PC
PEDEVCO CORP (PED)·Q4 2024 Earnings Summary
Executive Summary
- Q4 2024 net income was heavily influenced by a year-end $12.8M income tax benefit from NOLs, driving FY 2024 net income to $17.8M ($0.20/share) despite a Q4 operating loss; revenue for FY 2024 increased 28% YoY to $39.6M .
- Operational momentum continued from D-J Basin non-operated wells and Permian San Andres wells completed early 2024, with FY 2024 Adjusted EBITDA up 31% to $22.9M and average production of 1,835 BOEPD (85% liquids) .
- 2025 capital program guided at $27–$33M, with 70–75% allocated to D-J Basin development under new JV/participation agreements; initial borrowing base of $20M under a $250M Citibank RBL provides incremental liquidity .
- A material weakness was identified and previously issued 2022–2023 financials are being restated due to depletion expense errors; non-reliance 8-K filed March 31, 2025—an important governance/timing risk for investors .
What Went Well and What Went Wrong
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What Went Well
- Strong full-year operational delivery: revenue up 28% to $39.6M, Adjusted EBITDA up 31% to $22.9M, average production 1,835 BOEPD, and zero debt at year-end .
- D-J Basin and Permian execution: participated in 24 non-operated D-J wells (WI ~7%–28%) and completed three operated Permian wells with shallower-than-expected declines .
- Strategic positioning and liquidity: new Citibank RBL ($250M max; $20M initial borrowing base) and JV/participation agreements expected to accelerate D-J Basin development .
- Quote (CEO): “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” .
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What Went Wrong
- Q4 operating pressure: FY operating income ($4.7M) was below 9M operating income ($6.1M), implying a Q4 operating loss driven by higher DD&A/LOE and accretion increase (~$0.4M in Q4) .
- Governance/control risk: non-reliance and restatement due to depletion accounting errors; material weakness and ineffective controls as of Dec 31, 2024 .
- Working capital reliance and reduced cash: cash and equivalents at YE fell to $6.6M (incl. $2.6M restricted) from $20.7M YoY, reflecting increased capital spending and development pace .
Financial Results
- Income Statement Snapshot (quarterly)
- Margins vs prior periods and estimates
*Values retrieved from S&P Global. Consensus for PED was unavailable in S&P Global for Q4/FY 2024.
- FY Context (YoY)
- FY 2024 revenue $39.553M vs $30.784M in FY 2023 (+28%) .
- FY 2024 Adjusted EBITDA $22.881M vs $17.450M in FY 2023 (+31%) .
- FY 2024 net income $17.789M vs $1.699M in FY 2023 (benefit includes $12.751M tax credit; ~$0.14/share EPS effect) .
No segment revenue breakdown was disclosed; PED’s principal assets are Permian Basin (NM) and D-J Basin (CO/WY) .
Guidance Changes
No quantitative guidance provided for revenue/EPS/margins/tax rate.
Earnings Call Themes & Trends
Note: No Q4 2024 earnings call transcript was found; themes sourced from Q2/Q3 releases and FY release.
Management Commentary
- CEO (J. Douglas Schick): “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… We anticipate [our agreements] will accelerate the development of our D-J Basin Assets… continuing development in the Permian… turn in-line in Q2 2025… plan to continue to leverage our strong balance sheet and our partnerships to grow production, revenue, cash flow, and profit” .
- President (Q3 release): “Our Q3 2024 results continue to demonstrate consistently strong production, cashflow, earnings per share, and adjusted EBITDA growth… well-positioned to accelerate the development of our core assets… grow long term production, and increase revenues, profit and cash flow” .
Q&A Highlights
- No Q4 2024 earnings call transcript was available; no analyst Q&A themes to summarize [Search: none found].
Estimates Context
- S&P Global Wall Street consensus estimates (EPS, Revenue, EBITDA, target price, recommendation) for Q4/FY 2024 were unavailable for PED; therefore no beat/miss determination can be made. Values retrieved from S&P Global.*
- Given the outsized Q4 tax benefit ($12.751M) recognized at year-end, any EPS comparison vs estimates would need to separate non-recurring tax effects for a clean operational read-through .
*Values retrieved from S&P Global.
Key Takeaways for Investors
- Q4 optics: operationally soft quarter (operating loss) due to higher DD&A/LOE, but FY net income surged from a significant tax benefit; monitor sustainability of underlying operating cash flows excluding non-recurring tax effects .
- Execution continues: D-J Basin participation and Permian well performance underpin rising Adjusted EBITDA and provide near-term volume catalysts as additional wells turn in-line in Q2 2025 .
- Liquidity optionality: $20M borrowing base under $250M RBL and ATM capacity ($8M) create funding flexibility for 2025 capex ($27–$33M) without current debt usage .
- Governance watch: material weakness and restatement process present timing/regulatory overhang; resolution and remediation plan effectiveness are key to valuation confidence .
- Price sensitivity: FY realized price per BOE slightly declined; earnings leverage remains highly sensitive to crude/NGL realizations and D-J/Permian decline profiles .
- Working capital and cash: YE cash decreased materially amid capex; continued disciplined spend and partner non-consents/third-party proposals could affect cadence and financing needs .
- Strategic narrative: partnerships and AMI/JD agreements are central to accelerating D-J Basin development and scaling PED’s asset base—track drilling pace, WI levels, and returns .
Notes on non-GAAP: Adjusted EBITDA excludes share-based compensation and certain gains/losses; reconciliations provided in releases—use in conjunction with GAAP measures .