PEDEVCO CORP (PED)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 revenue was $8.74M, net income $0.14M ($0.00 EPS), and Adjusted EBITDA $4.27M. Year-over-year, revenue rose 8%, while Adjusted EBITDA fell 10% and operating income declined 76% due to higher LOE and lower realized prices, compressing margins .
• Average production increased 15% YoY to 1,707 BOEPD (82% liquids), supported by D-J Basin participation and recent Permian completions; however, LOE increased $0.9M YoY with volume growth .
• Four new operated horizontal San Andres wells were drilled and completed in Q1/early Q2, with first production starting mid-Q2 2025 and “exceeding initial production expectations,” a near-term operational catalyst .
• Liquidity remains strong: cash and cash equivalents $10.4M (cash + restricted $13.2M), zero debt, and an undrawn Citibank RBL (initial borrowing base $20M; aggregate $250M), supporting program execution .
• Wall Street consensus estimates for Q1 2025 EPS and revenue were unavailable via S&P Global (coverage appears limited). Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

• Production and operations: “We believe our Q1 2025 results continue to demonstrate the strength of our assets… delivering solid results in the quarter despite a challenging commodity price environment,” with four new operated wells coming online in Q2 and “exceeding initial production expectations” .
• Balance sheet and funding optionality: Over $10M cash, zero debt, and an untouched $250M RBL in place, enabling disciplined growth across Permian and D-J Basin assets .
• Portfolio optimization: Divested 17 low-producing legacy D-J wells to reduce recurring operating expense, G&A, and P&A liabilities, with an estimated ~$0.5M savings in P&A liabilities .

What Went Wrong

• Margin compression: Operating income fell 76% YoY to $0.15M; Adjusted EBITDA declined ~$0.45M to $4.27M as LOE rose ~$0.9M YoY with higher volumes, and combined realized price fell 6% YoY to $56.87/boe .
• Net income down sharply: Net income decreased to $0.14M vs. $0.77M in Q1 2024 amid higher operating expenses and an impairment of $0.2M on undeveloped leases .
• Controls disclosure: The company disclosed a prior-period depletion accounting error and identified a material weakness in internal control over financial reporting, with remediation plans underway .

Financial Results

Segment breakdown: Not applicable; the company reports a single upstream operations profile.

KPIs and Operating Metrics

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We believe our Q1 2025 results continue to demonstrate the strength of our assets… With four new operated horizontal wells coming online in early Q2 2025, we expect to deliver even stronger operational results over Q2… well-positioned to continue disciplined growth, with over $10 million of cash on our balance sheet, zero debt, and an untouched $250 million RBL in place with Citibank” — J. Douglas Schick, President & CEO .
• “Our Q3 2024 results continue to demonstrate consistently strong production, cashflow, earnings per share, and adjusted EBITDA growth… With… PA and AMI… and now with our $250 million reserve based lending facility with Citibank in place, we believe that we are well-positioned to accelerate the development of our core assets” — J. Douglas Schick, President .
• “We are pleased with our strong operational and financial results in 2024… exiting the year with a strong cash position, zero debt, and an untouched $250 million RBL… Through the remainder of 2025 and beyond, we plan to continue to leverage our strong balance sheet and our partnerships to grow production, revenue, cash flow, and profit” — J. Douglas Schick, President & CEO .

Q&A Highlights

• No Q1 2025 earnings call transcript or Q&A was furnished; no analyst Q&A themes available from primary source documents during the period. More detailed commentary is contained in the press release and 10-Q reference noted therein .

Estimates Context

• S&P Global/Capital IQ consensus estimates for Q1 2025 EPS and revenue were unavailable (no data returned for Revenue Consensus Mean, Primary EPS Consensus Mean, and # of Estimates). Values retrieved from S&P Global.

Where estimates are unavailable, near-term adjustments are likely to track:

• LOE run-rate up vs. Q1 2024 due to increased non-operated participation and operated well activity .
• Combined realized price down 6% YoY, partially offset by volume growth and incremental production from Q2 turn-in-lines .

Key Takeaways for Investors

• Volume growth continues: Average production rose 15% YoY to 1,707 BOEPD; Q2 should reflect incremental volumes from four Permian wells already exceeding initial expectations, a likely operational catalyst for 2Q print .
• Margins compressed: LOE up ~$0.9M YoY and combined realized price down 6% led to a 76% YoY decline in operating income and a 10% YoY decrease in Adjusted EBITDA; watch LOE per Boe trends ($22.22 in Q1 vs. $16.38 in Q3) for margin recovery signals .
• Balance sheet optionality intact: $10.4M cash and $13.16M cash-plus-restricted at quarter end, zero debt, and undrawn $20M/$250M RBL provide funding flexibility without equity dilution risk (absent ATM usage) .
• Portfolio optimization: Sale of 17 low-producing legacy D-J wells reduces recurring operating costs and P&A liabilities (~$0.5M savings), aiding cost structure into 2H 2025 .
• Near-term program visibility: D-J Basin JDA schedules 5 horizontal wells in Roth DSU for Q3–Q4 2025 and an option in Amber DSU, providing a second leg to the growth plan beyond Permian-operated wells .
• Monitor controls remediation: The identified material weakness tied to prior depletion accounting errors is a governance overhang; execution of remediation and timely filings should ease investor concern .
• Trading setup: Lacking published Street estimates, prints may be judged vs. internal operational milestones (turn-in-line timing, LOE normalization, realized pricing vs. strip) and liquidity posture; beats will likely hinge on production ramp and cost control evident in Q2/Q3 .

Appendix: Additional Data Points

• Working capital surplus was $6.7M at March 31, 2025 (current assets $23.6M vs. current liabilities $16.9M) .
• Impairment of oil and gas properties recorded at $0.2M in Q1 2025 related to certain undeveloped D-J leases .
• Average realized Q1 2025 prices: Oil $68.88/bbl, Gas $5.05/Mcf, NGL $35.43/bbl; combined $56.87/boe .
• Adjusted EBITDA reconciliation provided; non-GAAP measure excludes share-based comp and impairments and is presented with GAAP reconciliation in the release .