Phoenix Capital Group: Your Guide to Energy Investments and High-Yield Bonds

Ever wondered if there’s a way to earn steady income from oil and gas without drilling a well yourself? Phoenix Capital Group, now known as Phoenix Energy One, LLC, might catch your eye with its high-yield bonds and mineral rights investments. This family-owned energy company promises returns of 9-13%, but is it too good to be true? Let’s break down what Phoenix Capital Group offers, how it works, and whether it’s a fit for your portfolio, all while keeping things clear and straightforward.

Key Takeaways

• Phoenix Capital Group (rebranded as Phoenix Energy) is a legitimate energy firm specializing in mineral rights, non-operated working interests, and corporate bonds with 9-13% annual interest.
• With an A+ BBB rating and 5-star Trustpilot reviews, the company has a solid reputation, but its investments carry risks like oil price volatility and regulatory changes.
• Bonds are IRA-eligible and offer flexible payouts, making them attractive for passive income seekers.
• Understanding the complexities of mineral rights and bonds is key to making informed decisions with Phoenix Capital Group.
• This guide simplifies the company’s offerings, compares them to alternatives, and shares tips to navigate risks.

What Is Phoenix Capital Group?

Imagine inheriting land with oil beneath it but not knowing how to turn it into cash. That’s where Phoenix Capital Group, now Phoenix Energy One, LLC, steps in. Founded in 2019, this family-run company buys mineral rights and invests in oil and gas projects across major U.S. basins like the Williston, Permian, and Denver Julesburg (DJ) Basins. They also offer high-yield bonds to fund their operations, giving investors a chance to earn steady returns.

Who Are They?

Based in Irvine, California, with offices in Colorado, Wyoming, Texas, and Florida, Phoenix Capital Group is led by CEO Adam Ferrari and COO Lindsey Wilson. The company uses proprietary software to spot valuable mineral rights and non-operated working interests—think of it as a high-tech treasure map for oil and gas. Their mission? Create wealth for landowners and investors while keeping operations efficient and transparent. With over 90,000 net royalty acres and 4,200 active wells, they’re a serious player in the energy sector.

Are They Legit?

Skeptical about a company promising 9-13% returns? You’re not alone. Phoenix Capital Group has an A+ rating from the Better Business Bureau (BBB), accredited since June 2021, with only two settled complaints. On Trustpilot, they boast 5 stars from 298 reviews, with investors praising timely payments and advisors like Patrick Messersmith. SEC filings confirm their operations, though some bonds are unregistered, which we’ll cover later. So, yes, they’re legit, but high returns come with high risks.

Understanding Phoenix’s Investment Offerings

Phoenix Capital Group offers two main ways to invest: high-yield corporate bonds and opportunities tied to mineral rights and non-operated working interests. Let’s unpack these so you know exactly what you’re getting into.

High-Yield Corporate Bonds

Picture a bond as a loan you give to Phoenix Capital Group, and they pay you back with interest—up to 13% annually. These bonds, offered through Regulation D for accredited investors and Regulation A+ for others, have terms from 9 months to 7 years. You can choose monthly payouts for steady income or let the interest compound for bigger returns later. Plus, they’re IRA-eligible, which is a win for retirement planners. The catch? These bonds are unsecured, meaning if the company struggles, you’re not first in line for repayment.

Mineral Rights Acquisitions

Owning mineral rights is like owning the underground treasure on a piece of land—think oil, gas, or minerals. Phoenix Capital Group buys these rights from landowners, paying them upfront or through royalties. Their tech-driven approach helps them find undervalued assets, which they turn into cash flow through leases or production. For investors, this means exposure to oil and gas without getting your hands dirty, but it’s complex and tied to market swings.

Non-Operated Working Interests

Ever wanted to invest in an oil well without running the show? Non-operated working interests let you fund drilling projects while Phoenix Capital Group handles the logistics. You share in the profits (or losses) based on production. For example, a well in the Williston Basin might churn out steady oil, but if prices drop, so do returns. This option offers high potential but comes with bigger risks than bonds.

Why Invest with Phoenix Capital Group?

High returns sound tempting, but why choose Phoenix Capital Group over a stock or real estate? Here’s what sets them apart.

Benefits of Phoenix’s Offerings

• High Returns: Bonds yield 9-13%, far above the 3-5% from U.S. Treasuries or traditional bonds.
• Flexible Payouts: Choose monthly checks for income or compounding for growth.
• IRA-Friendly: Use your retirement account to invest, deferring taxes on returns.
• Family-Owned Trust: The Ferrari family’s hands-on approach builds confidence, with 97.2% of 670 surveyed investors reporting satisfaction.

Take Sarah, a retiree who invested $50,000 in a 3-year bond at 9%. She gets $375 monthly, boosting her income without touching her principal. Stories like hers show why Phoenix Capital Group appeals to income-focused investors.

