IRVINE, Calif., Nov. 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 third quarter ended September 30, 2026, and raised its full-year 2026 outlook, on Form 10-Q with the U.S. Securities and Exchange Commission.

Q3 2026 Highlights

Generated total revenues of $460.4 million, net loss of $1.4 million, EBITDA of $148.6 million, and Adjusted EBITDA of $207.8 million in Q3 2026, as compared to total revenues of $189.0 million, net income of $8.5 million, EBITDA of $92.6 million, and Adjusted EBITDA of $88.9 million in Q3 2025;
Cash flow provided by operating activities was $489.0 million for the nine months ended September 30, 2026, as compared to $204.7 million for the nine months ended September 30, 2025;
Achieved the Company's highest quarterly gross crude oil production to date with 4.4 million barrels of crude oil produced in Q3 2026, the highest monthly gross crude oil production to date with 1.5 million barrels of crude oil produced in August 2026, and the highest daily gross crude oil production to date with 52,479 barrels of crude oil produced in September 2026;
In August 2026, the Company was the eighth largest producer of crude oil in North Dakota;
Released rigs on 22 Bakken production wells, of which 19 were three-mile lateral wells, two were four-mile lateral wells, and one was a switchback well, which had an average lateral length of approximately 16,144 feet;
Completed hydraulic fracturing on 15 wells, consisting of 11 four-mile lateral wells and 4 three-mile lateral wells, and placed 5 wells into production, including the Company's first four-mile lateral switchback wells, which were the first such wells drilled in Montana;
Received the first permits ever issued for five-mile lateral wells in the Williston Basin; and
Produced approximately 14.2 million barrels of water and injected approximately 14.2 million barrels through the Company's saltwater disposal wells, with approximately 99.5% of total produced water volumes handled internally through the Company's operated facilities.

2026 Outlook

Based on results for the nine months ended September 30, 2026, and its expectations for the remainder of the year, the Company is updating its full-year 2026 outlook. The updated outlook below supersedes the outlook previously provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 17, 2026.

	As filed in Q3 2026 Form 10-Q							As filed in 2025 Form 10-K

	Year Ending December 31, 2026							Year Ending December 31, 2026
(dollars in thousands)		Lower Range				Upper Range				Lower Range				Upper Range
Revenue	$	1,610,000		⁽¹⁾	$	1,780,000	⁽¹⁾	$		1,190,000		$		1,490,000
Total operating expenses	$	1,060,000			$	1,120,000		$		965,000		$		1,030,000
Net income (loss)	$	(40,000	)	⁽²⁾	$	120,000	⁽²⁾	$		(40,000	)	$		65,000
EBITDA	$	525,000		⁽³⁾	$	695,000	⁽³⁾	$		475,000		$		605,000
Adjusted EBITDA	$	725,000		⁽³⁾	$	850,000	⁽³⁾	$	N/A			$	N/A
Total outstanding debt	$	2,090,000		⁽⁴⁾	$	2,230,000	⁽⁴⁾	$		1,900,000		$		2,150,000
Production:
Crude oil (Bbls)		13,100,000				13,700,000				12,500,000				13,600,000
Natural gas (Mcf)		17,500,000		⁽⁵⁾		18,200,000	⁽⁵⁾			14,900,000				16,300,000
NGL (Bbls)		1,550,000				1,640,000				475,000				520,000
Total (Boe) (6:1)		17,566,667				18,373,333				15,458,333				16,836,667
Average daily production (Boe/d) (6:1)		48,128				50,338				42,352				46,128

Based on an average benchmark commodity price of $88.39/Bbl for crude oil and $2.27/MMBtu for natural gas. Oil prices have been significantly volatile during 2026. Oil prices rose sharply in the first half of the year following the onset of the conflict in the Middle East involving Iran, Israel, the United States, and other countries in the region, reaching a high of $112.95 per Bbl on April 7, 2026. During the third quarter, oil prices ranged from a low of $69.60 per Bbl on July 6, 2026 to a high of $107.02 per Bbl on September 15, 2026, driven in part by renewed disruptions to shipping in the region.
Net income projections are subject to significant variability due to the accounting treatment of our derivative instruments. We use derivative instruments to manage exposure to commodity price volatility. These instruments are accounted for at fair value under GAAP, with changes in fair value recognized in earnings each reporting period. As a result, reported net income may be significantly impacted by unrealized gains or losses resulting from changes in forward commodity price curves related to future production periods, including 2026, 2027, 2028, and 2029. Our hedge positions currently result in derivative losses when crude oil prices rise. A substantial increase in forward crude oil prices, particularly late in the fourth quarter of 2026, would increase these losses before the higher prices are reflected in revenue, and could result in a net loss for the fourth quarter, which is reflected in the lower end of the net income (loss) range. Because these adjustments reflect changes in market expectations for future commodity prices rather than current operational performance, reported net income (loss) may fluctuate materially from period to period and may not be indicative of the Company’s underlying operating performance. Accordingly, deviations from projected net income (loss), EBITDA, or Adjusted EBITDA due primarily to non-cash mark-to-market adjustments on derivative instruments may occur even if operational performance remains consistent with expectations, and the Company may elect not to update previously issued net income (loss), EBITDA, or Adjusted EBITDA guidance when such deviations occur.
EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below for a reconciliation to net income (loss), the most directly comparable financial measure under GAAP. Assumes interest expense ranging between $240.0 million and $250.0 million and depreciation, depletion, and amortization expense ranging between $315.0 million and $335.0 million during the year ending December 31, 2026. We have not provided a full reconciliation of our forward outlook for EBITDA in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable to predict with reasonable certainty the specific amount and timing of certain items required to provide a full reconciliation, in particular due to the impact that commodity prices can have on our derivative positions.
Assumes repayment of an aggregate of $148.0 million of debt outstanding as of December 31, 2025 and that matures prior to December 31, 2026, no prepayments of debt that is not maturing prior to December 31, 2026, and the issuance of between $708.1 million and $848.1 million of new debt during the year ending December 31, 2026.
Revenue from natural gas has not historically represented a significant portion of our total revenues. We anticipate this trend to continue and, as a result, we currently estimate 5,350,000 Mcf to 5,650,000 Mcf of natural gas volumes (of the production range presented above) will be sold and recognized as revenues for the year ending December 31, 2026.

