PEDEVCO’s Strategic Move in Louisiana Energy Conference: A Catalyst for Small-Cap E&Ps in Overlooked Basins

The 2025 Louisiana Energy Conference, held May 27–29 in New Orleans, is shaping up to be a pivotal moment for small-cap exploration and production (E&P) firms like PEDEVCO Corp. (NYSE AMER: PED). While the Permian Basin has long been the darling of energy investors, PEDEVCO is leveraging its underappreciated assets in the D-J Basin and Permian’s eastern New Mexico play to carve out a unique growth trajectory. The company’s participation in this year’s conference—highlighted by a high-profile panel discussion and investor outreach—signals a strategic push to unlock awareness of its undervalued reserves and position itself as a contrarian play in the energy sector.

Why Underappreciated Basins Matter

The Permian Basin’s dominance in U.S. oil production has overshadowed other regions with untapped potential. PEDEVCO, however, is betting on the D-J Basin—a historically overlooked play in Colorado and Wyoming—and its Permian holdings to deliver asymmetric returns. Recent operational and financial data underscore this strategy’s viability:

1. D-J Basin Optimization: By divesting 17 low-producing wells in a wellbore-only sale, PEDEVCO reduced $500,000 in future liabilities while retaining 232 net acres for future development. This move slashed recurring costs and positioned the company to focus on high-margin assets.
2. Production Surge: Q1 2025 production rose 15% year-over-year to 1,707 BOEPD, with 82% of output consisting of lucrative liquids (crude oil and NGLs). New non-operated wells in the D-J Basin and completed Permian wells drove this growth.
3. Financial Resilience: With $13.2 million in cash, no debt, and a $250 million undrawn credit facility, PEDEVCO has the liquidity to pursue growth without dilution. Its EV/EBITDA of 2.62 and price-to-book ratio of 0.40 suggest the market is missing the value in its assets.

The Louisiana Energy Conference: A Platform for Visibility

PEDEVCO’s participation in the Louisiana Energy Conference amplifies its message to investors and industry peers. Chief Commercial Officer Jody Crook’s panel, “Small Cap E&Ps See Value Creation in U.S. Basins Beyond the Permian,” directly addresses the undervaluation of non-Permian plays. Key takeaways from the conference include:

• Strategic Partnerships: PEDEVCO’s joint development deal with a major D-J Basin operator—securing $1.7 million in upfront capital and expanding drilling units—demonstrates its ability to leverage partnerships for growth.
• Investor Outreach: CEO J. Douglas Schick’s availability for one-on-one meetings underscores the company’s commitment to engaging with stakeholders and clarifying its valuation disconnect.
• Industry Validation: The panel’s inclusion of peers like Amplify Energy (NYSE: AMPY) and Evolution Petroleum (NYSE AMER: EPM) signals a broader shift toward recognizing overlooked basins.

PEDEVCO’s Dual-Play Strategy: Permian + D-J

The company’s asset portfolio is its crown jewel. In the Permian Basin, four newly completed San Andres wells in New Mexico are exceeding initial production targets, with output set to ramp in Q2. Meanwhile, the D-J Basin offers a dual opportunity:
- Cost Discipline: The wellbore sale reduced operational drag while preserving acreage for future horizontal drilling.
- High-Impact Development: The joint venture with a private equity-backed operator will fund five new wells in the Roth DSU by Q4 2025, with PEDEVCO retaining a 40% working interest. This structure minimizes capital risk while maximizing returns.

The Undervalued Opportunity

At $0.68 per share and a market cap of $62.6 million, PEDEVCO trades at a fraction of its asset value. Analysts estimate a conservative EV/EBITDA multiple of 5 could push the stock to $1.65—a 143% upside. Key catalysts include:
- Permian Production Surge: Newly online wells are poised to boost Q2 volumes.
- D-J Drilling Results: The joint venture’s first wells could validate the basin’s potential by mid-2026.
- Liquidity Flexibility: With $250 million in untapped credit, PEDEVCO can capitalize on acquisitions or accretive deals as markets stabilize.

Risks to Consider

• Commodity Volatility: Lower oil prices could pressure margins, though liquids-heavy production offers some insulation.
• Regulatory Hurdles: D-J operations in Colorado face increasing environmental scrutiny.
• Execution Risks: Drilling delays or underperformance could delay valuation re-rating.

Conclusion: A Contrarian Play for 2025 and Beyond

PEDEVCO’s participation in the Louisiana Energy Conference isn’t just a PR move—it’s a calculated step to shift investor sentiment toward overlooked basins. With a fortress balance sheet, high-margin assets, and a disciplined growth strategy, the company is primed to capitalize on its undervaluation. For investors seeking exposure to the next wave of U.S. energy plays, PEDEVCO offers a rare combination of low risk, high reward, and strategic execution.

The market’s current skepticism may linger, but as Permian returns flatten and underappreciated basins come into focus, PEDEVCO could emerge as a standout performer. The question isn’t whether its assets hold value—it’s whether investors will act before the market catches on.

Act now, before the D-J and Permian catalysts drive this stock higher.