Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), highlighting the company's transformation following its merger with Juniper. The combined entity emerged from fiscal year 2025 as a significantly larger, oil-weighted Rockies platform, 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, 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.
The fourth quarter of FY25 marked the first full 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 contribution from the acquired assets, suggesting that normalized earnings power provides a better lens for evaluating the company's performance. The merger-close bridge to over 6,500 Boe/d and approximately 310,000 net acres helps frame the larger earnings base now embedded in the portfolio.
Key takeaways from the announcement include the fact 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, with a PV-10 of $357.7 million, and over 1,000 locations beyond proved reserves. The company anticipates that $10 million to $13 million of optimization work could reduce lease operating expenses (LOE) by up to $1 million per month, supporting meaningful margin upside.
For more details, the full announcement is available here. 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.
