Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), emphasizing the company's transformation into a larger, oil-weighted Rockies platform following the Juniper merger. The firm's research note details Pedevco's performance for fiscal year 2025, which ended with production increasing 35% year-over-year to 910.1 Mboe (2,494 Boe/d), revenue rising 16% to $45.8 million, and adjusted EBITDA increasing 18% to $27.0 million. These gains were achieved despite a 19% decline in realized crude oil prices. Reported earnings moved to 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, the first quarter reflecting the combined platform, production increased 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 acquired contribution, making normalized earnings power a better lens for evaluating the company. The merger-close bridge to over 6,500 Boe/d and roughly over 310,000 net acres helps frame the larger earnings base now embedded in the portfolio.
Pedevco now has 32.1 MMBoe of proved reserves with a PV-10 of $357.7 million, and over 1,000 locations beyond proved reserves. The company expects that $10 million to $13 million of optimization work could reduce lease operating expenses (LOE) by up to $1 million per month, supporting meaningful margin upside. For more details, view the full announcement 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), provides a full spectrum of investment banking services for public and private companies. This initiation of coverage highlights Pedevco's strategic growth and potential for improved operational efficiency.
