Stonegate Capital Partners has initiated coverage on Pedevco Corp. (NYSE: PED), following the company's transformative Juniper merger that closed in fiscal year 2025. The research report emphasizes that PEDEVCO exited FY25 as a much larger, oil-weighted Rockies platform, with production increasing 35% year-over-year to 910.1 Mboe (2,494 Boe/d). Revenue rose 16% to $45.8 million, and adjusted EBITDA increased 18% to $27.0 million, despite a 19% decline in realized crude oil prices. However, reported earnings moved to a net loss of $(10.4) million from a net income of $12.3 million in FY24, driven by merger costs, accelerated share-based compensation, new interest expense, a note write-off, and tax expense.
In the fourth quarter of 2025, the first quarter reflecting the combined platform, production increased 143% year-over-year to 483.2 Mboe (5,310 Boe/d), revenue more than doubled to $23.1 million, and adjusted EBITDA nearly tripled to $15.4 million. Management emphasized that the quarter included only two months of acquired contribution, making normalized earnings power a better lens for evaluating the company. The merger-close bridge to 6,500+ Boe/d and roughly over 310,000 net acres helps frame the larger earnings base now embedded in the portfolio.
Key takeaways from the report include that PED now has 32.1 MMBoe of proved reserves, $357.7 million PV-10, and over 1,000 locations beyond proved reserves. Additionally, $10 million to $13 million of optimization work could reduce lease operating expenses by up to $1 million per month, supporting meaningful margin upside. The full announcement, including downloadable images and bios, is available here.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking services for public and private companies. The initiation of coverage on Pedevco underscores the potential value creation from the Juniper merger, positioning the company for improved operational efficiency and financial performance in the coming quarters.
