Stonegate Initiates Coverage on PEDEVCO, Sees 35% FY25 Output Boost

Stonegate Capital Partners sees optimization potential to cut PEDEVCO's lease operating expenses by up to $1 million per month.

Apr. 7, 2026 at 8:36pm

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A close-up view of various oil and gas extraction equipment and machinery, including pumps, valves, and pipes, all in shades of steel gray, black, and chrome, conveying a sense of industrial power and mechanical precision.PEDEVCO's expanded asset base and production following the Juniper merger is reflected in the company's heavy industrial machinery and equipment.Dallas Today

Stonegate Capital Partners has initiated coverage on PEDEVCO Corp. (NYSE: PED), noting the company exited fiscal year 2025 as a much larger, oil-weighted Rockies platform following its merger with Juniper. PEDEVCO's fiscal 2025 production increased 35% year-over-year to 910.1 Mboe (2,494 Boe/d), while revenue rose 16% to $45.8 million and adjusted EBITDA increased 18% to $27.0 million despite a 19% decline in realized crude oil prices.

Why it matters

The report highlights PEDEVCO's growth potential following the Juniper merger, which expanded its asset base and production. Stonegate sees opportunities to further optimize operations and reduce lease operating expenses, which could drive significant margin expansion.

The details

In the fourth quarter of fiscal 2025, the first quarter reflecting the combined platform, PEDEVCO's production increased 143% year-over-year to 483.2 Mboe (5,310 Boe/d), revenue more than doubled to $23.1 million, and adjusted EBITDA nearly tripled to $15.4 million. However, the quarter only included two months of acquired contribution, so management emphasized that the normalized earnings power is the better lens. PEDEVCO now has 32.1 MMBoe of proved reserves, $357.7 million PV-10, and over 1,000 locations beyond proved reserves. Stonegate believes $10 million to $13 million of optimization work could reduce lease operating expenses by up to $1 million per month, supporting meaningful margin upside.

  • PEDEVCO exited fiscal year 2025 with the Juniper merger complete.
  • In the fourth quarter of fiscal 2025, the first quarter reflecting the combined platform, PEDEVCO's production, revenue, and adjusted EBITDA all saw significant increases year-over-year.

The players

PEDEVCO Corp.

An oil and gas company focused on the Rockies region.

Stonegate Capital Partners

A leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies.

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The takeaway

PEDEVCO's merger with Juniper has significantly expanded its asset base and production, and Stonegate sees opportunities to further optimize operations and reduce costs, which could drive meaningful margin expansion for the company.