PEDEVCO Corp.

Second-quarter revenue was $46.1 million, compared with $7 million in the prior-year period, and adjusted EBITDA was $18.7 million versus $3 million a year ago and $18.1 million in the first quarter. Production averaged approximately 6,800 BOE per day, or 618,912 BOE for the quarter; average oil price was $94.07 per barrel, up 53% year over year. GAAP net income was $17.5 million, or $1.31 per share, versus a $1.7 million net loss in Q2 2025. Total operating expenses were approximately $30.8 million, including $16.4 million of LOE, $3.4 million of G&A, $10.2 million of DD&A, and $2 million of interest expense. The company generated $36.8 million of adjusted EBITDA in the first half and reiterated full-year 2026 adjusted EBITDA guidance of $60 million to $70 million. Management said the expanded second-half development program is not expected to contribute until late 2026 and early 2027.

Doug Schick said the quarter showed the earnings power of the post-Juniper merged platform, with results ahead of expectations due to stronger realized oil prices and a larger production base. He emphasized that the company is not building a plan that depends on elevated commodity prices and is instead focused on low-cost operations, a strong balance sheet, and disciplined capital deployment. He also highlighted that litigation and permitting improvements in Wyoming, along with months of asset analysis, now allow PEDEVCO to move into a more active development phase.

Bobby Long framed the quarter around three priorities: stronger earnings, disciplined cost management, and balance sheet improvement. He cited $46.1 million of revenue, $30.8 million of operating expenses, $17.5 million of GAAP net income, and $18.7 million of adjusted EBITDA, noting that LOE was $16.4 million and G&A was $3.4 million. On capital structure, he said cash was $12.1 million at June 30, borrowings were reduced to $85 million from $98 million, net funded debt was about $73 million, and the facility had $40 million of availability remaining. He also explained that the $5 million of net derivative income included $8.1 million of realized settlement losses offset by a $13.1 million unrealized mark-to-market gain, which is non-cash.

Analysts focused mainly on why the company expanded its development plan to over 20 gross wells and whether the move was driven by higher oil prices or by asset-level priorities. Management said it was partly price-related, but more importantly reflected a post-merger deep dive into the portfolio, ranking near-term high-return projects, and the opening up of additional Wyoming projects after BLM-related litigation was resolved. Questions also probed capital allocation and bottlenecks; management said debt-to-EBITDA is now about 1x, down from roughly 1.6x after the merger, and that permitting is the main constraint in the DJ Basin while Wyoming is more about seasonal stipulations and the Permian has few bottlenecks. On optimization, management said strong execution gave them confidence to pull LOE-saving projects forward into the summer.