PEDEVCO Reports $35.54 Million in Third-Quarter Revenue, Up 411% Year Over Year
Key Facts
PEDEVCO reported unaudited results on November 12 for the quarter ended September 30, 2026, with revenue of $35.540 million, up 411% from the third quarter of 2025. Sales growth coincided with an increase in average daily production to 5,850 barrels of oil equivalent, from 1,471 barrels in the year-earlier period, a rise of 298%. Revenue fell 23% from the second quarter of 2026, when it was $46.113 million. The company said losses on derivative contracts limited the impact of improved operating activity and an asset-sale gain. The company was scheduled to hold its results call on the day of the announcement at 4:30 p.m. Eastern time, followed by a question-and-answer session.
The company attributed the $28.6 million year-over-year increase in revenue to a $26.7 million rise in sales volumes and a $1.9 million improvement in realized prices. The average realized oil price rose 31% to $83.81 per barrel in the third quarter. The breakdown shows that volume growth was the larger contributor to the revenue increase than pricing. Average daily production also rose 298% year over year to 5,850 barrels of oil equivalent, compared with 1,471 barrels in the third quarter of 2025. The company linked higher production to assets added in its fourth-quarter 2025 merger. Quarter over quarter, production declined 14% from 6,801 barrels of oil equivalent per day in the second quarter of 2026.
On operating profitability, the company reported adjusted earnings before interest, taxes, depreciation and amortization of $14.680 million, up 239% from $4.325 million in the third quarter of 2025. That improvement, however, did not offset the effect of derivatives losses on the quarterly result. Net losses on derivative contracts were $16.6 million, including an unrealized, non-cash loss of $12.0 million. The company said the derivatives loss outweighed improved operating income and a net gain of $4.7 million from oil and gas asset sales. These items put the derivatives loss at the center of the explanation for the gap between production and revenue growth and the net result reported by the company.
Well operating costs rose to $14.3 million in the third quarter, compared with $2.1 million in the same period of 2025, while general and administrative expenses increased to $4.9 million from $1.5 million. Administrative expenses included $2.1 million in compensation related to the leadership transition. As part of its effort to expand its asset base, the company added about 5,678 net acres of leasehold land at a Bureau of Land Management auction for about $5.9 million. The addition increased the Mowry exploration area to about 12,000 net acres. The added acreage was part of the company’s capital activity in a quarter that saw a sharp increase in production compared with the previous year.
The company had $4.7 million in cash at September 30, along with $1.1 million in restricted cash. Drawings under its revolving credit facility reached $80 million, with an additional $45 million available. In October, the borrowing base and selected commitments under the facility were reaffirmed at $125 million. These figures provide a picture of liquidity and available financing after the quarter ended, as the company raised its annual capital spending estimates. The company said its search for a permanent chief executive remains active and that it is considering a broad range of qualified candidates.
PEDEVCO raised its 2026 net capital expenditure guidance to a range of $37 million to $42 million, compared with previous guidance of up to $20 million. At the same time, it reaffirmed its adjusted earnings before interest, taxes, depreciation and amortization outlook at $60 million to $70 million for the year. The two forecasts set expected spending and adjusted performance estimates for the rest of the year as the company continues to add acreage and expand its operations. Management was scheduled to discuss the results on a November 12 call at 4:30 p.m. Eastern time, followed by a question-and-answer session. The company did not specify another date for selecting a permanent chief executive in its results statement.