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 Six Months Ended June
30, 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.
Comments