# Phoenix Energy One, LLC

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Phoenix Energy One, LLC).

## Overview

Phoenix Energy One, LLC is a U.S.-based oil and gas company organized around mineral and royalty interests, non-operated working interests, and operated upstream production through its wholly owned subsidiary PhoenixOp. The company also includes Firebird Marketing and Firebird Services, which handle crude oil marketing and water disposal services tied to its producing properties.

## Products & services

• Mineral and royalty interests in oil and gas properties
• Non-operated working interests in producing wells
• Operated crude oil, natural gas, and NGL production
• Crude oil marketing and resale activities
• Saltwater disposal / water disposal services
• Investor redemption fee and securities-related revenue

- **Mineral and royalty interests** (35%) — Passive interests that earn a share of production proceeds from third-party operators.
- **Operated upstream production** (45%) — PhoenixOp's drilling, extraction, and sale of crude oil, natural gas, and NGL.
- **Crude oil marketing and resale** (12%) — Purchase and resale of crude oil through Firebird Marketing as principal.
- **Water disposal services** (5%) — Saltwater disposal and related services for PhoenixOp and third parties.
- **Securities and other revenue** (3%) — Redemption fees and intersegment or financing-related revenue items.

- Mineral and royalty interests in oil and gas properties
- Non-operated working interests in producing wells
- Operated crude oil, natural gas, and NGL production
- Crude oil marketing and resale activities
- Saltwater disposal / water disposal services
- Investor redemption fee and securities-related revenue

## Customers

Phoenix Energy One sells into the upstream energy value chain rather than to end consumers. Its customers include crude oil and natural gas purchasers, third-party working interest owners, royalty interest holders, and operators that use water disposal services. The company also has internal customers through intercompany activity between PhoenixOp and the other segments.

- **Commodity buyers** (primary) — Refiners, marketers, and other purchasers that buy crude oil, natural gas, and NGL from PhoenixOp or Firebird Marketing.
- **Royalty and mineral interest counterparties** (primary) — E&P operators and production counterparties that generate royalty and mineral revenue tied to well output.
- **Third-party working interest owners** (secondary) — Owners sharing in production and disposal economics on wells operated by PhoenixOp.
- **Water disposal customers** (secondary) — PhoenixOp and third parties that pay fixed-fee saltwater disposal charges.
- **Security holders** (emerging) — Investors interacting with the capital-raising and redemption-fee activities in the securities segment.

- Commodity purchasers buying crude oil, natural gas, and NGL
- Third-party working interest owners sharing production proceeds
- Royalty interest holders receiving mineral-based revenue streams
- Operators needing saltwater disposal capacity
- Investors paying redemption-related fees in the securities segment

## Geography

Phoenix Energy One is a U.S.-based business, and its operating footprint is tied to domestic oil and gas properties and wells. The reports provided do not disclose a country-by-country revenue split, but the company’s activities, counterparties, and regulatory exposure are centered in the United States. Geography matters mainly through local drilling conditions, weather, environmental regulation, and access to U.S. commodity markets and infrastructure.

- Headquartered in the United States
- Operations are tied to U.S. oil and gas properties and wells
- PhoenixOp's drilling and production activity is domestic
- Water disposal and marketing activities support U.S. operations
- No country-level revenue disclosure was provided in the excerpts

## Strategy

The company is building a larger share of revenue from operated production through PhoenixOp while continuing to monetize mineral and royalty interests. It also uses Firebird Marketing and Firebird Services to capture additional value from crude sales and disposal services tied to its operating footprint. Acquisitions of mineral and royalty interests remain part of the growth model, with new assets expected to contribute over time as wells and properties mature.

- **Grow operated production through PhoenixOp** (medium-term) — Operated wells give the company direct control over production volumes and sales mix.
- **Expand product sales mix** (short-term) — Product sales can become a larger share of total revenue than passive royalty income.
- **Acquire mineral and royalty assets** (medium-term) — Acquisitions add long-duration exposure to producing acreage and future drilling activity.
- **Monetize adjacent services** (medium-term) — Water disposal and related services create incremental revenue around the operating base.

- Expand PhoenixOp-operated drilling and production
- Increase the share of revenue from product sales
- Acquire additional mineral and royalty interests
- Monetize crude oil through principal marketing activity
- Use water disposal services to support operating assets
- Build revenue from newly acquired assets as they mature

## Risks

The business is exposed to commodity price swings, production declines, and operational hazards inherent in drilling and producing oil and gas. Because PhoenixOp is an operator, the company also faces environmental, weather, cybersecurity, and execution risks that can disrupt production, increase costs, or delay cash collection. Acquisition-driven growth adds integration and valuation risk, while the securities segment introduces financing and redemption-related complexity.

- **Commodity price volatility** [high] — Revenue depends on market-based prices for crude oil, natural gas, and NGL.
- **Operational and environmental incidents** [high] — Upstream drilling and production can involve spills, blowouts, leaks, and regulatory penalties.
- **Cybersecurity disruption** [high] — Digital systems are used for operating data, financial records, and transaction settlement.
- **Weather and climate disruption** [medium] — Freeze-offs and severe weather can temporarily halt production and damage equipment.
- **Acquisition execution risk** [medium] — New mineral and royalty assets may take time to generate revenue and may not be accretive.

- Commodity prices drive revenue volatility across oil, gas, and NGL sales
- Drilling and production hazards can cause spills, blowouts, or shutdowns
- Cyberattacks could disrupt operations, data, and transaction processing
- Severe weather can interrupt production and damage equipment
- Acquisitions may not produce expected cash flow or returns

## Accounting

Revenue recognition is a key accounting area because the company records some sales at the point control transfers and other royalty-based revenue net of post-production costs. Estimates also matter because a significant portion of revenue may be accrued from estimated volumes and prices before cash settlement, and the company uses gross presentation for principal marketing activity. Segment allocations, intercompany eliminations, and impairment testing for long-lived assets can also materially affect reported results.

- **Commodity revenue recognition** — Affects quarterly revenue and receivables
- **Accrued revenue estimates** — Can move revenue and working capital between periods
- **Gross vs net presentation** — Changes reported revenue scale and margin comparability
- **Intercompany eliminations and segment allocations** — Affects segment profitability and consolidated results
- **Long-lived asset impairment** — Can create non-cash charges in periods of underperformance

- Point-in-time revenue recognition for commodity sales
- Net presentation for royalty and non-operated interests
- Accrued revenue based on estimated volumes and prices
- Gross presentation when acting as principal in crude marketing
- Long-lived asset impairment for operating properties

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*Last updated: 2026-04-29T04:48:42.589018+00:00*