Earnings

Pedevco Posts $17.5 Million Profit After Juniper Merger

The Tip Desk · August 13, 2026 · 3 min read

Oil and gas revenue reached $46.1 million in the second quarter as production averaged 6,801 Boe/d and the company booked $5.0 million of net income on derivative contracts.

PEDEVCO Corp. (PED), a publicly traded energy company developing oil and gas assets in the Rocky Mountain region, reported net income of $17.5 million, or $1.31 a share, for the three months ended June 30, 2026, after a $25.6 million loss, or $(3.28) a share, in the first quarter.

The swing included $5.0 million of net income on derivative contracts, which more than offset $8.1 million of realized settlement losses with a $13.1 million unrealized mark-to-market gain as commodity prices fell from March 31 to June 30. The company said the profit also reflected higher operating income from the asset base acquired in the October 2025 Juniper Merger.

Oil and gas revenue rose 561% to $46.1 million from $7.0 million a year earlier. Of the $39.1 million year-over-year increase, the company attributed $35.8 million to higher sales volumes and $3.3 million to higher realized pricing. Average daily production was 6,801 Boe/d, or 618,912 Boe for the quarter, compared with 1,517 Boe/d, or 138,028 Boe, in the second quarter of 2025.

On a sequential basis, production fell 16% from 8,091 Boe/d in the first quarter, when D-J Basin wells brought online in late 2025 lifted volumes. Revenue still rose 15% from $40.2 million in the first quarter. The company said second-quarter production was in line with its internal plan.

Average realized crude oil prices were $94.07 a barrel, up 53% from $61.65 a year earlier. Natural gas realized prices were $2.10 a Mcf and NGL prices $31.98 a barrel.

Adjusted EBITDA was $18.7 million, compared with $3.0 million in the year-ago quarter. The company changed its Adjusted EBITDA definition to include realized losses on derivative contracts and recast first-quarter 2026 Adjusted EBITDA from $21.5 million as previously reported to $18.1 million. On that recast basis, second-quarter Adjusted EBITDA rose 3% from the first quarter.

Lease operating costs were $16.4 million, versus $2.8 million a year earlier, primarily from the acquired assets after the merger closed on October 31, 2025. General and administrative expenses, including share-based compensation, were $3.4 million. Depreciation, depletion, amortization and accretion were $10.2 million. Interest expense was $2.0 million, versus none in the prior-year period, when the company carried no debt.

Revolver borrowings declined to $85.0 million from $98.0 million at March 31, 2026. Cash and restricted cash were $12.1 million at quarter-end, and net debt stood at approximately $73 million. Working-capital deficit excluding derivative mark-to-market was $8.6 million, compared with $34.1 million at December 31, 2025. Additional availability under the credit facility was $40.0 million.

In the D-J Basin, the company holds about 88,605 net acres. It completed its planned first-half participation in 10 non-operated wells and, after quarter-end, completed the Hastings DUC, with first production expected in early August. Certain nearby wells were temporarily shut in during completion operations. The company said production is expected to be lower in July before improving as those wells return to service and Hastings contributes.

President and Chief Executive Officer J. Douglas Schick said the company plans to drill or participate in over 20 gross wells across its asset base in the second half of 2026 and expects the program to add a material amount of production in late 2026 continuing into 2027.