PEDEVCO (PED) Q3 2025 earnings summary

Executive summary

• Closed a transformative merger on October 31, 2025, adding significant oil-weighted assets in the DJ and Powder River Basins, positioning as a leading Rockies-focused operator with 320,000 net acres and post-merger production exceeding 6,500 BOEPD (88% oil/liquids).

• Q3 2025 production averaged 1,471 BOEPD (84% liquids), down 13% year-over-year due to asset sales and natural declines.

• Net loss of $0.3 million for Q3 2025 and $1.9 million for the nine months ended September 30, 2025, compared to net income in the prior year periods.

• Revenue declined 23% year-over-year in Q3 2025 and 22% for the nine months, primarily due to lower commodity prices and production volumes following asset sales and natural declines.

• Completed a $35 million PIPE financing and entered into a new $120 million credit facility to support the merger and future growth.

Financial highlights

• Q3 2025 revenue: $7.0 million, down from $9.1 million in Q3 2024; nine-month revenue: $22.7 million, down from $29.0 million.

• Adjusted EBITDA for Q3 2025: $4.3 million, down 24% year-over-year; nine-month adjusted EBITDA: $11.6 million.

• Cash and restricted cash at September 30, 2025: $13.7 million, up from $6.6 million at year-end 2024.

• Working capital surplus of $1.5 million at September 30, 2025, down from $6.3 million at year-end 2024.

• Operating expenses rose 12% to $7.8 million, mainly due to higher DD&A and accretion expenses.

Outlook and guidance

• 2025 capital expenditures estimated at $42–$45 million, with 78–80% allocated to DJ Basin development.

• Thirty-two wells scheduled for completion in Q4 2025 and early Q1 2026, expected to drive production growth.

• Focus on integrating newly acquired operations, achieving economies of scale, and pursuing organic growth and accretive M&A.

• Sufficient liquidity expected for the next 12 months, supported by cash flow, credit facility, and ATM equity program.