Phoenix Energy One, LLC Series A Cumulative Redeemable Preferred Shares

Factors that can cause our actual results to differ materially may include, but are not limited to, those referenced in documents available on our website, www.phoenixenergy.com slash investors. You should also consult our filings with the Securities and Exchange Commission, including the information set forth under the captions, risk factors, and forward-looking statements in our most recently filed quarterly report on Form 10-Q for additional detail about factors that could affect our financial and other results. Forward-looking statements are based on and reflect our current expectations, estimates, assumptions, and or projections, and are neither predictions nor guarantees of future events, circumstances, or performance. You should not place undue reliance on forward-looking statements which are made as of the date hereof. We are not undertaking to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by applicable law. This presentation includes both GAAP and non-GAAP financial measures, an explanation of non-GAAP financial measures, why we believe these measures can be helpful, and a reconciliation of non-GAAP financial measures to the most comparable GAAP measures, when applicable, are included in the appendix to this presentation and in the most recently filed Form 10-Q filed with the SEC and available on our website at www.phoenixenergy.com slash investors.

Good afternoon. Thank you for joining us today. My name is Curtis Allen. I'm the Chief Financial Officer here at Phoenix Energy. I'm proud to bring you another stellar result in my opinion of Phoenix Energy's operating arm and its entire company as a whole. Q2 was a phenomenal quarter. We generated $405.9 million in revenue in Q2, which was up nearly 150% from Q2 in 2025. Net income was over $100 million, $106 million to be exact in Q2, which was up 466.8% from Q2 in 2025. And adjusted EBITDA, a metric that we introduced here in 2026 to help normalize and mute the effect of mark-to-market derivative results, was up 115% from Q2 2025. Some key highlights from Q2. We produced 3.7 million barrels of crude oil in Q2 alone, our highest quarterly production volume to date. We produced 1.3 million barrels of crude oil in June 2026 alone, our highest monthly production volume to date. We drilled our first four-mile lateral switchback wells, and those were the first type wells of that type in Montana, and completed the state's first full four-mile lateral unit development. We did two units side-by-side, four wells in each, eight total wells, four miles each of them. That had never been done before in Montana either. We rig-released 19 Bakken production wells, including our first two horizontal SWD wells in Montana, We completed hydraulic fracturing on 28 wells and also placed 28 wells on production. And we produced 13.4 million barrels of water and injected 13.1 million barrels of those water through our own saltwater disposal wells. Almost 98% of the water we handled ourselves without having to truck it off pad. On the screen here is our financial results. This is our P&L. I do encourage you to go to the SEC's website and review our full 10Q and all of the supporting footnotes. But here on the screen, I've just got the P&L and I'd like to highlight just a couple of numbers. I'm not going to read them all off, but obviously revenue at the top there. I talked about that a moment ago. $405,851 comparable to $163,834, an increase of almost 150% year over year. If we go down to the expense line, expenses were $242,316, comparable to $117,135. That did not increase at the same pace as revenues did, which ultimately led to a net income of $105,985, comparable to only $18,698 in Q2 of 2025, an increase of 466%. Revenue has doubled every single year since 2022. As you can see, 2026, our $704.5 million of actual revenue is on pace to double again. Assuming that we keep normalized or above normal oil prices in the market, we do anticipate volumes to meet or exceed the first half of the year. So therefore, we could probably double revenue again. We are likely going to land within our range. EBITDA and Adjusted EBITDA on the right. We have doubled that year over year since 2023. You can see 2026, we are not quite on pace yet to double EBITDA for 2025 to 2026, but we should still land within our guidance. This slide here is showing our segmented results. Phoenix Energy has three segments, Phoenix Operating, which is our operating arm, our minerals and non-operated arm. And then of course, we do have a securities segment arm. That is not on the slide here today because that is not a revenue generating activity of Phoenix. It is the entity that raises the capital to deploy into the first two arms. So let's start on the left again. In revenue, you can see that operations has tremendously increased Accelerated in 2026, comparable to 2025. And then also you'll see minerals is also increasing. That is a result of Phoenix's more acquisitions in non-operated field and in front of our own rigs is what you're seeing there. On the right, you're seeing operating profit by segment. The same general theme is displayed there. Significant improvement in the operations arm and a marked improvement in the non-operated minerals arm. On the screen here is our reserves. Reserves are the company's estimates of both current and future production. There are four bars and three colors on each of those bars. The gold segment is PDP, that's producing wells. The light gray segment is PUD. Those are wells that we have on our drill scheduler in some sort of development as we speak. And then the darker gray bar on top of all of those are our probable reserves. Those are the reserves that we do believe are probable to be developed and into the future some point. We don't have the marginal schedule just yet. What you can see as we go from left to right is a marked increase year over year of our reserve categories. And one thing I want to point out is the gold bar, the smallest bar there at the bottom, is what creates revenue. So the tremendous revenue growth you've seen year over year over year is produced by that gold bar. And then the gray bars represent our upside, the future of the company. On the screen here is a hedging slide. So Phoenix uses hedges quite a bit to reduce our downside exposure. Those hedges have largely taken the form of swaps in the past. As of July 2nd, 2026, we had 9.8 million barrels of total hedges at a weighted average price of $60.60, representing almost $600 million of revenue that would be hedged and protected. Now, we have placed a number of calls as well at the $75 strike level. We do have approximately 8.3 million barrels of those calls. Phoenix placed many of those after the war with Iran to make sure that we had upside ability if oil were to go again to anything above 75. Phoenix would participate in those levels. So in summary, Phoenix had a record production in a rising price environment. We recorded record revenues of $405.9 million, record net income of $106 million, and adjusted EBITDA of $181.3 million, representing the best quarter in the company's history. Appreciate you showing up today, and we will get back to working very hard to make sure Q3 looks very much like Q2. We'll strive to do that, and we'll see you here next time. Thank you very much.