Phoenix Energy One: amends credit agreement and offers wellbore interests

What happened

• As previously disclosed, on Aug 12, 2024, Phoenix Energy One, LLC entered into an Amended and Restated Senior Secured Credit Agreement. On Oct 21, 2026 (the "Amendment No. 11 Effective Date"), the company, Phoenix Operating LLC, the guarantors, the lenders party thereto, and Fortress Credit Corp., as administrative agent, entered into Amendment No. 11 to that credit agreement.
• Amendment No. 11 permits the company to issue certain secured junior lien notes, subject to the conditions and limitations described in the credit agreement, and amended or provided limited waivers of compliance with certain covenants, including a waiver of the requirement to not permit the Current Ratio to be less than .90 to 1.00 during each calendar month ending from Apr 30, 2026 through and including Dec 31, 2026.
• Through its Wellbore Participation and Assignment Plan, the company has provided certain employees, including each executive officer, the opportunity to acquire non-operating working interests in 38 company-operated wells in North Dakota and Montana.

Key details

• Amendment No. 11 effective date: Oct 21, 2026.
• Amendment No. 11 permits issuance of secured junior lien notes and waived the Current Ratio covenant requirement (.90 to 1.00) for months ending Apr 30, 2026 through Dec 31, 2026.
• Wellbore plan covers 38 company-operated wells in North Dakota and Montana; participants commit to pay a percentage of Development Costs and initially pay 3.0% of their Commitment based on forecasted Development Costs.
• Plan participants receive a net revenue interest equal to 80% of their Elected Working Interest; no distributions are expected until all Development Costs have been incurred.

Why it may matter

• The filing reports Item 1.01 (entry into a material definitive agreement) describing Amendment No. 11 to the Amended and Restated Senior Secured Credit Agreement and Item 5.02 (departure of directors or certain officers) describing the Wellbore Participation and Assignment Plan that gives employees the opportunity to acquire non-operating working interests in 38 wells. The filing does not show why the insider traded or why the company acted.