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DATE
Thursday, Aug. 13, 2026, at 5 p.m. ET
CALL PARTICIPANTS
- Elevate IR-Laurent Weil
- President and Chief Executive Officer-Doug Schick
- Chief Operating Officer-R.T. Dukes
- Chief Financial Officer-Bobby Long
TAKEAWAYS
- Revenue -- $46.1 million, a 561% increase year over year, driven by higher sales volumes following the Juniper merger and higher realized pricing.
- Net Income -- $17.5 million, representing $1.31 per share, compared to a net loss of $1.7 million in the prior year period.
- Adjusted EBITDA -- $18.7 million, increasing 516% year over year and 3% sequentially, reflecting the expanded production base.
- Average Daily Production -- 6,801 BOE per day, a 348% increase year over year but a 16% sequential decline.
- Total Production -- 618,912 BOE, comprising 450,607 Bbls of crude oil, 512,805 Mcf of natural gas, and 82,838 Bbls of NGLs.
- Realized Oil Price -- $94.07 per barrel, representing a 53% increase versus the second quarter of 2025.
- Realized Natural Gas Price -- $2.10 per Mcf, a 22% decrease compared to the prior year period.
- Realized NGL Price -- $31.98 per barrel, a 22% increase year over year.
- Lease Operating Expense -- $16.4 million, remaining essentially flat with the first quarter on an absolute basis while increasing year over year due to the expanded asset footprint.
- General and Administrative Expense -- $3.4 million, a 101% increase year over year, driven by additional payroll and higher legal and audit costs associated with company growth.
- Depreciation, Depletion, and Amortization -- $10.2 million, up $6.3 million year over year due to higher production and a larger asset base.
- Interest Expense -- $2.0 million, including $1.8 million in credit facility interest and $0.2 million in amortization of deferred financing costs.
- Derivative Contract Income -- $5.0 million, reflecting a $13.1 million unrealized mark-to-market gain that offset $8.1 million in realized settlement losses.
- Credit Facility Debt -- $85 million, a $13 million reduction from $98 million at the end of the first quarter as the company accelerated repayments.
- Net Funded Debt -- Approximately $73 million, when adjusted for the cash balance at quarter's end.
- Working Capital Deficit -- $8.6 million, excluding derivative contracts, representing a reduction from $34.1 million at the end of 2025.
- Adjusted EBITDA Guidance -- $60 million to $70 million for the full year 2026, supported by $36.8 million generated in the first half of the year.
- Development Inventory -- Over 20 gross wells, planned for drilling or participation across the asset base during the remainder of the year.
- D-J Basin Acreage -- Approximately 88,605 net acres, containing interests in 74 gross operated and 110 gross non-operated wells.
- Powder River Basin Acreage -- Approximately 202,100 net acres, including interests in 156 gross wells with stable production.
- Permian Basin Acreage -- Approximately 14,505 net acres, with interests in 38 gross wells providing a stable production base.
- Cash and Restricted Cash -- $12.1 million, providing liquidity to support the upcoming second-half development program.
- Capital Expenditures -- $20 million paid for drilling and completion costs during the first six months of 2026.
- Operating Income -- $15.4 million, more than doubling sequentially from $6.7 million in the first quarter.
- Shares Outstanding -- 13.3 million shares, as of June 30, 2026, following the 1-for-20 reverse stock split.
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RISKS
- Dukes stated, "July production was lower than initially expected," because of temporary shut-ins related to completion activities and the acceleration of optimization projects.
- Schick warned that in the D-J Basin, "permitting is the biggest bottleneck," which impacts the pace at which wells can be brought to development.
- Schick indicated that in the Powder River Basin, drilling is restricted by seasonal stipulations "to where you can only drill at certain times of the year."
SUMMARY
PEDEVCO (PED -1.51%) management reported that the second-quarter results reflected the expanded scale of the asset base following the October 2025 merger. The company transitioned its capital allocation strategy from debt reduction and working capital stabilization toward an active development program. This shift was supported by the resolution of environmental litigation in Wyoming and the stabilization of the balance sheet. Management indicated that operational focus has centered on field optimization projects intended to reduce recurring costs. The company stated that it intends to fund its enhanced drilling activities through internal cash flow while maintaining a target leverage profile.
- Dukes indicated that the company pulled forward its optimization program into the summer "to beat worse weather in the winter" and trade off earlier costs for durable long-term savings.
- Schick noted that the development program expansion was possible because "litigation issues in Wyoming opened up, which brought in a few projects that we didn't have the ability to do earlier in the year."
- Management reported that it identified near-term projects after performing "months of asset analysis, permitting and development planning" following the close of the merger.
- Schick reported that the company achieved a debt-to-EBITDA ratio of "about 1x," representing a reduction from 1.6x immediately following the merger.
- Long explained that the unrealized mark-to-market gain of $13.1 million on derivative contracts was an accounting entry rather than a cash inflow.
INDUSTRY GLOSSARY
- BLM: Bureau of Land Management, a federal agency responsible for managing public lands and mineral rights.
- BOE: Barrels of oil equivalent, a unit of energy that combines oil and natural gas volumes based on their energy content.
- D-J Basin: Denver-Julesberg Basin, a hydrocarbon-producing geological formation in the Rocky Mountain region.
- DUC: Drilled but uncompleted well, a well that has been drilled but has not yet undergone hydraulic fracturing or completion for production.
- EBITDA: Earnings before interest, taxes, depreciation, and amortization.
- LOE: Lease operating expense, the costs required to operate and maintain wells and related equipment.
- Mcf: Thousand cubic feet, a standard unit of measure for natural gas volume.
- NGL: Natural gas liquids, hydrocarbons such as ethane, propane, and butane that are separated from natural gas.
- PRB: Powder River Basin, a major coal and oil-producing region in Wyoming and Montana.
- 3-Way Collar: A derivative strategy used to hedge commodity prices, involving the purchase of a put option and the sale of a call option and a lower-priced put option.
Full Conference Call Transcript
Operator: Good afternoon, and welcome to PEDEVCO Corp's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Laurent Weil of Elevate IR. Please go ahead.
Laurent Weil: Thank you, operator, and good afternoon, everyone. Welcome to PEDEVCO's Second Quarter 2026 Earnings Call. With me today are Doug Schick, President and Chief Executive Officer; R.T. Dukes, Chief Operating Officer; and Bobby Long, Chief Financial Officer. Before we begin, I'd like to remind everyone that today's discussion includes forward-looking statements within the meaning of the federal securities laws subject to risks and uncertainties that could cause actual results to differ materially from expectations. For more information, please refer to our Second Quarter 2026 Form 10-Q and other SEC filings. The company undertakes no obligation to update or revise any forward-looking statements.
During today's call, we will discuss certain non-GAAP financial measures, including adjusted EBITDA and working capital, excluding derivative contract assets and liabilities. Reconciliations to the most directly comparable GAAP measures are available in