IRVINE, Calif., Nov. 12, 2025 (GLOBE NEWSWIRE) -- Phoenix Energy One, LLC ("Phoenix Energy" or the "Company"), an energy company (NYSE American: PHXE.P) 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 Form 10-Q for the quarterly period ending September 30, 2025, on November 12, 2025, thereby announcing its financial and operating results for the quarter.
Q3 2025 Highlights
- Generated revenue of $189.0 million (an increase of 220% from Q3 2024), net income of $8.5 million (an increase of 175% from Q3 2024) and EBITDA of $92.6 million (an increase of 207% from Q3 2024);
- Syndicated our term loan facility to include an additional institutional lender and increase the borrowing capacity by $100 million, borrowed in full upon closing;
- Closed our initial public offering of the Series A Cumulative Redeemable Preferred Shares and sold 2,704,023 shares for gross proceeds of $54.1 million;
- Became the first operator in the Williston Basin to drill five four-mile lateral wells (the "Nystuen" wells) from a single pad;
- Achieved the Company's longest horizontal well to date on the Nystuen 20-17-8-5-1H, with a lateral length of 20,798 feet, or nearly 4 miles.
Financial Results
| QTD | YTD | ||||||||||||
| (in thousands) | Q3-25 | Q3-24 | Q3-25 | Q3-24 | |||||||||
| Total revenues | $ | 189,021 | $ | 59,040 | $ | 468,602 | $ | 179,550 | |||||
| Net income (loss) | 8,488 | (11,287 | ) | 32,785 | (11,294 | ) | |||||||
| EBITDA(1) | 92,551 | 30,194 | 256,512 | 102,822 | |||||||||
(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 September 30, 2025 increased $19.8 million, or 175%, as compared to the same period in 2024. The increase was primarily due to increased product sales of $89.8 million generated from our oil and gas operating activities driven by additional wells placed into service, partially offset by a $30.0 million increase in depreciation, depletion, amortization and accretion expense primarily due to increases in our depletable cost bases, a $25.5 million increase in cost of sales primarily associated with our oil and gas operating activities, and a $12.6 million increase in interest expense, net primarily due to increased interest costs associated with our term loan facility and sales of our debt offerings.
Operational Results
| QTD | YTD | ||||||
| Q3-25 | Q3-24 | Q3-25 | Q3-24 | ||||
| Net oil-equivalent production (BOE) | 2,550,211 | 1,053,651 | 6,477,302 | 3,091,811 | |||
| Average daily production (BOE/d) (6:1) | 27,720 | 11,453 | 23,726 | 11,284 | |||
During the quarter, the Company achieved the following operational results:
- Phoenix Operating LLC, the Company's wholly-owned subsidiary, placed into service and commenced drilling activities on a combined 44 gross and 37.3 net producing wells during the period;
- Commenced drilling activities on our Willow Gray pad, which consists of six four-mile lateral wells. Once completed, the Company will be the first operator in the Williston Basin to drill six four-mile laterals from a single pad location;
- Achieved the Company's fastest four-mile well drilled in the Williston Basin, with the fastest well drilled in only 9.29 days;
- Commissioned the Daniel Ferrari and Willer pads and achieved its longest laterals to date in the Williston Basin with two wells extending approximately 3.75 miles, and reached its highest initial production rates to date, with peak daily oil production of 1,153 and 1,100 barrels of oil, respectively;
- The Willer pad wells represent the lowest cost per well in our portfolio to date, with an average cost of approximately $6.3 million per well, or $1.4 million below budget, resulting in total project savings of approximately $8.6 million.
From Adam Ferrari, Chief Executive Officer
"Phoenix Energy's third quarter delivered strong financial and operations results, which are directly attributable to our continued focus on operational excellence. We are pleased that we continue to set performance records for drilling depth and speed and we are committed to improving our efficiencies while we grow our productive wells."
Phoenix Energy previously announced that it will host a public earnings call on Thursday November 13, 2025, at 1:30 PM PST to discuss these results. Participants may access the webcast and presentation materials on the Company's investor website at https://phoenixenergy.com/investors/.
The Form 10-Q filing can be viewed in its entirety via the SEC'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). 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 accounting principles generally accepted in the United States ("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 this measure 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, this measure 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 this measure has 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 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 our quarterly report(s) filed on Form 10-Q under "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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||||
| Net income (loss) | $ | 8,488 | $ | (11,287 | ) | $ | 32,785 | $ | (11,294 | ) | |||||
| Interest income | (303 | ) | (261 | ) | (1,355 | ) | (316 | ) | |||||||
| Interest expense, net | 38,816 | 26,201 | 111,690 | 61,116 | |||||||||||
| Depreciation, depletion, amortization, and accretion | 45,550 | 15,541 | 113,392 | 53,316 | |||||||||||
| EBITDA | $ | 92,551 | $ | 30,194 | $ | 256,512 | $ | 102,822 | |||||||
Contact
Company: Phoenix Energy One, LLC
Email: InvestorRelations@phoenixenergy.com
Address: 18575 Jamboree Road, Suite 850, Irvine, CA 92612
Phone: 949-416-5037
