Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), emphasizing the company's emergence as a larger, oil-weighted Rockies platform following its merger with Juniper. The research report notes that for fiscal year 2025, Pedevco's production increased 35% year-over-year to 910.1 Mboe (2,494 Boe/d), revenue rose 16% to $45.8 million, and adjusted EBITDA grew 18% to $27.0 million, despite a 19% decline in realized crude oil prices. However, 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 valuation. The report highlights that 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 Pedevco now has 32.1 MMBoe of proved reserves, a PV-10 of $357.7 million, and over 1,000 drilling locations beyond proved reserves. Additionally, the company expects $10 million to $13 million of optimization work that could reduce lease operating expenses by up to $1 million per month, supporting meaningful margin upside. Click here to view the full announcement, including downloadable images and bios.
The initiation of coverage by Stonegate Capital Partners, a leading capital markets advisory firm, underscores the market's growing interest in Pedevco's post-merger potential. The report provides institutional investors with detailed analysis of the company's operational and financial metrics, positioning Pedevco as a notable player in the upstream energy sector.
