PEDEVCO (PED) Q1 2026 earnings summary

Executive summary

• Q1 2026 was the first full quarter post-merger, with production, revenue, and Adjusted EBITDA exceeding internal expectations, driven by strong well performance and efficient asset integration.

• Production averaged 8,091 Boe/d, up 374% year-over-year, reflecting the impact of new wells and expanded asset base.

• Net loss of $25.6 million was primarily due to a $31.3 million net loss on derivative contracts and higher operating expenses following major acquisitions.

• Revenues increased 360% year-over-year to $40.2 million, primarily due to the October 2025 mergers that added significant oil and gas production.

• 1-for-20 reverse stock split effective March 13, 2026, and all Series A Preferred Stock converted to common stock.

Financial highlights

• Revenue reached $40.2 million, up from $8.7 million in Q1 2025, driven by increased production volumes post-merger.

• Adjusted EBITDA was $21.5 million, a 404% increase from Q1 2025.

• Net reported loss of $25.6 million, or $(3.28) per share, driven by a $31.3 million net loss on derivative contracts, with $27.9 million being a non-cash mark-to-market adjustment.

• Operating income was $6.7 million; net cash provided by operating activities was $10.5 million, up 78% year-over-year.

• Lease operating expenses rose 380% to $16.4 million, and G&A expenses increased 95% to $3.1 million due to the expanded asset base.

Outlook and guidance

• Full-year 2026 guidance reiterated: average production of 6,500–7,000 Boe/d and Adjusted EBITDA of $60–$70 million, with $16–$20 million in net capital expenditures.

• Production expected to moderate mid-2026 due to natural decline curves, with incremental volumes anticipated from second-half development and optimization.

• Optimization program underway, targeting up to $1 million per month in LOE savings, with full benefits expected in 2027.

• Over 1,000 well locations identified for future development.

• Sufficient liquidity is expected for the next 12 months, supported by cash flow, existing cash, credit facilities, and potential equity offerings.