Q3 2026 Quarter and Year to Date Financial Results

	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)		2026			2025		2026			2025
Total revenues	$	460,385		$	189,021	$	1,164,916		$	468,602
Net income (loss)		(1,404	)		8,488		(35,538	)		32,785
EBITDA⁽¹⁾		148,590			92,551		359,409			256,512
Adjusted EBITDA⁽¹⁾		207,773			88,906		519,252			242,399

(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 loss for the three months ended September 30, 2026 was $1.4 million, as compared to net income of $8.5 million for the same period in 2025. The year-over-year change was primarily due to an $89.9 million increase in loss on derivatives as a result of net cash settlements on matured contracts and unfavorable changes in the mark-to-market value of the Company's outstanding commodity derivatives, a $43.2 million increase in depreciation, depletion, and amortization expense primarily due to increases in the Company's depletable cost bases, a $38.2 million increase in cost of sales primarily associated with higher production volumes from the Company's oil and gas operating activities, and a $22.8 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. These unfavorable variances were partially offset by a $144.5 million increase in product sales generated from the Company's operated properties driven by additional wells placed into service, and a $35.6 million increase in mineral and royalty revenues primarily driven by a 35.1% increase in the average realized price for crude oil from $62.97/Bbl for the three months ended September 30, 2025 to $85.09/Bbl for the three months ended September 30, 2026, and a 51.0% and 30.3% increase in production volumes for crude oil and natural gas, respectively, from the Company's acquisitions of mineral and non-operated working interests.

Net loss for the nine months ended September 30, 2026 was $35.5 million, as compared to net income of $32.8 million for the same period in 2025. The year-over-year change was primarily due to a $277.9 million increase in loss on derivatives as a result of net cash settlements on matured contracts and unfavorable changes in the mark-to-market value of the Company's outstanding commodity derivatives, a $109.9 million increase in depreciation, depletion, and amortization expense primarily due to increases in the Company's depletable cost bases, an $83.6 million increase in cost of sales primarily associated with higher production volumes from the Company's oil and gas operating activities, and a $60.7 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. These unfavorable variances were partially offset by a $386.5 million increase in product sales generated from the Company's operated properties driven by additional wells placed into service, and a $58.6 million increase in mineral and royalty revenues primarily driven by a 26.7% increase in the average realized price for crude oil from $65.36/Bbl for the nine months ended September 30, 2025 to $82.78/Bbl for the nine months ended September 30, 2026, and a 30.9% and 31.4% increase in production volumes for crude oil and natural gas, respectively, from the Company's acquisitions of mineral and non-operated working interests.

Q3 2026 Quarter and Year to Date Operational Results

	Three Months Ended September 30,		Nine Months Ended September 30,
	2026	2025	2026	2025
Net oil-equivalent sales volumes (BOE)	4,229,601	2,550,211	11,248,689	6,477,302
Average daily sales volumes (BOE/d) (6:1)	45,974	27,720	41,204	23,726

Average daily sales volume was 45,974 net Boe per day for the three months ended September 30, 2026, as compared to 27,720 net Boe per day for the same period in 2025, an increase of 65.9%. Average daily sales volume was 41,204 net Boe per day for the nine months ended September 30, 2026, as compared to 23,726 net Boe per day for the same period in 2025, an increase of 73.7%; and
During the nine months ended September 30, 2026, the E&P operators of the Company's properties, including PhoenixOp, drilled 445 gross and 53.6 net productive development wells on the acreage underlying the Company's mineral and royalty interests, and the Company had 150 producing wells in service as of September 30, 2026, as compared to 78 producing wells in service as of September 30, 2025.

From Adam Ferrari, Chief Executive Officer

“We produced more oil this quarter than at any point in Phoenix Energy’s history. Revenue grew nearly two and a half times to $460 million, and we nearly doubled the number of producing wells in service. Our bottom line reflects hedging losses as oil prices rose, a natural result of the dynamics of today’s market. Our business remains as strong as ever.”

Phoenix Energy previously announced that it will hold a public earnings call on Wednesday, November 11, 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 September 30,						Nine Months Ended September 30,
(in thousands)	2026			2025			2026			2025
Net income (loss)	$	(1,404	)	$	8,488		$	(35,538	)	$	32,785
Interest income		(324	)		(303	)		(712	)		(1,355	)
Interest expense, net		61,575			38,816			172,414			111,690
Depreciation, depletion, and amortization		88,743			45,550			223,245			113,392
EBITDA		148,590			92,551			359,409			256,512
Unrealized (gain) loss on derivatives		59,183			(3,645	)		159,843			(14,113	)
Adjusted EBITDA	$	207,773		$	88,906		$	519,252		$	242,399

Contact

Company: Phoenix Energy One, LLC

Email: InvestorRelations@phoenixenergy.com

Address: 18575 Jamboree Road, Suite 830, Irvine, CA 92612

Phone: 949-416-5037

Phoenix Energy Reports Q3 2026 Quarter and Year to Date Financial and Operating Results and Raises Full-Year 2026 Outlook