PEDEVCO Corp. (PED)

PEDEVCO Corp. (PED) Energy Operations & Outlook

PEDEVCO Corp. (PED) specializes in the acquisition, development, and production of oil and natural gas assets in the U.S., with a strategic focus on the Permian and Denver-Julesberg Basins, positioning itself as a nimble player in the competitive energy sector.

What Is the Investment Thesis for PED?

PEDEVCO Corp. presents a unique investment thesis characterized by its strategic asset holdings in the high-potential Permian and D-J Basins. With a market capitalization of $55.52M, the company is positioned to benefit from the ongoing recovery in oil prices and increased demand for natural gas. The company’s gross margin of 23.4% indicates a focus on operational efficiency, although its profit margin remains negative at -46.8%, highlighting challenges in cost management. Key growth catalysts include the potential for increased production from its existing wells and the acquisition of additional acreage in strategic locations. Additionally, the company's relatively low beta of 0.27 suggests less volatility compared to the broader market, which may appeal to risk-averse investors. However, investors should remain cognizant of the inherent risks in the oil and gas sector, including commodity price fluctuations and regulatory changes, which could impact profitability and operational stability.

Based on FMP financials and quantitative analysis

PED Key Highlights

• Market Cap of $55.52M, indicating a small-cap status in the energy sector.
• Gross Margin of 23.4%, reflecting the company's ability to manage production costs effectively.
• Profit Margin of -46.8%, highlighting challenges in achieving profitability.
• Operates 385 net wells in the Permian Basin, showcasing significant production capabilities.
• Holds approximately 32,870 net acres in the Permian Basin and 11,580 net acres in the D-J Basin.

Who Are PED's Competitors?

PED is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are PED's Key Strengths?

• Strategic asset holdings in the Permian and D-J Basins.
• Experienced management team with industry expertise.
• Potential for increased production from existing wells.

What Are PED's Weaknesses?

• Negative profit margin indicating challenges in profitability.
• Limited scale compared to larger competitors.
• Dependence on commodity prices for revenue generation.

What Could Drive PED Stock Higher?

• Increased production capabilities from existing wells in the Permian Basin.
• Development of strategic partnerships to enhance operational efficiency.
• Potential acquisitions to expand asset holdings and market presence.

What Are the Key Risks for PED?

• Financial-distress signal — its Altman Z-Score of -0.47 sits in the distress zone (elevated bankruptcy risk).
• Negative return on equity (-23.1%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Fluctuations in commodity prices impacting revenue and profitability.
• Regulatory changes that may affect operational costs.
• Competition from larger companies with more resources.

What Are the Growth Opportunities for PED?

• Expansion in the Permian Basin: PEDEVCO Corp. holds approximately 32,870 net acres in the Permian Basin, one of the most prolific oil-producing regions in the U.S. The ongoing technological advancements in extraction methods are expected to enhance production efficiency, potentially increasing output from existing wells. The Permian Basin is projected to see continued investment, with the U.S. Energy Information Administration forecasting production growth through 2026, providing PEDEVCO with opportunities to capitalize on rising demand.
• Development of D-J Basin Assets: With 11,580 net acres in the Denver-Julesberg Basin, PEDEVCO Corp. is well-positioned to leverage the growing natural gas market. The D-J Basin has seen increased drilling activity and investment, driven by favorable pricing dynamics and demand for natural gas in domestic and export markets. As the energy transition continues, natural gas is expected to play a crucial role, offering PEDEVCO an avenue for growth.
• Strategic Acquisitions: PEDEVCO Corp. can pursue strategic acquisitions to expand its asset base and enhance production capabilities. The company’s affiliation with SK Energy LLC may provide access to additional resources and capital for potential acquisitions. The oil and gas sector is witnessing consolidation, and PEDEVCO could benefit from acquiring undervalued assets or companies to strengthen its market position.
• Technological Advancements: The implementation of advanced drilling technologies and data analytics can significantly improve operational efficiency and reduce costs. PEDEVCO Corp. can invest in innovative technologies to optimize its drilling and production processes, potentially increasing recovery rates and profitability in the long term. The adoption of such technologies is becoming increasingly critical in maintaining competitiveness in the energy sector.
• Increased Global Energy Demand: As global economies recover from the impacts of the COVID-19 pandemic, energy demand is expected to rise. PEDEVCO Corp. can capitalize on this trend by ramping up production and optimizing its existing assets to meet the growing needs of both domestic and international markets. The company's strategic positioning in key basins places it in a favorable position to benefit from the anticipated increase in energy consumption.

