Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), marking a significant milestone for the company following its transformative Juniper merger. The research report underscores Pedevco's emergence as a larger, oil-weighted Rockies platform with substantial operational scale and growth potential.
Pedevco exited fiscal year 2025 with notable gains, despite challenging commodity prices. Production increased 35% year-over-year to 910.1 Mboe (2,494 Boe/d), while revenue rose 16% to $45.8 million. Adjusted EBITDA grew 18% to $27.0 million, even as realized crude oil prices declined 19%. The company reported a net loss of $(10.4) million for FY25, compared to net income of $12.3 million in FY24, driven by merger-related costs, accelerated share-based compensation, new interest expense, a note write-off, and tax expenses. However, the fourth quarter of 2025—the first full quarter reflecting the combined platform—showed stronger performance. Production surged 143% year-over-year to 483.2 Mboe (5,310 Boe/d), revenue more than doubled to $23.1 million, and adjusted EBITDA nearly tripled to $15.4 million.
Management emphasized that the fourth quarter included only two months of contribution from the acquired assets, suggesting that normalized earnings power provides a better view of the company's potential. The merger-close bridge to over 6,500 Boe/d and roughly 310,000 net acres helps frame the larger earnings base now embedded in the portfolio.
Key takeaways from the report include Pedevco's proved reserves of 32.1 MMBoe, with a PV-10 of $357.7 million, and over 1,000 drilling locations beyond proved reserves. The company also identified $10 million to $13 million in optimization work that could reduce lease operating expenses by up to $1 million per month, supporting meaningful margin improvement.
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Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking services for public and private companies.
