Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), drawing attention to the company's significant transformation following its merger with Juniper. The firm's analysis points to a substantially larger, oil-weighted Rockies platform that emerged from the deal, setting the stage for enhanced operational scale and financial performance.
Pedevco's fiscal year 2025 results reflect the early benefits of the merger, with production increasing 35% year-over-year to 910.1 Mboe (2,494 Boe/d). Revenue rose 16% to $45.8 million, and adjusted EBITDA increased 18% to $27.0 million, even as realized crude oil prices declined 19%. The company reported 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 full quarter reflecting the combined platform, production surged 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 noted that the quarter included only two months of contribution from the acquired assets, suggesting that normalized earnings power provides a better view of the company's potential. The merger-close bridge to over 6,500 Boe/d and approximately 310,000 net acres underscores the larger earnings base now embedded in the portfolio.
Key takeaways from the coverage include the fact that 4Q25 only included two months of acquired assets, yet production rose 143% year-over-year and adjusted EBITDA nearly tripled. PED now holds 32.1 MMBoe of proved reserves, with a PV-10 of $357.7 million, and over 1,000 drilling locations beyond proved reserves. Additionally, the company has identified $10 million to $13 million of optimization work that could reduce lease operating expenses (LOE) 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. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking services for public and private companies. For more information, the full announcement is available here.
