Pedevco: Hedges Are Eating Into The Oil Price Upside

CAN Analyst 1.38K Followers Follow Summary PEDEVCO is a standard U.S. oil producer with over 300,000 net acres across three basins, but recent results raise concerns. Despite Q2 oil sales at $94/barrel and surging production from a 2025 merger, PED posted a first-half loss due to hedging and non-recurring factors. Locked-in hedges through 2028 severely limit upside from higher oil prices, while operating costs have risen to $26.51/Boe post-merger. I assign a Hold rating on PED stock, citing limited upside from hedges, rising costs, and likely increased debt to fund upcoming drilling. Jaromir Ondra/iStock via Getty Images Recently I have noticed PEDEVCO ( PED ), and I can say that this is a simple and very standard U.S. oil producer. The company has more than 300000 net acres and three basins, and almost all the revenue This article was written by CAN Analyst 1.38K Followers Follow I’m an independent equity trader and licensed financial advisor focused on uncovering high-upside opportunities in overlooked sectors especially focusing on small-caps, energy, commodities, and special situations. My investment strategy is based on growth. I look for fundamental momentum (EPS, ROE, revenue), price-volume confirmation, and macro filters. I also use econometric tools and calculations to analyse market direction, cycles and behaviour. I’ve been managing personal capital since 2020 and advising under MiFID II since qualifying with a license. I hold a bachelor’s in Business Administration and Economics and am currently completing a master’s in Finance. My masters thesis topic: Impact of Financial Results Announcements on Stock Returns and Trading Volumes of Micro-Capitalization Gold Mining Companies. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.