Pedevco (UD1) Q2 2026 Earnings Report

The call highlights strong year-over-year growth in revenue and EBITDA driven by the merger and higher realized oil prices, meaningful balance sheet improvements (debt reduction, cash on hand, availability), and actionable near-term development and optimization programs enabled by permitting wins. Offsetting items include a sequential production decline, higher per-unit LOE until optimization takes effect, realized hedge-related cash outflows, and higher G&A and non-cash charges. Management reiterated full-year adjusted EBITDA guidance and emphasized financial discipline and a prioritized capital allocation framework.

PEDEVCO reiterated full‑year 2026 adjusted EBITDA guidance of $60–70 million after generating $36.8 million of adjusted EBITDA in H1 (Q2 adjusted EBITDA $18.7M) on Q2 revenue of $46.1M (up 561% YoY from $7M and ~15% sequentially) and Q2 production of 618,912 BOE (~6,800 BOE/d); management cited an average realized oil price of $94.07/bbl, operating income of $15.4M, LOE of $16.4M, G&A $3.4M, DD&A $10.2M, and $5M net derivative income (comprised of $8.1M realized losses and a $13.1M unrealized gain). The company finished the quarter with ~$12.1M cash, reduced revolver borrowings to $85M (a $13M repayment), approximately $73M net funded debt, $40M available on the facility, ~13.3M shares outstanding (post 1-for-20 reverse split), and plans to drill/participate in over 20 gross wells (expanded program expected to contribute late 2026/early 2027) across its >300,000 net acre position (D‑J ~88k, Powder River ~202k, Permian ~14.5k) while maintaining disciplined capital allocation.