Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), noting the company's transformation into a larger, oil-weighted Rockies platform following the Juniper merger. For fiscal year 2025, Pedevco reported a 35% year-over-year increase in production to 910.1 Mboe (2,494 Boe/d), revenue growth of 16% to $45.8 million, and an 18% rise in adjusted EBITDA to $27.0 million, despite a 19% decline in realized crude oil prices. The company posted 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 normalized earnings power provides a more accurate view. The merger-close bridge to over 6,500 Boe/d and approximately 310,000 net acres highlights the larger earnings base now embedded in the portfolio.
Key takeaways from the initiation include that 4Q25 only included two months of acquired assets yet production rose 143% year-over-year and adjusted EBITDA nearly tripled. Pedevco now holds 32.1 MMBoe of proved reserves, a PV-10 of $357.7 million, and over 1,000 locations beyond proved reserves. Additionally, $10 million to $13 million of optimization work could reduce lease operating expenses 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 details, view the full announcement here.
