PEDEVCO Reports $1.7 Million Net Loss and 41% Revenue Decline in Q2 2025

PEDEVCO Corp. reported a net loss of $1.7 million, or $(0.02) per share, for the three months ended June 30, 2025, a significant decline from a net income of $2.7 million, or $0.03 per share, during the same period in 2024. The company's total revenues for the second quarter of 2025 were $6.97 million, down 41% from $11.81 million in the prior year. This decrease was attributed to a combination of lower production volumes and unfavorable price variances, particularly in crude oil and natural gas liquids (NGLs). The average sale price for crude oil fell to $61.65 per barrel, a 21% decrease from the previous year, while production volumes also declined due to the sale of 17 operated wells in the D-J Basin.

For the six-month period ending June 30, 2025, PEDEVCO reported a net loss of $1.54 million compared to a net income of $3.45 million in the same period of 2024. Total revenues for the first half of 2025 were $15.71 million, down 21% from $19.93 million in the prior year. The decline in revenue was primarily driven by a $5.15 million decrease in crude oil sales, reflecting both lower production and reduced prices. The company’s operational expenses for the first half of 2025 increased slightly to $17.45 million, compared to $16.68 million in the previous year, largely due to higher general and administrative costs.

In terms of strategic developments, PEDEVCO has been active in optimizing its asset portfolio. The company entered into a joint development agreement in February 2025 with a private equity-backed operator to expand its Roth and Amber drilling units in Colorado, receiving $1.7 million in the process. Additionally, PEDEVCO sold its operated production in Weld County, Colorado, for $606,000, which included a gain of $1.02 million on the sale of oil and gas properties. The company also acquired approximately 63 net mineral acres and 224 net lease acres in the D-J Basin, further consolidating its position in the region.

Operationally, PEDEVCO's total current assets increased to $17.59 million as of June 30, 2025, compared to $13.22 million at the end of 2024. The company’s cash and cash equivalents rose to $8.47 million, up from $4.01 million at the end of the previous fiscal year. However, total liabilities also increased to $16.17 million from $12.75 million, reflecting higher accounts payable and accrued expenses. The company’s working capital surplus improved to $7 million, indicating a stronger liquidity position compared to $6.3 million at the end of 2024.

Looking ahead, PEDEVCO anticipates sufficient cash flow to support its operations and development plans for the remainder of 2025. The company expects to fund its estimated capital expenditures of $27 million to $33 million through a combination of operational cash flow, existing cash reserves, and potential equity offerings. PEDEVCO remains focused on optimizing its existing assets while exploring additional acquisition opportunities that align with its strategic goals in the oil and gas sector.