PEDEVCO Dips on Q3 Loss as Focus Shifts to Post-Merger Growth
Energy firm's 13% production dip and revenue miss are overshadowed by a transformative deal set to quadruple its daily output.
PEDEVCO Corp. (NYSE: PED) saw its shares dip in Monday trading after the energy producer reported a swing to a net loss for the third quarter, driven by a double-digit decline in production. The backward-looking results, however, were largely overshadowed by a transformative merger completed just after the quarter's end, which is poised to fundamentally reshape the company's scale and strategic focus.
For the third quarter, the Houston-based company announced revenues of $7.0 million, an 8.6% miss against estimates and a 23% decrease from the same period last year. The company swung to a net loss of approximately $325,000, a stark reversal from the $2.9 million in net income reported in the prior-year quarter. The results were primarily impacted by a 13% year-over-year fall in production to 1,471 barrels of oil equivalent per day (BOEPD), according to its latest operational update.
While the quarterly figures reflect the company's past operational footprint, investors and analysts are now focused on a much larger entity. On October 31, 2025, PEDEVCO closed a significant merger with portfolio companies of Juniper Capital Advisors, L.P. This transaction repositions PEDEVCO as a premier operator in the Rockies, dramatically increasing its production and acreage.
The scale of the transformation is substantial. The merger is expected to boost PEDEVCO’s output to over 6,500 BOEPD—more than four times its Q3 production rate. According to a press release on the merger's closing, the combined entity will hold approximately 328,000 net acres across the DJ and Powder River Basins, providing a deep inventory of future drilling locations.
Shares of the company traded down around 1.1% to $0.57 in Monday's session, a relatively muted reaction suggesting the market is weighing the weak legacy results against the future potential of the newly combined company. The stock is currently trading closer to its 52-week low of $0.47.
The deal provides PEDEVCO with immediate growth catalysts. The company noted that 32 new wells are either recently completed or are slated for completion in late 2025 and early 2026. These wells are expected to drive material production growth in the coming months, offering the first tangible results of the new corporate structure.
The strategic pivot comes as small-cap energy producers navigate a challenging landscape of volatile commodity prices and increasing regulatory pressures in key basins. By gaining scale, PEDEVCO aims to improve operational efficiencies and establish a more resilient platform for growth, both organically and through potential bolt-on acquisitions.
Despite the soft quarterly performance, the company's forward outlook has support from some analysts. Current ratings show a 'Buy' consensus with a price target of $1.50, implying significant upside from its present valuation and indicating a belief that the benefits of the Juniper deal will far outweigh the recent weakness. For investors, the focus now shifts from PEDEVCO's past performance to its ability to successfully integrate the new assets and execute on its expanded drilling program in the Rockies.