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

(NYSE:PHXE-P) Phoenix Energy One, LLC reported financial and operating results for the third quarter ended September 30, 2026, and raised its full-year 2026 outlook. The company generated total revenues of $460.4 million, a net loss of $1.4 million, EBITDA of $148.6 million, and Adjusted EBITDA of $207.8 million in Q3 2026, 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, compared to $204.7 million for the same period in 2025. The company achieved its highest quarterly gross crude oil production to date with 4.4 million barrels in Q3 2026, the highest monthly gross crude oil production with 1.5 million barrels in August 2026, and the highest daily gross crude oil production with 52,479 barrels in September 2026. In August 2026, Phoenix Energy was the eighth largest producer of crude oil in North Dakota. The company released rigs on 22 Bakken production wells, including 19 three-mile lateral wells, two four-mile lateral wells, and one switchback well with an average lateral length of approximately 16,144 feet. Hydraulic fracturing was completed on 15 wells (11 four-mile lateral and 4 three-mile lateral), and 5 wells were placed into production, including the company's first four-mile lateral switchback wells, the first such wells drilled in Montana. Phoenix Energy received the first permits ever issued for five-mile lateral wells in the Williston Basin. The company produced approximately 14.2 million barrels of water and injected approximately 14.2 million barrels through its saltwater disposal wells, with about 99.5% of total produced water volumes handled internally. For the year ending December 31, 2026, the updated outlook projects revenue between $1,610,000,000 and $1,780,000,000, total operating expenses between $1,060,000,000 and $1,120,000,000, net income (loss) between $(40,000,000) and $120,000,000, EBITDA between $525,000,000 and $695,000,000, Adjusted EBITDA between $725,000,000 and $850,000,000, and total outstanding debt between $2,090,000,000 and $2,230,000,000. Projected production for 2026 includes 13,100,000 to 13,700,000 barrels of crude oil, 17,500,000 to 18,200,000 Mcf of natural gas, and 1,550,000 to 1,640,000 barrels of NGLs, with total production of 17,566,667 to 18,373,333 Boe and average daily production of 48,128 to 50,338 Boe/d. The outlook assumes interest expense between $240.0 million and $250.0 million and depreciation, depletion, and amortization expense between $315.0 million and $335.0 million. The company expects to repay $148.0 million of debt maturing before December 31, 2026, and to issue between $708.1 million and $848.1 million of new debt during 2026. For Q3 2026, net oil-equivalent sales volumes were 4,229,601 BOE, and average daily sales volumes were 45,974 BOE/d, up 65.9% from Q3 2025. For the nine months ended September 30, 2026, net oil-equivalent sales volumes were 11,248,689 BOE, and average daily sales volumes were 41,204 BOE/d, up 73.7% from the same period in 2025. During the nine months ended September 30, 2026, operators drilled 445 gross and 53.6 net productive development wells, and the company had 150 producing wells in service as of September 30, 2026, compared to 78 as of September 30, 2025. CEO Adam Ferrari stated that the company produced more oil than ever, revenue grew nearly two and a half times to $460 million, and the number of producing wells nearly doubled, while hedging losses impacted the bottom line as oil prices rose. Oil prices in 2026 were volatile, reaching a high of $112.95 per barrel on April 7, 2026, and ranging from $69.60 to $107.02 per barrel in Q3 2026. Net income projections are subject to significant variability due to the accounting treatment of derivative instruments, with reported net income potentially impacted by unrealized gains or losses from changes in forward commodity price curves. The company will hold a public earnings call on November 11, 2026 at 1:30 PM PT.

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