What Opportunities Does PED Have?

• Expansion of production capabilities through technological advancements.
• Potential acquisitions to strengthen market position.
• Rising global energy demand creating favorable market conditions.

What Threats Does PED Face?

• Volatility in commodity prices impacting revenue.
• Regulatory changes affecting operational costs and practices.
• Competition from larger, more established companies in the sector.

What Are PED's Competitive Advantages?

• Significant acreage in highly productive basins, providing a competitive edge.
• Established operational expertise in oil and gas exploration and production.
• Affiliation with SK Energy LLC, offering additional resources and support.

What Does PED Do?

Founded in 2011, PEDEVCO Corp. is an oil and gas exploration and production company headquartered in Houston, Texas. The company has established itself in the energy sector by focusing on the acquisition, development, and production of oil and natural gas assets across the United States. As of December 31, 2021, PEDEVCO held approximately 32,870 net acres in the Permian Basin, located in Chaves and Roosevelt Counties, New Mexico, and around 11,580 net acres in the Denver-Julesberg (D-J) Basin in Weld and Morgan Counties, Colorado. The company's operational footprint includes interests in 385 net wells in the Permian Basin and 78 net wells in the D-J Basin, showcasing its commitment to enhancing production capabilities in these prolific oil-producing regions. PEDEVCO is a subsidiary of SK Energy LLC, which provides it with additional support and resources to navigate the complexities of the oil and gas market. The company's strategic focus on these two key basins positions it well to capitalize on the ongoing demand for energy resources in the U.S. and reflects its dedication to maximizing shareholder value through effective asset management and operational efficiency.

What Products and Services Does PED Offer?

• Acquire oil and natural gas assets in the United States.
• Develop and produce oil and natural gas from its holdings.
• Operate in key oil-producing regions, including the Permian and D-J Basins.
• Manage interests in multiple net wells across its asset base.
• Focus on maximizing operational efficiency and production capabilities.
• Engage in strategic planning for future growth and development.

How Does PED Make Money?

• Generate revenue through the sale of produced oil and natural gas.
• Leverage asset holdings in high-demand regions for operational profitability.
• Utilize advanced technologies to enhance production efficiency and reduce costs.
• Engage in strategic acquisitions to expand asset base and market presence.

What Industry Does PED Operate In?

The oil and gas exploration and production industry is characterized by significant volatility, influenced by global commodity prices, geopolitical factors, and regulatory changes. The U.S. market has seen a resurgence in production due to advancements in extraction technologies and increased demand for energy resources. PEDEVCO Corp. operates within this dynamic environment, focusing on key regions such as the Permian and D-J Basins, which are among the most productive oil fields in the country. The industry is expected to continue evolving, with increasing emphasis on sustainability and energy transition, presenting both challenges and opportunities for companies like PEDEVCO.

Who Are PED's Key Customers?

• Oil refineries and petrochemical companies.
• Natural gas distribution companies.
• Industrial users of natural gas and oil products.
• Export markets for crude oil and natural gas.

ROE -23%Key Financial Metrics

Return on equity for PEDEVCO Corp. stands at -23.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -9.8%, showing how much profit it generates from its asset base. Its free cash flow yield is -13.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.68 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -37.5%, the inverse of the P/E and a quick read on earnings relative to price.

PEDEVCO Corp. (PED) Valuation Context

Valued at $55.52M, PED is classified as a micro-cap stock. Relative to its peer group, PED's quantitative score of 22/100 is below the peer average of 62/100.

Company Profile

PEDEVCO Corp. operates in the Oil & Gas Exploration & Production industry within the Energy sector. It is headquartered in Houston, US. The company is led by CEO John Douglas Schick. PED has traded publicly since 2003.

F-Score 3/9Financial Health

PEDEVCO Corp.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -0.47 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project PEDEVCO Corp. revenue of about $140.4M for fiscal 2026, with EPS near $-0.52.

PED Financials

PED Latest News

PED Analyst Consensus

PED MoonshotScore

PEDEVCO Corp. Energy Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources