PEDEVCO Corp Q2 2025 Earnings: Revenue Falls Short, EPS Loss Meets Estimates

PEDEVCO Corp reported Q2 2025 earnings with a revenue of $7.0 million, falling short of the analyst estimate of $9.71 million. The company also reported a net loss of $1.7 million, or $0.02 per share, which met the estimated earnings per share. PEDEVCO faced a challenging quarter with a 25% decrease in production compared to Q2 2024, attributing the decline to a large non-operated pad in the D-J Basin and various wells in the Permian Basin being shut-in. The company maintained a strong financial position with $11.2 million in cash and cash equivalents and zero debt, but recorded a $0.5 million impairment of oil and gas properties related to undeveloped leases in the D-J Basin.

PEDEVCO Corp (NYSE American: PED) reported its Q2 2025 financial results, revealing a net loss of $1.7 million, or $0.02 per share, compared to a net income of $2.7 million in Q2 2024. Revenue declined to $7.0 million, down $4.8 million year-over-year, while production decreased 25% to 1,517 BOEPD. Despite these setbacks, the company maintained a strong financial position with $11.2 million in cash and zero debt.

The company's average realized sales price decreased 22% to $50.51 per Boe, contributing to the quarterly performance decline. Production challenges included offline non-operated D-J Basin pad, shut-in Permian Basin wells, and natural declines from Q4 2024 flush production. Management expects significant improvement in coming quarters, supported by new well completions and an untouched $250 million RBL facility with Citibank.

PEDEVCO's Q2 2025 results reveal concerning performance metrics with production dropping 25% year-over-year to 1,517 BOEPD. This substantial decline translated directly to financial underperformance, with revenue falling to $7.0 million (down 41% from Q2 2024) and a swing from $2.7 million profit last year to a $1.7 million loss this quarter. The production decline stemmed from several temporary factors: a large non-operated D-J Basin pad being offline for a week, Permian Basin wells shut-in for offset frac operations, natural declines from flush production that came online in Q4 2024, and the strategic divestiture of 17 operated wells in the D-J Basin. While management frames these as transitory issues, the 25% production decline is significant enough to warrant careful monitoring.

Looking beneath the surface numbers, the company's adjusted EBITDA of $3.0 million represents a substantial 58% decrease from the $7.4 million reported in Q2 2024. This deterioration in cash flow generation capacity is concerning despite the company maintaining a solid balance sheet with $11.2 million in cash and zero debt. The company's average realized sales price of $50.51 per BOE represents a 22% year-over-year decline, demonstrating how commodity price weakness compounded the production challenges. Notably, the company managed to reduce lease operating expenses by $0.7 million compared to Q2 2024, partially offsetting some revenue pressure.

There are potential catalysts on the horizon. PEDEVCO has 18 non-operated wells in various development stages in the D-J Basin, four operated wells in the Permian that came online in May 2025, and another four non-operated wells planned for late Q4 2025. The success of these wells will be critical for reversing the current negative trajectory in production and financial performance. The company's $250 million untapped credit facility also provides significant financial flexibility for potential acquisitions or accelerated development.

While management projects optimism about future quarters, investors should closely monitor whether the company can deliver on its projected production growth from the recently completed wells and whether commodity prices will support improved financial performance.

References:
[1] https://www.stocktitan.net/news/PED/pedevco-announces-q2-2025-financial-results-and-operations-p0s7bbamcsll.html