Executive Summary

Q2 2025 was soft operationally and financially: revenue fell 41% year over year to $7.0 million, net loss was $1.7 million (−$0.02/sh), and Adjusted EBITDA dropped to $3.0 million as volumes and realized prices declined and PED recorded a note receivable credit loss; operating income swung to a $2.2 million loss from a $2.6 million profit in Q2 2024 .
Production averaged 1,517 BOEPD (86% liquids), down 25% YoY, driven by a non‑op D‑J pad offline ~1 week, shut-ins for offset fracs around new Permian wells turned in line in May, natural declines from Q4 2024 flush production, and asset sales; combined average realized price fell 22% YoY to $50.51/boe .
Liquidity remains a buffer: cash and equivalents were $11.2 million (incl. $2.75 million restricted), zero debt, $20 million initial borrowing base available under a $250 million RBL; working capital surplus was $7.0 million at quarter-end .
Near-term catalysts are operational: first production from 4 Permian San Andres wells began mid‑Q2; 18 non‑operated D‑J wells (various working interests) are slated for completions and first production through Q3–Q4 2025, positioning for sequential volume recovery if execution is on plan .

What Went Well and What Went Wrong

What Went Well
- Liquidity/Balance Sheet: Ended Q2 with $11.2 million cash (incl. $2.75 million restricted) and zero debt; working capital surplus of $7.0 million .
- New Wells Online: Four operated San Andres wells in the Permian delivered first production starting in May; management is “pleased with the early production results” .
- Forward Activity Set: Active D‑J Basin program—participation across 18 non‑operated wells at varying WI with staggered completions through August/September and initial production expected early/mid‑Q4 2025 .
- Management quote: “We believe the outlook for PEDEVCO is bright…[with] participation in 18 non-operated wells… and four operated wells in the Permian turned-in-line in May 2025… we remain well-positioned to continue disciplined growth…” .
What Went Wrong
- Production/Price Headwinds: Average realized price fell to $50.51/boe (−22% YoY), and production averaged 1,517 BOEPD (−25% YoY), driving revenue down 41% YoY to $7.0 million .
- Operating/Net Results: Operating swung to a $(2.2) million loss (from +$2.6 million in Q2 2024) and net loss was $(1.7) million (from +$2.7 million), including a note receivable credit loss and a $0.5 million impairment on undeveloped leases .
- Asset/Operational Disruptions: Non‑op D‑J pad offline ~1 week, shut‑ins for offset fracs around Permian completions, natural declines from Q4 2024 flush production, plus divestitures of low‑producing D‑J wells reduced volumes .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($MM)	$11.811	$8.736	$6.972
Operating Income (Loss) ($MM)	$2.638	$0.150	$(2.244)
Net Income (Loss) ($MM)	$2.681	$0.140	$(1.676)
Diluted EPS ($)	$0.03	$0.00	$(0.02)
Adjusted EBITDA ($MM)	$7.385	$4.269	$3.032

Drivers vs. prior year: revenue −41% YoY (price −$2.3MM, volume −$2.5MM), LOE down $0.7MM to $2.8MM, DD&A down $0.4MM to $3.86MM; impairment of $0.5MM and note receivable credit loss weighed on operating results and net income .
Estimates: S&P Global consensus for Q2 2025 revenue and EPS was unavailable for PED at the time of analysis (limited analyst coverage). Values would be retrieved from S&P Global if available.

KPIs and Cost Metrics

KPI	Q1 2025	Q2 2025
Production (Boe)	153,631	138,028
Oil (bbl)	102,699	100,249
Gas (Mcf)	166,733	119,493
NGLs (Boe)	23,143	17,863
Liquids Mix (%)	82%	86%
Avg Realized Oil ($/bbl)	$68.88	$61.65
Avg Realized Gas ($/Mcf)	$5.05	$2.70
Avg Realized NGL ($/bbl)	$35.43	$26.24
Combined Realized ($/boe)	$56.87	$50.51
LOE ($MM)	$3.41	$2.80
DD&A ($MM)	$3.35	$3.86
Cash & Equivalents ($MM)	$13.2 (incl. $2.75MM restricted)	$11.2 (incl. $2.75MM restricted)
Working Capital Surplus ($MM)	$6.7	$7.0

Segment breakdown: Not applicable—company reports as a single E&P business line .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures (net)	FY 2025	$27–$33 million; 70–75% to D‑J Basin; remainder Permian and other (as disclosed 3/31/2025)	No explicit update in Q2 release/call; activity milestones provided (Permian wells online; 18 D‑J wells with completions/first production in Q3–Q4 2025)	Maintained (no quantified update)
Production	2H 2025	Not quantified	Qualitative: Initial production expected from multiple D‑J pads in early/mid‑Q4; 4 Permian wells online mid‑Q2	N/A (no numeric guidance)
Liquidity/RBL	Ongoing	$20MM initial borrowing base; $250MM RBL capacity; undrawn	Unchanged; undrawn	Maintained

Note: No explicit numeric guidance ranges for revenue, EBITDA, margins, tax rate, or unit costs were provided in Q2 materials .

