Pedevco (UD1) AI Stock Analysis

Pedevco

(Frankfurt:UD1)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Conservative Balance SheetExtremely low leverage reduces refinancing pressure and preserves financial flexibility for development spending. The materially larger equity base provides support for the asset portfolio, allowing PEDEVCO to pursue growth with less balance-sheet strain than a highly indebted E&P company.

Negative Factors

Unstable Profitability and Cash ConversionRecent losses and inconsistent free cash flow reduce confidence that reported growth will translate into durable earnings and internally funded investment. This volatility leaves results more sensitive to operating execution and the cyclical economics of oil and gas production.

Pedevco (UD1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 221.18M
Dividend Yield: ―
Average Volume (3M): ―
Price to Earnings (P/E): -4.3
Beta (1Y): -0.42
Revenue Growth: 206.18%
EPS Growth: -311.45%
Country: Germany
Employees: 25
Sector: Energy
Sector Strength: 65
Industry: Oil & Gas Exploration & Production

Pedevco Business Overview & Revenue Model

Company Description

PEDEVCO Corp. is an oil and gas company primarily engaged in the acquisition, development, and production of hydrocarbon resources throughout the United States. As of December 31, 2021, the company owned approximately 32,870 net acres in New Mexico's...

Pedevco Earnings Call Summary

Earnings Call Date:Aug 12, 2026(Q2-2026)|% Change Since:47.52%|Next Earnings Date:May 14, 2025

Earnings Call SentimentPositive

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.

Positive Updates

Significant Revenue and EBITDA Growth

Q2 revenue of $46.1 million, up 561% year-over-year (from $7.0M) and ~15% sequentially; Q2 adjusted EBITDA of $18.7 million (Q1: $18.1M), and first-half adjusted EBITDA of $36.8M. GAAP net income of $17.5M, or $1.31 per share, versus a net loss of $1.7M in Q2 2025.

Negative Updates

Sequential Production Decline

Production declined ~16% quarter-over-quarter as D-J Basin wells that peaked early in 2026 followed natural decline curves. July production was lower than initially expected due to temporary shut-ins and accelerated optimization work.

Company Guidance

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.

Pedevco Risk Analysis

Pedevco disclosed 5 risk factors in its most recent earnings report. Pedevco reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory2
Production2
Macro & Political1

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.There have been no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Commission on March 31, 2026 (the “Form 10-K”), under the heading “Item 1A. Risk Factors”, except as discussed below, and investors are encouraged to review such risk factors in the Annual Report and below, prior to making an investment in the Company. Any of these factors, in whole or in part, could materially and adversely affect the Company’s business, financial condition, operating results and stock price.Q2, 2026

2.Our actual future production may be significantly higher or lower than we estimate at the time we enter into derivative contracts for the relevant periodQ2, 2026

3.If oil, natural gas and NGL prices remain depressed for extended periods, decline materially from current levels, or if we experience significant lease expirations without replacement or development, we may be required to record additional material write-downs of both proved and unproved properties.Q2, 2026

Pedevco Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

DE:UD1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KGEI	75Outperform	$258.13M	13.21	9.33%	―	24.79%	0.31%
EPSN	72Outperform	$195.63M	-32.98	-2.92%	3.87%	53.71%	-204.13%
Sector *	65Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
EPM	57Neutral	$154.45M	-51.21	-3.80%	12.63%	0.59%	-345.77%
AMPY	52Neutral	$177.02M	8.54	5.13%	―	-23.70%	30.67%
EP	51Neutral	$109.83M	-1.28	-474.82%	―	-9.01%	-293.99%

* Energy Sector Average

Performance Comparison

DE:UD1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:UD1	Pedevco Corp	14.28	3.88	37.31%
EPM	Evolution Petroleum	3.80	-0.13	-3.38%
AMPY	Amplify Energy Corp.	4.27	-0.41	-8.76%
KGEI	Kolibri Global Energy Inc.	7.18	2.94	69.34%
EPSN	Epsilon Energy Ltd.	6.46	1.80	38.72%
EP	Empire Petroleum Corporation	2.64	-0.41	-13.39%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Pedevco AI Stock Analysis