Customer Success Stories

Trustpilot reviews glow with praise for advisors like Matt Willer, who guide investors through the process. One investor called their bond payments “life-changing” for retirement planning. However, Phoenix Capital Group could share more detailed case studies to show long-term outcomes, a gap that leaves some investors wanting more proof.

Risks and Challenges of Investing with Phoenix

High rewards come with high risks, and Phoenix Capital Group is no exception. Let’s look at what could go wrong and how to protect yourself.

Key Risks to Understand

• Market Volatility: Oil prices can tank, as seen in 2020 when crude hit negative values. This impacts Phoenix’s cash flow and bond payments.
• Unsecured Bonds: Unlike bank loans, Phoenix’s bonds aren’t backed by assets, so bankruptcy could leave investors empty-handed.
• Regulatory Hurdles: Environmental laws or drilling bans could slow operations, cutting revenue.
• Limited History: Founded in 2019, Phoenix Capital Group lacks the decades-long track record of larger firms.

For example, if oil prices drop to $30 per barrel, Phoenix’s hedging strategy claims to protect returns, but a prolonged slump could strain finances. Always read their SEC filings for the full risk picture.

Common Investor Pain Points

• Complexity: Mineral rights and working interests confuse newbies. Phoenix’s website could use simpler explanations.
• Transparency: Investors want more details on how their software picks assets or how funds are used.
• Long-Term Uncertainty: With only a few years of data, it’s hard to predict returns over a decade.

To address these, Phoenix Capital Group hosts webinars led by experts like Matt Willer, breaking down their model. Joining one can clarify how your money is put to work.

How Phoenix Compares to Other Investment Options

Is Phoenix Capital Group your best bet, or should you stick with stocks or real estate? Let’s compare.

Phoenix Bonds vs. Traditional Investments

• Stocks: Offer growth potential but are volatile. Phoenix bonds give fixed 9-13% returns, less affected by market swings but riskier if the company falters.
• Real Estate: Rentals provide steady income but require management. Phoenix bonds are hands-off, though less liquid.
• Treasury Bonds: Safe at 3-5% returns but lower yields. Phoenix’s higher returns come with higher risk.

Competitors in the Energy Space

Compared to Black Stone Minerals, which focuses solely on mineral rights, Phoenix Capital Group stands out with its bond offerings. Energy ETFs like XLE diversify across the sector but yield only 2-4%. Phoenix’s direct approach skips middlemen, boosting returns but tying you to one company’s performance.

How to Start Investing with Phoenix Capital Group

Ready to give Phoenix Capital Group a shot? Here’s how to get started and some tips to avoid pitfalls.

Step-by-Step Guide

1. Visit phoenixenergy.com: Check out their bond offerings and webinars for details.
2. Contact an Advisor: Call (303) 376-9778 or email [email protected] to discuss options.
3. Review Terms: Bonds range from 9 months to 7 years, with a $5,000 minimum for Regulation A+ bonds.
4. Complete Subscription: Fill out the agreement and send payment to UMB Bank, their trustee.
5. Monitor Payments: Expect monthly checks or compounding interest, trackable via their investor portal.

Practical Tips for New Investors

• Check Oil Trends: Use the U.S. Energy Information Administration (EIA) to track oil price forecasts. A stable $60+ per barrel supports Phoenix’s model.
• Start Small: Test the waters with a $5,000 bond before going all-in.
• Talk to a Pro: A financial advisor can assess if 9-13% bonds fit your risk tolerance.
• Read the Fine Print: SEC filings on EDGAR detail risks and financials. Don’t skip them.

Addressing Environmental and Ethical Concerns

Oil and gas investments raise eyebrows for environmental reasons. Here’s how Phoenix Capital Group fits into the bigger picture.

Phoenix’s Environmental Impact

Drilling and production can harm ecosystems, from emissions to land disruption. Phoenix Capital Group claims a commitment to environmental stewardship, but public data on their sustainability practices is thin. If green investing matters to you, ask their team for specific policies or reports. Some investors balance Phoenix bonds with green energy funds to offset environmental concerns.

Ethical Investment Considerations

Investing in fossil fuels isn’t for everyone. If you’re torn, consider that Phoenix Capital Group focuses on efficiency and transparency, but it’s still tied to a controversial industry. Alternatives like solar or wind bonds might align better with ethical goals, though they often yield less. Weigh your values against the 9-13% returns Phoenix offers.

Is Phoenix Capital Group Right for You?

Phoenix Capital Group, now Phoenix Energy, offers a unique way to tap into oil and gas wealth through high-yield bonds and mineral rights. Their A+ BBB rating and 5-star reviews signal trust, but unsecured bonds and market risks demand caution. For risk-tolerant investors seeking passive income, their 9-13% bonds are tempting, especially for IRAs. But if safety is your priority, treasuries or diversified ETFs might be better.

Take Action: Curious about Phoenix Capital Group? Visit phoenixenergy.com for a webinar or contact their team at (303) 376-9778 to see if their bonds fit your goals. Always consult a financial advisor and review SEC filings before investing. Your money deserves a smart home.