Phoenix Energy Reports Q3 2026 Quarter and Year to Date Financial and Operating Results and Raises Full-Year 2026 Outlook
Higher revenue expectations accompany increased debt and expense forecasts, while the full-year earnings range still includes a loss.
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Rhea-AI Summary
Phoenix Energy (PHXE) raised its full-year 2026 outlook after reporting third-quarter revenue of $460.385 million, alongside a quarterly net loss. Revenue compared with $189.021 million a year earlier; the net loss was $1.404 million, versus net income of $8.488 million. Adjusted EBITDA, a non-GAAP earnings measure, rose to $207.773 million from $88.906 million.
Nine-month operating cash flow increased to $489.0 million from $204.7 million. Quarterly average daily sales increased 65.9% to 45,974 barrels of oil equivalent. Phoenix now expects 2026 revenue of $1.61–$1.78 billion, versus $1.19–$1.49 billion previously, and a net result ranging from a $40 million loss to $120 million income. Expected year-end debt rose to $2.09–$2.23 billion from $1.90–$2.15 billion. Higher derivative losses, interest expense and production-related costs weighed on earnings.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance increased to $1.61–$1.78 billion from $1.19–$1.49 billion.
- Moderate pointQ3 revenue increased to $460.385 million from $189.021 million a year earlier.
- Moderate pointNine-month operating cash flow rose to $489.0 million from $204.7 million a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.New 2026 adjusted EBITDA guidance targets $725–$850 million, a non-GAAP earnings measure.
- Moderate pointQ3 EBITDA increased to $148.590 million from $92.551 million a year earlier.
- Moderate pointQ3 adjusted EBITDA increased to $207.773 million from $88.906 million a year earlier.
- Moderate pointQ3 average daily sales increased 65.9% to 45,974 barrels of oil equivalent from 27,720.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 crude oil production guidance increased to 13,100,000–13,700,000 barrels from 12,500,000–13,600,000 barrels.
- Moderate pointProducing wells in service increased to 150 at September 30, 2026, from 78 a year earlier.
18 minor points
- Minor pointNine-month revenue increased to $1,164.916 million from $468.602 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 net-result guidance ranges from $40 million loss to $120 million income, versus $40 million loss to $65 million income.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 EBITDA guidance increased to $525–$695 million from $475–$605 million; EBITDA is a non-GAAP measure.
- Minor pointNine-month EBITDA increased to $359.409 million from $256.512 million a year earlier.
- Minor pointNine-month adjusted EBITDA increased to $519.252 million from $242.399 million a year earlier.
- Minor pointNine-month average daily sales increased 73.7% to 41,204 barrels of oil equivalent from 23,726.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 natural gas production guidance increased to 17,500,000–18,200,000 thousand cubic feet from 14,900,000–16,300,000.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 natural gas liquids production guidance increased to 1,550,000–1,640,000 barrels from 475,000–520,000 barrels.
- Minor pointQuarterly gross crude oil production reached a company record of 4.4 million barrels in Q3 2026.
- Minor pointMonthly gross crude oil production reached a company record of 1.5 million barrels in August 2026.
- Minor pointDaily gross crude oil production reached a company record of 52,479 barrels in September 2026.
- Minor pointNine-month development drilling on mineral and royalty acreage delivered 445 gross and 53.6 net productive wells.
- Minor pointBakken drilling reached rig release on 22 production wells, averaging approximately 16,144 feet of lateral length.
- Minor pointHydraulic fracturing was completed on 15 wells, including 11 four-mile and four three-mile lateral wells.
- Minor pointProduction began at 5 wells, including the company's first four-mile lateral switchback wells.
- Minor point. Forward-looking: it has not happened yet and may not happen.Williston Basin permits were received for five-mile lateral wells.
- Minor pointInternal operated facilities handled approximately 99.5% of produced water volumes.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 debt assumptions include repayment of $148.0 million outstanding at December 31, 2025, maturing before year-end 2026.
Negative
- Moderate pointNine-month net result fell to a $35.538 million loss from $32.785 million income a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 outstanding debt guidance increased to $2.09–$2.23 billion from $1.90–$2.15 billion.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 operating expense guidance increased to $1.06–$1.12 billion from $965 million–$1.03 billion.
- Moderate pointNine-month derivative losses increased $277.9 million year over year, reflecting cash settlements and unfavorable market-value changes.
- Moderate pointNine-month depreciation, depletion and amortization increased to $223.245 million from $113.392 million a year earlier.
