PEDEVCO Corp., a publicly traded energy company engaged in the acquisition and development of strategic oil and gas assets in the Rocky Mountain region, reports unaudited financial results for the first quarter ended March 31, 2026.

• First quarter 2026 production increased 374% to 728,141 Boe (average 8,091 Boe/d), compared to 153,631 Boe (1,707 Boe/d) in the first quarter of 2025, reflecting the first full quarter contribution from the acquired asset base and wells brought online around the transformative merger with certain portfolio companies controlled by Juniper Capital Advisors, L.P. (the “Juniper Merger”) on October 31, 2025, including stronger-than-expected well performance.
• Oil and gas revenue increased 360% to $40.2 million, compared to $8.7 million in the prior year period, driven by significantly higher production volumes.
• First quarter 2026 net loss of $(25.6) million, or $(3.28) per share, compared to net income of $0.1 million, or $0.03 per share, in the first quarter of 2025, primarily driven by a $31.3 million non-cash net loss on derivative contracts, including $3.4 million of realized losses and $27.9 million of unrealized losses.
• Adjusted EBITDA increased 404% to $21.5 million, compared to $4.3 million in the first quarter of 2025, reflecting higher production volumes from the expanded asset base and development activity, partially offset by higher lease operating expenses and production taxes associated with increased scale.
• Net cash provided by operating activities increased 78% to $10.5 million for the first quarter of 2026, compared to $5.9 million in the first quarter of 2025, driven by higher operating income and cash margins resulting from increased production volumes, partially offset by changes in working capital.

J. Douglas Schick, President and Chief Executive Officer of PEDEVCO, commented:
“Our first full quarter as a combined company following the Juniper Merger delivered results ahead of our internal expectations, which we believe speaks to the outstanding potential of the combined Company’s assets. Production averaged approximately 8,091 Boe per day in the first quarter, driven by strong initial production rates from the 31 D-J Basin development wells that came online in late Q4 2025. This outperformance validates the quality of our asset base and the strength of the development program underway at the time of the merger.”

“Beyond production outperformance, the combined platform also achieved several of the merger’s key objectives well ahead of schedule. Notably, we delivered Adjusted EBITDA of $21.5 million and oil and gas revenue of $40.2 million, both exceeding our expectations and further reflecting the operating strength of the combined business in the quarter. We also significantly improved our liquidity by reducing our working capital deficit3, which primarily reflects the clearing of development CAPEX and merger-related payables incurred but not yet paid at year-end. In addition, through efficient integration of our merged asset base, we held total lease operating expense, inclusive of recurring and non-recurring lease operating expense, workovers, gathering, processing and transportation expenses, and severance and ad valorem taxes, steady on a per-Boe basis at approximately $22.46, essentially flat year-over-year.”  

“As we look forward through the remainder of 2026, we want to set clear expectations on the cadence of production and our plans moving forward. First quarter production benefited from the timing of D-J Basin wells brought online in Q4 2025, and we expect production to normalize through the middle quarters before our second-half development activity is expected to support incremental volumes in late 2026 and into 2027. Relating to development, as noted previously, we have identified over 1,000 well locations on our existing acreage, which we believe provides us one of the largest inventories in the industry relative to our size. We are making great progress on our bottoms-up evaluation of our inventory, which will drive our development plans in the future. We are confident we will meet or exceed our full-year guidance of 6,500 to 7,000 Boe per day, and $60 to $70 million of Adjusted EBITDA, based on $16 to $20 million of net capital expenditures. Through the remainder of 2026, our current plans include the completion of a drilled but uncompleted well in the Wyoming D-J Basin in the coming months, and we could also choose to drill additional operated wells and/or participate in other third-party wells this year. We remain committed to leveraging our strong balance sheet and partnerships to grow production, revenue, cash flow, and profit, as well as increase our asset base for the benefit of our shareholders.”

First Quarter Financial Summary

Revenue. Total crude oil, natural gas and NGL revenues for the three-month period ended March 31, 2026, increased 360%, to $40.2 million, compared to $8.7 million for the prior year period. The increase was primarily driven by higher production volumes reflecting a full quarter of consolidated production from the assets acquired in the Juniper Merger, compared to no contribution from those assets in the prior year period.

