Hi. It's Matt Willer, managing director of capital markets at Phoenix Energy. Part of my job is to help interested investors like yourself understand our business, our investments, and the associated risks. This short video summarizes what we cover in our daily webinars, but please feel free to call us at any time with questions at area code 303-376-9778. I know it's a lot of information, so don't hesitate to reach out. Now I'll get started with the summary. Because we are discussing the issuance of securities, comprehensive information about Phoenix Energy and its offerings is available through our public filings on the SEC site as well as materials available directly on our website at phoenixenergy.com. Before investing, you should read all of the offering documentation and the other documents Phoenix Energy has filed with the SEC. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities and shall not constitute an offer, solicitation, or sale of any security in any jurisdiction. Company wide, Phoenix Energy operates with three core principles, strategic, disciplined, and sustainable decision making. These principles guide how we deploy capital and manage the business. Phoenix Energy operates in the oil and gas sector across three primary asset royalty interests, non operated working interests, and operated assets. When we invest capital, we acquire energy producing acreage and generate revenue by extracting oil, selling out production, and converting it into cash flow. In our royalty portfolio, Phoenix Energy owns the mineral rights, while third party operators handle drilling and operations. In return, we receive a percentage of the revenue from production. In our operated assets, Phoenix Energy performs drilling, maintenance, and operations directly and generate revenue from the sale of the oil. When evaluating opportunities to deploy capital, we focus on assets built for near term predictable cash flow. Our team uses data and technology to find assets that support steady production and efficiency. As of our most recent ten q, our quarterly report for the three months ended March thirty first twenty twenty six, Phoenix Energy operates exclusively in the US across nine states with a portfolio of more than eight thousand two hundred cash flow generating wells. One of the primary risks in our business is commodity pricing with respect to oil. Oil prices fluctuate beyond any operator's control. Phoenix Energy uses industry accepted hedging strategies to help reduce this risk. Hedging allows us to lock in pricing on a portion of future production, supporting operations and investor obligations across market cycles. We currently have over eleven point nine million barrels hedged at approximately sixty dollars and seventy eight cents per barrel. This strategy helps stabilize realized pricing and provides greater visibility into cash flow even in a lower oil price environment. Our hedges are layered over the next thirty six months and are actively managed based on production levels, contractual requirements, and market conditions. In a higher oil price environment, some of our existing hedges may limit participation in near term upside. However, we continue to actively drill and bring new production online. Those new barrels are sold at prevailing market prices, which increases our exposure to current pricing over time. As a result, the overall impact of earlier hedges is naturally diluted as new unhedged production grows. This approach allows us to manage downside risk while still participating in stronger market conditions as our asset base expands. Phoenix Energy benefits from relatively low overhead with approximately one hundred and ninety employees across seven offices. In addition, Phoenix Energy has operated efficiently with respect to its direct drilling operations and operated working interests. This cost discipline and operational efficiency has helped the company remain competitive and even become profitable during periods of softer oil pricing like in twenty twenty five. Now let's turn to the corporate offerings. Phoenix Energy currently has two separate corporate fixed rate offerings. Our registered offering is available to all investors subject to financial suitability, and our private placement offering is available to accredited investors only. These bonds are fixed rate corporate debt obligations. Interest rates are set at issuance based on the term of the bond selected and do not fluctuate. As with corporate bonds generally, investors rank senior to equity holders in the company's capital structure. First, let's discuss our private placement offering under Regulation d. This offering is available to accredited investors only as defined by Regulation d. The minimum investment is twenty five thousand dollars. Available term lengths range from one to eleven years with fixed interest rates that increase with longer maturities from nine to thirteen percent. Investors in this offering may choose to receive interest through monthly payments or elect a compounding option where interest is added monthly to the outstanding principal amount and paid at maturity. At the end of the term, investors may have their funds returned or reinvest the proceeds in new corporate bonds subject to the terms of then current debt securities offerings. Bonds in either offering may be purchased using taxable nonqualified funds or through retirement accounts such as IRAs or employer sponsored plan. Tax treatment depends on how the investment is held, and investors should consult their tax or financial advisers. Funds used to purchase the corporate bonds can generally be transferred from other financial institutions without transaction fees imposed by Phoenix Energy. We do offer rate lift tiers for larger investments. At the five hundred thousand dollar level, you could apply a point five higher rate of return to the rates we've just reviewed. At the million dollar level, you'll get a full one percent rate bump. Myself and several members of the executive team sit in that category. Lastly, we have something called adamantium capital, our highest tier offering. This is a two million dollar investment minimum with tiers at three and four million dollar minimum investments and rates topping out at sixteen percent annual interest. There are some bespoke risk and safety features in this offering, so if you're interested in these rate lifts or adamantium, it would be a good opportunity to give me a call. Next, we have our registered offering open to nonaccredited investors subject to financial eligibility. The registered offering minimum investment is five thousand dollars. Available terms range from three to eleven years with fixed interest rates from nine to twelve percent. Investors in this offering may also choose to receive interest through monthly payments or elect a compounding option where interest is added monthly to the outstanding principal amount and paid at maturity. A quick note on fees. There are no fees payable by investors when bonds are held to maturity. If bonds are redeemed early, however, a five percent early redemption charge on the original principal amount applies. As with all investments, past performance does not guarantee future results. However, the company has operated through multiple commodity cycles, including periods of significant market volatility. To date, our investors have experienced no losses, no late payments, and no missed payments of either interest or principal repayment. Many Phoenix Energy investors seek income focused investments as part of a broader diversification strategy. From inception to March thirty first twenty twenty six, we have accrued or paid two hundred and sixty six point nine million dollars of interest to our investors. A recent poll of these investors resulted in a ninety seven percent satisfaction rate, and we maintain a four point eight out of five stars on the review site Trustpilot. If you are ready to purchase bonds in either of our offerings, you may participate through our online portal at invest dot phoenix energy dot com. The process typically takes only a few minutes to complete. The portal allows our investors to access statements, view holdings, and manage preferences at any time. You can contact our team directly with questions. For additional information, you can contact us directly at three zero three three seven six nine seven seven eight or purchase bonds at phoenix energy dot com slash invest. If you are interested in talking with one of our licensed investment professionals, visit chat with phoenix dot com. Thank you for your time and for your interest in Phoenix Energy. We look forward to speaking with you soon.
