Phoenix Energy One, LLC

Rapidly growing oil & gas mineral/working-interest company now profitable but heavily levered and capital-hungry.

Strengths

• Revenue up 144% (94th pct) and a swing to $66M net income with operating margin 25.5% (70th pct)
• Strong OCF margin (43.8%) and gross margin 77%; large royalty/mineral acreage base

Risks

• Heavy leverage ($1.53B debt) with interest coverage just 1.09x and current ratio 0.41 (17th pct)
• Needs ~$670M additional capital through 2028; operating cash flow alone could not cover debt service in 2025
• Net income growth percentile low (12th) reflecting volatile earnings

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Weak liquidityCurrent ratio 0.41 (<1)