Lease Operating Expenses. LOE increased $12.9 million, or 380%, to $16.4 million, primarily as a result of a full quarter of operating costs from the acquired assets, compared to no contribution from those assets in the prior year period, as the Juniper Merger closed on October 31, 2025.

General and Administrative Expenses. Total G&A expense (including share-based compensation) increased $1.5 million, or 95%, to $3.1 million, reflecting the addition of employees and related compensation costs in connection with the Juniper Merger.

Depreciation, Depletion, Amortization and Accretion. DD&A increased $9.1 million, or 272%, to $12.5 million, driven by higher production volumes and a significantly expanded asset base following the Juniper Merger.

Loss on Derivative Contracts. The Company recognized a total net loss of $31.3 million on derivative contracts, consisting of $3.4 million in realized losses and $27.9 million in non-cash unrealized mark-to-market losses, reflecting the impact of higher commodity prices relative to the Company's hedge book.

Interest Expense. The Company incurred $2.0 million of interest expense, consisting of $1.8 million in interest on borrowings under its credit facility and $0.2 million in amortization of deferred financing costs, compared to no interest expense in the prior year period as the Company carried no debt prior to the Juniper Merger.

Net (Loss) Income. The Company reported a net loss of $25.6 million, or $(3.28) per common share, for the three months ended March 31, 2026, compared to net income of $0.1 million, or $0.03 per share, for the prior year period. The increase in net loss was primarily attributable to the $31.3 million net loss on derivative contracts, the majority of which was non-cash and reflects mark-to-market accounting on the Company's hedge book rather than underlying operating performance.

Adjusted EBITDA. Adjusted EBITDA was $21.5 million for the three months ended March 31, 2026, compared to $4.3 million in the prior year period, reflecting a significant increase driven by higher production volumes from a full quarter of contribution from the assets acquired in the Juniper Merger.

Operational Update

The Company delivered strong operational performance in the first quarter of 2026, with consolidated production outperforming the Company’s internal plan and lease operating expense (“LOE”) tracking at or below budget in our operating regions. The Company continued to identify cost savings and operational efficiencies across its asset base, which are expected to support continued performance through the balance of the year.

D-J Basin. The Company holds approximately 89,784 net acres and holds interests in 74 gross (66.9 net) operated wells, and 110 gross (12.5 net) non-operated wells, in the D-J Basin. Operated D-J Basin production performed ahead of the Company’s internal plan during the first quarter. The Company continued to identify cost savings and operational efficiencies across the asset, including ongoing initiatives related to its lift conversion program and field-level service contracts that are expected to support reduced lease operating expense as the year progresses. On the non-operated side of the D-J Basin, production also outperformed plan, with new wells coming online stronger than originally forecast. The Company incurred $3.8 million of capital expenditures related to completion activities for 10 non-operated wells with working interests ranging from 1.1% to 6.3%. The Company also recorded a $1.6 million non-cash impairment related to undeveloped leases representing 3,660 net acres in the D-J Basin that were allowed to expire where we have no near-term development plans.

Powder River Basin (“PRB”). The Company holds approximately 202,100 net acres and holds interests in 156 gross (135.4 net) wells in the PRB, of which 16 gross (1.4 net) are non-operated. PRB production outperformed the Company’s internal plan during the first quarter, with no major downtime or operational issues during the quarter and the asset benefiting from a relatively mild winter. There was no operated drilling or completion activity during the first quarter; the Company continues to evaluate its inventory of development opportunities across its substantial PRB position.

Permian Basin. The Company holds approximately 14,505 net acres and holds interests in 38 gross (34.5 net) wells in the Permian Basin, all of which the Company operates. In the first quarter, the Company delivered its internal LOE budget for the area while maintaining production. The Company continued to improve operational efficiency by accelerating lift conversions, thereby reducing operating costs ahead of schedule. The Company continues to evaluate optimization and development opportunities for the back half of 2026 to enhance returns from this position.

KeyFacts Energy Industry Directory: PEDEVCO Corp