Phoenix Energy Reports Q1 2026 Financial and Operating Results

IRVINE, Calif., May 13, 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 Quarterly Report for the three months ended March 31, 2026 on May 13, 2026, thereby announcing its financial and operating results for the first quarter of 2026.

Q1 2026 Highlights

• Generated revenue of $298.7 million in Q1 2026 as compared to $115.7 million in Q1 2025, net loss of $140.1 million as compared to net income of $5.6 million in Q1 2025, EBITDA of $(27.6) million as compared to $72.0 million in Q1 2025, and Adjusted EBITDA of $130.2 million as compared to $69.2 million in Q1 2025;
• Amended the Company’s term loan facility to provide for a new $75.0 million facility, which was funded in February 2026 under the discretionary commitments established by the October 2025 Amendment;
• Achieved the Company’s highest monthly production of crude oil to date with 1.23 million barrels of oil produced in March 2026;
• Increased completion activity by ramping operations to three active hydraulic fracturing crews to capitalize on favorable commodity pricing and support accelerated development activity;
• Phoenix Operating released rigs on 22 wells, completed hydraulic fracturing on 11 wells, and placed 22 wells and 3 saltwater disposal wells into production;
• Disposed of approximately 11.5 million barrels of produced water through the Company’s saltwater disposal wells, with approximately 98.6% of total produced water volumes handled internally through the Company’s operated facilities; and
• Completed six drillouts in six days on the Charlene Ferrari 9 pad.

Net loss for the three months ended March 31, 2026 was $140.1 million, as compared to net income of $5.6 million for the same period in 2025. The year-over-year change was primarily due to a $180.7 million increase in loss on derivatives due to increases in the forward commodity price curves, a $29.0 million increase in depreciation, depletion, and amortization expense primarily due to increases in the Company’s depletable cost bases, a $29.0 million increase in cost of sales primarily associated with higher production volumes from the Company’s oil and gas operating activities, and a $16.7 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. The unfavorable variances were partially offset by higher product sales of $97.3 million from the Company’s operated properties driven by additional wells placed into service, and a $5.8 million increase in mineral and royalty revenues primarily driven by a 33.8% and 6.4% increase in production volumes of crude oil and natural gas, respectively.

From Adam Ferrari, Chief Executive Officer

“Phoenix Energy delivered another quarter of meaningful operational progress, highlighted by record monthly crude oil production in March and a substantial increase in Adjusted EBITDA compared to the prior-year period. While our GAAP results were impacted by non-cash derivative movements, the underlying performance of the business reflects the strength of our asset base, disciplined execution, and continued momentum in the Williston Basin.”

Phoenix Energy previously announced that it will hold a public earnings call on Monday, May 18, 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/.

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.

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.

Contact

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