PNX Capital Holdings, LLC (“PNX”) is excited to announce that it has secured a $100 million financing agreement with Fortress Investment Group (“Fortress”), a top-tier credit provider with a long history in the energy sector. This significant financial backing will fuel PNX’s continued growth and strategic expansion in key oil U.S. natural resource regions, such as the Williston Basin.
The New York-based Fortress has long been recognized for providing large-scale financing to oil and gas companies. This investment not only validates the operational success PNX has demonstrated but also signals the company’s emergence as a major player in the energy sector.
Accelerating Growth in the Williston Basin
The financing will primarily be allocated toward expanding PNX Operating, the company’s operating arm, which has already made significant strides in North Dakota’s Williston Basin. PNX Operating has broken multiple industry records for speed and efficiency in the basin, delivering impressive results, including:
- 3x faster completion-to-production timeline
- 4x faster permit-to-production process
- 5x faster spud-to-sales cycle
Supported by the financing from Fortress, PNX Operating will pursue a second drilling rig that positions the company to drill an estimated 30–35 new wells in 2025. Each rig, along with a full-time crew, requires an annual operational cost of approximately $300 million. This expansion is expected to accelerate PNX’s revenue trajectory, which reached $79.8 million in Q2 2024, marking a 96% increase from Q1 2024.
Enhanced Hedging Program with BP
Alongside the financing agreement, PNX is also updating its hedging program in partnership with British Petroleum (BP). The new hedge, which covers 2.55 million barrels of PNX’s reserves between August 2024 and July 2027, is structured to include 573,000 barrels under put options and 1.98 million barrels through swaps. This will provide PNX with increased security against oil price fluctuations and ensure stable cash flows during this period.
A Strategic Partnership for Growth
The $100 million financing from Fortress marks a key milestone in PNX’s growth story. With the company’s proven track record of turning capital into cash flow and a forward-looking strategy focused on operational efficiency, this new partnership lays the groundwork for sustained success.
For detailed financials and more insights into PNX Capital’s partnership with Fortress Investment Group, read the full press release.
Disclosure: Investing involves risk, including the possible loss of the money you invest. The sale of any securities is subject to investor qualification and minimum investment. Private placements are speculative and illiquid. Past performance is not indicative of future results. Forward-looking statements are made based upon our current expectations and beliefs concerning future developments and their potential effects on us. Such forward-looking statements are not guarantees of future performance, and actual results may differ materially from the results anticipated in the forward-looking statements. Investors should read the investment information, disclosures, risks, and other important information contained in our offering documents available at PHXOffering.com and consider the risks therein before investing.