Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), citing the company's transformation into a larger, oil-weighted Rockies platform following the Juniper merger. The research report details Pedevco's financial and operational results for fiscal year 2025, which ended December 31, 2025, and the first quarter of 2026.
For FY25, Pedevco reported production of 910.1 thousand barrels of oil equivalent (Mboe), or 2,494 barrels of oil equivalent per day (Boe/d), representing a 35% increase year-over-year. Revenue rose 16% to $45.8 million, and adjusted EBITDA increased 18% to $27.0 million, despite a 19% decline in realized crude oil prices. However, the company reported a net loss of $10.4 million, compared to net income of $12.3 million in FY24, driven by merger costs, accelerated share-based compensation, new interest expense, a note write-off, and tax expense.
In the fourth quarter of 2025, which was the first full quarter reflecting the combined platform from the Juniper merger, Pedevco's 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 quarter included only two months of contribution from the acquired assets, suggesting that normalized earnings power is a better measure of the company's performance. 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 initiation report include that Pedevco now has 32.1 million barrels of oil equivalent (MMBoe) of proved reserves, with a PV-10 of $357.7 million, and over 1,000 drilling locations beyond proved reserves. Additionally, the company identified $10 million to $13 million of optimization work that could reduce lease operating expenses (LOE) by up to $1 million per month, supporting meaningful margin upside.
For more details, the full announcement is available here. 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.
