year change was primarily due to higher product sales of $144.6 million generated from the Company's operated properties driven by additional wells placed into service, and a $17.2 million increase in mineral and royalty revenues primarily driven by a 42.8% increase in the average realized price for crude oil from $63.98/Bbl for the three months ended June 30, 2025 to $91.37/Bbl for the three months ended June 30, 2026, and a 5.9% and 64.2% increase in production volumes for crude oil and natural gas, respectively. The favorable variances were partially offset by a $37.6 million increase in depreciation, depletion, and amortization expense primarily due to increases in the Company's depletable cost bases, a $21.3 million increase in interest expense, net, primarily due to increased interest costs associated with the Company's term loan facility and the issuance of additional interest-bearing securities, a $16.4 million increase in cost of sales primarily associated with higher production volumes from the Company's oil and gas operating activities, and a $7.4 million decrease in gain on derivatives due to increases in the forward commodity price curves.

Net loss for the six months ended June 30, 2026 was $34.1 million, as compared to net income of $24.3 million for the same period in 2025. The year-over-year change was primarily due to a $188.0 million increase in loss on derivatives due to increases in the forward commodity price curves, a $66.7 million increase in depreciation, depletion, and amortization expense primarily due to increases in the Company's depletable cost bases, a $45.4 million increase in cost of sales primarily associated with higher production volumes from the Company's oil and gas operating activities, and a $38.0 million increase in interest expense, net, primarily due to increased interest costs associated with the Company's term loan facility and the issuance of additional interest-bearing securities. The unfavorable variances were partially offset by higher product sales of $242.0 million from the Company's operated properties driven by additional wells placed into service and a $23.0 million increase in mineral and royalty revenues primarily driven by a 21.7% increase in the average realized price for crude oil from $66.86/Bbl for the six months ended June 30, 2025 to $81.35/Bbl for the six months ended June 30, 2026, and an 18.7% and 31.8% increase in production volumes for crude oil and natural gas, respectively.

Q2 2026 Quarter and Year to Date Operational Results
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net oil-equivalent production (BOE)	3,601,222		2,167,772		7,019,088		3,927,092
Average daily production (BOE/d) (6:1)	39,574		23,822		38,779		21,697

• Average daily production was 39,574 Boe per day for the three months ended June 30, 2026, as compared to 23,822 Boe per day for the same period in 2025, an increase of 66.1%. Average daily production was 38,779 Boe per day for the six months ended June 30, 2026, as compared to 21,697 Boe per day for the same period in 2025, an increase of 78.7%; and
• Drilling activities commenced on a combined 213 gross and 44.8 net producing wells and the Company had 147 producing wells in service as of June 30, 2026, as compared to 62 producing wells in service as of June 30, 2025.
  
  

From Adam Ferrari, Chief Executive Officer

“Phoenix Energy delivered another quarter of meaningful operational progress, including record crude-oil production in June and Adjusted EBITDA of $181.3 million, more than double the prior-year period. Although non-cash derivative losses affected our year-to-date GAAP results, our second-quarter operating performance demonstrates the continued strength of our asset base and execution in the Williston Basin.”

Phoenix Energy previously announced that it will hold a public earnings call on Wednesday, August 12, 2026 at 1:30 PM PT to review these results. Participants may access the webcast and presentation materials on the Company’s investor-relations website at https://phoenixenergy.com/investors/.

The Form 10-Q filing can be viewed in its entirety via the U.S. Securities and Exchange Commission’s EDGAR database or on Phoenix Energy’s website at https://phoenixenergy.com/investors/.

About Phoenix Energy

Phoenix Energy One, LLC, doing business as Phoenix Energy, is an energy company formed in 2019. The company is focused on oil and gas exploration and production across key U.S. basins, with a primary footprint in the Williston Basin of North Dakota and Montana. Phoenix Energy operates under a differentiated three-pronged strategy of direct drilling, royalty acquisition, and non-operated working interests. For more information on Phoenix Energy, please visit our website at https://phoenixenergy.com/.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, which are statements regarding all matters that are not historical facts. Forward-looking statements may be identified using words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical facts. Forward-looking statements in this release include, but are not limited to, our expectations regarding our financial position and financial and operating performance, including our outlook and guidance for 2026, our assumptions underlying such guidance, and the impact of commodity price volatility on our derivative instruments, as well as our expectations regarding improved operational efficiencies.

Forward-looking statements are based on Phoenix Energy’s beliefs, assumptions, and expectations, taking into account currently known market conditions and other factors. Phoenix Energy’s ability to predict results or the actual effect of future events, actions, plans, or strategies is inherently uncertain and involves certain risks and uncertainties, many of which are beyond its control. Phoenix Energy’s actual results and performance could differ materially from those set forth or anticipated in its forward-looking statements. You are cautioned that the forward-looking statements contained in this press release are not guarantees of future performance, and we cannot assure you that such statements will be realized or that the forward-looking events and circumstances will occur. All forward-looking statements in this press release are made only as of the date of this press release, based on information available to Phoenix Energy as of the date of this press release, and you are cautioned not to place undue reliance on forward-looking statements considering the risks and uncertainties associated with them.

Actual results may differ materially from these expectations due to changes in global, regional, or local economic, business, competitive, market, regulatory, and other factors, many of which are beyond our control. Management believes that these factors include but are not limited to the risk factors the Company has identified in its filings with the U.S. Securities and Exchange Commission, including in the section of its Annual Report on Form 10-K for the year ended December 31, 2025, under the heading “Risk Factors,” and subsequent Quarterly Reports on Form 10-Q. Risk factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. The Company may not actually achieve the plans, intentions or expectations disclosed in such forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures” that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with GAAP. Specifically, the Company presents “EBITDA” and "Adjusted EBITDA" as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. The Company believes these measures can assist investors in comparing the Company’s operating performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance. Management believes these non-GAAP measures are useful in highlighting trends in the Company’s operating performance, while other measures can differ significantly depending on long term strategic decisions regarding capital structure, capital investments, etc. Management uses these non-GAAP measures to supplement GAAP measures of performance in the evaluation of the effectiveness of the Company’s business strategies and to make budgeting decisions. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide. However, these measures should not be considered as alternatives to net income (loss) as a measure of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. The presentation of these measures has limitations as analytical tools and should not be considered in isolation, or as a substitute for the Company’s results as reported under GAAP.

PHOENIX ENERGY ONE, LLC AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

The following table shows a reconciliation of EBITDA and Adjusted EBITDA to net income (loss), the most comparable GAAP measure, for the periods presented:

	Three Months Ended June 30,								Six Months Ended June 30,
(in thousands)	2026				2025				2026				2025
Net income (loss)	$	105,985			$	18,698			$	(34,134	)		$	24,297
Interest income		(175	)			(363	)			(388	)			(1,052	)
Interest expense, net		58,329				37,025				110,839				72,874
Depreciation, depletion, and amortization		74,253				36,617				134,502				67,842
EBITDA		238,392				91,977				210,819				163,961
Unrealized (gain) loss on derivatives		(57,129	)			(7,645	)			100,660				(10,468	)
Adjusted EBITDA	$	181,263			$	84,332			$	311,479			$	153,493

Contact

Company: Phoenix Energy One, LLC
Email: InvestorRelations@phoenixenergy.com
Address: 18575 Jamboree Road, Suite 830, Irvine, CA 92612
Phone: 949-416-5037