Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), noting that the company exited fiscal year 2025 as a much larger, oil-weighted Rockies platform following the Juniper merger. Production increased 35% year-over-year to 910.1 Mboe (2,494 Boe/d), while 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. 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 FY25, 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 the better lens, while the merger-close bridge to 6,500+ Boe/d and roughly over 310,000 net acres helps frame the larger earnings base now embedded in the portfolio.
Key takeaways from the report include that 4Q25 only included two months of acquired assets, yet production rose 143% year-over-year and adjusted EBITDA nearly tripled. PED now has 32.1 MMBoe of proved reserves, $357.7 million PV-10, and 1,000+ locations beyond proved reserves. Additionally, $10 million to $13 million of optimization work could reduce lease operating expenses by up to $1 million per month, supporting meaningful margin upside.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. For more information, view the full announcement here.