- Moderate pointNine-month net interest expense increased to $172.414 million from $111.690 million a year earlier.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Current hedges generate derivative losses when crude prices rise; Phoenix warns late-quarter increases could produce a Q4 loss.
11 minor points
- Minor pointQ3 net result fell to a $1.404 million loss from $8.488 million income a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 debt assumptions include issuance of $708.1–$848.1 million of new debt.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 guidance assumes interest expense of $240.0–$250.0 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 guidance assumes depreciation, depletion and amortization expense of $315.0–$335.0 million.
- Minor pointQ3 derivative losses increased $89.9 million year over year, reflecting cash settlements and unfavorable market-value changes.
- Minor pointQ3 depreciation, depletion and amortization increased to $88.743 million from $45.550 million a year earlier.
- Minor pointQ3 cost of sales increased $38.2 million year over year, primarily associated with higher production volumes.
- Minor pointNine-month cost of sales increased $83.6 million year over year, primarily associated with higher production volumes.
- Minor pointQ3 net interest expense increased to $61.575 million from $38.816 million a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 revenue outlook assumes benchmark prices of $88.39 per barrel of oil and $2.27 per million British thermal units of gas.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 gas sales recognized as revenue are estimated at only 5,350,000–5,650,000 thousand cubic feet of projected production.
News Explained
Reported earnings guidance may shift with noncash derivative valuations even if operating performance tracks expectations.
The updated 2026 outlook assumes repayment of
The company says its net-income outlook can move materially with mark-to-market derivative changes: higher forward crude prices can increase derivative losses before higher prices are reflected in revenue. It also says noncash derivative-driven deviations may occur even if operations meet expectations, and it may not update the related earnings guidance for such deviations.
AI-generated analysis. How Rhea-AI works. Not financial advice.
IRVINE, Calif., Nov. 10, 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, today reported its financial and operating results for the third quarter ended September 30, 2026, and raised its full-year 2026 outlook, on Form 10-Q with the U.S. Securities and Exchange Commission.
Q3 2026 Highlights
- Generated total revenues of
$460.4 million , net loss of$1.4 million , EBITDA of$148.6 million , and Adjusted EBITDA of$207.8 million in Q3 2026, as 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, as compared to$204.7 million for the nine months ended September 30, 2025; - Achieved the Company's highest quarterly gross crude oil production to date with 4.4 million barrels of crude oil produced in Q3 2026, the highest monthly gross crude oil production to date with 1.5 million barrels of crude oil produced in August 2026, and the highest daily gross crude oil production to date with 52,479 barrels of crude oil produced in September 2026;
- In August 2026, the Company was the eighth largest producer of crude oil in North Dakota;
- Released rigs on 22 Bakken production wells, of which 19 were three-mile lateral wells, two were four-mile lateral wells, and one was a switchback well, which had an average lateral length of approximately 16,144 feet;
- Completed hydraulic fracturing on 15 wells, consisting of 11 four-mile lateral wells and 4 three-mile lateral wells, and placed 5 wells into production, including the Company's first four-mile lateral switchback wells, which were the first such wells drilled in Montana;
- Received the first permits ever issued for five-mile lateral wells in the Williston Basin; and
- Produced approximately 14.2 million barrels of water and injected approximately 14.2 million barrels through the Company's saltwater disposal wells, with approximately
99.5% of total produced water volumes handled internally through the Company's operated facilities.
2026 Outlook
Based on results for the nine months ended September 30, 2026, and its expectations for the remainder of the year, the Company is updating its full-year 2026 outlook. The updated outlook below supersedes the outlook previously provided in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 17, 2026.
