Phoenix Energy Reports Q3 2025 Financial and Operating Results

Rhea-AI Summary

Phoenix Energy (NYSE American: PHXE) filed its Form 10-Q for the quarter ended September 30, 2025, reporting strong operational and financial gains.

Key Q3 2025 results: revenue $189.0M (+220% vs Q3 2024), net income $8.5M (+175%), and EBITDA $92.6M (+207%). Production rose to 2,550,211 BOE in Q3 and average daily production to 27,720 BOE/d. The company syndicated and drew an additional $100M on its term loan, completed a preferred share offering raising $54.1M gross, and set multiple drilling records in the Williston Basin, including a 20,798-foot lateral and five four-mile laterals from one pad.

Positive

• Revenue +220% Q3-25 versus Q3-24
• Net income +175% Q3-25 versus Q3-24
• EBITDA +207% Q3-25 versus Q3-24
• Q3 production 2,550,211 BOE (avg 27,720 BOE/d)
• Raised $54.1M gross from preferred share offering
• Increased term loan capacity by $100M and borrowed in full
• Lowest cost per well: ~$6.3M, $1.4M below budget

Negative

• Depreciation, depletion and accretion increased by $30.0M
• Cost of sales increased by $25.5M in Q3-25
• Interest expense increased by $12.6M due to higher borrowings

Insights

Energy Financial Analyst

Phoenix Energy delivered materially higher revenue, EBITDA and production in Q3 2025, driven by new wells and large‑lateral drilling.

Revenue rose to $189.0 million, a 220% increase versus Q3 2024, with reported net income of $8.5 million and EBITDA of $92.6 million, up 175% and 207% respectively; these gains tie directly to higher volumes, as quarterly production reached 2,550,211 BOE and average daily production hit 27,720 BOE/d. The company also increased liquidity by syndicating and drawing an additional $100 million on its term loan and raised $54.1 million from a preferred share offering, which support continued drilling activity.

Key dependencies and near‑term risks include rising non‑operating costs: depreciation, depletion, amortization and accretion increased by $30.0 million and interest expense rose by $12.6 million, both disclosed as material offsets to operating gains. Operational execution remains central, with several milestones pending, including completion of the Willow Gray pad (six four‑mile laterals) and ongoing well results that will determine sustainability of the recent production lift.

Watchable items over the next quarter include production per well, realized commodity pricing embedded in revenue, trends in interest expense and any change in capital intensity per well; the company will host an earnings call on November 13, 2025, which should disclose updated guidance and near‑term development pacing. Short horizon: next quarter results and the Willow Gray completion; medium horizon: whether lower per‑well costs and long lateral performance sustain current margins.

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

FAQ

What were Phoenix Energy (PHXE) Q3 2025 revenue and net income?

Phoenix Energy reported $189.0M revenue and $8.5M net income for Q3 2025.

How much did Phoenix Energy (PHXE) increase production in Q3 2025?

Q3 2025 production was 2,550,211 BOE with an average of 27,720 BOE/d.

What capital actions did Phoenix Energy (PHXE) take in November 2025?

The company syndicated its term loan adding $100M of capacity (borrowed in full) and raised $54.1M gross from Series A cumulative preferred shares.

What drilling records did Phoenix Energy (PHXE) report in Q3 2025?

Reported the longest lateral of 20,798 feet and drilled five four-mile laterals from a single pad; fastest four-mile well drilled in 9.29 days.

How did costs per well compare to budget for Phoenix Energy (PHXE)?

Willer pad wells averaged $6.3M per well, about $1.4M below budget, saving roughly $8.6M total.

Where can investors access Phoenix Energy (PHXE) Q3 2025 filings and webcast?

The Form 10-Q and the November 13, 2025 earnings webcast are available on Phoenix Energy’s investor website.