Phoenix Energy Reports Q4 and Full-Year 2025 Financial Results with Record Revenue and EBITDA
IRVINE, Calif., March 17, 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, with a primary footprint in the Williston Basin in North Dakota and Montana, filed its Annual Report for the fiscal year ended December 31, 2025 on March 17, 2026, thereby announcing its financial and operating results for the fourth quarter and full year of 2025. The Company delivered strong year-over-year growth in revenue, net income, and production as it expanded operations across key U.S. basins.
Q4 2025 Highlights
Phoenix Energy delivered record quarterly production and more than doubled revenue compared with the fourth quarter of 2024.
- Generated revenue of $218.6 million (an increase of 115% from Q4 2024), net income of $33.3 million (an increase of 347% from Q4 2024) and EBITDA of $147.1 million (an increase of 207% from Q4 2024);
- Amended the Company's term loan facility to establish a new tranche of commitments in an aggregate principal amount of $350.0 million, with $50.0 million of such commitments funded in October 2025, and up to $300.0 million to be available on a discretionary basis;
- Achieved the Company's highest monthly production of crude oil with 1.1 million barrels of oil produced in November 2025; and
- In December 2025, the Company was the seventh largest producer of crude oil in the Williston Basin.
2026 Outlook
| Year Ending December 31, 2026 | ||||||||
| (dollars in thousands) | Lower Range | Upper Range | ||||||
| Revenue(1) | $ | 1,190,000 | $ | 1,490,000 | ||||
| Total operating expenses | $ | 965,000 | $ | 1,030,000 | ||||
| Net income (loss)(2) | $ | (40,000 | ) | $ | 65,000 | |||
| EBITDA(3) | $ | 475,000 | $ | 605,000 | ||||
| Total outstanding debt(4) | $ | 1,900,000 | $ | 2,150,000 | ||||
| Production: | ||||||||
| Crude oil (Bbls) | 12,500,000 | 13,600,000 | ||||||
| Natural gas (Mcf)(5) | 14,900,000 | 16,300,000 | ||||||
| NGLs (Bbls) | 475,000 | 520,000 | ||||||
| Total (Boe) (6:1) | 15,458,333 | 16,836,667 | ||||||
| Average daily production (Boe/d) (6:1) | 42,352 | 46,128 | ||||||
| (1) | Based on an average benchmark commodity price of $63.90/Bbl for crude oil and $3.50/MMBtu for natural gas. In recent months, oil and natural gas prices have been significantly volatile. Oil prices have recently increased due to geopolitical tensions in the Middle East, rising to $98.71 per Bbl as of March 13, 2026. This increase in price follows a period of comparatively lower prices during much of the second half of 2025, when oil and natural gas prices ranged from highs of $70.00 per Bbl as of July 30, 2025 and $5.289 per MMBtu as of December 5, 2025, respectively, to lows of $55.27 per Bbl as of December 16, 2025 and $2.65 per MMBtu, as of October 17, 2025, respectively. |
| (2) | Net income projections are subject to significant variability due to the accounting treatment of the Company’s derivative instruments. The Company uses derivative instruments to manage exposure to commodity price volatility. These instruments are accounted for at fair value under generally accepted accounting principles in the United States ("GAAP"), with changes in fair value recognized in earnings each reporting period. As a result, reported net income may be significantly impacted by non-cash gains or losses resulting from changes in forward commodity price curves related to future production periods, including 2026, 2027 and 2028. Because these adjustments reflect changes in market expectations for future commodity prices rather than current operational performance, reported net income 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 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 guidance when such deviations occur. |
| (3) | EBITDA is a non-GAAP financial measure. 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 $220.0 million and $255.0 million and depreciation, depletion, and amortization expense ranging between $260.0 million and $310.0 million during the year ending December 31, 2026. The Company has not provided a full reconciliation of its forward outlook for EBITDA in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is 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 the Company's derivative positions. |
| (4) | 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 $518.1 million and $768.1 million of new debt during the year ending December 31, 2026. |
| (5) | 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 7,550,000 Mcf to 7,750,000 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. |
Q4 and Full-Year 2025 Financial Results
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Total revenues | $ | 218,578 | $ | 101,677 | $ | 687,180 | $ | 281,227 | ||||||||
| Net income (loss) | 33,323 | (13,499 | ) | 66,108 | (24,793 | ) | ||||||||||
| EBITDA(1) | 147,070 | 47,867 | 403,582 | 150,689 | ||||||||||||
| (1) | EBITDA is a non-GAAP measure. 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 December 31, 2025 increased $46.8 million, or 347%, as compared to the same period in 2024. The increase was primarily due to higher product sales of $74.4 million from the Company's operated properties driven by additional wells placed into service and a $49.6 million increase in gain on derivatives due to decreases in the forward commodity price curves, partially offset by a $31.9 million increase in depreciation, depletion and amortization expense primarily due to increases in the Company's depletable cost bases, a $26.4 million increase in cost of sales primarily associated with the Company's oil and gas operating activities, and a $20.4 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.