| As filed in Q3 2026 Form 10-Q | As filed in 2025 Form 10-K | ||||||||||||||||||||
| Year Ending December 31, 2026 | Year Ending December 31, 2026 | ||||||||||||||||||||
| (dollars in thousands) | Lower Range | Upper Range | Lower Range | Upper Range | |||||||||||||||||
| Revenue | $ | 1,610,000 | (1) | $ | 1,780,000 | (1) | $ | 1,190,000 | $ | 1,490,000 | |||||||||||
| Total operating expenses | $ | 1,060,000 | $ | 1,120,000 | $ | 965,000 | $ | 1,030,000 | |||||||||||||
| Net income (loss) | $ | (40,000 | ) | (2) | $ | 120,000 | (2) | $ | (40,000 | ) | $ | 65,000 | |||||||||
| EBITDA | $ | 525,000 | (3) | $ | 695,000 | (3) | $ | 475,000 | $ | 605,000 | |||||||||||
| Adjusted EBITDA | $ | 725,000 | (3) | $ | 850,000 | (3) | $ | N/A | $ | N/A | |||||||||||
| Total outstanding debt | $ | 2,090,000 | (4) | $ | 2,230,000 | (4) | $ | 1,900,000 | $ | 2,150,000 | |||||||||||
| Production: | |||||||||||||||||||||
| Crude oil (Bbls) | 13,100,000 | 13,700,000 | 12,500,000 | 13,600,000 | |||||||||||||||||
| Natural gas (Mcf) | 17,500,000 | (5) | 18,200,000 | (5) | 14,900,000 | 16,300,000 | |||||||||||||||
| NGL (Bbls) | 1,550,000 | 1,640,000 | 475,000 | 520,000 | |||||||||||||||||
| Total (Boe) (6:1) | 17,566,667 | 18,373,333 | 15,458,333 | 16,836,667 | |||||||||||||||||
| Average daily production (Boe/d) (6:1) | 48,128 | 50,338 | 42,352 | 46,128 | |||||||||||||||||
- Based on an average benchmark commodity price of
$88.39 /Bbl for crude oil and$2.27 /MMBtu for natural gas. Oil prices have been significantly volatile during 2026. Oil prices rose sharply in the first half of the year following the onset of the conflict in the Middle East involving Iran, Israel, the United States, and other countries in the region, reaching a high of$112.95 per Bbl on April 7, 2026. During the third quarter, oil prices ranged from a low of$69.60 per Bbl on July 6, 2026 to a high of$107.02 per Bbl on September 15, 2026, driven in part by renewed disruptions to shipping in the region. - Net income projections are subject to significant variability due to the accounting treatment of our derivative instruments. We use derivative instruments to manage exposure to commodity price volatility. These instruments are accounted for at fair value under GAAP, with changes in fair value recognized in earnings each reporting period. As a result, reported net income may be significantly impacted by unrealized gains or losses resulting from changes in forward commodity price curves related to future production periods, including 2026, 2027, 2028, and 2029. Our hedge positions currently result in derivative losses when crude oil prices rise. A substantial increase in forward crude oil prices, particularly late in the fourth quarter of 2026, would increase these losses before the higher prices are reflected in revenue, and could result in a net loss for the fourth quarter, which is reflected in the lower end of the net income (loss) range. Because these adjustments reflect changes in market expectations for future commodity prices rather than current operational performance, reported net income (loss) may fluctuate materially from period to period and may not be indicative of the Company’s underlying operating performance. Accordingly, deviations from projected net income (loss), EBITDA, or Adjusted EBITDA due primarily to non-cash mark-to-market adjustments on derivative instruments may occur even if operational performance remains consistent with expectations, and the Company may elect not to update previously issued net income (loss), EBITDA, or Adjusted EBITDA guidance when such deviations occur.
- EBITDA and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below for a reconciliation to net income (loss), the most directly comparable financial measure under GAAP. Assumes interest expense ranging between
$240.0 million and$250.0 million and depreciation, depletion, and amortization expense ranging between$315.0 million and$335.0 million during the year ending December 31, 2026. We have not provided a full reconciliation of our forward outlook for EBITDA in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. We are unable to predict with reasonable certainty the specific amount and timing of certain items required to provide a full reconciliation, in particular due to the impact that commodity prices can have on our derivative positions. - Assumes repayment of an aggregate of
$148.0 million of debt outstanding as of December 31, 2025 and that matures prior to December 31, 2026, no prepayments of debt that is not maturing prior to December 31, 2026, and the issuance of between$708.1 million and$848.1 million of new debt during the year ending December 31, 2026. - Revenue from natural gas has not historically represented a significant portion of our total revenues. We anticipate this trend to continue and, as a result, we currently estimate 5,350,000 Mcf to 5,650,000 Mcf of natural gas volumes (of the production range presented above) will be sold and recognized as revenues for the year ending December 31, 2026.
