PEDEVCO Reports Q1 2025 Financial Results with Increased Revenue and Production

PEDEVCO Corp. reported its financial results for the first quarter of 2025, revealing a net income of $140,000, or $0.00 per share, a decrease from the $773,000, or $0.01 per share, reported in the same period last year. The company's total revenue for the quarter reached $8.736 million, an increase of 8% compared to $8.116 million in the first quarter of 2024. This growth was primarily driven by a rise in oil and gas sales, which amounted to $8.736 million, up from $8.116 million in the previous year. However, the company also faced a significant increase in operating expenses, which rose to $8.586 million from $7.511 million, largely due to higher lease operating costs and the impairment of oil and gas properties.

In terms of operational metrics, PEDEVCO reported a 14% increase in total production volumes, with 153,631 barrels of oil equivalent (Boe) produced during the quarter, compared to 134,450 Boe in the prior year. The company’s crude oil production increased by 2% to 102,699 barrels, while natural gas production surged by 26% to 166,733 Mcf. The increase in production was attributed to the commencement of operations in several non-operated wells in the Denver-Julesberg Basin (D-J Basin) that began production in late 2024.

Strategically, PEDEVCO has been active in expanding its asset base. In February 2025, the company entered into a joint development agreement with a private equity-backed operator in the D-J Basin, which included a $1.7 million payment to PEDEVCO for the development of specific drilling units. Additionally, the company acquired approximately 135 net lease acres in the D-J Basin for $65,000. These strategic moves are part of PEDEVCO's broader plan to optimize existing assets and seek additional acreage that aligns with its operational expertise.

The company’s cash position improved significantly, with cash and restricted cash totaling $13.16 million at the end of the quarter, compared to $6.607 million at the beginning of the year. This increase was primarily due to cash generated from operations, which amounted to $5.928 million, a notable turnaround from the cash used in operations of $4.295 million in the same quarter of 2024. PEDEVCO's working capital also saw a slight increase, rising to $6.7 million from $6.3 million, reflecting a positive trend in liquidity.

Looking ahead, PEDEVCO anticipates continued growth in production and cash flow, supported by its ongoing development programs and strategic partnerships. The company plans to allocate a significant portion of its estimated capital expenditures for 2025, ranging from $27 million to $33 million, towards drilling and completion activities in both the Permian Basin and D-J Basin. Management remains optimistic about the potential for further operational improvements and financial performance, contingent on favorable market conditions and successful execution of its development strategies.