PEDEVCO (PED) Q4 2025 earnings summary

Executive summary

• Completed transformative merger with Juniper portfolio companies on October 31, 2025, significantly expanding scale, reserves, and earnings power, and creating a Rockies-focused energy platform with substantial development inventory.

• Production increased from 1,500 BOE/day pre-merger to over 5,300 BOE/day in Q4 2025, marking a 35% annual increase; proved reserves nearly doubled to 32.1 million BOE with PV-10 of $357.7 million.

• Management and insiders own a significant majority, aligning interests with shareholders and focusing on maximizing value and minimizing risk.

• Juniper Capital invested $18.6 million of new equity at the merger, demonstrating strong commitment.

• Net loss for 2025 driven by $7.5 million in non-recurring merger costs, $2.8 million in accelerated share-based compensation, $1.4 million in new interest expense, and $8.1 million in income tax expense.

Financial highlights

• Q4 2025 revenue was $23.1 million, with Adjusted EBITDA up 203% year-over-year to $15.4 million; full-year revenue reached $45.8 million (+16% YoY) and Adjusted EBITDA $27.0 million (+18% YoY).

• Full-year 2025 net loss of $10.4 million, compared to net income of $12.3 million in 2024, driven by merger and one-time costs.

• Lease operating expenses increased 54% to $19.1 million; full-year direct LOE was $11.62/BOE, up from $10.36/BOE.

• G&A expenses rose $10.4 million to $16.8 million, mainly due to merger-related costs.

• Recognized $6.3 million gain on derivative contracts in 2025.

Outlook and guidance

• Projecting full-year 2026 Adjusted EBITDA of $60–$70 million, based on $65/bbl oil and $3.50/Mcf gas.

• 2026 capital expenditures expected at $16–$20 million, with $6–$7 million for DJ Basin drilling and $10–$13 million for optimization of acquired assets.

• Per unit LOE expected to decline through 2026 as optimization projects take effect.

• Leverage ratio projected at 1.2–1.3x net debt to EBITDA by year-end 2026, with a target to maintain leverage at 1.5x or less.

• Asset reviews underway; potential expansion of 2026 capital budget to be announced.