Phoenix Energy One Revenue Jumps 143.6% to $460.4 Million in Third Quarter
Key Facts
Phoenix Energy One reported revenue of $460.4 million for the three months ended September 30, 2026, up 143.6% from $189.0 million in the same period a year earlier. The increase was $271.4 million, the company said in its filing with the U.S. Securities and Exchange Commission. Revenue growth was accompanied by an increase in income from operations to $148.4 million, compared with $46.3 million a year earlier. But the company swung to a net loss of $1.4 million, after net income of $8.5 million in the third quarter of 2025. The comparison shows a divergence between the expansion of operating activity and the period's bottom-line result.
The company attributed the revenue growth mainly to a $144.5 million increase in product sales and an $86.5 million increase in sales of purchased crude oil. Minerals and royalties also contributed additional revenue of $35.6 million, while revenue from water-disposal services rose by $4.8 million. The increase was thus spread across product sales and purchased oil, as well as revenue tied to minerals, royalties and services. Average daily sales volume rose to 45,974 net barrels of oil equivalent, from 27,720 barrels in the corresponding quarter of 2025. The company said the increase of 18,254 barrels per day represented growth of 65.9%.
Adjusted earnings before interest, taxes, depreciation and amortization were $207.8 million for the quarter, compared with $88.9 million a year earlier. The increase was $118.9 million, or 133.7% year over year, according to the company's filing. For the nine months ended September 30, revenue reached $1,164.9 million, compared with $468.6 million in the same period of 2025. By contrast, the company recorded a net loss of $35.5 million for the nine months, after net income of $32.8 million a year earlier. Cumulative activity and revenue expanded, while the net result fell below the prior year's level.
Cash generated from operating activities during the nine months rose to $489.0 million from $204.7 million in the corresponding period. The increase was $284.3 million, or 138.9%, according to the filing. Derivative results, however, recorded a loss of $265.0 million in the first nine months of 2026, after the company posted a gain of $12.9 million in the same period a year earlier. That contrasts with growth in operating cash flow, while the derivative loss marks a clear reversal in that item between the periods. As of September 30, outstanding debt was $2,030.6 million, and working capital showed a deficit of $487.1 million.
The company said it had 150 producing wells in service as of September 30, 2026, compared with 78 wells on the same date in 2025. It also said accelerated spending to complete wells, aimed at capitalizing on higher commodity prices, was the primary reason it failed to comply with its current ratio covenant in September. Phoenix Energy obtained a waiver of the noncompliance on October 21, 2026, according to the filing. The company linked the timing of spending to faster well completions, while its working capital deficit and outstanding debt remained part of its figures at the end of September. This places growth in the number of wells and production alongside the financing details and covenants the company reported for the period.
After the quarter ended, the company issued debt securities worth approximately $84.8 million. It said it had sufficient financial resources to continue its operations for more than the next twelve months, according to its financial filing. The debt issuance came after September 30 and is therefore included among developments subsequent to the financial period. This completes the company's presentation of its nine-month results, alongside details of subsequent financing and its assessment of operating resources. The filing cited here did not specify a date for a subsequent operational or financial event.