Irvine, CA – August 19, 2025 – Phoenix Energy One, LLC (“Phoenix Energy” or the “Company”) filed its Form 10-Q for the quarterly period ending June 30, 2025, on August 12, 2025, thereby announcing its financial and operating results for the quarter.
Q2 2025 Highlights
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Generated revenue of $163.8 million (an increase of 105% from Q2 2024), net income of $18.7 million (an increase of 123% from Q2 2024) and EBITDA of $92.0 million (an increase of 81% from Q2 2024).
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Added a third drilling rig to operations in the Williston Basin
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Achieved the Company’s longest horizontal well to date on the Daniel Ferrari pad 3-10-15-22 1H, with a lateral length of 19,520 feet or nearly 4 miles.
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Placed into production the Company’s first two operated pads in Montana
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Expanded our term loan facility by $50 million pursuant to our amended and restated credit agreement (“Term Loan”)
Financial Results
(1) EBITDA is a non-GAAP measure. See “Non-GAAP Financial Measures” below for a reconciliation to net income, the most
directly comparable financial measure under GAAP.
Net income for the three months ended June 30, 2025 increased $10.3 million, or 123%, as compared to the three months ended June 30, 2024. The increase was largely driven by higher income from operations of $20.1 million, primarily due to higher operated production volumes sold by the Company, and higher gain on derivatives of $8.9 million, partially offset by higher interest expense, net of $19.0 million due to increased sales of our debt securities and increased interest under our Term Loan that was not payable in the prior year period.
Operational Results
During the quarter, the Company achieved the following operational results:
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The Company produced 23,822 barrels of oil equivalent per day, including oil, natural gas and natural gas liquids. The Company, through its wholly owned subsidiary, Phoenix Operating LLC, drilled 25 gross and 23.2 net productive development wells during the three months ended June 30, 2025 and have 32 gross and 26.6 net development wells in progress as of June 30, 2025.
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The Company contracted its 3rd drilling rig and embarked upon drilling the first full pad of 4-mile lateral wells in the Williston Basin.
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The Company hydraulically fractured its longest laterals to date in the Williston Basin of 3.75 miles and anticipates production from these wells in the 3rd quarter.
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The Company put online a 12-well pad in Dunn County, North Dakota in the Williston Basin.
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The Company reached a new high for operated oil production of 29,565 barrels of oil per day on July 1st.
From Adam Ferrari, Chief Executive Officer
“The Company’s continued focus on operational excellence was reflected through strong performance in a less than favorable macro-economic environment. We added our third drilling rig and continue to see results from our concentrated efforts in the Williston Basin. This momentum is partly attributed to our team in the field, who continue to set performance records for drilling depth and speed.”
Phoenix Energy will host a webcast on August 21, 2025, at 5:00 PM PDT to discuss these results. Participants may access the webcast and presentation materials on the Company’s investor‑relations website at https://phoenixenergy.com/investor-relations/.
The Form 10-Q filing can be viewed in its entirety via the SEC’s Edgar database.
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 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.
Contact
Company: Phoenix Energy One, LLC
Email: InvestorRelations@phoenixenergy.com
Address: 18575 Jamboree Road, Suite 830, Irvine, CA 92612
Phone: 949-416-5037
The following tables show a reconciliation of EBITDA to net income (loss), the most comparable GAAP measure, for the periods presented:
Media Contact
Company Name: Phoenix Energy One, LLC
Contact Person: Caroline Scroggins
Email: Send Email
Address:18575 Jamboree Road, Suite 830
City: Irvine
State: CA
Country: United States
Website: https://phoenixenergy.com/