Stonegate Capital Partners Initiates Coverage on Pedevco Corp. Following Transformational Merger

Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), following the company's transformational Juniper merger that has created a substantially larger, oil-weighted Rockies platform. The initiation comes as Pedevco exited fiscal year 2025 with production increasing 35% year-over-year to 910.1 thousand barrels of oil equivalent, representing 2,494 barrels of oil equivalent per day. Revenue for the fiscal year rose 16% to $45.8 million, while adjusted EBITDA increased 18% to $27.0 million, achievements made 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 change driven primarily by merger-related costs, accelerated share-based compensation, new interest expense, a note write-off, and tax expense. However, the fourth quarter of 2025, which represents the first quarter reflecting the combined platform following the merger, showed dramatic improvement. Production increased 143% year-over-year to 483.2 thousand barrels of oil equivalent, or 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 the fourth quarter results included only two months of contribution from the acquired assets, suggesting that normalized earnings power provides a better perspective on the company's potential. The merger has created a bridge to production exceeding 6,500 barrels of oil equivalent per day and expanded the company's portfolio to over 310,000 net acres, establishing a significantly larger earnings base. Pedevco now reports 32.1 million barrels of oil equivalent of proved reserves with a PV-10 value of $357.7 million, along with more than 1,000 drilling locations beyond the proved reserves.

Stonegate's analysis identifies meaningful margin upside potential through optimization work estimated at $10 million to $13 million, which could reduce lease operating expenses by up to $1 million per month. The coverage initiation provides investors with detailed analysis of Pedevco's post-merger positioning in the Rockies region, where the company has established a substantial operational footprint. The full research report, including downloadable images and additional materials, is available through Stonegate Capital Partners' research platform at https://www.stonegateinc.com.