Pedevco Q2 Earnings Call Highlights

Second-quarter results benefited from the Juniper merger: Production averaged approximately 6,800 BOE per day, revenue reached $46.1 million and adjusted EBITDA rose to $18.7 million. Net income was $17.5 million, compared with a $1.7 million loss a year earlier. Production fell sequentially but is expected to rebound: Output declined 16% due to natural D-J Basin well declines and temporary shut-ins related to the Hastings completion. Management expects volumes to improve in August, while optimization projects target recurring operating-cost reductions. Pedevco is reducing debt while expanding development: The company repaid $13 million of revolver borrowings, lowering debt to $85 million, and plans to drill or participate in more than 20 gross wells. It maintained 2026 adjusted EBITDA guidance of $60 million to $70 million, with most new-program contributions expected in late 2026 and 2027.

Pedevco NYSEAMERICAN: PED reported second-quarter 2026 results that reflected the larger production base acquired through its merger with the Juniper portfolio companies, while management highlighted debt reduction, operating-cost optimization and plans for a more active development program in the second half of the year. President and Chief Executive Officer Doug Schick said production averaged approximately 6,800 barrels of oil equivalent per day during the quarter, totaling 618,912 BOE. Revenue reached $46.1 million and adjusted EBITDA was $18.7 million. Revenue increased more than fivefold from the prior-year period and about 15% from the first quarter, according to the company.

Schick said the year-over-year change reflects both the expanded asset base and higher realized oil prices following the October merger. The company now operates across the D-J, Powder River and Permian basins, with more than 300,000 net acres. Production Decline Was Expected Production declined 16% sequentially, which management said was consistent with its prior outlook. Schick attributed the decline to natural production declines from D-J Basin wells that began producing in late 2025 and reached peak output early this year. Despite the lower production, revenue increased sequentially primarily because of oil prices. The company’s average realized oil price rose to $94.70 per barrel, up 53% from a year earlier. Operating income more than doubled sequentially to $15.4 million from $6.7 million. Chief Operating Officer Reagan Dukes said D-J Basin production was affected in July by the completion of the Hastings well, which required certain nearby wells to be temporarily shut in. The company also accelerated several optimization projects into the third quarter. Dukes said volumes are expected to improve significantly in August as shut-in wells return to service and Hastings begins contributing to production. In the Powder River Basin, Dukes said permitting conditions improved after environmental litigation involving the Bureau of Land Management was resolved. The development allows the company to permit certain top-tier wells it intends to develop over the next one to two years.

Optimization Efforts Target Lower Operating Costs Lease operating expense was $16.4 million in the second quarter, essentially flat from the first quarter in absolute terms. Per-unit costs increased because production declined while overall costs remained relatively stable. Management said it has accelerated an optimization program involving pump conversions, recompletions, well cleanouts and compression projects. Dukes said the work was pulled forward into the summer partly to avoid more difficult winter conditions and to achieve recurring operating-cost reductions sooner. “The pump conversions, recompletions, well ...