Net income for the year ended December 31, 2025 increased $90.9 million, or 367%, as compared to the same period in 2024. The increase was primarily due to higher product sales of $311.8 million from the Company's operated properties driven by additional wells placed into service and a $58.8 million increase in gain on derivatives due to decreases in the forward commodity price curves, partially offset by a $91.9 million increase in depreciation, depletion and amortization expense primarily due to increases in the Company's depletable cost bases, a $91.3 million increase in cost of sales primarily associated with the Company's oil and gas operating activities, a $71.0 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, and a $28.0 million decrease in mineral and royalty revenues driven by an 8.8% decrease in the average realized price and production volumes of crude oil.
Q4 and Full-Year 2025 Operational Results
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net oil-equivalent production (BOE) | 3,447,035 | 1,650,570 | 9,924,337 | 4,742,381 | ||||||||||||
| Average daily production (BOE/d) (6:1) | 37,880 | 18,138 | 27,190 | 12,993 | ||||||||||||
During the year, the Company achieved the following operational results:
- Phoenix Operating, LLC ("Phoenix Operating"), the Company’s wholly-owned subsidiary, commenced drilling activities on a combined 508 gross wells and 62.9 net producing wells;
- Phoenix Operating released rigs on 83 wells, completed hydraulic fracturing on 71 wells, and placed 65 wells into production; and
- Ranked among the fastest spud-to-production cycle times in 2025 among the 20 largest producers in North Dakota.
From Adam Ferrari, Chief Executive Officer
“Phoenix Energy delivered exceptional growth in 2025, with revenue increasing 144% year-over-year and production reaching record levels,” said Adam Ferrari, Chief Executive Officer. “Our operational discipline in the Williston Basin continues to drive efficiency gains and faster well development, positioning us for sustained growth in 2026.”
Phoenix Energy previously announced that it will host a public earnings call on Wednesday, March 18, 2026, at 1:30 PM PT to discuss 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-K 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
Founded in 2019 and headquartered in Irvine, California, Phoenix Energy is an innovative energy company specializing in oil production, mineral rights royalty acquisition, and non-operating working interests. Phoenix Energy’s drilling operations are currently focused on the Williston Basin (North Dakota and Montana), as well as the Powder River and Denver-Julesburg Basins (Wyoming and Colorado). Its royalty and working interest acquisitions target mineral, leasehold, overriding, and perpetual royalty interests across major U.S. basins.
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” as a supplemental measure of financial performance that is 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 an alternative 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 have limitations as an analytical tool and should not be considered in isolation, or as a substitute for the Company’s results as reported under GAAP.
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 its Annual Report on Form 10-K under the heading “Risk Factors.” 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.
PHOENIX ENERGY ONE, LLC AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
The following table shows a reconciliation of EBITDA to net income (loss), the most comparable GAAP measure, for the periods presented:
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (loss) | $ | 33,323 | $ | (13,499 | ) | $ | 66,108 | $ | (24,793 | ) | ||||||
| Interest income | (298 | ) | (389 | ) | (1,653 | ) | (705 | ) | ||||||||
| Interest expense, net | 49,524 | 29,094 | 161,214 | 90,210 | ||||||||||||
| Depreciation, depletion, and amortization | 64,521 | 32,661 | 177,913 | 85,977 | ||||||||||||
| EBITDA | $ | 147,070 | $ | 47,867 | $ | 403,582 | $ | 150,689 | ||||||||
Contact
Company: Phoenix Energy One, LLC
Email: InvestorRelations@phoenixenergy.com
Address: 18575 Jamboree Road, Suite 830, Irvine, CA 92612
Phone: 949-416-5037
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