PEDEVCO Reports Q2 2025 Net Loss, Revenue Decline, Maintains Strong Financial Position

PEDEVCO Corp. reported a Q2 2025 net loss of $1.7 million, a reversal from a $2.7 million profit in Q2 2024. Revenue dropped 41% YoY to $7.0 million, due to a 25% production decline to 1,517 BOEPD. Despite challenges, PEDEVCO maintains a strong financial position with $11.2 million in cash and no debt. The company anticipates improvement in subsequent quarters with ongoing well completions and elevated production levels.

Houston, TX - PEDEVCO Corp. (NYSE American: PED) announced its financial results for the second quarter of 2025, reporting a net loss of $1.7 million, a significant reversal from the $2.7 million profit in the same period last year. The company's revenue dropped by 41% year-over-year (YoY) to $7.0 million, primarily driven by a 25% decline in production to 1,517 barrels of oil equivalent per day (BOEPD).

Key highlights from the Q2 2025 results include:

- Production: The company produced an average of 1,517 BOEPD, compared to 2,010 BOEPD in the first quarter of 2024. This decline was attributed to several non-recurring factors, including a large non-operated pad being offline for a week in the D-J Basin and wells shut-in for offset frac operations in the Permian Basin.
- Revenue: Revenue decreased by $4.8 million, primarily due to an unfavorable price variance of $2.3 million and a volume variance of $2.5 million. The average realized sales price for the quarter was $50.51 per BOE, down 22% from $64.61 per BOE in Q2 2024.
- Operating Loss: The company reported an operating loss of $2.2 million, down from $6.1 million in Q2 2024. This decrease was driven by lower direct and variable lease operating expenses and lower depreciation, depletion, amortization, and accretion expenses.
- Cash Position: Despite the net loss, PEDEVCO maintains a strong financial position with $11.2 million in cash and no debt as of June 30, 2025. The company also has an untouched $250 million revolving credit line (RBL) in place with Citibank.

J. Douglas Schick, President and Chief Executive Officer of PEDEVCO, stated, "We believe the outlook for PEDEVCO is bright with our participation in 18 non-operated wells in the D-J Basin currently under various stages of development and four operated wells in the Permian turned-in-line in May 2025, together with another four non-operated wells planned to be drilled in late Q4 2025 in the D-J Basin in which we hold interests. However, in Q2 2025 our production was hampered by several factors, including a large non-operated D-J Basin pad being offline for a week and various Permian Basin wells being shut-in to accommodate offset frac operations and natural declines from flush production that came online in Q4 2024. This temporary production decline, coupled with a challenging commodity price environment and a credit loss write-off from a note receivable related to an asset sale that occurred in 2023, contributed to results that should significantly improve in the coming quarters. We believe that we remain well-positioned to continue disciplined growth, with over $10 million of cash on our balance sheet, zero debt, and an untouched $250 million RBL in place with Citibank. We will continue to focus on developing our Permian Basin Asset and growing operated and non-operated production in our D-J Basin Asset, while continuing to control lease operating and G&A expenses and seeking accretive M&A opportunities."

PEDEVCO's management expects production and revenue to improve in subsequent quarters, driven by ongoing well completions and elevated production levels. The company's strong cash position and zero debt provide a solid foundation for future growth and development.

References:
[1] https://www.nasdaq.com/press-release/pedevco-announces-q2-2025-financial-results-and-operations-update-2025-08-14