PEDEVCO (PED) M&A Announcement summary

Deal rationale and strategic fit

• Merger creates a premier Rockies-focused operator with over 328,000 net acres, primarily in the DJ and Powder River Basins, and additional assets in the Permian, emphasizing oil-weighted assets and over 6,500 BOEPD production.

• Combined asset base is adjacent to major operators, enabling operational synergies and future consolidation opportunities.

• Strategic focus on consolidating the fragmented Rockies market, leveraging operational synergies, and supporting organic growth.

• Substantial inventory of future drilling locations and flexible capital allocation across multiple basins support long-term growth.

• The merger positions the company as a premier public consolidator in the Rockies, filling a gap for a pure-play operator in the region.

Financial terms and conditions

• Juniper affiliates and management receive Series A convertible preferred stock, convertible into 106.5 million shares, resulting in 53% ownership post-conversion; legacy shareholders retain 47%.

• $87 million drawn from a $120 million reserve-based lending facility to fund the merger; $35 million private placement of preferred shares completed.

• Funded by a $250 million reserve-based lending facility with a $120 million borrowing base.

• Pro forma net debt is $77 million with $43 million liquidity available for development and acquisitions.

• Convertible preferred equity issued at closing, expected to convert to common shares in the coming months.

Synergies and expected cost savings

• Operational synergies expected from leveraging development expertise, optimizing drilling, and scaling activity efficiently.

• Combined company benefits from a lean cost structure, low G&A, and disciplined management, maximizing margins and operational efficiency.

• Focus on continuous improvement in drilling, completions, and production techniques to enhance returns.

• Opportunities to optimize drilling schedules and leverage existing midstream infrastructure.

• Anticipated accretive acquisitions to benefit shareholders.