PEDEVCO Corp.

What they do

PEDEVCO holds approximately 99,561 net acres in the D-J Basin (Weld and Morgan Counties, Colorado; Laramie County, Wyoming), 201,886 net acres in the Powder River Basin (Laramie and Campbell Counties, Wyoming), and 14,105 net acres in the Permian Basin (Chaves and Roosevelt Counties, New Mexico) as of December 31, 2025. It operates through wholly-owned subsidiaries including Red Hawk, North Silo, Longs Peak, Century Oil and Gas, Navigation Powder River, Pine Haven and Ridgeway Arizona Oil Corp. At year-end 2025 it held interests in 184 gross (79.4 net) D-J Basin wells, 156 gross (135.4 net) PRB wells and 38 gross (34.5 net) Permian wells.

Revenue drivers

• Oil and gas production — Revenue comes from selling produced oil, natural gas and NGLs; Q2 2026 oil and gas revenue was $46.1 million on 618,912 Boe (6,801 Boe/d), up from $7.0 million on 138,028 Boe a year earlier.
• D-J Basin Asset — Approximately 99,561 net acres in Colorado and Wyoming with 170 producing wells, three saltwater disposal wells and 11 DUCs at year-end 2025, operated by Red Hawk, NSR and LPR.
• Powder River Basin Asset — Approximately 201,886 net acres in Wyoming with 140 producing wells and 15 injection wells at year-end 2025, operated by COG, NPR and Pine Haven.
• Permian Basin Asset — Approximately 14,105 net acres in New Mexico with 34 producing wells, two injection wells and two saltwater disposal wells at year-end 2025, operated by RAZO.

Recent performance

Second quarter 2026 revenue was $46.1 million versus $7.0 million in Q2 2025, and net income was $17.5 million, or $1.31 per share, versus a $1.7 million loss. Average daily production rose 348% year over year to 6,801 Boe/d. Adjusted EBITDA was $18.7 million versus $3.0 million a year earlier, and $18.1 million in Q1 2026 on a recast basis. The company reduced credit facility borrowings from $98 million at March 31, 2026 to $85 million at June 30, 2026. Full-year 2025 revenue was $45.8 million with a net loss of $10.4 million.

Strategy

PEDEVCO targets legacy proven properties where modern drilling and completion techniques have not been applied, leveraging long production histories, defined geology and existing infrastructure. Newly acquired scale from the October 2025 merger is being put to work: a previously-drilled D-J Basin well was recently completed and the company plans to drill or participate in over 20 gross wells across its asset base in the second half of 2026. Management cites $36.8 million of first-half 2026 Adjusted EBITDA and a strong balance sheet as support for the program. It describes the plan as disciplined, aimed at growing production and cash flow while maintaining low leverage.

Risks

• Credit agreement covenants — The A&R Credit Agreement requires a current ratio of at least 1.0 to 1.0 and a leverage ratio no greater than 3.0 to 1.0, and restricts incurring debt without lender consent.
• Mandatory hedging — The company must hedge at least 75% of projected PDP oil and gas production for the first 24 months of the credit agreement and 50% for months 25-36, which limits upside to price increases.
• Commodity price exposure — Results depend on oil, natural gas and NGL prices, and wider differentials between NYMEX benchmarks and realized wellhead prices would hurt revenue and cash flow.
• Capital needs — The company lists its need to raise additional capital to support operations and repay outstanding indebtedness among its summary risk factors.

Outlook

Management plans to execute a second-half 2026 development program, including drilling or participating in over 20 gross wells, and expects it to add material production in late 2026 continuing into 2027. The company reported approximately $12.1 million of cash and restricted cash at June 30, 2026, net debt of approximately $73 million, and $36.8 million of first-half Adjusted EBITDA. It says the program is built to grow production and cash flow while preserving balance sheet strength.