Q3 2026 Quarter and Year to Date Financial Results
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in thousands) | 2026 | 2025 | 2026 | 2025 | |||||||||||
| Total revenues | $ | 460,385 | $ | 189,021 | $ | 1,164,916 | $ | 468,602 | |||||||
| Net income (loss) | (1,404 | ) | 8,488 | (35,538 | ) | 32,785 | |||||||||
| EBITDA(1) | 148,590 | 92,551 | 359,409 | 256,512 | |||||||||||
| Adjusted EBITDA(1) | 207,773 | 88,906 | 519,252 | 242,399 | |||||||||||
| (1) EBITDA and Adjusted EBITDA are non-GAAP measures. See “Non-GAAP Financial Measures” below for a reconciliation to net income (loss), the most directly comparable financial measure under GAAP. | |||||||||||||||
Net loss for the three months ended September 30, 2026 was
Net loss for the nine months ended September 30, 2026 was
Q3 2026 Quarter and Year to Date Operational Results
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net oil-equivalent sales volumes (BOE) | 4,229,601 | 2,550,211 | 11,248,689 | 6,477,302 | |||||||||||
| Average daily sales volumes (BOE/d) (6:1) | 45,974 | 27,720 | 41,204 | 23,726 | |||||||||||
- Average daily sales volume was 45,974 net Boe per day for the three months ended September 30, 2026, as compared to 27,720 net Boe per day for the same period in 2025, an increase of
65.9% . Average daily sales volume was 41,204 net Boe per day for the nine months ended September 30, 2026, as compared to 23,726 net Boe per day for the same period in 2025, an increase of73.7% ; and - During the nine months ended September 30, 2026, the E&P operators of the Company's properties, including PhoenixOp, drilled 445 gross and 53.6 net productive development wells on the acreage underlying the Company's mineral and royalty interests, and the Company had 150 producing wells in service as of September 30, 2026, as compared to 78 producing wells in service as of September 30, 2025.
From Adam Ferrari, Chief Executive Officer
“We produced more oil this quarter than at any point in Phoenix Energy’s history. Revenue grew nearly two and a half times to
Phoenix Energy previously announced that it will hold a public earnings call on Wednesday, November 11, 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/.
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.
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.
PHOENIX ENERGY ONE, LLC AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
The following table shows a reconciliation of EBITDA and Adjusted 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) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net income (loss) | $ | (1,404 | ) | $ | 8,488 | $ | (35,538 | ) | $ | 32,785 | ||||||
| Interest income | (324 | ) | (303 | ) | (712 | ) | (1,355 | ) | ||||||||
| Interest expense, net | 61,575 | 38,816 | 172,414 | 111,690 | ||||||||||||
| Depreciation, depletion, and amortization | 88,743 | 45,550 | 223,245 | 113,392 | ||||||||||||
| EBITDA | 148,590 | 92,551 | 359,409 | 256,512 | ||||||||||||
| Unrealized (gain) loss on derivatives | 59,183 | (3,645 | ) | 159,843 | (14,113 | ) | ||||||||||
| Adjusted EBITDA | $ | 207,773 | $ | 88,906 | $ | 519,252 | $ | 242,399 | ||||||||
Contact
Company: Phoenix Energy One, LLC
Email: InvestorRelations@phoenixenergy.com
Address: 18575 Jamboree Road, Suite 830, Irvine, CA 92612
Phone: 949-416-5037
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Phoenix Energy's Q3 2026 earnings results?
Phoenix Energy reported $460.385 million in revenue and a $1.404 million net loss for the quarter ended September 30, 2026. A year earlier, revenue was $189.021 million and net income was $8.488 million. Adjusted EBITDA rose to $207.773 million from $88.906 million.
What is Phoenix Energy's updated full-year 2026 outlook?
Phoenix Energy expects $1.61–$1.78 billion in revenue and a net result between a $40 million loss and $120 million income for 2026. Previously, it expected revenue of $1.19–$1.49 billion and a net result between a $40 million loss and $65 million income. Updated adjusted EBITDA guidance is $725–$850 million.
How could oil hedges affect Phoenix Energy's fourth-quarter 2026 earnings?
Phoenix Energy warns that a substantial rise in forward crude oil prices late in Q4 could increase derivative losses before higher prices appear in revenue, potentially producing a quarterly net loss. Derivatives are recorded at market value each reporting period. The company may elect not to update earnings guidance for deviations driven primarily by non-cash derivative valuation changes.
How much of Phoenix Energy's projected 2026 natural gas production will generate revenue?
Phoenix Energy estimates that 5,350,000–5,650,000 thousand cubic feet of natural gas will be sold and recognized as revenue in 2026. Its total natural gas production outlook is 17,500,000–18,200,000 thousand cubic feet. The company expects natural gas revenue to remain a small portion of total revenue.