Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), providing analysis of the company's post-merger financial position and operational outlook. The coverage follows Pedevco's completion of the Juniper merger, which has significantly expanded the company's scale and operational footprint in the Rockies region.
Pedevco exited fiscal year 2025 as a substantially larger, oil-weighted Rockies platform following the merger integration. For the full fiscal year, production increased 35% year-over-year to 910.1 thousand barrels of oil equivalent, representing approximately 2,494 barrels of oil equivalent per day. Revenue rose 16% to $45.8 million, while adjusted EBITDA increased 18% to $27.0 million. These gains occurred despite a 19% decline in realized crude oil prices during the period. The company reported a net loss of $10.4 million for FY25, compared to net income of $12.3 million in FY24, with the shift attributed to merger-related costs, accelerated share-based compensation, new interest expense, a note write-off, and tax expense.
The fourth quarter of 2025 provides the first complete picture of the combined platform's performance. Production increased 143% year-over-year to 483.2 thousand barrels of oil equivalent, or approximately 5,310 barrels of oil equivalent per day. Revenue more than doubled to $23.1 million, while adjusted EBITDA nearly tripled to $15.4 million. Management emphasized that these results included only two months of contribution from the acquired assets, suggesting that normalized earnings power provides a more accurate assessment of the company's potential. The merger has created a bridge to production exceeding 6,500 barrels of oil equivalent per day across roughly over 310,000 net acres, establishing a significantly larger earnings base within the company's portfolio.
Pedevco now reports 32.1 million barrels of oil equivalent of proved reserves with a PV-10 value of $357.7 million. Beyond proved reserves, the company has identified over 1,000 additional drilling locations, providing substantial inventory for future development. Operational optimization represents another area of potential value creation, with $10 million to $13 million of optimization work identified that could reduce lease operating expenses by up to $1 million per month, supporting meaningful margin upside.
For business and technology leaders monitoring the energy sector, Pedevco's transformation illustrates how strategic mergers can rapidly scale production platforms even in challenging commodity price environments. The company's ability to grow production and adjusted EBITDA significantly despite lower oil prices demonstrates operational efficiency gains from consolidation. The identified optimization opportunities and extensive drilling inventory suggest potential for continued operational improvement and reserve growth, factors that could influence investment decisions in the energy technology and services sectors that support such expansion.
Stonegate Capital Partners' coverage initiation provides institutional investors with detailed analysis of Pedevco's post-merger financial metrics and operational outlook. The full research report, including downloadable images and additional materials, is available through the firm's research portal. Additional information about Stonegate Capital Partners' services can be found at https://www.stonegateinc.com.
