PEDEVCO Reports $325,000 Net Loss in Q3 2025 Amid Revenue Decline

PEDEVCO Corp. reported a net loss of $325,000 for the third quarter of 2025, translating to a loss of $0.00 per share, a significant decline from the net income of $2.9 million, or $0.03 per share, recorded in the same period of 2024. The decrease in profitability was attributed to a $2.1 million drop in total revenues, which fell to $6.96 million from $9.05 million year-over-year. This decline was primarily driven by a decrease in oil and gas sales volumes and unfavorable pricing, particularly for crude oil, which saw an average price drop of 16% to $63.76 per barrel. The company also faced increased operating expenses, which rose to $7.8 million from $6.95 million in the prior year, including a $165,000 impairment of oil and gas properties.

For the nine months ending September 30, 2025, PEDEVCO reported a net loss of $1.86 million, or $0.02 per share, compared to a net income of $6.37 million, or $0.07 per share, for the same period in 2024. The year-to-date results were negatively impacted by a $1.4 million credit loss related to a note receivable, alongside a $6.3 million reduction in revenue. Total revenues for the nine-month period decreased to $22.67 million from $28.98 million, reflecting a 22% decline. The company attributed this downturn to both lower production volumes and reduced commodity prices, particularly in crude oil.

Operationally, PEDEVCO's production volumes decreased, with crude oil production dropping by 14% to 299,795 barrels for the nine-month period. The company also sold 17 operated wells in the D-J Basin in April 2025, which contributed to the decline in production. Despite these challenges, the company has been actively pursuing strategic initiatives, including a merger agreement finalized on October 31, 2025, which is expected to enhance its operational footprint and financial position. The merger is anticipated to position PEDEVCO as a significant player in the Rockies region, with an expanded acreage and production capabilities.

In terms of financial health, PEDEVCO's total current assets increased to $16.15 million as of September 30, 2025, up from $13.22 million at the end of 2024. However, current liabilities also rose significantly to $14.64 million from $6.91 million, resulting in a working capital surplus of $1.51 million, down from $6.3 million previously. The company has indicated that it expects to maintain sufficient cash flow to support its operations and development plans, with projected capital expenditures for 2025 estimated between $42 million and $45 million.

Looking ahead, PEDEVCO aims to optimize its existing assets while seeking additional acreage and opportunities for growth in the oil and gas sector. The company plans to leverage its operational expertise and the recent merger to enhance production and cash flow, while maintaining a conservative capital structure. The management remains focused on strategic consolidation and organic growth to drive shareholder value in the coming years.