Pedevco (NYSEAMERICAN:PED) Posts Earnings Results, Misses Estimates By $0.88 EPS

Key Points

• Pedevco missed EPS estimates by $0.88, reporting a loss of $0.70 per share, while quarterly revenue of $35.54 million topped analysts’ $31.05 million estimate. The company reported a $9.2 million net loss, including a $12 million non-cash derivative loss.
• Production fell 14% sequentially to 5,850 BOE per day; management expects Q4 average production to be roughly flat versus Q3, with a higher exit rate as shut-in wells return and new wells come online.
• Pedevco reaffirmed 2026 production and adjusted EBITDA guidance, while raising capital expenditure guidance to $37 million–$42 million. It also nearly doubled its Powder River Basin Mowry acreage and plans a roughly 15-well program across its Rocky Mountain assets.

Pedevco (NYSEAMERICAN:PED - Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.70) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.18 by ($0.88), FiscalAI reports. The firm had revenue of $35.54 million for the quarter, compared to analyst estimates of $31.05 million. Pedevco had a positive return on equity of 0.67% and a negative net margin of 14.61%.

Here are the key takeaways from Pedevco's conference call:

• Q3 results were mixed: Revenue was $35.5 million, up 411% year over year but down about 23% sequentially, while Adjusted EBITDA fell to $14.7 million from $18.7 million in Q2. PEDEVCO reported a $9.2 million net loss, including a $12 million non-cash unrealized derivative loss.
• Production declined 14% sequentially to 5,850 BOE per day, partly due to temporary shut-ins and rod conversions moved forward from Q4. Management expects Q4 production to be roughly flat on average versus Q3, with growth in the exit rate as wells return and new wells come online.
• PEDEVCO is positioning for Rocky Mountain growth: It added about 5,678 net acres in its Powder River Basin Mowry prospect for $5.9 million, nearly doubling its position there, and cited a program of roughly 15 gross wells spanning the Powder River and D-J basins into early 2027.
• The company is about halfway through its well-optimization program and continues to target more than $10 million in annualized LOE savings once the work is completed, which it expects in 2027.
• PEDEVCO reaffirmed 2026 production guidance of 6,500–7,000 BOE per day and Adjusted EBITDA guidance of $60 million–$70 million, while raising full-year net capital expenditure guidance to $37 million–$42 million. Management said it plans to reinvest cash flow aggressively, but detailed 2027 plans await completion of the CEO search.

Pedevco Price Performance

Shares of NYSEAMERICAN PED traded down $0.57 during midday trading on Thursday, hitting $13.05. The company had a trading volume of 5,761 shares, compared to its average volume of 31,845. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.42. The business has a 50-day simple moving average of $14.21 and a two-hundred day simple moving average of $13.73. Pedevco has a twelve month low of $8.64 and a twelve month high of $18.89. The firm has a market capitalization of $173.43 million, a price-to-earnings ratio of 435.15 and a beta of 0.32.

Wall Street Analysts Forecast Growth

Separately, Zacks Research raised Pedevco from a "strong sell" rating to a "hold" rating in a report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Buy".

Insider Transactions at Pedevco

In other news, VP Moore Clark sold 5,277 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $12.53, for a total transaction of $66,120.81. Following the sale, the vice president owned 45,385 shares of the company's stock, valued at $568,674.05. The trade was a 10.42% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Simon G. Kukes purchased 147,070 shares of the firm's stock in a transaction dated Thursday, October 8th. The shares were purchased at an average cost of $13.00 per share, for a total transaction of $1,911,910.00. Following the purchase, the insider directly owned 4,137,543 shares in the company, valued at approximately $53,788,059. This represents a 3.69% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders sold 10,260 shares of company stock valued at $129,417. 54.90% of the stock is currently owned by corporate insiders.

About Pedevco

PEDEVCO Corp. is an independent energy company focused on acquiring, developing and producing oil and natural gas resources in the United States. Its operations are concentrated in the Permian Basin, including areas of southeastern New Mexico and West Texas. The company's activities include drilling and operating wells and managing oil and gas properties. Its production includes crude oil, natural gas and natural gas liquids. PEDEVCO is headquartered in Houston, Texas. Its chief executive officer is Simon Kukes.

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