Phoenix Energy One, LLC (NYSE American: PHXE.P) reported second-quarter 2026 net income of $106.0 million, a significant increase from $18.7 million in the same period of 2025. The energy company, focused on oil and gas exploration in the Williston Basin, achieved this result primarily through higher product sales of $144.6 million and a $17.2 million rise in mineral and royalty revenues. These gains were fueled by a 42.8% increase in the average realized price for crude oil to $91.37 per barrel and substantial volume growth, marking a strong operational turnaround for the firm.

The company’s total revenues for Q2 2026 reached $405.9 million, compared to $163.8 million in Q2 2025. EBITDA surged to $238.4 million from $92.0 million year-over-year, while Adjusted EBITDA more than doubled to $181.3 million from $84.3 million. Despite these operational successes, Phoenix Energy reported a net loss of $34.1 million for the six months ended June 30, 2026, compared to a net income of $24.3 million in the prior-year period. This half-year decline was largely attributed to an $188.0 million increase in losses on derivatives due to rising forward commodity price curves.

Operational Highlights

Phoenix Energy achieved its highest quarterly production of crude oil to date, with 3.7 million barrels produced in Q2 2026. June 2026 alone saw record monthly production of 1.3 million barrels. Average daily production rose 66.1% year-over-year to 39,574 barrels of oil equivalent (Boe) per day in the quarter. The company also expanded its active infrastructure, increasing producing wells in service from 62 as of June 30, 2025, to 147 as of June 30, 2026.

Strategic Developments

The company advanced its drilling technology by completing its first four-mile lateral switchback wells in Montana, the first of their kind in the state. It also completed the first full four-mile lateral unit development in Montana, involving eight wells across two four-well units. Additionally, Phoenix Energy released rigs on 19 Bakken production wells, including 11 four-mile lateral wells, and began hydraulic fracturing on 28 wells, all of which were placed into production.

What the Numbers Show

The divergence between strong quarterly profitability and a negative year-to-date GAAP result highlights the impact of derivative accounting on Phoenix Energy’s financial presentation. While operations generated robust cash flow—$277.3 million for the six months ended June 30, 2026, versus $100.6 million in the prior period—the non-cash mark-to-market losses on derivatives significantly weighed on the consolidated net income. This suggests that underlying operational cash generation remains resilient despite volatility in commodity hedging positions.

Earnings Call Details

Phoenix Energy will hold a public earnings call on Wednesday, August 12, 2026, at 1:30 PM PT to discuss these results. Chief Financial Officer Curtis Allen will lead the presentation. Investors can access the call via Zoom audio or telephone dial-in options available on the company’s investor relations page. An audio replay will be available until September 3, 2026.

Phoenix Energy One, LLC has surpassed a production rate of 50,000 barrels of oil per day, reaching approximately 50,700 barrels on July 19, 2026. This milestone establishes the company as one of the fastest-growing producers in the Williston Basin of North Dakota and Montana. The achievement reflects year-over-year production growth of approximately 60% from June 2025 to June 2026, scaling from roughly 100 barrels per day at the start of 2024.

Growth Trajectory and Strategy

Founded in 2019, Phoenix Energy has scaled rapidly within the Bakken region. The company attributes its trajectory to a differentiated three-pronged strategy combining direct drilling, royalty acquisition, and non-operated working interests. This approach allows Phoenix Energy to grow production while diversifying its exposure across the value chain.

Operational Milestones

The following table outlines the company's production growth:

Note: June 2025 and June 2026 figures are derived from the stated 60% year-over-year growth.

Management Commentary

"Reaching 50,000 barrels of oil per day is an important milestone for Phoenix Energy. It reflects the discipline, focus, and hard work of our entire team," said Adam Ferrari, Chief Executive Officer of Phoenix Energy. "In just over two years, we’ve grown from a modest production base into one of the fastest-growing producers in the Williston Basin. But 50,000 barrels per day is not a finish line. Instead, it is a foundation for continued responsible development and operational excellence in our quest to deliver long-term value."

Chief Operating Officer David Scadden added, "Scaling production to this level while maintaining operational integrity requires precision throughout the organization. I couldn’t be prouder of our field and technical teams, whose execution has made this growth possible. We are excited to build on this milestone."