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available in our document corpus; themes below synthesize management communications from Q4 2024 annual release and Q1/Q2 2025 press releases.

Topic	Previous Mentions (Q4 2024 / Q1 2025)	Current Period (Q2 2025)	Trend
Production cadence	2024 volumes +29% YoY; 24 non‑op D‑J wells participated; three Permian wells completed; planning four Permian wells turned in line in Q2 2025	Average 1,517 BOEPD; YoY decline due to pad downtime, offset fracs, natural declines, divestitures; four Permian wells began producing mid‑Q2	Near-term dip; set up for recovery with new wells
D‑J Basin development	Participation agreements with private operators; 2025 capex 70–75% to D‑J	18 non‑op wells at ~5–44% WI in various stages; completions mid‑Aug/early‑Sep; first production early/mid‑Q4	Acceleration via partners
Permian (San Andres)	Continued development; four wells planned to turn in line Q2 2025	Four new wells online mid‑Q2; early results “pleased” management; lift conversions to reduce costs (ongoing ops narrative)	Execution milestone achieved
Costs/LOE & DD&A	2024 LOE up with volumes; DD&A up with production	LOE down YoY to $2.8MM; DD&A lower YoY; pricing/volume pressure outweighed cost reductions	Mixed: lower absolute costs vs weaker revenue
Liquidity/RBL	Cash $6.6MM YE 2024; undrawn $250MM RBL ($20MM borrowing base)	Cash $11.2MM; zero debt; RBL undrawn	Strength maintained
Controls/Accounting	Restatement and material weakness disclosed Mar 31, 2025 (depletion errors)	No new updates in Q2 press release	Monitor remediation progress

Management Commentary

Strategic stance: “We believe the outlook for PEDEVCO is bright… [with] participation in 18 non-operated wells in the D-J Basin… and four operated wells in the Permian turned-in-line in May 2025… We will continue to focus on developing our Permian Basin Asset and growing operated and non-operated production in our D-J Basin Asset, while… seeking accretive M&A opportunities.” — J. Douglas Schick, President & CEO .
Near-term softness explained: Temporary production decline due to D‑J pad downtime, shut-ins for offset fracs around new Permian wells, natural declines from Q4 2024 flush production; challenging commodity prices and a credit loss write‑off also weighed on results .
Balance sheet/optionality: “Over $10 million of cash… zero debt, and an untouched $250 million RBL” support disciplined growth .

Q&A Highlights

An earnings call transcript for Q2 2025 was not available in our document set; no Q&A details to report [ListDocuments returned none for transcripts in the period].

Estimates Context

S&P Global (Capital IQ) consensus for Q2 2025 EPS and revenue was unavailable for PED at the time of retrieval; likewise unavailable for the adjacent quarters used for trend (Q1 2025, Q2 2024). Values would be retrieved from S&P Global if covered; absence likely reflects limited analyst coverage for PED. Values retrieved from S&P Global.

Key Takeaways for Investors

Reset quarter sets up a 2H rebound: Sequential production should benefit from four Permian wells already online and 18 non‑op D‑J wells scheduled for completions/first production in Q3–Q4 2025, contingent on operator timing and well performance .
Liquidity and undrawn RBL create flexibility to fund development without equity, a support for downside protection and opportunistic acceleration if returns warrant .
Watch unit economics: Despite lower absolute LOE and DD&A YoY, per‑boe costs may have risen with lower volumes; monitor LOE/boe and G&A/boe as new wells ramp .
Non‑recurring hits should fade: D‑J pad downtime, offset frac shut‑ins, and the credit loss write‑off were notable Q2 drags; normalization plus new wells are the path to margin recovery if commodity prices cooperate .
Execution and timing risk: The cadence of D‑J completions and Permian well performance are near‑term stock catalysts; any delays or underperformance vs expectations could weigh on sentiment .
Controls remediation: A material weakness was disclosed in March tied to depletion accounting; progress updates matter for governance risk premium and potential valuation overhang .
With no consensus estimates, positioning into prints hinges more on operational milestones and realized pricing than beat/miss optics. Values retrieved from S&P Global.

Citations:

Q2 2025 8‑K earnings release and financials: .
Q1 2025 8‑K earnings release and financials: .
2024 year‑end 8‑K and 2025 capex framework/liquidity: .
Restatement/material weakness (Mar 31, 2025): .

PEDEVCO CORP (PED)·Q2 2025 Earnings Summary